Counterparty risk management is at the forefront of challenges facing financial institutions (FIs). Intended to address systemic and contagion risks inherent in an interconnected banking system, the Single Counterparty Credit Limit (SCCL) rule applies to all large FIs, foreign and domestic, and limits net credit exposure to a single counterparty to 15% or 25% of capital. SCCL net exposures are reported quarterly on a new form, the FR 2590.
AxiomSL provides FIs with an end-to-end solution for SCCL data staging, exposure calculation, risk transfers, monitoring, and reporting that runs on ControllerView®, its data integrity and control platform. It generates the FR 2590 report including the top 50 counterparties ranking, and automatically reconciles balances to the FRY-9C.
The solution is supported by AxiomSL’s SCCL-tailored data dictionary, calculation engine, and reporting, monitoring, and reconciliation functionalities. Validation and integrity checks ensure accuracy and data quality.
The platform provides full data management with transparent, user-controlled processes from data ingestion to report submission, including dynamic data lineage with detailed drill-down and drill-up inspection capabilities.