Sophis RISQUE Brochure - Misys

SophiS RiSQUE
CRoSS-ASSEt FRont-to-BACk tRAding
& RiSk MAnAgEMEnt FoR CApitAl MARkEtS

Sophis RISQUE – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets
Sophis RiSQUE is a cross-asset trading and risk management solution
that gives investment banks extensive coverage and flexibility across
their trading activity. Sophis RiSQUE provides a suite of state-of-the-art
products, designed to help traders to manage their books operationally
and also from a risk perspective. From market-leading coverage for
equity derivatives, securities financing and structured products through
to high volume vanilla trading, Sophis RiSQUE is a powerful global
cross-asset trading system used by many of the leading players in
the derivatives and structured trading markets.
highlights include:
• Broad cross-asset coverage, including otC
derivatives (equity, interest rates, credit,
FX and commodities)
• Full range of risk analytics and scenarios available
in an integrated front to back office platform for
traders, risk managers and compliance officers
• Firm-wide control and visibility over market risk,
credit risk and collateral management for risk
managers, in addition to risk analytics such as
VaR, stress tests and risk reporting
• pricing models for all supported instruments,
provided and managed by the Misys in-house
quantitative team who ensure that customers have
the means to meet the latest market requirements
• Full flexibility, with totally customizable pricing
models, scenarios and instruments
• Streamlined operations and reduced costs
through automated transaction processing
from front to back office
• dedicated implementation team with a renowned
global deployment record to help to maximise
the return on investment, quickly and efficiently
• Cutting-edge financial research and engineering
incorporated, drawn from more than 20 years’
experience in capital markets.
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Used by one third of the world’s
top 25 banks, Sophis RISQUE
handles OTC derivatives with
ease, incorporating sophisticated
features for data management,
pricing, hedging, portfolio
management and risk analysis.

Sophis RISQUE – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets
Unrivalled portfolio management and decision support
Front Office
Across all asset classes (equities, credit, interest
rates, fixed income, inflation, foreign exchange,
commodities and hybrids), Sophis RiSQUE delivers
the p&l consolidation, pricing models and hedging
tool capability the trader needs to keep one step
ahead of the market.
indeed, Sophis RiSQUE allows the portfolio to
be analysed from as many angles as the trader
chooses – as if holding it in their own hands.
From the most vanilla of flow business to the
most advanced reaches of the otC market,
Sophis RiSQUE frees the trader from operational
concerns to focus on innovation.
ASCOT
credit
CPPI
swaps
Basket
CPPI
CFD
Bonds
Callable
Structured swaptions
CDS
swaps
Sophis RiSQUE instrument coverage
Asset
swaps
CBs
Credit
bonds
Equity
Stocks &
ABS
futures
Funds Indexes
Corporate
Stock
Bank
loans
Hybrids
• Real-time: position monitoring, p&l calculation
with marked-to-market and theoretical prices.
• User friendly: highly flexible and user-friendly
hierarchical portfolio and gUi, full Excel link
(copy paste and .CoM bus).
• User adaptable: user-chosen view, parameter
and data sets.
• Flexible: unlimited model and instrument
customisation with Sophis toolkit, instrument
modelling with award-winning Structure Builder.
Structured payoff & basket options
loans
Bond
futures
Variance
swaps
Equities
Fixed income
Inflation
Vanilla options
VIX
Government
bonds
Inflation
swaps
Inflation
options
Future
Commodities
Sophis
RISQUE
Money
IR futures
Commodity swaps
Interest rates
markets
Indexes
Currencies
Repos
FRA
FX spots & futures CMS
IR swaps
FX swaps
Basis swaps
Cap/Floors Swaptions
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Sophis RISQUE – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets
Sophis RiSQUE integrates market, counterparty and
operational risk management within the same platform
Risk Management
Market risk
Sophis RiSQUE offers the most advanced
integrated risk control tools:
• Model calibration
• Real-time calculation and consolidation
of risk indicators
• Full range of standard and customisable
simulations and risk scenarios
• historical, Monte Carlo and parametric
VaR calculation
• Compliance management
Counterparty risk
Sophis RiSQUE Collateral Management module
determines the credit risk exposure for any
instrument and offers accurate management
of all collateral positions and margin calls.
Sophis RiSQUE is compatible with most BASEl ii
and MiFid standard rules.
Real-time exposure report by risk factor
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Operational risk
Sophis RiSQUE integrates a flexible, rules-based
workflow that fits any internal validation process and
provides a highly secure platform, with full reporting
facilities, defined user rights and audit trail.
Reporting
An integrated tool allows the generation of standard
reports. Users can also rapidly create and customise
additional user-defined Crystal Report templates.

