|Nordic Funding Agencies Kommuninvest and Kommunalbanken Select SunGard For Straight-Through Processing|
Panorama to Provide Integrated Market and Credit Risk Management
NEW YORK, June 21 /PRNewswire/ -- SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Kommuninvest, a credit market company owned by the Swedish local government funding agency Kommuninvest Cooperative Society, and Kommunalbanken, the Oslo-based Norwegian local government funding agency, are installing Panorama for cross-asset trading and straight-through processing combined with integrated market and credit risk management.
Kommuninvest and Kommunalbanken follow a policy of cooperation with each other and other Nordic funding agencies, with the objective of fostering competition for loans to the local government sector in their respective countries by offering the most cost-effective financing possible. Having Panorama installed at both entities will enable them to synchronize much of their business processes in order to achieve that goal.
Kommuninvest and Kommunalbanken have selected Panorama as part of their strict risk management discipline. Panorama will support trading, risk management and straight-through processing for a wide range of assets traded by the two funding agencies, including interest rates, fixed income, forex and money markets and their derivatives, as well as structured products including equity-linked bonds. Deals will automatically feed through Panorama, generating event-driven confirmations and postings to the general ledger, alongside payments and settlements. Panorama will also perform both market and credit risk measurements, and support the setting and monitoring of firmwide credit limits.
Thomas Akelius, chief executive officer of Kommuninvest, said, ``We selected Panorama as the technical platform to support our conservative risk policies because of its ability to provide straight-through processing for a broad range of sophisticated instruments, and because of its integrated market and credit risk functionality. In addition, Panorama offers us a flexible and extensible platform that can grow and expand with our business. We are very pleased with SunGard's professional local support team and with the implementation process thus far.''
Gavin Lavelle, president of SunGard's Panorama operating unit, said, ``Panorama, backed by an expert local support team, has been an unmatched combination for success in the Nordic region. Panorama's flexibility not only enables system customization for local specifications but for the varied needs of institutions of all types and sizes, including government funding agencies, asset management firms, hedge funds and banks.''
Kommuninvest is a credit market company owned by Kommuninvest Cooperative Society. The cooperative society currently has 115 members (112 Swedish municipalities and 3 county councils). Kommuninvest was established to provide the most favorable opportunities possible for raising the finance that is necessary to fund the investment activities of the members of Kommuninvest Cooperative Society and the companies that these members own. In this way the company serves the mutual interest of all Swedish municipalities by contributing to reducing the costs incurred by the public sector when raising the loans it needs. Kommuninvest's total lending is currently in the region of 30 billion Swedish kronor (SEK 30 bn).
Kommunalbanken is the Norwegian local government funding agency. Its objective is to secure competitive financing for Norwegian local governments. Loans are granted solely to local governments or against a guarantee from a local government. In its 75 years of operation, Kommunalbanken has not experienced any loan losses. Kommunalbanken has been assigned a long term AAA/Aaa credit rating by Standard & Poor's and Moody's Investors Service Ltd. In March 2001, Kommunalbanken was awarded the MTNWeek's Award as Best new Euro-MTN Borrower