Professional Documents
Culture Documents
Cost Control
To support the Ops Strategy pillars the IT investments required to define the architecture have to be prioritised based on:
Revenue generation, control and efficiency improvements drive the future IT landscape
Develop common Pre-Settlement functions across asset classes. Consolidate the settlement processing platforms to the best of breed per asset class. Create common services for the external connectivity, static data, etc. Consolidate the cash & position liquidity activities. Standardize the control functions with intelligent exception handling and process management tools to integrate the process chain across all the asset classes.
Settlement Processing
Process Management
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
The IT Ops projects aim to create common services for the external connectivity, static data, and corporate events.
The projects are primarily focussing on improving the static data services. Service Static Data/Reference Data Progress to Date Ops|static implemented as source of detailed counterparty Ops|static subscribers extended to cover: Calypso Sec / Calypso FX / CATS / Kondor / Fidessa / Martini / RIBS Bulk of systems now using other strategic components (e.g. Masterfiles / Hierarchy Manager) some specific exceptions (POSTS / GMI / RIBS) Main Next Steps Continue extending core static components Extend usage of ops|static across other flows Potential project to merge Mistral into ops|static Migrate maintenance of DKSL counterparty data to ops|static as part of LCS Look to leverage ops|static further as a data source for FBAS / IDE
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Supporting the development of high margin structured transactions business through better management of structured transactions. Developing a flexible platform to create, distribute, store, and process documents.
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Enhancements for wider product cover and functionality On-going initiatives to deal with new structures and improve processes Make method and technology available for other initiatives Complete integration (e.g. further availability of Web Services) Further rollout for document related workflows and wider coverage of documents in the archive
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Based on the principle of consolidating the settlement processing platforms the following benefits and disadvantages have been indentified: Benefits: Overall lower IT cost base only 1 infrastructure to support / 1 vendor to manage. A single and consistent application framework across business functions allowing greater flexibility of IT development. Less need for service providers results in a cleaner architecture and in reduced maintenance. Common skills and knowledge for production applications result in flexibility to move users across functions & asset classes due to a shorter learning curve. Optimisation of the overhead on standard functions maintaining holiday calendars / static / market data and standard interfaces.
Disadvantages: Vendor concentration risk. Interdependencies across business streams and more formality in change. Increased operational risk in event of failure.
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
ETD GMI
Lending ACBS
2 The decommissioning of all the applications and consolidation into Calypso is planned approximately by the end of 2012:
ETD OTC Derivs Securities, FX/MM + Commodities Calypso Lending
Calypso*
Calypso
Calypso*
To reduce the operational risk the transformation of the settlement platform requires a phased approach
* Most probable evolution
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
1 5 main projects are required to develop the initial parallel consolidation of the settlement processing platforms:
FX / MM and commodities onto Calypso FX / MM and global rollout in parallel with ANLOS decommission OTC derivatives onto Summit European Securities processing onto AE / Calypso Securities / CATS Complete the migration of EMP business from Ubitrade to Clearvision / GMI and rollout to emerging markets Consolidation of lending business onto ACBS
Calypso was the strategic choice established in 2002 based on: 2 The breadth of asset class covered A more advanced open technology The vendor relationship.
Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Decommissioning of legacy Derivate Pool Completion of migration of remaining DK FFT business onto GMI/Clearvision Support for US FCM project in NY on GMI
OTC Derivatives
Summit installed for interest derivatives 2000 to replace Devon 2.34 Extended for Credit Derivatives 2004 and hybrid structures with MUST module 2005
Migration of FX-Derivatives & Equity Derivatives Decommissioning of legacy infrastructure Roll out to St. Petersburg/Moscow London Calypso Securities Programme: POSTS / RIBS replaced by Calypso Global Corporate Actions processing solution based on CATS/CAM Focus on standardizing the ACBS processing Support for the Global SAP pilot project in LX Support for Secondary Loan Trading
FX/MM
Calypso installed for FX / MM 2001 2003 Roll out to DrKW Ltd 2005 Roll out to DK Japan Securities 2007
Lending
ACBS deployed in Ldn, NY, Lux 2003 User operations centrlised into Luxembourg 2006
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
The IT Ops projects related to the payment and liquidity management aim to consolidate the cash & position liquidity activities by: Providing a state of the art Cash (intraday & overnight liquidity) Management solution based on Cash Navigator allowing regional Operations hubs. Providing a common payment platform for all DKIB business areas.
