Markit has launched a Basel 3-compliant solution integrating the management of CVA and internal model capital. Markit Analytics CVA & Capital is a unified simulation engine allowing banks to calculate CVA, funding valuation adjustment and internal model capital for CVA, counterparty credit risk and market risk.

The product covers all asset classes from vanilla products to highly complex path-dependent derivatives. Capabilities include pre-trade inception charging, credit checking, post trade profit and loss and capital management.

Markit has also enhanced the overnight indexed swap discounting methodologies for its portfolio valuations service. It should allow for more accurate valuations of collateralised and uncollateralised trades, which is particularly relevant for calculating the margin requirements specified in CSAs.