RBC Dominion Securities Inc., Canada's largest securities firm, has licensed enterprisewide credit risk management software from Cats Software Inc.
RBC Dominion Securities is the investment banking arm of Royal Bank of Canada. The firm will use the software, called Carma, to reduce risk- related capital allocations.
Officials said the bank would gain efficiencies through credit risk mitigation and portfolio diversification. The system will produce end-of- day reports that include potential credit exposures. It will produce capital requirement reports to meet business needs.
"Cats met our time-to-deliver objectives, and we are pleased with the cost-effective computational efficiency and accuracy offered by Carma's Monte Carlo simulation engine," said Ian MacKay, vice president and director of RBC Dominion Securities.
"In addition to meeting our current objectives, Carma will position us for future regulatory demands for credit-related reporting and capitalization."