Yet again, there’s another regulation looming on banks which means they’re going to have to put new tools in place to satisfy the changing laws. This time, banks need to satisfy the Fundamental Review of the Trading Book (FRTB) requirements going into effect in 2019.
This regulation is aiming to get banks to improve risk management. So, if a bank wants to understand their risk, they need to cast a wider net. It means that banks will need to be able to calculate risk more frequently on a wider range of data. Basically, banks will need to look at vast amounts of data and make heavy calculations with that data.
The trick is, they won’t need that service 24 hours a day or every minute. Banks might just need it once a month. It really depends. Basically, banks need the flexibility to perform heavy calculations when they need it and they need the scalability when it’s necessary as well.
TIBCO has the FRTB solution
Using TIBCO GridServer® on AWS gives your bank massively scalable computing on the cloud but the flexibility to spin it up or down when you need it. It’s basically like having supercomputer level scaling without having to pay or maintain an actual supercomputer.
In fact, GridServer® just performed over one million risk calculations with the help of AWS, exceeding the upper bound of projected demand, showing how this is the perfect solution for the high daily calculations that will be needed for FRTB.
To put that in real terms, GridServer® can turn risk reports for stock traders from a six to eight-hour process to a 15-minute intraday cycle, enabling traders to make more educated decisions faster.
Whatever the computational power requirements, TIBCO can cost-effectively satisfy them with GridServer® and AWS, a public on-demand cloud computing platform with an infinite capacity for computation-intensive applications.
For more information, download the white paper: A Cost-effective Solution to New FRTB Computing Requirements. You can also read more about the official announcement here, or contact us for a demo today!