Front-Office Automation Initiative – Automated Locate Manager
Client: German Asset Manager, Frankfurt
With its existing set-up, the securities lending desk of our client struggled to keep up with the manual task of replying to the increasing number of locate messages sent by their counterparties on a day-to-day basis. As a result, the desk suffered from a loss of reputation as well as a loss of potential profits.
As part of a widespread front-office automation initiative, they decided to build a full straight-through-processing application for the automated processing of locate messages and instructed Comyno with the specification of the software solution. Comyno was chosen for this task because of its subject matter expertise around the pre- and post-trade-automation in the securities finance market.
To gather the business requirements, our team hosted a series of workshops together with representatives from the front-office. We then transferred the business requirements into a functional requirements document that specified a software solution for the straight-through-processing of locate messages specifically tailored to the existing software environment of our client.
The specification was successfully delivered on time and to budget and signed-off by the senior stakeholders.
The client is currently in the process of developing the software solution based on our specification and has asked Comyno to provide continuous support from a business as well as an IT perspective during the software development life-cycle.
Initial tests have showed, that the software solution will lead to a significantly improved locate-to-trade ratio and hence increased profits and improved market reputation.
Post-Trade Automation with C-One
Client: SEB AG, Frankfurt
SEB AG, Frankfurt wanted to fully automate the post-trade processing of its Delta 1 trading activities in the securities finance space. The products in scope for this undertaking included exchange and bilaterally traded derivatives executed on the Eurex markets as well as on- and off-exchange traded equities via Xetra. Furthermore, an automated solution for the fulfilment of its MiFID OTC post-trade transparency requirements was also envisaged by the client.
Working closely with internal and external project stakeholders – incl. business, IT and 3rd parties – our consultants and software engineers developed a new post-trade target operating model specifically tailored to meet the requirements of SEB AG’s in-house software environment.
Besides software development and implementation, our team provided business analysis-, UAT/SIT management- and project management services throughout the full project lifecycle.
To facilitate the desired post-trade automation of SEB AG’s Delta 1 business, Comyno deployed its C-One product with the following components:
• A set of reliable connectivity adapters for the connection to Eurex Clearing’s C7 Clearing Architecture and to the Deutsche Boerse Xetra FIX Gateway
• A normalisation engine to translate the received transaction confirmations into a standard FIX protocol as used by SEB’s in-house systems
• A versatile business logic layer for the data enrichment of the normalised messages to meet the needs of SEB’s in-house systems
• An internal output adapter incl. a real-time trade feed to SEB’s in-house systems
• An external output adapter to facilitate fully-automated MiFID OTC post-trade reporting via the Xetra OTC Post-Trade Transparency Services of Deutsche Boerse
The project plan jointly agreed on stipulated a stepwise delivery divided into three major project phases with individual milestones. All three phases were successfully delivered on time and to budget and to the satisfaction of all client stakeholders.
After the successful completion of the project, a software maintenance contract was signed between SEB AG and Comyno. A Comyno maintenance contract offers our clients access to any future releases of C-One, allowing for secure technical and financial planning.
Securities Lending CCP Service – Full front-to-back implementation
Client: A globally operating Tier 1 Investment Bank
With certain new regulations becoming more pressing and theimminent advantages of centrally cleared transactions in the new regulatory framework (compared to bilateral transactions), the client decided to on-board to a Securities Lending CCP Service in order to diversify its principal and agency lending service offering.
The challenge, a full front-to-back implementation, required the design of the target connectivity and operating models,validation of account structures and business process design/adaptation.
A review of current operational infrastructure was needed in order to address operational and IT issues.
We deployed a team of specialists who were able to apply subject matter expertise to develop and validate the target connectivity and operating models and gather business as well as functional requirements whilst working with a wide range of internal and external stakeholders in order to ensure agreement and alignment.
Our initial infrastructure gap analysis identified critical issues with IT and operations that needed addressing at the very beginning of the implementation project.
After completion of the requirements gathering phase our team transitioned into a project management role including outlining (detailed scope, time, cost) of the project, creation of a detailed project plan, stakeholder communication and management and support of the internal business analysts and developers to deliver the client proposition i.e. a full front-to-back end implementation. UAT/SIT support was also part of our mandate.
Working closely with internal stakeholders, our team developed an elaborate connectivity and operating model, taking into account the existing IT and operational infrastructure of the client. Steering committee and senior management accepted our approach and agreed with the clear set of next steps proposed in the detailed project plan.
During the development and implementation phase, our project managers followed a clear and concise communication strategy, addressing internal and external points effectively.
The project was successfully delivered on time and to budget and to the satisfaction of all client stakeholders.