Our Counterparty Module is a comprehensive framework for measuring and monitoring counterparty risk across all assets classes and consistent with regulatory requirements.
Our Counterparty Risk Module
Counterparty Risk - Relevant Holdings
Counterparty Risk is the risk that the counterparty to a transaction could default before the final settlement of the transaction. It relates to positive balances – e.g. where the fund is owed money, as opposed to where a fund owes money to a counterparty.
Assets included with Counterparty Risk calculations, include:
- OTC Derivatives
- Structured products even if listed (e.g. elns, notes, certificates etc)
- Cash
- Deposits
- Margin
- Loans
- EPM transactions like stock lending, repurchase agreements etc.
Counterparty Risk can be reduced by netting and by collateral.