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RIC Limit Details

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Limit Definitions

At present the limit definitions must exceed conventional consideration of counterparties. Beside political and economic ratings strategic product- and currency ratings and trading-oriented risk-control for the development of effective limits are required.
The counterparty-view is implemented as a hierarchical counterparty-structure with product-weightings in standardized time-lines. The weighting can be performed for the whole institute or divided by trading locations. Additionally a counterparty all-over-risk can be defined, that can, if required, deduct the product ratings out of deposited diversification-keys. Optionally it is possible to control the limits using rating changes, that are performed by depositing several ratings on the basis of assigned weightings.
The building of counterparty-classes enables counterparty-view. This classification provides a view on the counterparty basis independent of physical structures and makes it possible to introduce factors and ratings on the basis of institute-specific considerations of counterparties.
The political and economic consideration provides, based on definable groupings, a complete limiting of a group or a single unit. This limiting can be assisted by ratings and product weightings.
Strategic product limits control the risk diversification of products of the trading institutes. For this both, product oriented complete limits and limits adjusted to times lines, can be assigned. This separation is provided for the strategic currency consideration, too.
Trading oriented limiting is being fixed using freely definable hierarchies of trading locations, groups of traders or even single traders.

Bildung des Effektiflimits


Limitworkflow

Establishment and authorizing of limits as well as changing, controlling and credit-overdrawing underlay a defined workflow inside a company. RIC Limit supports these workflows using a standard workflow and customer-specific flows.
Each change to a limit underlays a request-procedure, that controls application, authorization and admission of the limits on a given point of time. All actions, which lead to a change of a limit, can be released by the four-eyes-principle and logged by the system.
The actions necessary for the rating of counterparties (resubmission for controlling, ratings of business reports, open applications etc.) can be fitted with a target date and displayed to the consultant as an open task.

Demands

The optional limit reporting module displays overdrafts until they are cleared to the logged-on user. An overdraft can be committed to email systems using standard-interfaces, in order to announce it to a someone outside the current user-group (e.g. to the consultant responsible for this counterparty).

Data Feed

The data model of RIC Limit consists of standardized elements, which are supplied by manual input and automated feed-modules.
RIC Limit is not limited to an employment on certain systems. The data feed modules are being trimmed to the data storage systems and customer-specific definitions. This gives the opportunity to feed the system with data for maintenance of counterparties and rating of demands independently of the superior system within the back-office or trading system.
Data feed modules are used for passing on data to other systems. This enables limit changes to be delivered to trading systems, back-office systems or to a data warehouse.
A data feed can either be controlled by an event or be cyclic or take place on demand. Consequently trading systems with real-time support can be supervised and handled in good time.