Yaacov Mutnikas, managing director and cohead of Solutions at Markit, explains: "FRTB will potentially have a dramatic impact on banks' trading operations. Most banks will be challenged to produce the datasets necessary to demonstrate modellability and to manage and validate proxy decisions under new Non Modellable Risk Factor (NMRF) guidelines. Markit's solution leverages our core strengths across capital modelling, transaction processing and data aggregation to help solve these issues. Recent Markit research on the impact of improved data on capital and NMRFs suggests our aggregated transaction data can result in a 40% reduction in capital requirements compared to banks using only their own data." The Markit FRTB solution will be hosted with options to deploy the Analytics Risk Engine and FRTB Studio within a client's infrastructure.