The depth and speed with which new regulatory and accounting requirements have impacted financial institutions since the crisis of 2008 has triggered the industry to take stock of and rethink their derivatives business strategy and management.

Long gone are the days when the performance metrics were limited to revenues. New essential measures are now required to improve return on regulatory capital, economic performance, cross selling, best market practices, risk governance, and fit for purpose IT architecture. New strategies need to be devised to increase revenues and reduce costs, while continuing to ensure increasingly demanding regulatory and accounting compliance.

  • Do you know the real economic value added (EVA) of your derivatives business?
  • Would you like guidance in how best to unwind books/positions?
  • Have you considered outsourcing some of your processes?
  • Should you develop xVA pricing models internally or should you rely on a vendor solution?
  • Are you looking to identify low hanging fruits to make more money or reduce costs?
  • How do you design and implement a Target Operating Model (TOM) which incorporates best market practices?

These are just some of the things we can help you with at Solum Financial to optimize your derivatives business strategies and risk management.

Our services in this area include:

  • Strategic review of your derivatives business and the inherent risks
  • Cost/Benefit and Risk/Reward analysis of your derivatives activities
  • Impact assessment of the new regulatory environment on your derivatives business
  • Core vs. Non-Core assessment analysis
  • Derivatives best market practice gap analysis

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