In brief
- While FTRTB regulations are not new, the upcoming implementation timelines are forcing institutions to finalize their compliance approach
- One of the primary challenges in implementing FRTB is managing and integrating vast amounts of data from multiple sources, including trading systems, risk management platforms and external data providers. Ensuring data quality, consistency and timeliness is critical for demonstrating accuracy of risk calculations towards the liquidity of underlying risk factors
- Many banks have turned to external systems providers to complement their existing systems, streamlining the additional burden and exceed the principles of the regulations, and unlocking considerable value and insight for the business they operate
Welcome to the third article in the Enterprise Resource Management thought leadership series. In the preceding articles with Kynec and SmartStream Technologies, we explored the areas of cross-desk optimizations and the liberation of data from existing multi-desk trading environments.
Financial markets continue to transform, driven by regulatory changes, technological advancements and the increasing complexity of global markets. One of the most significant regulatory developments in recent years is the Fundamental Review of the Trading Book (FRTB).
While set to be implemented by January 2025, many banks, ahead of the final implementation date, have already been deploying changes to support this regulation for some time, identifying challenges and opportunities to optimize their existing solutions.
In this article, co-authored by David Cassonnet, Senior Vice President of ActiveViam, we explore the optimization opportunities of not just meeting the principles of this regulation but surpassing them with the support of third-party providers in the pursuit of achieving regulatory and operational excellence.
David Cassonnet
David Cassonnet began his career as a trader assistant on the CAC Index option pit trading floor in Paris. He then joined Summit Systems, where he held various roles across Europe and then in APAC as Head of Operation where he managed tremendous growth of the business in the region. In 2010, David joined the founders of Summit in their new venture, Quartet Financial Systems, now known as ActiveViam, a pioneer in in-memory computing technology that provides advanced real-time analytical capabilities to large financial institutions. David set up the business of the company in APAC during couple of years before moving back to Europe in 2014. Today, as SVP for Business Development, David leads a team of software engineers, data scientists, and business analysts, helping financial organizations worldwide tackle complex data analytics challenges in their risk management and trading environments. David holds a Master’s degree in Economics and Finance from Paris Sorbonne University and currently resides in France.
Hugh Richards
Hugh has gained over 30 years’ experience in financial services, investment banking, software company management and market strategy. He brings a unique balance of global business and technology leadership, focused on strategy, execution and innovation change management.
