Company: International Tier One Bank
QuIC Credit Risk Solution™ increases CDS/CDX trades and reduces overall expenses

The Client
An international banking and financial services organisation, with operations in Asia, Europe and North America.

The Challenge
The client required a multi-centre risk management solution for credit derivatives, and needed to “go live” within a year of developing the plan.

The client’s initial request for risk-analysis tools for callable range accruals quickly expanded to include analysis on all credit trading instruments, including credit stress tests and credit swaps (CDS/CDX).

Nigel Cairns, President and CEO of QuIC, remarked: “When one of the largest banking and financial services organisations in the world looks to QuIC, it is a strong endorsement of our ability to fulfill the most demanding needs of large, sophisticated financial institutions. QuIC not only provided a superior solution, compared to its competitors, but was able to implement the project on time and on budget.”

The Solution
The client implemented the QuIC Credit Risk Solution™ which is a modular, scalable, market leading analytics offering. At the core of the solution lies the QuIC Engine™, an exceptionally fast vector-based calculation and simulation platform, providing the client with a shared calculation fabric that can be deployed throughout the enterprise.

QuIC is computationally 400% faster on significantly less hardware
The QuIC Credit Risk Solution has empowered the client to rapidly solve complex and computationally intensive analysis in the area of risk management and financial analytics. The power and speed of the QuIC solution allows these detailed simulations to be completed in a fraction of the time than was previously possible. With QuIC, the bank’s risk analysis system performance on credit products has increased over 400% and IT costs have dropped dramatically: the QuIC solution runs the portfolio simulations in less than 2 hours, on 20 servers, whereas the previous solution required 9 hours and 170 servers.

The client is now equipped to handle a greater volume of trades, can create new trading instruments of greater complexity, and can develop new risk analysis previously constrained by system performance. Risk managers and traders now have over 250 micro and macro economic stress tests at their disposal, which can be run on individual securities or the entire portfolio.

Since implementing the QuIC Credit Risk Solution, the annual trade volume on a single type of credit derivative has increased by 70%, and annual trading profit is up by several million US$.  Also, credit exposure utilization has been reduced by more than $10 billion across credit derivative trading books, reducing capital requirements by tens of millions of dollars.

The QuIC Credit Risk Solution™ performs fast, flexible real-time pricing, risk management and financial analysis, and provides powerful, customizable access to the analysis of complex credit instruments.  The calculation speed of the QuIC Engine™ ensures rapid response times for users and organisations alike.