NRI Upgrades SYNTAX Product for Banks' Fund Look-Through Processes to Enhance Risk Management

Tokyo - 4 August 2016

The Norinchukin Bank to be one of its first adopters

Nomura Research Institute, Ltd. (NRI), a leading provider of consulting services and system solutions, today has announced the launch of the newest version of its network solution, SYNTAX. This upgrade allows to streamline fund look-through processes and decrease operational risks by systemizing and automating data transfer between asset managers and banks. The Norinchukin Bank will be the first adopter along with additional asset managers starting in December, 2016.

The demands for an efficient look-through process among banks have recently been heightened as banks’ investment funds have doubled for three years. Banks need to manage those funds and their individual stock balance by look-through to comply with Basel III and mitigate internal risks. NRI’s service upgrade ensures a more systemized and effective transfer of look-through data between asset managers and banks, increasing efficiency for both parties.   

By using the enhanced version of SYNTAX, asset managers can automatically disclose investment management data including outstanding balances and stock attributions to specified banks with data categories within a specific disclosure frequency. This automated process can eliminate asset managers’ burden to individually respond to each bank’s request, increasing their operational efficiency.

Banks using the enhanced version can automatically obtain formatted look-through data daily or monthly. Banks can receive the formatted data through a shared system rather than from each individual asset managers, which improves the overall quality of obtained data. As a result, banks can perform higher-level analysis as well as risk management, and can increase their investment fund significantly.

With a combined use of SYNTAX and T-STAR/GX (*1), banks in the near future can be equipped with a database that manages funds data.

“The demands of the industry through technological innovation and ever growing regulatory demands showcase the need for seamless data exchange between asset managers and banks,” said Katsuhiko Fujita, Senior Managing Director of NRI. “We are extremely excited to help lead this development and look forward to working with Norinchukin Bank.” 

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