ATB has been managing the desk level risk of its derivatives book on the Adaptiv platform since 2006. As the industry becomes more sensitive to the possibility of counterparty defaults, firms are using netting and collateral to mitigate the effect of a default. Adaptivâs newest offerings to ATB will help the firm manage counterparty credit exposure from both a collateral management and a simulation Potential Future Exposure (PFE) perspective, which helps the bank understand its potential exposure to its trading partners and proactively reduce its counterparty risk.
Implementing a flexible and integrated market, credit and collateral management solution will help the firm better manage market and credit risk measures and the associated risk mitigation processing, as well as helping it disseminate that information to numerous internal departments for increased transparency across business silos. Adaptiv is also providing improved reporting capabilities, such as trade level drill down and scenario-based measures that will help provide consistent, up-to-date and accurate information.
Peter Freilinger, treasurer at ATB, said, âWe need the most robust infrastructure to support our management of counterparty credit exposure through collateral netting and PFE simulation. The expertise of SunGardâs Adaptiv team, as well as the technical and functional improvements they have made in the solutionâs calculation speed and result distribution areas, showed us once again that SunGard understands both our business and what we need in order to effectively compete in todayâs changing environment.â
Juerg Hunziker, president of SunGardâs Adaptiv and Front Arena business units, said, âWe work closely with our customers and industry players to understand the latest market developments and develop innovative solutions to help them capitalize on change. That is why so many of our customers choose to expand their relationship with us when new technology requirements arise.â