Client: Central counterparty

The client was establishing a central counterparty (CCP) and decided to outsource management of member cash collateral to two asset management providers.

The requirements, as set by the group treasurer, were to shadow the investment management activity in the client’s own systems.

  • The requirements, as set by the group treasurer, were to shadow the investment management activity in the client’s own systems in order to:
    • View trades performed by the investment managers in real time and check their positions
    • Perform various risk and exposure calculations on the portfolios, as well as profit and loss
    • Track investment manager’s key performance indicators and determine remuneration to the CCP members
  • The client therefore needed to implement a Front Office module of a vendor platform within the wider CCP platform delivered by the same vendor (Murex)
  • Our Middle Office and Operations Domain specialists were engaged to:
  • Translate the client’s treasury investment strategy into a front-to-back business process design
  • Write business requirements and test scenarios for the vendor system implementation and any related reconciliations
  • Engage with the asset management providers to agree suitable interface specification for hourly trade feeds and end of day reporting
  • Liaise with other internal stakeholders, such as Risk Management to ensure their requirements could be met simultaneously
  • Employing the expertise of Domains team subject matter experts (SMEs), we delivered a process design that balanced the risk and control requirements of the CCP with interface capability of the outsourced investment management service providers
  • Value added to a new organisation by providing industry expertise
  • The requirements were completed on time and signed off by the relevant stakeholders
  • Enabled the system vendor and integration teams to clearly understand and deliver the front-to-back requirements
  • The client is now able to satisfy regulatory requirements