|The Reuters Solution
Reuters trade and risk management solutions are designed to provide a best fit with your business requirements. We have built on our strength in the front office to address trade and risk management through to the back office, including advanced middle-office functionality for market and credit risk.
Real-time position keeping and desk-top analysis
A profitable and effective trading floor requires real-time information and analytics that empower traders, sales and heads of desk to make informed decisions at speed.
You need a system that supports multiple instruments and is flexible enough to suit your requirements now and in the future. The increasing complexity of dealing room products and the need for multi-channel input requires a front- to back-office solution that covers all asset classes in a single, open trading platform.
Reuters Kondor+ is a front-office system that offers a sophisticated and flexible means of pricing and capturing deals, position keeping and managing risk across all asset classes from cash instruments to complex derivatives. Its wide range of tools provides real-time information and analytics and it has built-in flexibility to define and launch new products quickly and easily.
Integrated front to back office
Financial institutions that want to stay ahead of the competition need to be equipped with intelligent systems and technology that integrate every process surrounding a trade – from order management to final settlement – and are flexible enough to cope with complex derivatives or structured deals.
Reuters Kondor Trade Processing is a system that provides a full range of tools to increase automation across all instruments in the back office. Reuters delivers an integrated front to back office solution through the seamless integration of Reuters Kondor+ with its Trade Processing back office modules. Once a deal is accepted in Reuters Kondor+, all the processes can be automated right through to settlement.
With this solution, you benefit from a single, open infrastructure that has excellent integration capabilities and rich functionality built into the dedicated front and back office systems. You can reduce operational risk across the trade process while sharing all relevant data. There are strict regulations built in to ensure separate front-office and back-office access, with comprehensive tools for double validation and risk control.
In addition, industry standard middleware adapters and embedded technology facilitate business process and workflow management, and include exception-handling for manual intervention where required.
Enterprise-wide global risk management
Increases in cross-border trading, credit defaults, bankruptcies and globalisation have made effective credit management much more demanding and complex. Credit exposures are often managed by a collection of systems built over the years – maintaining and reconciling these systems can become a risk in itself. Managing and monitoring essential credit and market risk data in one place is a major challenge facing financial institutions.
The importance of effective credit risk management is reinforced by fluctuating global credit cycles and updates to credit risk methodologies in the new Basel II regulations. While these are currently planned for 2006-2007, work needs to start now in order to enable a transition to compliance in a cost-effective, secure and orderly manner.
Reuters global risk capabilities provide a comprehensive solution for managing complex global, market and credit risk. The solution is made up of two systems that can be used together or separately:
Reuters Kondor Global Risk consolidates a financial institution's credit limit information and manages the data in real-time with global credit limit management across all instrument types. It calculates, controls and monitors credit exposures using credit risk mitigation techniques (netting, collateral, guarantees), as well as Monte Carlo simulations for the calculation of potential future exposures. This enables limits to be used efficiently across the enterprise. Users can perform limit enquiries, pre-deal limit checks and reservations, and receive limit updates in real-time. Reuters Kondor Global Risk provides credit managers with a robust infrastructure for Basel II compliance. It is designed specifically to meet the most critical regulatory demands for calculating and reporting capital adequacy for credit risk under the three pillars of the accord. The Reuters scaleable architecture makes it suitable for single-site and global institutions alike.
Reuters Kondor Value-at-Risk delivers high-end risk management analysis for both market and credit risk. It integrates seamlessly with your existing positionkeeping systems and enables users to produce consolidated enterprise-wide risk information on all activities. The system supports a comprehensive range of risk analysis methodologies, including market value at risk, Monte Carlo simulation, scenario analysis, credit exposures and credit Value at Risk. Drill-down capabilities enable you to identify and attribute risk to its original sources. Risks can also be analysed in terms of market factors such as interest rates, equity prices, currencies and volatility.
For more information visit www.reuters.com/risk.