Misys Banking Systems announces today that Agricultural Bank of China (ABC) has gone live with Misys Summit FT to enable trading and risk management of treasury market derivatives and structured products. The system is being used by 25 of the bank’s staff in Beijing, and will operate out of locations in Hong Kong and Singapore in the near future.
The formation of joint stock-owned banks and the move towards global listing of the top four state-owned banks in China, including ABC, has resulted in these banks needing to update and modernise their operating infrastructure.
ABC currently trades many structured products – snowballs, snowblades and TARNS – some are back-to-back trades with global banks. ABC, as one of the big four, was awarded a derivatives business licence by the regulatory authority. To manage the growing derivatives business in China, the bank needs an industrial strength trading and risk management system, with superior pricing and straight-through trade processing capabilities in complex structured products.
In addition to the complex instruments, Misys Summit FT also handles all trading and risk management of treasury and capital market instruments in foreign exchange, money market and bonds. For risk management, Summit aggregates market and credit risk exposure across business lines, portfolios and products, and provides sophisticated value-at-risk measures for users.