System Selection and Solution Definition for CVA

Investment in systems accounts for one of the largest items of expenditure for financial institutions implementing or enhancing CVA processes. In making such technology solution decisions, it is imperative that the right choice is made and the defined architecture is the best fit solution to meet business needs. 

In our experience, no single system will meet the needs of the full end to end CVA process (from pre-trade pricing through to hedging support, reserving and reporting) and, as such, a comprehensive CVA solution will require consideration of multiple different options.

Assessing the available options and coming to a complete definition of the target end state technology architecture forms the CVA Solution Definition step under the InteDelta Delivery Lifecycle for CVA.

We are familiar with most of the major vendor products in the CVA space (such as SunGard, Algorithmics, QuIC, Numerix, Quantifi etc). We do not, however, accept commission or other inducements from vendors to recommend their products, and clients can be sure that they will receive independent advice. Our CVA System Select tool is utilised through the CVA Solution Definition process to ensure a rigorous and transparent selection process.

In addition to our rigorous selection methodology, our deep subject matter expertise around CVA means that we understand clients’ business requirements and throughout our system selection work we continue to validate that client business and functional requirements are in line with best market practice. 

The key deliverable of the CVA Solution Definition exercise is a fully validated and costed solution recommendation with potential alternatives if appropriate. The recommended solution then forms the input to the implementation phase of the project.

For more details on our wider approach to solution definition, see our overall system selection and solution definition page.