Country for PR: United Kingdom
Contributor: PR Newswire Europe
Monday, January 18 2021 - 19:00
LMRKTS helps banks bridge the SA-CCR adoption gap
NEW YORK and LONDON, Jan. 18, 2021 /PRNewswire-AsiaNet/ --

LMRKTS, an industry-leading optimization and compression provider, announced 
the completion of its third optimization cycle for clients who calculate their 
capital requirements using the Basel Committee on Banking Supervision's 
Standardized Approach for measuring Counterparty Credit Risk (SA-CCR).

Banks face new challenges in post-trade counterparty exposure management as 
SA-CCR is being implemented globally. In addition to managing the complexity of 
new netting sets and a new methodology, banks must continue to optimize and 
mitigate exposures with counterparties still utilizing the Current Exposure 
Method (CEM). The phased transition risks the bifurcation of optimization 
networks and creates additional headwinds for banks' treasury resource 
management and XVA teams.

Since June 2020, LMRKTS' solution has enabled clients to optimize against a 
combined network of both CEM and SA-CCR counterparties in a single cycle. "Our 
innovative approach to holistically managing both methodologies will not only 
allow the network to remain intact but also grow as additional regions migrate 
to the SA-CCR framework," said Andrea Ianniello, President and Chief Commercial 
Officer of LMRKTS. "This dual objective service is the most recent example of 
LMRKTS proactively helping our network adapt to the changing regulatory 

LMRKTS is a leading optimization and compression provider that uses 
mathematical optimization to help financial institutions manage risks and 
regulatory capital costs. LMRKTS contributes to the stability of the financial 
system by reducing capital, balance sheet, and operational costs for its 
clients. Since the launch of its first commercial service to reduce risk and 
leverage exposures in G10 currencies, LMRKTS has gone on to eliminate trillions 
of dollars of obligations between some of the world's largest financial 
institutions. LMRKTS was founded by former traders and technologists who saw an 
inefficiency in short term risk management and has received investment from The 
World Bank and Motive Partners.

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