BB&T plan to use the software for derivative instruments such as swaps, caps & floors, swaptions and exchanged traded futures and options. Summit is also working to enable the bank to capture and price funding products such as CDs, Fed Funds and FHLB Advances.
Summit said its platform will provide traders and other users in the front office with trade structuring, pricing and hedging tools, and a suite of portfolio analytics including stress testing and VaR analysis. In the back office, the company’s rules-based STP environment will be deployed to enable BB&T to automate trade and document workflow and streamline operations.
In addition, the system will be responsible for generating all accounting entries for posting to the bank’s general ledger.
Our goal was to find a system which could deliver comprehensive functionality to manage the derivatives for our balance sheet hedging, as well as our growing customer business in derivatives, explained Hal Johnson, executive vice president of funds management for BB&T.
