Bank of Hangzhou has expanded its use of Murex's MX.3 platform by implementing the Fundamental Review of the Trading Book (FRTB) solution, MX.3 for FRTB, using the standardized approach (SA).

The Bank of Hangzhou initially implemented MX.3 in 2021 to support capital markets activities across asset classes, covering front-office, back-office and risk management functions. The platform has consistently met the bank's needs for business expansion, risk management and compliance.

The decision to select Murex was based on its proven expertise and reliable delivery. Early collaboration with Murex consultants instilled confidence in Murex's ability to meet FRTB requirements. Together, they ensured the FRTB solution was delivered on time, achieving compliance by the January 2025 deadline.

Underscoring the significance of continuous digital transformation, Cheng Fan, general manager of Murex Greater China, said, "The roll-out of MX.3 for FRTB deepens our partnership with the Bank of Hangzhou and reaffirms our commitment to the Chinese market. We prioritize innovation and long-term partnerships."

After several years of development, Murex debuted its FRTB packaged solution in 2016 to address the new minimum capital requirements for market risk by the Basel Committee on Banking Supervision (BCBS). Following the release of the final FRTB version by BCBS in 2019, MX.3 for FRTB gained considerable momentum, achieving a first client go-live in the same year. Since then, many financial institutions worldwide have adopted the solution.

Based on the BCBS guidelines, the National Financial Regulatory Administration (NFRA) in China adopted these requirements in November 2023 to strengthen banks regulatory standards and risk management practices in the financial sector. Taking a proactive approach, the Bank of Hangzhou prepared for the new capital rules by conducting research as early as 2021. Following a rigorous evaluation in January 2024, the bank selected MX.3 for FRTB to implement the new capital rules using the Standardized Approach (FRTB-SA). MX.3 for FRTB offers a preconfigured setup of FRTB-SA rules across multiple jurisdictions, complemented by customization capabilities to meet specific market needs. The solution fully complies with NFRA’s requirements, including variations from the original BCBS standards.

Leveraging expertise gained from more than 40 international FRTB projects, Murex’s professionals collaborated closely with the Bank of Hangzhou team and external advisors to complete the implementation in eight months. Apart from increased productivity, the Bank of Hangzhou gained efficiency by eliminating interfaces and reconciliation processes through the seamless integration of the FRTB solution with their existing MX.3 platform, which streamlined model validation and shortened the time required to launch new products.

MX.3 enables banks and financial institutions to meet changing regulatory needs efficiently, solidifying Murex’s role as a trusted, long-term partner delivering advanced technology and exceptional service.