FRSGlobal signs 3 to liquidity risk system for FSA reporting

Source: FRSGlobal

FRSGlobal, the only global provider of risk and regulatory reporting solutions with coverage for over 40 countries on a unified platform, today announced that a further three global financial institutions have purchased FRSGlobal's liquidity solution.

The combination of FRSGlobal's stress testing and regulatory reporting will enable the firms to monitor, manage and report liquidity as well as build and develop a library of stress tests in accordance with the FSA's requirements.

In December 2008 the FSA released a Consultative Paper - CP 08/22 - Strengthening Liquidity Standards. This outlined the regulator's proposals for the introduction of a liquidity regime with a long list of requirements. Excluding the summer holidays there are now less than 80 working days between now and the deadline set by the FSA for firms to have systems and controls and stress testing in place.

Andrew Howieson, independent consultant at Howieson Consulting Ltd said: "Surveys such as the one recently conducted by JWG-IT show that many firms are not prepared for new standards in liquidity risk management. The suggestion is that firms may look for a bare minimum standard in order to meet elements of the FSA requirements commencing December 2009, but this is not wise. The bottom line is that firms need sound liquidity management and need to invest the time and resources to truly understand their liquidity risk."

FRSGlobal's solution was ranked joint first for 'Completeness of Offering in the ALM and Liquidity Marketplace' in Chartis market analysis report as it provides its customers with solutions for all aspects of the new liquidity regime including:

  • Regulatory Reporting - there will be nine new regulatory reports/data items for liquidity risk
  • Stress Testing - firms will need to be able to conduct regular stress tests in order to identify sources of potential liquidity strain
  • Data Management - firms will need to be able to source additional data for reporting requirements
  • Management Reporting - firms will be required to have a robust management framework in place

Mark Piper, VP UK, Ireland and MEA, said: "Over the last year we have held a series of events that have summarised each phase of the FSA's liquidity risk regime, and each time the number of participants steadily grows. It is clear that it is an issue that is increasingly playing on people's minds; however, as the deadline is fast approaching it is essential that further steps are taken to ensure they are fully compliant. We welcome the addition of these three prestigious firms to our client base and look forward to helping them become fully prepared in plenty of time."

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