APAC Bank Arm — Extending Global Models to Local Markets
Locally-calibrated extensions that supplement, never fork, the group model architecture.
The APAC desk of an overseas-headquartered bank finds that well-built global models don't reflect local curve construction, cross-currency basis, holidays, settlement or liquidity. We would deliver locally-calibrated extensions that supplement — never fork — the group architecture, with documentation and workshops so ownership stays inside the bank.
The Challenge
The group's models are sound, but they were built for the head-office markets. On an APAC desk the mismatches tend to show up where they always do: curve construction, cross-currency basis, local holiday and settlement calendars, and thinner liquidity that the global assumptions don't capture.
The desk can't simply fork the group code — that would fracture governance and create a divergent codebase no one wants to own. It needs local accuracy that stays inside the group's architecture and its control framework.
The Approach
We would extend the existing architecture rather than work around it, and make sure the desk can carry it forward.
1. Diagnose the local mismatches
We would identify precisely where the global assumptions break down in APAC — curve building, basis, calendars and liquidity — and quantify the impact of each, so effort goes where it matters.
2. Calibrate extensions, not forks
We would build locally-calibrated components that plug into the group models as extensions, respecting the existing architecture and governance rather than branching a parallel codebase.
3. Transfer ownership
We would document the extensions and run workshops with the desk and its quants, so the local team understands, owns and can maintain the additions itself.
What we'd deliver
Locally-calibrated extensions for curve construction, cross-currency basis, holiday and settlement conventions and liquidity — built to supplement the group architecture, delivered with documentation and workshops that leave ownership inside the bank.
The Likely Outcome
The desk would get models that reflect the markets it actually trades, without forking away from the group and without a governance headache. Because the work is delivered as documented, calibrated extensions and transferred through workshops, the bank's own people would own and maintain it — local accuracy inside a single, coherent architecture.