We are highly aware of the challenges of delivering capital markets applications and systems.
In that regard, we help IT to deliver value to the organisation by providing key technical expertise, and by ensuring that IT staff understand and can define actual business needs.
We have supported IT in a range of business processes and technical areas:
IT case #1
Transformation of reporting platform at large Danish pension fund
A large pension fund was in the process of replacing their Portfolio Management system. Because of this process, new reporting had to be implemented. CMP assisted with creating the foundation for the new reporting, as well as clarification and implementation of new processes.
In connection with the replacement of the portfolio system CMP assisted with the transformation of an old Unit-Link system to the new reporting platform, in order to gather data in one place, and optimize report generation.
In the implementation, CMP helped with both technical and business skills.
IT case #2
Implementation of new risk engine at bank data center
CMP has helped one of the Danish banking data centers with implementation of a new risk engine. Covering ALMM and parts of credit-, liquidity and market risk. The Risk engine is from IBM ALGO, and the output is going to be applied to the internal risk reporting, and reporting to authorities.
CMP had two focus areas in the project. First, analysis of the business requirements and modeling of financial instruments and derivatives. The second task was to deliver technical analysis and integration of data from other systems into IBM ALGO.
IT case #3
Implementation of new trading system
A commercial bank had become a member of a Danish banking Data Processing Center (DPC). For a number of reasons, the bank did not want to use the DPC’s existing stock exchange trading solution in relation to domestic fixed income instruments and equities. Instead, the customer preferred a foreign supplier offering a considerably more advanced trading system which was able to integrate with the Copenhagen Stock Exchange/Nasdaq/OMX (and, in addition, a large number of international stock exchanges).
The objective, therefore, was to ensure that the new trading system would be able to integrate with the DPC’s existing back-end accounting and settlement system, such that domestic stock exchange trades could be executed and settled from both the bank’s branches and their internet bank clients.
The project had to develop and implement a two-way module or adapter enabling communication between two technically disparate systems, without making changes in any of the existing systems.
The problem was solved – in C#/.NET – by developing a scalable, multi-threaded Windows service able to translate messages/transactions – in real-time – between Websphere MQ and TCP Sockets. The system was developed with a resource requirement of approx. 6 man-months.
IT Case #4
Amortization of loan fees
A Danish banking Data Processing Center (DPC) had entered a collaboration with a foreign supplier on development of Basel II functionality for the DPC’s banking customers. Since the supplier had extensive experience with – and software for – management of a wide range of financial instruments, the company was also selected to develop a system for the amortization of major loan fees in accordance with IFRS/IAS specifications.
Unfortunately, the supplier was not capable of implementing a system able to complete execution within stipulated time-frames and with a tolerable error level.
Instead, an entirely new and comprehensive system to perform calculations on 400,000 loans was developed from the ground up. The system included generation of cash-flows for a number of loan types, calculation of correct IRRs, calculation, management and storage of monthly loan fee amortization contributions, generation and forwarding of accounting transactions, etc. plus establishment of a deployment system covering more than 100 banks.
The system was developed in C#/.NET using an Oracle database with a resource requirement of 13 man-months, and entailed an 80% hardware reduction, significantly more accurate calculations, and a much more robust and stable execution.
IT Case #5
Analysis of implementation risks for banking operations service provider
The case of a banking operations service provider provides a complex, high risk example as it is effectively a single IT department, serving multiple member banks which each have unique requirements.
It had selected a new platform that could support trading, risk management and operations across multiple asset classes and would also meet the increased demands for derivatives trading from its member banks.
The selected system could deliver one consolidated platform, but required extensive configuration and deployment work. CMP addressed the implementation risks, firstly by identifying, validating and prioritising business requirements across the customer base, then by identifying the project scope, functional scope and the delivery roadmap.
During implementation it helped IT manage change requests, and provided risk management expertise.