Mitigating Risk

Enhancements to DTCC's Risk Management as a Service

By DTCC Connection Staff | Aug 03, 2020

Enhancements to Risk Management as a Service

Greater transparency empowers firms to make better decisions for their portfolios.

Processing over $2 quadrillion in transactions last year, DTCC is the primary U.S. infrastructure for clearing, settlement and asset servicing. From this central vantage point, we capture and optimize data from our processing engines and data repositories to deliver added value back to our clients. One of our top priorities is safeguarding client data. As a user owned and governed utility, we are uniquely positioned to develop innovative solutions to help our clients with challenges related to risk management, capital adequacy, liquidity, and market transparency.

DTCC’s Risk Management as a Service initiative (RMaaS) combines DTCC’s core risk management capabilities to deliver greater transparency into client portfolios across DTCC’s SIFMU businesses, leading to greater optimization and better management of clients’ capital and liquidity.

Due to member requests, new features have been added to the interactive NSCC Risk Client Portal and API. In addition to the existing functionality, the enhancements will allow member firms to review 15-minute intra-day slices instead of hourly slices to monitor fluctuations in VaR and exposure to help anticipate potential intra-day margin calls. NSCC is also extending slices past 4:30pm, until 7:00pm, to allow for a better forecast of next-day risk clearing fund requirements.

To further enhance transparency, DTCC also plans to release the detailed algorithm of its VaR formula within the portal for clients to consume providing the ability for client in-house replications of the NSCC VaR formula within their applications. This will be made available within the next coming weeks.

As an element of NSCC’s overall service, the Risk Client Portal’s simple interface empowers firms to make better decisions for their portfolios, utilizing real-time insights and historical trend analyses. The risk monitoring dashboard provides an at-a-glance breakdown of risk exposure, as well as 30-day trend lines that highlight key metrics such as total risk requirement, volatility and more, so firms can be proactive in making risk management decisions. With the VaR (Value at Risk) Calculator available in the portal, firms can create their own “what-if” scenarios to model changes to their portfolio and instantly see the resulting risk requirements.

Through DTCC’s self-service API Marketplace, clients can access the data and functionality provided in the NSCC Risk Client Portal in a more automated fashion.

For more information, please contact your DTCC Relationship Manager or email RMSupport@dtcc.com with subject line "NSCC Risk Management as a Service".

 

 

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