Misys plc (FTSE: MSY.L), the global application software and services company, today announces the availability of Misys Sophis RISQUE 6.2. The latest version of the trading and risk management solution for investment banks significantly improves risk management capabilities, broadens asset class coverage and enhances operational efficiency.
Over the past year financial institutions have strengthened their securities finance and delta one businesses involving a growing use of cross-asset portfolio swaps, contracts for difference (CFDs) and exchange-traded funds (ETFs). To satisfy these demands, Misys Sophis has continued to make significant investments into extending this asset-class coverage within RISQUE.
RISQUE 6.2 allows investment banks greater flexibility on underlyings (including bonds and convertible bonds), and payment rules, as well as a refined collateral management. A heavy emphasis on the credit sustainability of financial players has pushed investment banks to strengthen their collateral management processing with precise initial margin calculation and frequent variation margins capacities.
"Banks are paying more and more attention to market and credit risk, but also to liquidity and operational risk," states Jean-Baptiste Gaudemet, Head of Product Management at Misys Sophis. "We have worked very closely with our RISQUE customers to improve the operational performance throughout each instrument's life cycle, allowing them in particular to scale their flow business."
RISQUE 6.2 introduces a new comprehensive event diary that accelerates the management of large complex cross-asset portfolios. It delivers transparency on portfolio management, mitigating operational risk while increasing efficiency through improved straight-through processing.
The risk management solution has been further enhanced with full support of P&L explanation on fixed income, as well as liquidity-adjusted VaR.
Additional enhancements to Misys Sophis RISQUE 6.2 include:
RISQUE 6.2 delivers significantly broader coverage and enhanced support for each asset class:
• Credit-linked notes are now available as a specific multi-currency asset class. Credit risk of the issuing company and the reference entity are taken into account for the different default events.
• Enhanced management of physical gas specificities of Europe and US, enabling definition of derivative products such as gas US basis swaps
• FX delta/gamma risk can be split on FX liquid pairs
• Full support of accounting book closures (End of Year, End of Quarter, End of Month)
• New configuration tool allows centralised management of connection parameters