Belgium's local commercial bank Belfius Bank has deployed the Numerix CrossAsset analytics platform for its model validation processes, for reducing operational risk and improving model choices.
The system offers a high level of independent model assessment ensuring increased transparency and better risk controls, thus facilitating the user to make more informed decisions, Numerix said.
Belfius validation head Luc Leonard said as the property of the Belgian government with the mandate of creating added value in various forms of society, the firm has a responsibility to its customers to guarantee the accuracy and completeness of the models used throughout its derivatives and risk operations.
"Numerix was thus an excellent match to our needs: it will significantly improve our efficiency by allowing us to perform deeper and more challenging analysis under shorter time delays," Leonard added.
Using Numerix CrossAsset, Belfius can compare between different models to authenticate pricing and risk sensitivity outputs and scrutinize how the outputs differ under diverse assumptions.
Numerix EMEA managing director Nick Haining said the granularity of model implementation in the Numerix libraries will allow Belfius to increase the transparency of their pricing and model validation.
The independent analytics institution offers cross-asset solutions for structuring, pre-trade price discovery, trade capture, valuation and portfolio management of derivatives and structured products.