S&P Global Market Intelligence’s Platform Honored as Regulatory Capital Calculation Product of the Year
S&P Global Market Intelligence has been recognized for its innovative Traded Market Risk Solution, earning the title of Regulatory Capital Calculation Product of the Year. The platform addresses the complexities of the Fundamental Review of the Trading Book (FRTB) adn provides a extensive solution for banks navigating evolving regulatory landscapes.
the solution offers a complete view of capital requirements, both across individual trading desks and at the group level. A key feature is its drill-down analytical capability, seamlessly integrated with existing pricing and risk infrastructures. This allows for comparative analyses between the Standardised approach (SA) and the Internal Models Approach (IMA), fostering clarity regarding capital drivers and enabling more informed decision-making.
Recognizing the increasing reliance on SA, either fully or in hybrid models, S&P Global Market Intelligence has expanded its offerings with a dedicated SA module for banks not pursuing IMA approval.This expansion complements the continued deepening of its datasets, now featuring enhanced real-price observations across a broad range of asset classes including interest rates, credit, equity, foreign exchange, and fixed income derivatives.
Built on a cloud-native design with an submission programming interface-first architecture, the platform prioritizes ease of integration with clients’ existing systems, minimizing implementation costs and disruption. This architecture also allows S&P Global Market Intelligence too rapidly adapt to regulatory changes and varying interpretations across jurisdictions.
The product further streamlines capital calculation efforts by aligning overlapping frameworks such as FRTB expected shortfall, historical value-at-risk, and the standard initial margin model.This synergy delivers cost and operational efficiencies, crucial for banks managing risk across multiple departments. Notably, the platform’s credibility is underscored by its adoption by regulators themselves, utilizing S&P Global Market Intelligence’s modellability service.
Beyond compliance, the platform facilitates constructive dialog between banks and supervisors. Institutions are leveraging the solution to examine the upstream data and modelling choices impacting their capital positions, preparing for more evidence-based regulatory discussions and a clearer understanding of how modelling decisions effect outcomes.
Alberto Micucci, head of sell-side risk solutions at S&P Global Market Intelligence, expressed his delight at receiving the award, stating, “This recognition highlights our Traded Market Risk Solution’s effectiveness in meeting the stringent requirements of FRTB and our dedication to adaptability in changing regulatory environments.” He further emphasized the platform’s reliability and accuracy, noting its increasing use by regulators as a testament to its robustness and market relevance.”we aim to empower financial institutions to make informed decisions and engage effectively with supervisors,” Micucci concluded.