AxiomSL, the leading global provider of regulatory reporting and risk management solutions, announced today that it has expanded its liquidity reporting solution for financial firms in Switzerland to cover the Net Stable Funding Ratio (NSFR) requirements. This is following the Swiss Financial Market Supervisory Authority’s (FINMA) requirement for NSFR disclosures from 30 June 2016.
Building on AxiomSL’s global expertise in regulatory reporting, the expanded liquidity solution gathers both securities positions and cash flow data into a single flexible unified data model. It also provides pre-defined liquidity calculations required to support the Liquidity Coverage Ratio (LCR), and the NSFR calculation, reporting and disclosure requirements as defined by FINMA’s Liquidity Circular and Ordinance. AxiomSL’s solution will soon also cover the Additional Liquidity Monitoring Metrics (ALMM) on which we are waiting for final regulatory guidance.
Key features of AxiomSL’s liquidity solution include a High Quality Liquid Assets (HQLA) and Net Cash Flow classification module allowing granular position-level tracking. An important automated feature is the Collateral Management Module tracing the rehypothecation and waterfall allocation of a bank’s securities. This reduces manual calculation and rework efforts required by banks to support the NSFR’s encumbrance period calculations or the LCR’s Collateral Swaps allocation.
The solution also supports data intensive aggregations, for example to summarize deposit balances or calculate net derivatives balances. A significant benefit is AxiomSL’s ability to drill down from management summaries through to underlying transaction level detail to support reconciliation and interrogation throughout the system.
Alex Tsigutkin, Chief Executive Officer, AxiomSL said, “AxiomSL’s enterprise data management (EDM) platform with automated processes ensures financial firms not only compliance, but also enhances internal liquidity monitoring and reporting. As a result, our integrated platform enables firms to measure their liquidity more accurately – by business line, client and transaction – and provide warnings and prompts as their liquidity position evolves in order to facilitate more efficient management of assets.
“Our liquidity solution for Switzerland’s financial firms provides a strategic approach to regulatory reporting and liquidity management requirements, and delivers increased transparency, controls, and efficiency whilst meeting the continuously evolving and challenging regulatory landscape.”
AxiomSL is currently supporting liquidity reporting, namely the LCR, NSFR and ALMM across the European Union, United States, Asia Pacific and the Middle East.