Sophis RISQUE – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets
Streamlines operations and reduces costs with automatic
Stp transaction processing front-to-back
Operations
Data management
• Sophis RiSQUE is based on a single database.
this means that all its current functionality is
linked to the same data warehouse, integrated
front-to-back and across all assets.
• it offers a comprehensive solution for automatically
updating security and data masters from external
data sources with all the types of static and market
data that define financial instruments.
• Sophis RiSQUE gives the possibility to verify the
accuracy of market data and its computation for
instrument pricing, p&l, end of day procedure
and risk scenarios, thanks to the delivery of highly
reliable indicators and reports.
• Multi site capability ensures business continuity
managing 24/5 updates, multiple business time
zones and currencies as well as multiple local or
global business lines.
Sophis RiSQUE full Stp transaction chain
Back office
• Secured workflow: Automatic management
of statuses and events, all fully customisable
as required in Sophis RiSQUE, throughout
the full lifecycle of all trades from the front
office to the back office.
• Confirmations and payments: generation of
template-based validation and notification
messages to multiple third parties (depositaries,
brokers, clearing agents and all other parties).
• Settlement instructions: generation of all
settlement messages with generic and
user-tailored gUis.
• Accounting: Straight through processing
integration of accounting entries in the general
ledger, marked-to-market revaluations and
corporate actions management.
• nostro Management: designed to undertake real
management of cash accounts on a daily or weekly
basis, or at the end of any period users specify.
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Sophis RISQUE – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets
Sophis RiSQUE offers adaptability as standard
Technology
Customisation
Because all institutions have different goals,
structures and priorities, Sophis RiSQUE can be
tailored to fit seamlessly into any environment.
• C++ & .net toolkit allows unlimited modification of
the application through access to all its functional
libraries including those for calculation, database
and instruments. this allows our clients to integrate
their own pricing models, independently meet
new market practices, trade new instruments,
etc. as they wish.
Sophis
RISQUE
Developer station
Enrichment &
customisation
(pricer, instrument,
scenario, etc.)
Standard reports
Sophis CB
Data providers
External
systems
Basic architecture
Sophis users
Core servers
Core services
Real time
Data
Sophis RiSQUE service oriented architecture
Citrix ®
servers
Sophis Middleware /
ORACLE
database
Scalability and openness
• Sophis RiSQUE Api (Application program
interface) allows the client to build strong
connections to external applications. Sophis
RiSQUE functionality is accessible through either
Sophis proprietary format, XMl messages or
.CoM port. in addition, new services can be built
on the Sophis RiSQUE Api, complementing its
service oriented architecture (SoA) with specific
functionality as required.
Business &
performance
Risk management
Performance
Back Oce
Sophis SOA
Web Services
Transaction,
Instrument,
Third party,
Portfolio,
Valuation & Risk
Sophis Calculation Server /
Grid computing farms
External
BO systems
External
FO systems
Web portals
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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
countries our team of domain experts and partners
have an unparalleled ability to address industry
requirements at both a global and local level.
Misys and the Misys “globe” mark are trade marks of the Misys group
companies. Copyright© 2012 Misys. All rights reserved.
MS0053
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