Misys Banking Systems announced Monday that the Agricultural Bank of China has gone live with its Summit FT for trading and risk management of treasury market derivatives and structured products. The bank’s staff will use the technology in Beijing and operate out of locations in Hong Kong and Singapore in the near future.
The formation of joint stock owned banks and the move towards global listing of the top four state-owned banks in China, including ABC, has resulted in these banks needing to update and modernize their operating infrastructure. ABC trades many structured products including snowballs, snowblades and TARNS. Some are back-to-back trades with global banks. ABC, as one of the big four, was awarded a derivatives business licence by the regulatory authority.
To manage the growing derivatives business in China, the bank said it needs an industrial strength trading and risk management system, with superior pricing and straight-through trade processing capabilities in complex structured products.
Peng Xiangdong, deputy general manager of the International Department Agricultural Bank of China, said, “We chose Misys Summit FT over other trading systems because of its innovative approach to handling structured trades and its ability to offer a functionally rich solution for cross-asset trading. Before making our decision we undertook a three-month due diligence and proof of concept.”