High profile counterparty failures have highlighted the need for accurate valuation and robust management of credit risk. At the same time, Basel III has significantly raised levels of capital that must be held against credit default risk and CVA volatility.
MX.3 delivers timely measurement and consolidation of credit exposures across business lines. Effective risk mitigation strategies can be implemented via hedging, netting or collateral, and of course via pre-deal limits control. The use of capital and funding resources is improved across the organization through upfront pricing of xVA costs, selection of cost effective execution options and optimization of collateral inventories.
Real-time and accurate monitoring of credit risk
MX.3 delivers a comprehensive range of risk measures across all asset classes, without data or modeling approximations. PFE, EPE, CVA and Basel III IMM rely on a high performance American Monte Carlo simulation offering pre-deal limits check and prospective profitability analysis. Other analytical or hybrid methods are also supported.
Timely and global consolidation of credit exposures
MX.3 solves the problem of fragmented infrastructures and processes by implementing sophisticated risk measures, limits management and credit approval workflows within a single solution connected to multiple trading sources.
If you wish to learn more, please read our MX.3 for Credit Risk flyer.