Main news of the Sofia S67 release

Risk Management

Insertion of €STR rate

The reform of the money market reference rates and the introduction by the European Central Bank of the new rate called Euro short-term rate (€STR), Sofia has been adapted to  consider a spread to be applied to the rates that make up the curves, thus allowing to switch from EONIA rate to €STR rate and vice versa.

SimCorp Italiana has set up a service for clients to support the migration to the new €STR rate, please contact your reference account to plan the activity.

For further information: sofia.risk-alm@simcorp.com

Compliance

IFRS 17

The developments related to the Principle keep going, both for the complete configuration, which intends to manage internally in Sofia the entire calculation cycle of the accounting entries IFRS 17, as well as for the reduced configuration, which allows the import and the accounting of the values for Fulfilment Cash Flows calculated by an external actuarial engine.

In particular, a new calculation method is available inside the ALM module from this release, which allows to carry out a stochastic perturbation of the exit terms in a simulation in “complete” mode. This calculation method can be used to measure the Risk Adjustment for IFRS 17 accounting, but it is also a flexible instrument to analyse non-financial risks of the portfolio for management purposes.

Moreover, a standard import layout is now available in Sofia, allowing to insert the Unit of Account accounting values in the Positions environment.

For further information: sofia.IFRS17@simcorp.com

Derivative hedging

This release contains the infrastructure that supports the new Hedging Accounting module, including in particular:

• The environment for the comparison of holdings

• The possibility to define strategies

• The correct accounting of the holdings, according to IAS39 and IFRS9 principles

For further information: sofia.derivati@simcorp.com

Services

DSS services

The DSS (Decision Support System), the Business Intelligence tool based on Sofia, has been enhanced with two new services:

• “Valuation as a Service”, to support the correct portfolios valuation

• “Funds reporting”, to support the production of funds reporting for distribution

These new services are additional to the ones already available, including Portfolio Certification and Risk Analytics.

For further information: sofia.info@simcorp.com

Infrastructure

SFTP protocol management

Sofia features for the management of data transfer from and towards external servers have been enhanced, now it is possible to connect also trough SFTP protocol.

For further information: sofia.info@simcorp.com