WestLB To Roll Out Sungard Trading And Risk Applications Worldwide

WESTDEUTSCHE Landesbank Girozentrale (WestLB) has signed a global licensing deal with Sungard Capital Markets that will extend the bank's use of the Panorama risk management system, the Devon System and the Devon Forex System to some 265 users worldwide.

The new agreement extends a previous deal to use the Sungard systems at the bank's London-based treasury centre. WestLB will now roll out the applications to staff in New York and Luxembourg. The three systems will also be installed at WestLB's head office in Dusseldorf.

Officials at WestLB's European and American locations either declined to comment on technology questions or couldn't be reached by press time.

However, a source at the bank says the global Sungard licence forms part of WestLB's strategy to standardize its worldwide risk management and trading technology. The bank had previously let individual offices make their own technology decisions.

WestLB recently centralized its treasury activities in London, which will now provide the lead in most IT decisions (Derivatives Engineering & Technology, May 12). The bank has now set up steering committee to oversee its global systems architecture.

Sungard's applications will be used as decision support tools for traders. In particular, traders will use the Panorama risk management system to analyze local portfolios and make hedging decisions.

Global plans

For now, this hedging function will be performed on a location-by-location basis. However, the source says WestLB hopes to eventually integrate these disparate Sungard installations.

This would allow traders in one location to make hedging decisions on the basis of the bank's worldwide portfolio. However, the source says the bank has no plans to implement this proposed global integration in the near future.

The Sungard applications licensed by WestLB comprise: Panorama, which supplies market risk management analytics such as VAR; the Devon System, which is used for interest rate derivatives trading; and the Devon Forex System, which covers forex and money markets.

Infinity project

Bank sources say the bank is pressing ahead with another global risk management project, based on software from Infinity Financial Technology (DE&T, June 26, 1995).

This Infinity project is based at WestLB's Dusseldorf headquarters. Staff there are using Infinity's data model and class library to build a global trade repository that will be used for enterprise-wide risk management and regulatory reporting purposes.

Gerd Boerker, WestLB's project manager for risk systems, is in charge of the Infinity development. He couldn't be reached for comment. The bank source says Boerker is "using bits and pieces" to develop "the master answer" to WestLB's corporate risk and regulatory needs.

Industry observers note that Sungard's Panorama engine can be used as an enterprise risk management system, making it a potential rival to Infinity at WestLB.

The WestLB source says the bank is hedging its systems risk by tapping more than one vendor. It plans to use Infinity for its global regulatory reporting and risk analysis needs, while individual trading locations will use the Sungard systems.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Chartis RiskTech100® 2024

The latest iteration of the Chartis RiskTech100®, a comprehensive independent study of the world’s major players in risk and compliance technology, is acknowledged as the go-to for clear, accurate analysis of the risk technology marketplace. With its…

T+1: complacency before the storm?

This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here