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Trading and settlement systems

Achieve your project goals by drawing on our experience

We have been helping businesses to set up and expand their trading and settlement systems for over 15 years and have successfully completed hundreds of related projects. Not only do we know all there is to know about the most widely used systems (e.g. SunGard Front Arena), ; we are also very familiar with the financial products traded, common market practice, regulatory requirements governing capital markets and industry-specific trading and settlement processes. Thanks also to our experience of the demands placed on such systems by risk management and accounting rules, we can ensure that your new products are effectively integrated with the best achievable time-to-market.

Our expertise in this field is clear from the many partnerships that we have established with leading software providers.

Selecting the right trading system

We have advised many domestic and international companies on the selection and introduction of trading systems. With specific regard to selection projects, we have built up a number of complete specification catalogues that can quickly be adapted to meet your individual requirements. Drawing on our own expertise, we have also developed numerous project management tools that allow us to give a reliable estimate of project costs, and have templates covering many industry-specific issues. This wealth of knowledge and experience is at your disposal.

Trading systems: set-up and expansion

We have supported projects of all sizes in this field - from the rapid introduction (in just two weeks) of a system purely intended for front-office use through to a group-wide roll-out with over 100 project staff and integration of the system with all downstream areas. Our experience covers all of the usual asset classes, from fixed income and equity through to credit, FX and commodities. We are extremely familiar with the operation of links to electronic stock exchanges, settlement and price systems and with order management processes. As a result, our customer base includes hedge funds and industrial firms as well as national and international banks.

System optimisation and consolidation

Constant changes on the financial markets also create sustained pressure on companies to adapt and optimise their trading systems. Drawing on years of experience, we can provide useful results very quickly – both on potential system mergers and on improvements to system-related processes.

Security audits

Trading divisions are among the most sensitive parts of a company. Weak points in systems and processes can lead to expensive mistakes and even (in extreme cases) to incidences of fraud that can jeopardise the company's existence. Our expertise can help you to identify any common weak points and take appropriate measures to resolve them.

 

References Trading and settlementssystems

System integration of Calypso for interest rate derivatives
Project objectives

    Front-to-back implementation of Calypso (11.1)

  • Replacement of legacy system for interest rate derivatives (plain vanilla and exotic)
  • Design of FO and BO functionality and connectivity to downstream systems
  • Implementation of several release upgrades
Tasks allocated to d-fine

    Operational project management and management of workstreams

  • Design of front office functions:
    • Pricing, P/L
    • Reporting, Calypso workstation
  • Design of back office functions:
    • Cash settlements, capital yield tax, accounting
  • Support of Risk Management dpt. in quantitative testing and model validation
  • Support of Accounting dpt. for design of the accounting engine
Implementation of Front Arena for equities and equity derivatives trading
Project objectives

    Replacing legacy systems for trading in equities and equity derivatives:

  • Client is major provider of equity derivatives for both institutional and retail clients
  • Sequential replacement of software for proprietary and sales trading
  • Market making of equity derivatives on EUREX
  • Valuation and hedging of structured derivatives
  • Operations and settlement of OTC derivatives
  • Integration with existing solution for securities trading
  • Integration with other back-end systems at the bank
Tasks allocated to d-fine
  • d-fine was the leading integration partner with a team of up to 10 people
  • Validation of the system selection as well as planning and management of the overall project
  • Design of the front-to-back processes including downstream systems
  • Configuration of Front Arena e.g. user profiles and confirmations
  • Support with integration and testing of proprietary valuation models (e.g. local volatility)
  • Design of a generic XML-based integration of downstream systems
  • Support in developing applications for quoting equity derivatives
  • Preparation and execution of user acceptance tests
  • Implementation of applications in AEL, ACM etc.
Implementation of Front Arena Release 2010.1 at an Austrian bank
Project objectives
  • Implementation of Front Arena for all asset classes at the bank (Money Market, FX, Equity, Fixed Income, Interest Rate and Credit Derivatives)
  • Front to back implementation covering trading, settlement, accounting and risk management
  • Integration into the bank's infrastructure
  • Proprietary development of limit management and collateral management via ADFL
  • VaR calculation and risk functionality via a new scenario framework in Front Arena
Tasks allocated to d-fine
  • Design and implementation for basic configuration of the system and solutions in front office, back office, accounting and risk management
  • Design and implementation of proprietary developments for limit management and collateral management
  • Design and execution of user training
  • Design and execution of module, integration and acceptance testing
  • Design and support for data migration and go-live
  • Project management
Release upgrade Murex
Project objectives

    Perform release upgrade from Murex MXG 2000 to Murex Mx.3.1

  • Asset classes: Equity derivatives, interest rate derivatives, credit derivatives, FX, structured products
  • Departments involved: Trading, risk control, operations
  • Migration of all configurations, modules, reports and interfaces
  • Migration of connectivity to an external valuation system
Tasks allocated to d-fine

    Project management in the front office and risk areas

  • Regression testing MxG2000 vs. MX.3 for all relevant parameters (P&L, sensitivities, past and future cash) for all asset classes; analysis and documentation of findings
  • Migration and testing of all functionality used in trading and risk control e.g. simulation (migration of views, conversion to MxPress)
  • Introduction of a new intraday process for sensitivity calculation for risk management purposes
  • Close cooperation with the Murex team; project approach to a large extent based on the methodology developed by Murex (FEM) using available tools, e.g. Total Recon