Overview
zeb.control.risk - Trading software module
Given the rising volatility of the markets and the related increase in risks from trading, their active and professional management becomes more and more important. With zeb.control.risk - Trading, we offer you a universal solution for the management of trading for own account from portfolio to risk management.
Going far beyond the obligations of functional separation, documentation and risk limiting required by regulatory authorities, the system provides practice-tested support for the trading, settlement and risk management processes that professionalizes and clearly simplifies everyday tasks. Specifically, the module Trading supports you with the following functionalities and features:
Trading and settlement
The trading functionality supports the processes in the front office. A central starting point for the structured input of transactions ensures software-assisted data entry with plausibility checks. If other systems are used for inputting transactions, the data can also be supplied to the system via automated interfaces. The comprehensive concept for user permissions and deal status management ensures that the back-office settlement processes are implemented in line with MaRisk.
Ongoing portfolio management is supported by maturity schedules, fixing, exercise and cash-flow dates as well as numerous other functions, for example, for taking over theoretical prices as valuation prices.
Valuation and risk measurement
The comprehensive product catalog covers the mark-to-model valuation for securities and derivatives commonly used by trading book banks. Any exotic products not included can be represented as "flexible products". For funds and, in prough principle ensures detailed risk measurements and control.
Based on a great variety of indicators, the Trading module provides a comprehensive overview of the trading book: In addition to portfolio information and balance sheet data (according to commercial and tax legislation as well as IFRS), the system makes available all commonly used risk measures, sensitivities and several value-at-risk methods as well as integrated back-testing. Optionally, detailed sensitivity vectors can be generated.
Reporting: VaR reports, back-testing analysis, maturity lists and other
Through its powerful and flexible reporting functionality, the Trading module allows you to exploit this comprehensive information and to combine the indicators you need at a mouse click. The reports that offer drilldown options are available at all levels from the entire bank to various portfolio levels and even for individual transactions. Of course, the Trading module also can export data to Excel or databases. You can directly add analyses created to your personal report library so that they are permanently available. Regular import and reporting processes can be automated by means of batch jobs.
Additionally, specialized reports, such as graphic VaR and back-testing analysis, maturity lists and open settlement checks are included as standard reports. Performance analyses calculate the success of the portfolios in absolute terms for any period specified or against a benchmark in relative terms.
For limit definition, around 50 standard parameters are provided that support limits at the bank-wide, portfolio, borrower unit and counterparty level. In combination with the flexible configuration of portfolio hierarchies, you can set up and monitor highly differentiated and comprehensive limit concepts. The trader can check for potential limit conflicts even before a deal is made. In case of limit violations, automated messages are dispatched by e-mail.
Regulatory reporting
To ensure transparent links between risk management and regulatory reporting, the module can be implemented with a compliance interface that allows you to generate all relevant reporting forms (as required by the German Banking Act or COREP market price report by EBA) at the push of a button. Reports on own funds and positions of the overall book and the trading book are provided to support the efficient bank-wide management of risks. To support the reporting requirements for derivative transactions to a trade repository, the module has an export interface for the required information according to EMIR.
Key Features
zeb.control.risk - Trading offers proven support for processes in trading, settlement and risk management and, thus, professionalizes and significantly simplifies daily processes clearly exceeding the duties to segregate functions, to document and to limit risks as required by the MaRisk. The Trading module provides a comprehensive overview of the trading book: besides portfolio information and balance-sheet measures, the module offers all common risk measures, sensitivities and various value-at-risk methods as well as integrated backtesting. Detailed sensitivity vectors may also be generated, if required. The Trading module bundles these data through a flexible reporting.