For more information about Luxoft, visit www.luxoft.com www.luxoft.com/financial-services/
case study 13.09.2012
Total Return Swaps (TRS) Management System Summary Develop an application that supports Total Return Swap (TRS) contract management with price calculation, tracking, analysis metrics, configuration and reporting.
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Client: A top ten global investment bank Business Area: Prime services, middle office, front office Asset Classes: Equities, Equity Derivatives, FI Derivatives, Loans Technology Set: Oracle, J2EE, Spring, Struts, Jasper Reports, Oracle Reports, Groovy Integration: Misys LoanIQ, Bank-wide Prime Brokerage system, FX data provider User Profile: Synthetic Equity, Trading/TRS, Structured Credit Finance, Prime Brokerage, Alternative Asset Financing departments (100+ users) Geography: US and UK Relationships Status: Ongoing ODC, T&M Services Provided: Development Q/A Team Team Size: Up to 5 team members Duration: 5+ years
Business Challenge A top ten global investment bank needed to transform its existing TRS management system to comply with new business requirements and to take advantage of the latest technical innovations. In addition to managing the contract specifications, the system had to fulfill the following functional and technical requirements: 1. Real-time access to market and credit risk data 2. Track reference rates, reference assets, capital gains and losses, and structured transactions 3. Maintain audit data such as source, status and other characteristics of the swap transaction 4. Provide both pre-defined and ad-hoc reporting 5. Migrate to a web-based technical platform
Luxoft Delivered Solution The small team of Luxoft developers successfully redesigned the existing system, providing a highly adaptable architecture that would support rapidly changing business needs. In addition, short development iterations allowed quick, early deployment of the most urgent business functionality. Luxoft’s engineers developed solid architectural and technical solutions that maintained the system reliability throughout continuous enhancements. The key features of the new system include: A flexible architecture that facilitates rapid development of new and updated business lines uu A dedicated reporting subsystem with customizable scheduling and delivery capabilities uu Support for multiple format sets in the inbound data feeds uu Advanced batch data processing components that execute the complex business logic required for processing total return swap uu A J2EE, web-based user interface uu A robust security subsystem to authenticate and authorize users who access the system via public internet channels
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Figure 1: TRS System Architecture Benefits
J2EE WEB APPLICATION
ORACLE DATABASE
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Benefits With Luxoft’s technical expertise and advanced business domain knowledge, the client realized the following benefits: uu A flexible and scalable system architecture that provides the client with the ability to expand the current application to support emerging business needs uu All functional and technical requirements were delivered on time and within the project budget uu A highly accessible and secure platform for TRS contract management and reporting wherever internet access is available uu Automated updates to the swap positions
Customer Feedback Detailed feedback will be provided on request. .
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About luxoft
Luxoft, a principal subsidiary of IBS Group, is a provider of advanced application and software engineering outsourcing services for global and regional enterprises. Luxoft builds partnerships with its clients, such as Boeing, IBM, