MX.

3 for Credit Risk

In today’s capital markets, financial institutions are looking to optimize the total cost of trading,
comply with evolving standards and regulations, and get a clear view of risk across the enterprise.
Achieving these goals requires systems to provide real-time risk measurement, management and
monitoring, as well as pre-deal simulations.
MX.3 for Credit Risk is a unique enterprise solution suite for risk managers, CVA desks, front-office
and finance with low-cost external trade integration, helping clients eliminate technical debt while
continuously evolving.

Key Benefits gem

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​• A wide range of analytical and simulated Da
methodologies, providing accurate credit risk
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measures across all asset classes. An

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​• Holistic management of consolidated exposures
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Regulatory

across trading systems with compliance

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Exposures

checks and centralized limit administration and

monitoring.
​• Pre- and post-trade credit risk measures to
help with trading decisions and optimize capital MX.3 for
usage under Basel III and IFRS 13. Credit Risk
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​• Designed for high performance computing and

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leverages cloud capabilities. ng

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​• Comprehensive coverage across all asset CV Si mu
A Ma
classes and product types including an American nagement
Monte-Carlo framework for complex exotics.
​• Full transparency and control of the calculation
chain via powerful online dashboards with drill
down capabilities to deal and risk factor level.
Comprehensive credit risk analytics Comprehensive regulatory compliance
• Coverage of analytical exposures including settlement, framework
pre-settlement, lending, issuer, country and • Real-time SA-CCR framework with pre-packaged EAD
concentration risks. and RWA calculations.
• Monte Carlo simulated counterparty credit risk • CVA Risk Charge available according to latest BA-CVA
measures such as PFE, EPE, ENE, and EE. and SA-CVA (FRTB) standards.
• Comprehensive payoff coverage across all asset classes. • Coverage of Basel formulas including EPE, EAD and
• Hybrid model diffusing all correlated risk factors based Effective Maturity.
on a Monte Carlo engine with full consideration of • Stress and Back testing reports supporting regulatory
netting, collateral and portfolio effects. compliance.
• Wrong-way risk calculations embedded in collateralized • Common framework with CVA supporting IFRS 13 CVA
exposures. marginal allocations.
• Real world and risk neutral calibrations options to fit
market practices.
Enterprise level integration
• Counterparty hierarchy, ratings, credit curves and credit
Real-time pre-deal capabilities curve proxies shared across the calculation engine, risk
• Pre-deal exposure calculation (settlement risk, PFE control and collateral management service.
and CVA) with limit checks on an incremental basis to • A common legal agreement repository ensuring
optimize trading decisions and reduce operational risks. consistency of netting and exposure calculations for
the various parameters of the SA-CCR, PFE, CVA and
capital charges.
Consolidated business dashboards
• Ability to integrate with external trading systems to
• Front-to-Risk views with a complete dictionary of deliver consistent results across the entire firm.
outputs and analysis tools.
• Extensive drill down analysis up to path-wise trade
MtMs and grids of risks factors.
• On-the-fly what-if scenarios, e.g. assessing the impact
of a re-negotiated legal agreement.

Scalable architecture
• Horizontal and vertical scalability on CPU and
GPU grids.
• Cloud-enabled with hybrid deployment capability.

MX.3 for Credit Risk

MX.3 for Credit Risk can be deployed on a
standalone basis or as part of the integrated
trading and risk solution, a single framework
from the trade pricing chain to the operations
workflows. It ensures consistency across business
units and reduces reconciliation efforts.

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