Algorithmics announced that its client, Scotia Capital,has won the Best Counterparty Credit Risk Initiative award. Scotia Capital was formally recognized for its joint Credit Value Adjustment (CVA) project with Algorithmics at the American Financial Technology Awards (AFTAs) in New York.
Scotia Capital is the global corporate and investment banking division of the Scotiabank Group. Mark Engel, Managing Director and Head of the Global Analytics and Financial Engineering Group said: Scotia Capital is pleased to win the AFTA for Best Counterparty Credit Risk Initiative. This strategic project provides improved credit risk analytics for our Global Capital Markets businesses. Scotia Capital has a long history of prudent risk management and this project continues that tradition. The project was on our roadmap for some time and the recent build out of new business lines made it a high priority. Global Energy Solutions was the first business line to utilize the new platform. Global Equity Derivatives and Equity Finance have been added to the platform and its use will continue to expand throughout 2011 and 2012.
Scotia Capital and Algorithmics have worked together on a number of initiatives over the past 15 years. The CVA project was a collaborative undertaking between Algorithmics and Scotia Capital’s Financial Engineering and Technology teams.
The winning award entry describes how Scotia Capital worked with Algorithmics to extend its existing market and credit risk systems to perform real-time incremental CVA calculations. Scotia Capital recognized the importance of a consolidated cross-asset view of counterparty credit risk. Working with Algorithmics, it has achieved centralized measurement, management and calculation of counterparty credit risk and CVA.
Bob Boettcher, Senior Director, Integrated Market and Credit Risk Products, Algorithmics, said: “We are delighted that Scotia Capitals innovation in counterparty credit risk management, and CVA in particular, has been recognized with an AFTA. We are proud to have worked with Scotia Capital on this project and to share the industry recognition. Our leading edge performance technology has proved it can deliver in the most demanding trading and risk management environments.
D.C.