- Enables banks to address liquidity requirements mandated by Basel III
- Integrated trading and risk management system packages all trade, static and reference data with liquidity monitoring and reporting capabilities
Calypso Technology Inc., the global capital markets platform provider, today announced the launch of a new liquidity management solution that enables global banks and other financial institutions to comply with Basel III standards. The treasury system provides intraday, short-term and long-term liquidity management capabilities in addition to extensive cash management functionality, allowing institutions to address the Basel III liquidity requirements.
The Calypso solution addresses two key challenges facing treasuries today when managing and forecasting liquidity. One is the ability to aggregate cash flows and data from multiple systems and/or business units as the system can capture trade and cash flow data from various sources through its robust interfaces. Another major differentiating benefit is the system’s ability to model all asset classes (including cash and derivatives products) or integrate custom pricing models so that managers can perform market data perturbations or simulate behavioral assumptions into business-as-usual or stressed scenarios.
The Calypso single platform offers treasurers the ability to manage enterprise concerns such as survival horizon, asset liability distortion and intra-day liquidity usage. Apart from producing the required metrics, namely Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), credit line usage ratio, asset maturity mismatches and funding concentration, the Calypso platform also allows treasurers to understand the key significant currencies by running balance sheets at a currency level. The flexibility and architecture of the system enable organizations to align their risk management objectives to the reporting required by Basel III principles. The powerful scenario engine allows stress testing banking products, capital market products and collateral positions and enables smooth management of liquidity risk, both operational and regulatory. The real-time access to nostro and custody positions allows the survival management and intra-day liquidity to work off the same data. With the inventory of the group in its views, the treasury can allocate and manage liquid assets more effectively.
David Little, Director of Strategy and Business Development at Calypso Technology, explains, “As Basel III is implemented over the next few years, the mandate will continue to evolve with increased emphasis on firm-wide risk management and capital planning. Our new solution enables treasurers to comply and manage enterprise concerns. Treasurers and CTOs now have a comprehensive, cross-asset bank treasury system that can help manage all internal and external funding activities and provide real-time assessment of liquidity risks within balance sheets. Calypso Technology is committed to the treasury space and we are excited to be launching this much-needed solution for a growing area of concern for banks.”