Mexico’s Banorte bank selects Murex’s MX.3 to safeguard its trading activities

Banorte has selected risk manager Murex’s MX.3 service to protect it from danger in its counterparty, derivatives and collateral management trading activities.

The deal with Mexico’s second biggest financial institution gives Murex MX.3 an endorsement that it hopes will open doors with other global financiers. Mexico is allegedly one of the more challenging financial markets in which to undertake risk management responsibilities.

The platform will be used for front-to-back-to-risk activities across Banorte’s entities, which include banking, brokerage, pension funds and asset management. Banorte asked Murex to supply a system to help it comply with global regulations that cover market compliance and best practices obligations ranging from liquidity to laundering.

Banorte had declared an immediate compliance need for XVA – a complex category of derivatives valuation adjustments which includes debit valuation adjustment (DVA) and fund valuation adjustment (FVA), which are used to hedge against a bank’s aggregated counterparty risk.

Different systems and sources of information will create inconsistencies, said according to Abraham M Izquierdo, Risk Management Executive Director Risk at Banorte. By rationalising them into one system for front, back and risk, Banorte will get a single source of data and hopefully make more accurate judgements when managing risk, he said.

“Our aim is a single, comprehensive view of our entire capital, FX, derivatives and debt markets business,” said Izquierdo, “MX.3 was the best solution for our business.”

 

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