Axis Bank, India’s 3rd largest private bank, has become the latest Indian financial institution to adopt technology favoured by global investment banks, having chosen to implement a new derivatives system from Misys, the global application software and services company.
Axis will implement Misys Summit FT, a best of breed treasury and capital markets solution, in its Treasury to become a leader in interest rate, credit and FX derivative products in the Indian market and boost risk management.
The Treasury business of the bank has witnessed good growth during the current financial year. The Bank also has an exclusive derivatives trading desk which provides derivatives services to select customers and takes proprietary trading and hedging positions in derivatives.
Derivative transactions can expose the Bank to three broad categories of risks: counterparty credit risk, market risk and operational risk. With derivatives and structured products operations currently served by a range of third party vendor solutions, spreadsheets and customer built platforms, the bank is predicting that rationalizing systems across front, middle and back office operations will provide significant competitive advantage.
Misys Summit FT was evaluated against other platforms from global software vendors Murex and Calypso as well as a number of technology products from India IT companies.
Prabhakar Saxena, Misys’ general manager in India, adds: "We have deep experience of working with India’s major financial institutions in the retail and corporate banking market. We’re seeing a strong trend for Indian banks to adopt globally proven investment banking and capital markets technology to enable them to trade the most innovative financial instruments."
In March, last year Misys Summit FT was chosen by HDFC to support its interest rate derivatives operations. Misys Solutions for Treasury & Capital Markets has 18 years of market experience and unrivalled software development expertise. It creates integrated, comprehensive solutions for financial institutions to manage their capital market activities across multiple asset classes.