To achieve these goals*: GPP was chosen as the DKIB standard and installed at DrKW Ltd as part the of AIMS decommission and integrated with Cash Navigator as part of the London rollout A further rollout is planned to support Calypso / Summit rollouts, and a tactical use to overcome operational risk in manual payment processing in selected sites The ANLOS decommission has chosen a new Banking package Temenos T24 with payment functionality to suite Corporate Banking requirements direct debits / mass payments / local clearing / SEPA compliance and International Cash Management support
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
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Front-Office
Target Architecture Payment & Liquidity Management Progress and Next Steps*
Product Cash & Liquidity Management Progress to Date Cash Navigator live in FFT Roll out to London 3 entities to replace ANLOS / POSTS / manual processing, integrated with GPP Payments Global PayPlus (GPP) installed in DrKW Introduced to other London entities with Cash Navigator for sweeping and manual payments Manual payment processing automated with Teamworks process Banking Quartz in Ldn 2005 as part of AIMS decommission Main Next Steps
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Rollout with Calypso FX/MM Alignment with Bridge (Bridge) project to establish one standard payment and receipt gateway for all DKIB business including CB requirements (mass payments / SEPA) One gateway to SWIFT & Clearing systems Introduce a new core banking solution Temenos T24 to replace Quartz 2009 and ANLOS
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
The IT Ops projects related to the process management aim to standardise the control functions and to provide an enterprise wide solution for managing manual work arising from non STP process flow.
To achieve these goals*: The controls process will evolve to a proactive, error avoidance intelligent exception process by creating one single technology platform based on City Networks Enterprise Reconciliation with a common integrated exception handling based on CityNetworks Proactive and encompassing intelligent process improvement using TeamWorks business process management.
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Development of Smart Exception Manager as part of LCS program Roll out to other asset classes
* more detailed information can be found in the file - Ops IT Strategy Apps landscape V5 4.ppt provided by John Orton
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Deadline (approx.) 3 main initiatives: 1. April 2009 2. Aug. 2008 3. Oct. 2008
Legacy POSTS and RIBS systems are expensive to run and maintain. Consolidation onto the Calypso standard will reduce running costs and enable business and operational efficiencies Total cost reduction will be 9.9m p.a. across Capital Markets, Operations and Technology (net of incremental new Calypso sustaining costs) following delivery of this project The imperative for cost reduction has been illustrated by Mercer Oliver Wyman, Z/Yen benchmarking and internal IT and Operations analysis. This heightens the need for a major reduction in operational and technology costs to which this programme contributes significantly Benefits Total Cost of Ownership NPV 24,039k EUR 19,768k EUR Return on investment Payback period 200% 63 months
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Rationale This will provide benefits to both Finance (resolve audit point of moving FX sell-off to Front Office) and Operations (increased control of the settlement processes and removal of manual intervention which is an Operational Risk)
Benefits Total Cost of Ownership NPV 982k EUR N/A Return on investment Payback period 123% 24 months
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Deadline (approx.)
Source: GMT Europe Dresdner Kleinwort PMO Project presentation 20071129 review.ppt
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Front-Office
Static Data Masterfiles Mistral ops|static Corporate Events CAM Client Connectivity ops|tracker
Trade capture / allocation / enrichment - AE / Clearvision Structures - Structured Trade Register / TeamWorks Documentation - TrACE / Saperion / Inbound Reporting - ARIES ETD GMI OTC Derivs Summit Flow products (Securities, FX/MM) + Commodities Calypso + CATS Lending ACBS BPM TeamWorks Control GMT
Deadline (approx.)
Rationale Support the settlement process for the changed trading profile, risk reduction, fulfil internal and external regulatory requirements, robust platform, greater flexibility towards future challenges in volume and complexity. Without this investment the volume and complexity growth planned by the business cannot be supported.
Benefits Total Cost of Ownership NPV 4,073 k EUR 6,004 k EUR Return on investment Payback period 188 % 25 months
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Content
Section The Baseline The Projects The Priorities The Target Architecture The Next Steps Appendix
Slide 2 14 23 28 43 45
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Detail the major projects Provide updated figures on savings and investments
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Appendix
End of Lifecycle Expiry Unwinding / Sale Management Continuous Improvement Management Information & Reporting Support Reference Data Reconciliation Investigation Claims Customer Support Risk Analysis, Compliance, Audit Confirms
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