Oracle Reveleus Liquidity Risk Management running on Oracle Exadata Database Machine X2-2 calculated business-as-usual liquidity gaps for 370 million cash flows across 65 million accounts in just 69 minutes. After applying modified behavior assumptions to simulate adverse market conditions, stressed liquidity gaps were calculated in only 10 minutes.

Need for High-Performance Liquidity Calculations

Compliance with liquidity risk requirements including the Individual Liquidity Adequacy Standards of FSA, the Principles of Sound Liquidity Risk Management and Supervision of BIS and the recently released Basel III guidelines clearly illustrate that effective liquidity management is critical in avoiding future economic crises.

In today's rapidly changing global marketplace, all types of regional economic crises can immediately impact an institution's liquidity. Now with Oracle's extreme performance, even the largest financial institutions globally can apply shocks to their baseline behavior assumptions, calculate stressed case liquidity gaps and develop optimal contingency funding plans within minutes.

Oracle Reveleus Liquidity Risk Management is part of the Oracle Financial Services Analytical Applications family of Risk, Finance, Compliance and Customer Insight solutions, and currently used by demanding tier-one institutions around the world.

Testing Details

Testing was completed using a full-rack Oracle Exadata Database Machine X2-2 running Oracle Database 11g and Oracle Real Application Clusters with the Oracle Reveleus Liquidity Risk Management and the application tier running on Oracle's Sun SPARC Enterprise M9000 server running Oracle Solaris.

Built using industry standard hardware components plus FlashFire technology from Sun, and intelligent database and storage software from Oracle, the Oracle Exadata Database Machine X2-2 powers the largest and most important OLTP and data warehousing applications up to 10x faster than before.

"The extreme performance of Oracle Reveleus Liquidity Risk Management running on Oracle Exadata Database Machine X2-2 helps financial institutions proactively and centrally identify and assess risk under many types of market conditions, and develop effective contingency plans to optimally manage these liquidity gaps. Banks can now assess their situation and strategies on a nearly on-demand basis. Liquidity risk management becomes more than just a regulatory exercise -- it becomes clear competitive advantage," said S. Ramakrishnan, general manager and group vice president, Oracle Financial Services Analytical Applications.

Separately, completed performance testing with Oracle Financial Services Analytical Applications on the Oracle Exadata Database Machine X2-2 delivered outstanding results for regulatory capital computations.

The performance tests were designed to model the Bank for International Settlements' (BIS) Advanced Internal Ratings-Based (AIRB) approach, which also serves as the foundation for regulatory capital calculations at many tier-one financial institutions.

Specifically, Oracle Reveleus Basel II, running on the Oracle Exadata Database Machine X2-2 computed risk-weighted asset calculations on 65 million exposures in only 1 hour and 29 minutes. This reflects the exposures typically found in the world's largest diversified financial institutions.

With the extreme performance of Oracle Financial Services Analytical Applications, running on the Oracle Exadata Database Machine X2-2, global financial institutions can dramatically reduce the lead times required to perform key analyses like stress testing, liquidity risk management and profitability and respond to increasing regulator demands, like Basel III.

Need for High-Performance Risk, Compliance and Regulatory Reporting

The regulatory reporting cycle is often a very demanding and time-consuming period for financial institutions. As highlighted in the recent Oracle industry survey, "The European Confidence Report," current approaches do not allow time for results analysis, while long lead-times and system-performance bottlenecks leave little room for error.

The extreme performance on Oracle Exadata Database Machine X2-2 also creates new flexibility to help institutions comply with increasingly complex regulatory processes for capital requirements that often require multiple resubmissions with changes to assumptions and calculations. New regulations like Basel III require institutions to perform additional advanced analytical practices.

Oracle Reveleus Basel II is part of the Oracle Financial Services Analytical Applications family of Risk, Finance, Compliance and Customer Insight solutions, and currently used by demanding tier-one institutions around the world.

Benchmark Details

Testing was completed using a full-rack Oracle Exadata Database Machine X2-2 running Oracle Database 11g and Oracle Real Application Clusters with the Oracle Reveleus Basel II and the application tier running on Oracle's Sun SPARC Enterprise M9000 server running Oracle Solaris.

Built using industry standard hardware components plus FlashFire technology from Sun, and intelligent database and storage software from Oracle, the Oracle Exadata Database Machine powers the largest and most important OLTP and data warehousing applications up to 10x faster than before.

"The combination of Oracle Financial Services Analytical Applications and Oracle Exadata Database Machine X2-2 enables banks to access regulatory capital computations within the same day - eliminating the lengthy waits of the past. Also, stress testing and advanced capital adequacy practices, like those required by Basel III, now become possible. The performance tests of Oracle Reveleus Basel II running on the Oracle Exadata Database Machine X2-2 clearly demonstrate the analytical processing power that customers can leverage to address the increasing demands of regulators and other stakeholders," said S. Ramakrishnan, general manager and group vice president, Oracle Financial Services Analytical Applications.