Luzerner Kantonalbank selects Finmechanics tech for markets business overhaul
Luzerner Kantonalbank (LuKB), one of the 24 cantonal banks of Switzerland, has tapped Singapore-based banking software provider Finmechanics for trading tech.
LuKB taps Finmechanics’ trading tech
The partnership will see LuKB, which is based in Lucerne and government-owned, integrate the vendor’s FM Converge offering into its existing infrastructure, replacing the bank’s long-standing system for position and risk management that had previously been leveraged for its trading book.
Described as a “high performant cross-asset front-to-back platform”, the trading software will be applied, via a cloud-based Software-as-a-Service (SaaS) model, to the bank’s markets business and asset classes as a means to appease pricing and risk requirements and regulations within its client trades.
FM Converge applies market data within its computational methods to analyse the short-term Value at Risk (VaR) potential incurred by a portfolio’s financial assets, in real time. Additional market and credit risk modules from the software, including SA-CCR, FRTB and collateral management, are also due for implementation by the bank in due course.
Daniel Bommer, head of trading and treasury services at LuKB, says FM Converge “enables our targeted growth in the trading business” and “fulfils all existing and future regulatory requirements”.
