Basel III

The Basel III CVA deadline is fast approaching. Denny Yu, product manager of Risk for Numerix, explains the quantitative and technological challenges firms face in CVA implementation for both vanilla and exotic derivatives, and the key differences between the standard and advanced approaches for CVA calculations under the Basel III framework.

Collateral optimisation strategies can range from simply identifying the cheapest-to-deliver assets to much more sophisticated strategies, which include optimisation algorithms. In a Q&A SunGard’s Ted Allen explains the drivers and challenges firm face when implementing collateral optimisation strategies used by to support central clearing of cleared swaps and increased demands for capitalisation.

Q. What is collateral optimisation exactly? What are the drivers influencing plans for most firms you work with?

New paper provides snapshot of Basel III implementation around the world 

FRSGlobal, the financial risk management and regulatory reporting arm of Wolters Kluwer Financial Services, a leading worldwide provider of risk, compliance and audit solutions for the financial services industry, today released a paper entitled “Implementing Basel III – are you ready?”.

The Basel Committee published today the results of its Basel III monitoring exercise. The study is based on rigorous reporting processes set up by the Committee to periodically review the implications of the Basel III standards for financial markets. A total of 212 banks participated in the study, including 103 Group 1 banks (ie those that have Tier 1 capital in excess of €3 billion and are internationally active) and 109 Group 2 banks (ie all other banks).

The Basel Committee on Banking Supervision has today published its second progress report on Basel III implementation.

The report tracks the implementation of Basel II, Basel 2.5 and Basel III by Committee member countries. It outlines the progress of individual member countries in transforming the Committee's regulatory standards into national law or regulation according to the internationally agreed timeframes.

FinArch, international market leader in integrated risk and finance solutions for the financial services industry, announced that Basel III has been added to its Finance, Risk and Performance Measurement Platform Financial Studio. Financial Studio Basel III is a unique, comprehensive and flexible end-to-end solution that meets all Basel III regulatory requirements, and, at the same time, banks’ strategic business needs.

Basel III will have Major Impact on Business Performance

Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, announces Ghana Bank International plc’s (GHIB) replacement of its legacy regulatory reporting system with Lombard Risk’s REPORTER to meet regulatory demands.

Analyzing the Impact of European Sovereigns’ Collateral Policies

The Association for Financial Markets in Europe (AFME), the International Capital Market Association (ICMA) and the International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of a paper titled The Impact of Derivative Collateral Policies of European Sovereigns and Resulting Basel III Capital Issues.

The Basel Committee on Banking Supervision today published answers to a third set of Basel III frequently asked questions. These aim to promote consistent global implementation of Basel III, through providing technical elaboration of the rules text and interpretative guidance.