Luzerner Kantonalbank AG (LUKB), Switzerland’s 3rd largest cantonal bank, has rolled out FM Converge, the markets and risk platform for banks and financial institutions.
FM Converge comes from Finmechanics Pte. Ltd., the Singapore headquartered fast growing software company.
FM Converge is described as “a high performant cross-asset front to back platform that enables banks to run their markets business on a private or public cloud.”
Built on a services-based architecture, the platform reportedly “enables short time-to-market for new products, manages compliance with new regulations quickly and handles growth in client flow of vanilla and structured products in a seamless way.”
Anindya Sarkar, CEO of Finmechanics, said:
“By integrating FM Converge into LUKB’s infrastructure, we were able to provide full cross asset pricing and risk capabilities with a very low technology footprint. This project brings together our experience from large Asia Pacific and Global banks, our SaaS capabilities and highly responsive local support. I extend my sincere thanks to LUKB for the trust in us and our product and the great collaboration throughout the whole project. We remain committed to supporting our client beyond the platform’s implementation, ensuring that navigating evolving financial management needs are continually met with excellence and dedication.”
Daniel Bommer, Head of Trading ＆ Treasury Services of LUKB says:
“With the implementation of FM Converge, we were able to successfully replace the long-standing system for position management and risk management in the trading book. Finmechanics clearly prevailed against a strong field of providers in the extensive tendering process. In addition to the best price/performance ratio, we were particularly impressed by the interaction with the provider, who was very professional, reliable and fast.”
As noted in the update:
“FM Converge offers LUKB future-proof trading software that covers all the functions required for pricing, trading and risk management across all asset classes. With FM Converge, we have implemented a state-of-the-art infrastructure that enables our targeted growth in the trading business and at the same time fulfils all existing and future regulatory requirements. Finmechanics proved to be a competent, agile and innovative partner during the project and we look forward to tackling future challenges in the trading sector together with Finmechanics.”
FM Converge has been deployed “on the cloud in a SaaS (Software as a Service) model to address the Pricing and Risk requirements of all asset classes including Crypto.”
High speed full-revaluation computations of VaR, sensitivity and various risk measures for all trade types, has enabled the bank to actively manage real time financial risk arising out of its markets operations and client trades.
Going forward, cross-asset structured products, additional market and credit risk modules (such as SA-CCR and FRTB) and Collateral Management shall “be rolled out providing the bank with a comprehensive coverage for both current and upcoming regulations.”
A fully hosted and managed environment “makes the FM Converge installation highly scalable and responsive to fluctuating demand, significantly reducing operational and maintenance cost.”
