CVA System Select
Undertaking CVA system selections can often be a time consuming process for financial institutions. There are currently many vendors offering seemingly similar functionality which may be difficult to differentiate, and an increasing number of application vendors are entering the CVA space. As such, understanding the CVA technology landscape of market vendors, the strengths and weaknesses of each particular vendor and the costs involved in implementation and ongoing support can often be a complex and confusing task.
This complexity is increased by the fact that the CVA process is broad and touches upon many different departmental processes such as pricing, hedging, reserving and capital allocation. Certain vendors look to cover parts of this process whilst other vendors focus on other parts. An overall CVA infrastructure is therefore likely to be a multi-platform solution.
The InteDelta CVA System Select tool has been developed to enable our clients to identify the most appropriate CVA systems architecture in optimal timeframes. This comprises of a pre-configured tool which we use to score CVA systems.
The diagram below shows the primary components of the CVA System Select tool.
This can also be easily extended to incorporate a client’s particular requirements.
The vendor justification step in the process provides a summary of the selection and scoring process which can then be used for management approval and/or communication of the basis for the selection decision.