Algorithmics has won the award for Most Innovative Financial Services Solution for the Algo Real-Time Credit Engine at the Financial Innovation Awards 2009.
Algo Real-Time Credit Engine, which is the front office component of Algorithmics counterparty credit risk solution, unifies three often incompatible systems in a bank: end of day batch exposure calculation, pre-deal credit exposure and limits management and credit valuation adjustment (CVA). This award is the fifth accolade that this solution has received in the last 12 months and highlights the importance of real-time sophisticated risk management in the front office.
Bob Boettcher, Senior Director, Product Strategy, Algorithmics, said: It has become common practice in the industry to calculate CVA at deal time when pricing new trades. Using Algorithmics counterparty credit risk solution, banks can calculate the incremental CVA and exposures at deal time, using the most accurate methodology available and not compromising execution times. Clients gain a clear competitive advantage over their competitors who use simplistic, conservative methods.
These awards, now in their 12th year, celebrate those financial firms that have made stand out innovations in the field of financial services, says Chris Ray, director of communications and alumni services at the ifs School of Finance. The industry has came through a difficult year and we are delighted to see that even in the throes of a recession, companies are continuing to innovate and look at alternative ways to harness resources and talent to rebuild and meet the challenges ahead. This is evidenced in the quality and quantity of this year’s entries and the growing reach of the competition into Europe and beyond with entries this year from Spain, Turkey, Poland, Malta and South Africa. Our congratulations therefore go to Algorithmics for their tremendous success in winning this award, a real hallmark of success.”
We are honored by this recognition. Innovation in close collaboration with our clients has always been a cornerstone of Algorithmics success, says Michael Zerbs, President and COO of Algorithmics. This product demonstrates the power of new and industry-leading technology to transform our clients businesses and enable risk-aware value creation. Algo Real-Time Credit Engine is the front office component of our counterparty credit risk solution and brings advanced risk management and decision support to the front-office environment; full multi-step Monte Carlo pre-deal exposure and CVA calculation can now be performed at sub-second speeds a level of performance unmatched in the industry.
Algorithmics counterparty credit risk solution provides a real-time view of the credit and settlement exposure of a banks counterparties. Leading financial institutions now have the opportunity to cost-effectively perform full risk simulations for even their largest counterparties at the transaction, portfolio and counterparty levels with sub-second performance.
Algo Real-Time Credit Engine has received four other awards over the last 12 months:
Risk Magazines Software Product of the Year Award 2009 Credit Magazines Credit Technology Innovation Award 2009 Banking Technologys Best Risk Management Technology Achievement Award Finextra Innovation Showcase.
D.C.