NEW YORK, November 3, 2003 â SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Rabobank has selected Credient MC2 to help improve the accuracy and efficiency of its credit exposure calculations. Rabobank will use Credient MC2 to measure its global counterparty credit exposures against set limits, for real-time decision-making and credit risk control. The bank will also use the numbers in other credit-like calculations such as economic capital and provisioning, for strategic management and planning.
Credient MC2 is a patented methodology that provides accurate approximation to Monte Carlo simulations, an integral component of credit risk measurement, to help financial institutions quickly determine credit risk exposures and make trading and management decisions based on those results. Credient MC2 will be run by Rabobank's capital market and treasury credit function, and used by traders globally. It will be rolled-out to all main dealing centers of the bank, supporting a range of traded instruments.
Tim Sharkey, head of Credit Exposure Risk Management, Capital Markets and Treasury Credit at Rabobank, said, "Credient MC2 will give us the ability to model the bankâs global counterparty exposure very quickly and with significantly improved accuracy, together with a deal checking facility in real-time. In addition, the provision of a fast and accurate Monte Carlo simulation model will help us to fine-tune the results."
Credient MC2 will be embedded within Rabobank's IT infrastructure, helping to provide incremental cost efficiencies over time. Nick Allen, head of Credit Risk Systems Development, Capital Markets & Treasury Credit at Rabobank, said, " We wanted to upgrade our exposure calculation capabilities, and found Credient MC2 to be a much cheaper and quicker solution than investing in a new credit system infrastructure or building a similar tool internally. We also get a lot of comfort in knowing that Credient MC2 is being looked after by a financially strong company like SunGard - we are confident that it is a tool with a future that will give us a long-term return on our investment."
Steve Husk, president of SunGard's Trading and Risk operating unit, said, "Credient MC2 allows traders and risk managers to have complex, accurate credit exposure analytics and fast response times. With Credient MC2 clients can quickly check the impact of a new deal against several counterparties to see which gives the most offsetting benefit in a credit context, thus helping them to make faster, smarter trading and risk management decisions."