OCBC Bank Scales Business and Mitigates Risk with Numerix Oneview

This case study explores the results of Numerix’s strategic partnership with OCBC Bank.

Challenge

During the course of its nearly 10-year partnership with Numerix, OCBC Bank has faced a number of challenges it engaged Numerix to address.  The bank required a platform that could help it meet demand for products with more innovative features within the structured products market and which integrated a sophisticated risk management process.

After selecting Numerix to optimize these processes, OCBC also worked with us to realize the significant benefits of the cloud to meet significant compute and calculation requirements. Further work has expanded to satisfy new regulatory requirements for XVA, UMR and SIMM.

Strategy and Solution

Numerix helped to support the evolution and expansion of OCBC’s valuation activities, its move to the cloud and adoption of the Numerix Oneview platform as a managed service, in addition to supporting OCBC with several crucial initiatives, such as meeting risk-based capital adequacy regulatory requirements.

Specifically, Numerix partnered closely with the Global Treasury division inside OCBC to achieve several capabilities, including:

• Numerix Oneview as a managed service hosted on the cloud gave OCBC the ability to capture trades without taxing the internal infrastructure of the Bank, and also provided the flexibility for the infrastructure to elastically expand depending on trade volumes and computation requirements.
• Numerix enabled the Bank to capture diverse multi-asset, exotic structures, such as TARNs, Pivots and Barriers, which OCBC required. Therefore, the Bank was also able to price the structures or accurately represent the trade terms.
• Numerix supported OCBC in successfully and accurately managing valuation adjustments, or XVAs, for complex structured products.

This case study demonstrates how both organizations have seen their relationship evolve into a partnership based on trust, active collaboration, and effective, reliable communication.

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