National Bank of Canada goes live with Murex’s MX.3 Risk and Regulatory Suite
National Bank of Canada (NBC) has gone live on Murex’s MX.3 risk and reporting platform.
According to Murex, the bank’s need for a new system was spurred on by three major factors: an old legacy system that could not keep the pace, a need to reduce time-to-market for new products, and the introduction of new legislation like the Fundamental Review of the Trading Book (FRTB).
“We are pleased to have worked closely with their team to streamline our approach to market risk management infrastructures, data, and processes,” says Philippe Leduc, senior risk manager at NBC.
“In the long run, it means we have a flexible solution that allows us to simplify the market risk ecosystem and prepare ourselves for future initiatives.”
NBC selected Murex due to MX.3’s “native integration of front office and risk,” in which the same pricing libraries are used by both traders and risk management teams.
“NBC is in a great position for FRTB compliance,” adds Normand Tanquay, head of Murex Canada. “Now that the pending questions have been answered by the regulator, it’s clear that FRTB will have an undeniably large impact on the banking industry and early preparation is key.”
FRTB is a suite of capital rules developed by the Basel Committee on Banking Supervision (BCBS) as part of Basel III, intended to be applied to banks’ wholesale trading activities.
The revised framework was scheduled to be implemented as final rules on 1 January 2019, but this was later delayed to 2022.
NBC is one the six systemically important banks in Canada. It is the sixth-largest commercial bank in the country, and posted CAD 1.9 billion in revenue for Q3 2019, a majority of which originated in its personal and commercial banking division.