Algorithmics says the new release - Algo Suite 4.4 - now provides the functionality to support the data consolidation, computation and reporting requirements of the new capital Accord.

The system provides a detailed breakdown of both risk-based capital across the enterprise, helping firms improve the management of regulatory and economic capital, and delivers the transparency necessary to support the supervisory review and market discipline requirements of the second and third Pillars of the Basel regulations.

In addition, Algo Suite's single risk architecture streamlines the number of systems and processes required by a firm to obtain, analyse and audit its position.

Michael Zerbs, chief operating officer, Algorithmics, says: "We are delivering a solution that is definitely ahead of the curve, providing significant Basel II functionality based upon our industry-leading Mark-to-Future framework."

The new Basel II functions were developed in collaboration with a group of early adopter clients including, Royal Bank of Scotland (RBS) and HSBC.

The upgrade also supports both Solaris and Linux platforms - allowing firms to manage enterprise risk using Intel-based Linux machines. All key simulation and analytical components can run on Red Hat Linux 7.3.

Furthermore, Algo Market and Algo Credit clients are able to deploy the product across a Linux grid, which reduces hardware costs. Using GridServer technology from DataSynapse, the generation of the MtF cube can be split across multiple machines, with each machine simulating a small part of the cube.

The system also features the vendor's On-time Mark-to-Future framework for delivering simulation-based analytics on-time, allowing users to assess the impact of a new deal on a portfolio risk profile, while considering the effects of natural market offsets and other credit mitigation techniques. As a result, more instruments can be simulated in less time, hence reducing the need for analytic approximations.