Current Situation
The Basel III Fundamental Review of the Trading Book framework was developed to address structural shortcomings in market risk models and has given rise to data pooling among firms. Comparable requirements can be expected from national regulatory bodies in the future, and there too data pooling among firms should allow for greater model accuracy and lower capital costs.
Goals and Objectives
Provide secure, cloud-based data pooling platforms to regulated market participants who can realize mutual benefit from participation, including but not limited to improved model accuracy and an avenue to data monetization.
Technology Deployed
Cloud, advanced analytics, risk models, machine learning, and virtual data rooms
Use Case Summary
A dynamic risk environment set against the backdrop of heightened regulatory requirements is providing the capital markets with an incentive to collaborate in the delivery of risk model outcomes.