Professional Documents
Culture Documents
June 20,2000.
Presented by
Scott Dillman & Ian Drachman
scott.dillrnan@us.pwcglobal.corn& ian.drachrnan@us.pwcglobal.corn
a a
Agenda
Agenda
Conclusion
Considerations and Concerns
Management Pre;;;rrS;n,"m~<PI
r----> Globalization
Requirements
Product
Emerging
Evolution
Technologies Regulatory
Requirements
Considerations and Concerns
Completeness
Flexibility Consistency and
Standardization
1 )
Strong Control
Environment < Scalability,
Robustness
Reusability Reliability
Performance
L
Considerations and Concerns
Flexible processing
Sync
>I
processing
cycles
Technology
Considerations
Streamlining
administration
Document Architecture
Management
Business Architecture
-7
Considerations and Concerns - Risk Management
wm
Marketing Workstation
0
Marketing
Credit
(MIS
Approval Requests
C u r l Facility.
\
Portfolio
Mgmt -< Global Credit Risk Aggregation
-
K ~aci"L-
- Limit Monitoring
- Portfolio Mgmt
F
L
n
- redit Requests
With all the considerations and concerns, how does one decide
whether to choose a vendor solution or build a system to manage
their derivatives business???
Considerations and Concerns
i
~ h e " ~ e n dversus
or Build Decision
Multi-Vendor ASPs
Consortiurns -M-&...L-"~
a a,
Considerations and Concerns
Keys to Success
Required:
Constraining Growth
Regulator Pressure
Considerations and Concerns
Enterprise wide
Product Specific
2 Algorithmics
3 ATSM
zAxiom RiskMonitor
2 SunGard - Infinity
MKI (C*ATS)
2 Barra Software
,
-
ex
>
a a a
Derivatives Technology TODAY
Product Specific
zAnvil
zFEA
Intermark Focus
zThe Beast (CastleNet)
FENICS
zInventure
zLombard Risk Systems
zSophis
3 Tech Hackers Inc.
Derivatives Technology TODAY
= Adfin
a FEA
3 Mathworks
3 NumeriX
~u&-Ci
a
Vendor Selection Process
-
The one person decision My way or the highway
Bells, whistles and toys - Fancy GUI
The one discipline approach - operations only
Too heavily weighting functionality
The short term decision
I Vendor Selection Process
!
I
I Project Management Methodology
1 Major Steps of System Requirements Analysis
Requirements Solution
Requirements Alternatives
Product
Evaluation
wm
Marketing Workstation
Risk Workstation
- Credit Approvals
- Limit Monitoring
- Portfolio Mgmt
Legal Workstation
- Netting Agreements
- Margining Agreements
Operations ~orkstatiod
Account Opening
- Reconciliation
Front Office ~ o r k s t a t i o m
Vendor Selection Process
F)DF)F)F)
Major Steps of System Requirements Analysis
Product
Evaluation
A
Review third party content Bob's Guide, Wall Street Technology,
Derivatives Strategy, Risk anagement Technology)
- 1 n + ~ i ~CU~C-W& 0%-
- Ben+ Or&-
- c'nw3- b & ~ \ c ~ -
Request
Application Technology Assess Assess
Product Vendor
Product Product Vendor Product Product
Proposals
Requirements
Vendor Selection Process
Product
Product Product Product Product
Proposals
Requirements
Vendor Selection Process
Application Technology
Product Vendor
Product Product Vendor Product Product
Evaluation Proposals
Requirements Requirements
Vendor Selection Process
Product Coverage
Valuation
Analytics
Value-at-Risk
Product SupportTTraining'
Cost
Vendor Selection Process
Request
Application Technology Assess Assess
Product Vendor
Product Product Vendor Product Product
Proposals
Requirements
Vendor Selection Process
The following 13 trades were selected as the test trades for Infinity and Summit.
The project team was of the opinion that the following trades were representative
of the more complex trade types of the client's derivatives book. The following
trades incorporated five different currencies : CAD, DKK. HKD, JPY and USD.
Vendor Selection Process
. straight-thm-processing
a m u n t Slructure
2. Product Coverage
..
3. Valuation
as-of ability
PBL
reports
flexibility (overrides! formula based)
curve generation
available models! calibration
..
4. Vendor Profile
product direction
. client satisfaction
long range viability
vendor resources
5
4
5
4
5. Technical PlatformlStructure 1 4.25 38 1 4.75 43
operating system 5 5
database 5 5
unitary platform 3 4
data feeds 4 5
6. Development facility 5 40 3 24
(APlIaccess to dass libraries)
7. User interface 4.5 32 4.5 32
I flexibility
ease of navigation
14
5 4
I
8. Analytlcs 4 24 4 24
9. System Performance 5 25 5 25
10. Product SuppoN Training 4 16 4 16
11. Implementation Approach 4 12 4 12
12. Cost 3 6 4 8
13. Valueat-Risk 5 5 5 5
Total 53.6 369 55.45 387
Vendor Selection Process
w Consolidate Evaluation
w Review and Agree Procurement Terms and Conditions
w Prepare and Document Recommendation
w Catalogue Vendor Documentation
Application Technology
Product Vendor
Product Product Vendor Product Product
valuation Requirements Requirements
Proposals
Conclusion
Conclusion
w
Overwhelming number of considerations