Greater handle on risk is first step to expanding structured portfolio
SuperDerivatives, the global leader for cloud-based real time market data, derivatives technology and valuation services for the financial and commodity markets, today announced that it has been selected by CITIC Bank International’s (CBI) risk management division. The Hong Kong-headquartered bank already used and trusted SuperDerivatives’ prices in its front office and chose SDX, SuperDerivatives’ front office system, and eValueX, its revaluation services, for the bank’s risk management division based on its relationship and positive experience of SuperDerivatives’ suite of products.
“Asia is a fiercely competitive region and we need to be able to trust our prices and risk profiles to be able to develop products that are attractive to our clientele,” said Dominic Tsui, head of market risk at CBI.
“SuperDerivatives’ new product suite enables us to generate market prices based on independently verified and trusted market data – this, combined with daily mark-to-market valuations based on independent data, means we are bringing important efficiencies to data. CBI already has a comprehensive structured portfolio but this opens up exciting new possibilities.”
Common practice within many banks has been to use counterparty valuations when marking to market. Best practice, however, is increasingly towards independent pricing as this answers calls for greater transparency and standardisation – a cornerstone of regulator focus. CBI’s adoption of this best practice puts it at the forefront in Asia and ensures that its prices reflect the true market value as well as providing confidence in its risk measurement numbers.
“Bringing greater efficiencies into risk management is representative of a growing trend amongst regional banks in Hong Kong and China,” said Simon Wong, regional sales manager at SuperDerivatives. “Financial institutions in this region are looking to expand their structured product offerings, particularly for the CNH currency. The CNH market is still illiquid and supply is limited so participants need to be smart, and managing risk is an important part of this.”
