SmartStream Launches Intraday Liquidity Stress Testing on Demand Solution
- With the new module banks can carry out and run a stress test in minutes.
SmartStream Technologies, a financial Transaction Lifecycle Management (TLM®) solutions provider, today announced the launch of its Intraday Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Stress Testing module, part of the TLM Cash and Liquidity Management suite of products.
The firm said that carrying out a stress test and running it can take up to eight weeks, with the new module banks can run this in minutes, which is essential for refining the scenario, making real-time decisions, reporting and risk analysis.
SmartStream commissioned research from Baringa Partners, a management consultancy firm, and the report highlighted that if a bank could cut its liquidity buffer by $6bn, it may save as much as $50m per year.
The firm said there is a clear need for banks to carry out stress testing to improve profitability and reduce the operational effort to meet the regulatory requirements. With these considerations in mind, SmartStream developed the new module to provide stress test results immediately.
Covid-19 impact
The product is available as standalone or via the Cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term. The pandemic and the challenging conditions it created have made this type of stress testing more essential and re-enforced the value of such a solution to banks.
"The research carried out by Baringa Partners in conjunction with the development of our new module has created a great deal of interest in the market, we are currently having many detailed conversations with banks where the ability of a comprehensive solution with the flexibility of testing different stress scenarios is critical. Also, the current turmoil in the market has had a big impact on a bank's liquidity - so the ability to model the potential impact of such occurrences is no longer simply a regulatory box-ticking exercise, but a matter of self-protection and even of survival for many financial institutions," Nadeem Shamim, head of cash and liquidity at SmartStream, stated.
"The research identifies that it's no longer about meeting intraday liquidity reporting requirements, banks are now seeing value in stress testing and having the tools to carry out complex scenarios with a high degree of accuracy for making more informed decisions. In addition, the findings revealed that it has gone from being a regulatory burden to creating a stringent, active framework within which to manage liquidity risk. By simplifying the complex and time-consuming testing process, SmartStream's solution allows banks to run a variety of stress scenarios in a short space of time, which is critical," Simon Gray, director at Baringa Partners, said.
SmartStream Technologies, a financial Transaction Lifecycle Management (TLM®) solutions provider, today announced the launch of its Intraday Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Stress Testing module, part of the TLM Cash and Liquidity Management suite of products.
The firm said that carrying out a stress test and running it can take up to eight weeks, with the new module banks can run this in minutes, which is essential for refining the scenario, making real-time decisions, reporting and risk analysis.
SmartStream commissioned research from Baringa Partners, a management consultancy firm, and the report highlighted that if a bank could cut its liquidity buffer by $6bn, it may save as much as $50m per year.
The firm said there is a clear need for banks to carry out stress testing to improve profitability and reduce the operational effort to meet the regulatory requirements. With these considerations in mind, SmartStream developed the new module to provide stress test results immediately.
Covid-19 impact
The product is available as standalone or via the Cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term. The pandemic and the challenging conditions it created have made this type of stress testing more essential and re-enforced the value of such a solution to banks.
"The research carried out by Baringa Partners in conjunction with the development of our new module has created a great deal of interest in the market, we are currently having many detailed conversations with banks where the ability of a comprehensive solution with the flexibility of testing different stress scenarios is critical. Also, the current turmoil in the market has had a big impact on a bank's liquidity - so the ability to model the potential impact of such occurrences is no longer simply a regulatory box-ticking exercise, but a matter of self-protection and even of survival for many financial institutions," Nadeem Shamim, head of cash and liquidity at SmartStream, stated.
"The research identifies that it's no longer about meeting intraday liquidity reporting requirements, banks are now seeing value in stress testing and having the tools to carry out complex scenarios with a high degree of accuracy for making more informed decisions. In addition, the findings revealed that it has gone from being a regulatory burden to creating a stringent, active framework within which to manage liquidity risk. By simplifying the complex and time-consuming testing process, SmartStream's solution allows banks to run a variety of stress scenarios in a short space of time, which is critical," Simon Gray, director at Baringa Partners, said.