The Market

• The credit derivatives market grew by 106 percent in 2005 with an overall notional amount of $17.1 trillion
• Investment Managers have invested hugely in technology with over 50% now using or planning to use Swapswire and DTCC over the next 12 to 24 months (Z/Yen Survey)
• According to Z/Yen, the CDS processing costs among major dealers today stands at around $233, but could dip below $100 mark inside four years. At the current rate, the top five dealers spend over $60m per annum just on operations.
• The pace of innovation (in terms of newer instruments and use of technology) in the front-office has outpaced the corresponding changes necessary to the middle/back-office systems to handle these new instruments resulting in increased risk and post-trade processing costs.
• The manual processes in place today by the market participants are not scalable with continued growth and hence the push on automation from all fronts including regulators.
• Increased interest in long-only managers to invest in alternative instruments in search of alpha has also contributed to the growth in the credit derivatives space thus resulting in strain on middle/back-office systems/personnel as the current systems cannot handle these instruments.

The Problem

• Lack of automation in post-trade processing of OTC derivatives
• Lack of flexibility in settlement infrastructure to handle structured derivative instruments

Our Offering
Consulting Services

• Lack of flexibility in settlement infrastructure to handle structured derivative instrument
• Implementation of the following front/middle/back-office functions

• Trade Management
• Reconciliation
• Documentation Management
• Collateral Management Support
• Pricing and Valuation
• Reporting
• Security maintenance and Position monitoring
• Cash Management
• Corporate Actions Monitoring
• Accounting

Integration Services

• Help integrate best of breed products to provide STP for OTC Derivatives
• Integration with Deriv/SERV, Swapswire and Markit’s services

Value Proposition

• Experienced team with hands-on experience working on processing OTC Derivatives for Front, Middle and Back office
• Our OTC framework allows for quick integration with the best of breed products to provide you with an efficient post-trade processing solution
• The framework’s flexible and extensible components allow for faster time to market

Key characteristics of the components

• Functionally complete
• Flexible
• Our smart use of technology provides a way to handle changing business needs and addition of newer instruments without major upgrades
• Extensible
• Provides mechanism to customize functionality based on client specific needs