Sell-Side Risk Management Technology - Market Update 2017

This report updates our industry report, Sell-side Risk Management Technology 2015. Since we last covered risk management technology in the sell-side, a number of regulatory and business developments have had a profound effect on the landscape, transforming the requirements sell-side firms have of their technology, and how vendors in the space are responding.

The sell-side landscape is complex, and ongoing developments will affect firms in different ways. However, while there is no overarching narrative describing the evolution of the sell-side, we have identified five key factors that are changing the environment for risk technology in sell-side firms:

  • The influence and effect of the Fundamental Review of the Trading Book (FRTB).
  • The intersection of a variety of regulations and standards, particularly FRTB and International Financial Reporting Standard 9 (IFRS 9).
  • A notable move toward supplying services and platforms for the buy-side.
  • The growing importance of a variety of value adjustments (known collectively as xVA), as the need for effective capital management increases.
  • The emergence and growing popularity of externalized risk systems in the sell-side.

In this market update we summarize and analyze each of these trends, and how vendors are responding to them. And, as sell-side firms consider the possibility of overhauling their technology systems, we also look at how vendors in this space adapt to their clients’ increasingly complex needs.

This report uses Chartis’s RiskTech Quadrant® to explain the structure of the market. The RiskTech Quadrant® uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs. The RiskTech Quadrant® does not simply describe one technology solution as the best insurance risk management solution; it has a sophisticated ranking methodology to explain which solutions would be best for buyers, depending on their implementation strategies.

This report covers the leading vendors offering sell-side solutions: Asset Control, AxiomSL, BearingPoint, Bloomberg, Calypso, CompatibL, FINCAD, FIS, GoldenSource, IBM, IHS Markit, Imagine Software, Misys, Murex, Numerical Technologies, Numerix, OpenLink, Oracle, Quantifi, Quaternion Risk Management, Razor Risk, RiskVal, Suite LLC and Xenomorph.