AxiomSL has widened its United Kingdom liquidity risk calculation and reporting suite with the launch of its PRA110 solution. The solution provides treasury teams a powerful tool that automates the calculation of maturity mismatch and ensures that the final PRA110 template that is reported to the Prudential Regulatory Authority (PRA) is reconciled, timely and accurate.
The PRA110, a new liquidity calculation and template, will come into effect from July 2019 to replace current FSA047 and FSA048 process. It will apply to all UK banks, building societies and PRA designated investment firms. A firm’s profile will determine the calculation and reporting frequency which may be daily, weekly or monthly.
PRA110 will require the reporting of nearly 29,000 data points which presents a significant change to the current process as more granular data will be required. Current processes which are often manual can be both error-prone and time consuming. The frequency and increased granularity will make it difficult to manually comply with the new requirements without robust automated solutions.
AxiomSL’s strategic regulatory reporting and risk management platform ensures that the liquidity regulatory compliance regimes (The new PRA110, the Liquidity Coverage Ratio (LCR), the Net Stable Funding Ratio (NSFR), Additional Monitoring Metrics (AMM), and Asset Encumbrance (AE)) are all fully integrated and aligned to the internal risk management and Asset Liability Management (ALM) functions, such as Interest Rate Risk in the Banking Book (IRRBB), Funds Transfer Pricing (FTP) and cashflow management. Its PRA110 solution is fully integrated into a unified liquidity data model which means all the internal and external liquidity risk management measures are able to utilise common data sources and modelling assumptions.
As with all AxiomSL’s solutions, PRA110 and the liquidity suite is available both on premise and on cloud.
Ed Royan, CEO, AxiomSL EMEA commented: “We are pleased to enhance our liquidity risk calculation and reporting suite with the launch of our PRA110 solution. With increased regulatory scrutiny, it is imperative that reporting satisfies requirements accurately and on time. AxiomSL is well positioned to addresses key aspects of the new PRA110 framework with the integration of liquidity metrics, ensuring data governance, automation, traceability and transparency with the benefits of shortened time to market, reduced total cost of ownership (TCO) and increased operational efficiency. Now is the time to prepare for the new standard by automating and integrating systems to effectively facilitate the granular data collection and submission prior to the July 2019 deadline.”
Wissam Elzeenni, Liquidity Product Manager, AxiomSL EMEA commented: “The PRA110 incorporates features from other regimes like the LCR and FSA047-048 and addresses additional risks not already covered such as HQLA monetisation. This new standard requires an integrated and robust system that can fully handle the liquidity risk management process, from data sourcing and reconciliation to reporting, including XBRL submission, in a streamlined and automated fashion. AxiomSL’s liquidity solution encompasses all liquidity regulatory compliance regimes, including PRA110 and provides a fully integrated cash flow engine as well as dynamic dashboards along with forecasting, variance and trend analysis.”