FinMechanics - Reaching Every Risk Department of the Financial and Commodity Markets

CIO Vendor During the Global financial crisis in 2007, organizations faced the collapse of the leveraged loan market, disappearing liquidity and a loss in the value of subprime mortgages leading to extreme volatility in the financial markets. Participants experienced huge gaps in leading capital markets solutions as the market practices shifted at an unprecedented pace. FinMechanics, headquartered in Singapore with offices in Mumbai and Dubai, emerged amidst these reforming hardships. Incepted in 2007 as a consulting company, FinMechanics has been closely following new opportunities and finding appropriate solutions to challenges thrown up by the global financial crisis. With deep understanding of the market and credit risk methodology, pricing models, regulatory changes and best practices, FinMechanics has surfaced as a strong player in the risk space providing both front to back and enterprise risk platforms and consulting services.

Organisations have various core treasury platforms. FinMechanics has worked towards providing a stand-alone modular but comprehensive risk platform that can work seamlessly with major Treasury and Markets platforms. “Our consulting and implementation experience has helped us interpret trade descriptions for all asset classes and products, underlying static data for a very wide range of financial instruments and market data from all major providers”, says Anindya Sarkar, CEO, FinMechanics. This approach positions FM Converge Risk as a comprehensive risk solution working independently from Treasury and Markets platforms while simultaneously matching marked to market valuations with those legacy platforms. With MTMs matched with the front office, passing the P&L attribution test specified by regulators doesn’t stay a constraint. If needed, FM Converge Risk models can be plugged back into some of the legacy platforms for pricing as well. This in turn enables banks and financial institutions to implement a robust FRTB infrastructure – both for a standardized approach and for internal models.
FM Converge Risk can help save significant trading book capital as FRTB-SA is much more punitive than FRTB-IMA.

Responsive Platform to Meet Upcoming Regulatory Changes
FinMechanics provides a front to back platform called FM Converge for treasury, markets and risk departments of banks and financial institutions. On regulatory risk, FM Converge includes efficient FRTB-SA, FRTB-IMA, SIMM and SA-CCR engines with very high computational throughput. The risk module of FM Converge has full coverage of VaR, Stressed VaR, FRTB-SA – with Delta, Vega and Curvature Risk, Default Risk Charge and Residual Risk Add- On. Moreover, a variety of models (e.g. Heston, Stochastic Local Volatility, SABR, Hull White, Local Market Model, Bachelier amongst many others) are available to clients to choose from, in order to match specific market conditions. FinMechanics works with market participants to turn regulatory technology into a competitive advantage resulting in substantial capital savings.

FinMechanics has been closely following new opportunities and finding appropriate solutions to challenges thrown up by the global financial crisis

The company has a vision to become the partner of choice for the markets and risk departments of financial institutions for both consulting services and platforms in an increasing number of geographies. In the next 18 months, FinMechanics has plans to expand to Sydney, Switzerland, Hong Kong, London and New York. With a decade of experience across Financial Markets and Risk Management, Fin¬Mechanics continues to deliver tangible value by way of consulting inputs, best-of-breed platforms, fit-for-purpose latest technologies and timely project executions