premier global investment bank global arbitrage & trading (gat) - Misys

TOPOFFICE
PREMIER GLOBAL INVESTMENT BANK
GLOBAL ARBITRAGE
& TRADING (GAT)
Case study

Premier Global Investment Bank – Global Arbitrage & Trading (GAT)
TOPOFFICE
MULTIPLE
DATA SOURCES
FRONT OFFICE
SYSTEMS
CORE BANKING
SYSTEMS
MARKET
DATA FEEDS
OTHER
DATA FEEDS
2 Case study
HIGH VOLUMES
CONSISTENCY
TIMELINESS
GRANULARITY
COMPATABILITY
DATA INTEGRATION
AND CONSOLIDATION
OPEN
HIGHLY
SCALABLE
CONFIGURABLE
SCENARIO BASED
RISK SIMULATION
LIQUIDITY
RISK
CREDIT
RISK
MARKET
RISK
SCENARIO
STRESS
TESTING
RISK AGGREGATION,
ANALYSIS AND REPORTING
BUSINESS
INFORMATION
TOOLS
REAL-TIME
DASHBOARD
REGULATORY
REPORTING

Premier Global Investment Bank – Global Arbitrage & Trading (GAT)
MANAGE TRADING BUSINESS WITH
AN AGGREGATED VIEW OF RISK
Customer profile
This premier investment bank is consistently
ranked among the top 10 global investment banks.
Its Global Arbitrage & Trading (GAT) group is a
proprietary trading unit that manages a multi-billion
dollar portfolio comprised of 40+ trading strategies
across all asset classes. GAT is the bank’s most
successful trading group, historically delivering
strong profits.
Business requirements
The management team, comprised of the
Global Business Head, Head of Trading and
Chief Risk Officer, was looking for a solution that:
• Aggregates risk exposures and P&L across all
trading strategies
• Detects magnified exposures
• Identifies new trading and hedging opportunities
• Applies a stress scenario engine to understand
potential downside
The business relied on disparate systems in the
front and back office, but no single system in the
infrastructure could provide management with
a comprehensive view of risk & return across all
trading strategies that made up its multi-billion
dollar cross-asset portfolio.
The infrastructure put investments and profits at risk
because the business could not understand the true
drivers of the group’s risk and performance without
introducing time consuming and error-prone manual
processes. The key challenge was integrating data
from disparate systems, aggregating the results and
displaying those results in a configurable dashboard
that allowed the heads of the business to make
informed investment decisions.
This affirmed the fact that the risk function had
clearly moved to the management forefront. In this
organization the Chief Risk Officer worked jointly
with the head of business and head of trading to
make investment decisions together.
The solution
TopOffice is a new product that provides an
integrated view of profit and risk across the
business, in real time, giving GAT the ability to:
• Integrate to the current system infrastructure,
consisting of 8 major systems and 6 databases
translating into 100 separate feeds, to normalize
the positions, market and reference data to
power the risk engine. The scope covered 70+
unique instrument types including equities,
equity volatility products, convertible bonds,
and mortgage-backed securities
• Aggregate all risk exposures and daily changes
to those exposures across all GAT trading
strategies that make up its multi-billion dollar
cross-asset portfolio
• Slice and dice the entire business by issuer,
counterparty or rating to understand exposures in
real-time. This is especially useful when breaking
news is released affecting global financial markets,
like the Goldman Sachs senate hearing in April
2010 or the Japanese tsunami in March 2011
• Deliver a flexible risk dashboard to track results,
identify opportunities in the market and support
the group’s expansion into new markets
The business obtained immediate value and return
on investment from the platform by receiving
“live” dashboard reports within 2 months through
a phased implementation approach, with the overall
project concluding in less than 12 months.
TopOffice is comprised of the following:
• Risk engine: Future proof risk system to run
profitability measures, VaR measures, duration
risk, interest rate risk, and sensitivity/scenario
analyses across the largest portfolios. Its
technology allows the GAT group to introduce
new or bespoke risk measures and scenarios,
and integrate with proprietary analytics to price
and value equity derivatives
• Risk dashboard: Real-time, interactive risk
reporting across all portfolios and geographies,
allowing GAT to generate reports to achieve fast
and meaningful insights into its business. The
interactive, visual capabilities of the dashboard
reports allow the GAT management team to more
easily see trends and unanticipated relationships in
data with unprecedented speed and adaptability
• Rapid data integration & orchestration: This
layer fills a vital role in orchestrating the complex
integration between TopOffice and the bank’s
data. Its flexible event-driven architecture and
workflows resolve data dependencies before
they affect reports. It also provides an operator
dashboard that greatly simplifies the system’s
ongoing operation
TopOffice provides GAT with an aggregated view
of all risks in real time, which enables the business
to make responsible and accurate decisions based
on the current situation rather than a “version of
the truth”. In short, TopOffice represents a new
generation of business tools.
Case study
3

MISYS RECENT MARKET RECOGNITION
NUMBER ONE TRADING SYSTEM
TECHNOLOGY PROVIDER
RISK TECHNOLOGY RANKINGS 2011
Number One Overall Trading System
Number One Pricing and Analytics – Equity
Number One Pricing and Analytics – Infl ation
NUMBER ONE RISK MANAGEMENT
TECHNOLOGY PROVIDER
ASIA RISK TECHNOLOGY RANKINGS 2011
Number One Overall Risk Management
Number One Trading System – Equities
Number One Trading System – Foreign exchange
Number One Trading System – Interest rates
Number One Derivatives pricing and risk analytics – Equities
Number One Derivatives pricing and risk analytics – Interest rates
Number One Derivatives pricing and risk analytics – Hybrids
Number One Support services – Implementation effi ciency
STRUCTURED PRODUCTS
TECHNOLOGY RANKINGS 2011
Number One Trading System – Equities
Number One Trading System – Interest rates
Number One Pricing and Analytics – Equities
ABOUT MISYS
Misys is at the forefront of the fi nancial software
industry, providing the broadest portfolio of
banking, treasury, trading and risk solutions available
on the market. With 1,800 customers in 120
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48003293
STRUCTURED PRODUCTS
TECHNOLOGY RANKINGS 2012
Number One Trading System – Credit
Number One Trading System – Cross Asset
Number One Trading System – Foreign Exchange
Number One Trading System – Rates
Number One Risk Management – Collateral Management
BEST TRADING PLATFORM BACK OFFICE
ASIAN BANKER TECHNOLOGY AWARDS
LEADING SINGLE TECHNOLOGY
PLATFORM – PORTFOLIO, TRADING
AND RISK MANAGEMENT
HEDGE FUND JOURNAL AWARDS 2011
BEST RISK MANAGEMENT INITIATIVE
ASIA ASSET MANAGEMENT AWARDS
Misys was formed by the merger of Misys with
Turaz, which includes the award-winning Kondor+
product line. Combined they are able to address
all customer requirements across both the banking
and trading book businesses. Misys is the trusted
partner that fi nancial services organisations turn to
for help solving their most complex problems.
Find out more at www.misys.com