Latest Release of Misys Kondor+ 3.3 Supports Changes in Market Practice and Regulation

6 December 2012

New functionality has been fast tracked into Kondor+ 3.3 to enable banks to meet deadlines for multiple changes in market practice and regulatory reporting.

Market-leading trade and risk management solution Kondor+ has been augmented by a raft of new features to support post-crisis changes in market practice and regulation. The latest release of Kondor+ provides even stronger support for global treasury operations, as well as incorporating a sophisticated e-Trading capability, which enables banks to offer a quality service to subsidiaries, branches and clients – all from a single platform.

In such a fast-changing environment, it is important for banks to work closely with their solution suppliers to meet the new market and regulatory imperatives, not just with a quick fix, but with a thoroughness that will stand them in good stead for the future. The latest release of Kondor+ is testament to this, with Misys working in collaboration with customers in responding to the significant shifts in market practice. The result is a package of new functionality, delivered promptly yet with a breadth and depth of coverage second to none in the market today.

In response to the move away from the single-curve pricing methodology, Kondor+ now includes a multiple curves framework, enabling banks to build dedicated forward curves per underlying tenor, using all of the relevant market data (deposits, futures, FX points, FRAs, swaps, single-currency basis swaps and cross-currency basis swaps). The new module enables CSA agreements to be used as a parameter to assign different funding curves depending on whether trades are collateralised or not (Libor versus OIS discounting). This includes instances where a CSA currency is different from the deal currency. The new functionality means that banks are able to isolate and manage risks across all of the different market risk factors that are used to build the curves

The latest release also incorporates support for forward premium quotations, the new market-led way of discounting swaptions and FX OTC options, by moving from spot to forward premiums.

In recognition of the new regulatory requirements for Credit Value Adjustment (CVA) coming into force on 1st January 2013 under Basel III, Kondor+ provides the ability to map CVA charges calculated at enterprise level through to the individual trade, incorporating them in P&L calculations and providing the transparency and ‘drill-down’ that is vital today.

Treasury operations today are characterized by around-the-clock trading. This can cause complexity and increase costs. Kondor+ 3.3 enables financial institutions to manage and consolidate all of their global trading activities on a single platform, including global position-keeping and risk management as well as ‘follow-the-sun’ trading. This allows them to decommission local installations, so reducing total cost of ownership (TCO).

In addition to this, a new e-Trading front-end has been developed to distribute treasury services to the branch, allowing banks to leverage their existing investment in Kondor+, and make its extensive capabilities available to branches and clients as a web-based service. Branches are empowered with the tools they need to design, price and trade new products immediately, allowing them to respond to market opportunities more rapidly. Use of a single system leads to increased STP, so reducing operational risk, while control is retained with compliance checking for limits, risk and collateral fully integrated.

For financial institutions participating in the developing markets, Kondor+ 3.3 is the ideal choice to support their operation, being easy to install on a ‘plug and play’ basis and delivering coverage of local conventions in emerging markets such as Brazil, Chile, Colombia, Mexico, Russia, Thailand, Vietnam and Australia. Islamic Banking conventions are also included.

Kondor+3.3 uses the latest technologies to ensure the flexibility, openness and levels of performance needed to deliver significant new functionality.

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