Leading German Bank, Helaba, Selects Quantifi’s Single xVA Solution for Enterprise-Wide Derivatives Counterparty Risk Management

Quantifi, a specialist provider of analytics, trading and risk management solutions, today announced that Helaba has selected its single xVA solution for counterparty risk management, to provide consistent analytics and support trading, risk management, and regulatory reporting, for their derivatives business. Helaba is one of the leading German banks, with a workforce of approximately 6,300 and a balance sheet total of around EUR 180 billion.

  • Helaba selects Quantifi’s single integrated solution for trading, consistent analytics, regulatory reporting, and a single view of risk
  • Quantifi selected after a comprehensive due diligence process covering all major players in this space
  • Quantifi replaces an internal built solution and complements existing trading system

Many banks have attempted to manage their risk infrastructure in a fragmented way, either by building tactical in-house solutions or investing in simple point solutions.  As markets have evolved, some are now realising these systems are complex, expensive to maintain and lack the flexibility to keep pace with changing regulatory and market conditions. An increasing number of banks are therefore looking towards enterprise solutions like Quantifi to provide a single, flexible counterparty risk solution across trading, risk, accounting, and regulatory reporting including xVA, IFRS13, EMIR, MiFID 2, CRD4, Dodd-Frank and Basel lll, where the cost of keeping up with new regulations and market evolutions is shared across all clients.

A key focus for Helaba is to enhance its counterparty risk management infrastructure for their OTC derivatives business. This is in response to current market practice associated with counterparty risk regulation, xVA management and funding, and changes in accounting rules. To support these requirements the bank recognised the need to complement their existing risk and core trading infrastructure with a more complete, modern and robust architecture. After a rigorous and transparent selection process, involving ten other solution providers, Quantifi was shortlisted for the proof-of-concept (POC) phase. Following a successful three month POC Quantifi has been chosen as the preferred partner.

“The complexity in all aspects of counterparty risk management has driven Helaba to replace its in-house xVA risk solution with a technology partner that is both capable and committed to addressing the needs of this market. To mitigate risk, enhance transparency and increase capital efficiency we need a more dynamic system that can provide consistent analytics and a single view of xVA risk across our entire portfolio of vanilla and exotic instruments,” comments Matthias Rapp, Head of Trading, Helaba. “During the due diligence process Quantifi’s single solution for counterparty risk proved  to be more sophisticated, flexible and scalable compared to the other solutions we considered. Our decision to strategically partner with Quantifi gives us the confidence to be able to address the challenges associated with counterparty risk and a new edge in the marketplace.” continues Matthias.

To satisfy the counterparty risk and IFRS 13 requirements, as set out by their auditors and the European Central Bank (ECB), Helaba needs the ability to accurately calculate CVA/DVA/FVA based on a sophisticated Monte-Carlo based simulation across all relevant derivatives asset classes. With Quantifi, the risk function department will be able to capture all accounting related xVAs, generate consistent analytics, including sensitivities and scenario, across front-to-middle office environments, and accurately calculate xVA explain and regulatory capital. At desk level the bank will benefit from the ability to calculate incremental xVA and trade profitability analysis.

“We are delighted that Helaba has chosen Quantifi to modernise its counterparty risk infrastructure for their derivatives business. Given the competition in this space, securing Helaba as a client is a testament to the strength of our technology development and expertise of our client services group,” comments Roland Jordan, Head of EMEA Sales, Quantifi. “We were involved in a rigorous review process during which we demonstrated the ability to calculate timely, accurate risk metrics, the flexibility of our reporting engine and our low risk implementation, within the client’s expected timeframe.” continues Roland

Quantifi is a specialist provider of analytics, trading and risk management solutions. Our award-winning suite of integrated pre and post-trade solutions allow market participants to better value, trade and risk manage their exposures and respond more effectively to changing market conditions.

Founded in 2002, Quantifi is trusted by the world’s most sophisticated financial institutions including five of the six largest global banks, two of the three largest asset managers, leading hedge funds, insurance companies, pension funds and other financial institutions across 16 countries.

For further information, please visit www.quantifisolutions.com

Helaba offers financial services to companies, banks, institutional investors and the public sector, both within Germany and internationally. At the same time, it acts as central clearing institution and service provider for 40 per cent of German savings banks.

Helaba operates from its headquarters in Frankfurt am Main and Erfurt, while it maintains branches in Dusseldorf and Kassel as well as offices in Berlin, Stuttgart and Munich. On an international level, the bank acts through branches and representative offices in Paris, London, New York, Madrid, Moscow and Shanghai.

Above and beyond its activities in the financial sector, Helaba is also involved in various projects to support culture, education, the environment, sport and social issues.

For further information, please visit www.helaba.com