National Bank of Canada (NBC), one of Canada’s six systemically important banks, has successfully implemented and is now live on Murex’s MX.3 Risk and Regulatory Suite. NBC is leveraging the full power of the MX.3 platform for capital markets risk management and to meet its regulatory responsibilities, including compliance with Basel 2.5.
The project was sparked by three key factors:
- An aging legacy system that was no longer able to keep pace with growing risk and regulatory demands;
- The need to reduce time-to-market for new products in a highly competitive space;
- The introduction of new regulations, such as FRTB.
NBC selected the MX.3 Risk and Regulatory Suite because of its native integration of front office and risk. Within one platform, the same pricing libraries are used by both traders and risk management teams, delivering accuracy and consistency across the organization. MX.3 is also enabling the bank to simplify the way it meets its regulatory obligations by applying the latest VaR and stress testing methodologies.
Following the implementation, NBC now benefits from incremental scenario generation and the import of historical time series for newly traded instruments, wide risk factor coverage and increased automation of the correction process for trades and market data.
Commenting on the project, Philippe Leduc, Senior Risk Manager at NBC says, “Murex has been a key technology partner for financial markets. We are pleased to have worked closely with their team to streamline our approach to market risk management infrastructures, data, and processes. In the long run, it means we have a flexible solution that allows us to simplify the market risk ecosystem and prepare ourselves for future initiatives.”
Speaking about the recent go-live, Normand Tanguay, Head of Murex Canada adds, “As a result of this project, NBC is in a great position for FRTB compliance. Now that the pending questions have been answered by the regulator, it’s clear that FRTB will have an undeniably large impact on the banking industry and early preparation is key. We are delighted to see the success of this project and look forward to a working closely with NBC on future endeavors”.