Analytics for Securities and Capital Markets
The challenges of continued stress testing requirements by regulators, imposition of tighter capital adequacy rules and emerging collateralization requirements for uncleared derivatives have renewed the focus of financial institutions on Analytics. Analytics is empowering this key industry in terms of being more data centric and hence closer to the truth which in turn is helping avoid risk.
How Wipro Helps
Wipro’s Analytics Solutions for Securities and Capital Markets address the following industry challenges:
- Model Risk Management: Regulators require firms to demonstrate greater evidence of control, governance of models and related data.
- Adoption of Legal Entity Identifier (LEI) Standard: To effectively monitor risks, financial firms are adopting the LEI global standard to develop a consistent and integrated view of their exposures, such as in the case of default of counterparty.
- Calculation of Risk-Weighted Assets: Inaccurate risk-weighted asset calculations can result in additional capital costs for financial institutions that can significantly affect their investing and lending activities
- FATCA Compliance: Foreign financial institutions are required to report information about financial accounts held by U.S. taxpayers
- Price Verification: Financial firms’ need to ensure adjustments to trading positions accurately reflect appropriate risks, especially in pricing illiquid derivatives
Our Analytics Solutions for the Securities and Capital Markets include:
- Internal Rating Based (IRB) model validation: This solution allows financial institutions to internally validate and assess model performance. It also helps reduce validation cycle time. The solution provides validation of model inputs, stress testing of risk drivers, model back-testing and benchmarking
- Legal entity hub: This solution allows firms to meet the LEI regulatory mandate by providing a single and accurate view of legal entities and hierarchies, and thus helps reduce time to achieve compliance
- Basel capital calculation and reporting: This solution forecasts risk-weighted assets (RWAs), capital, leverage and liquidity ratios
- Foreign Account Tax Compliance Act (FATCA) compliance engine: This solution provides withholding and reporting services to meet end-to-end FATCA compliance by significantly reducing implementation effort
- Independent price verification: This solution provides insight into models, methods and market data, which is used to generate prices and to verify front office price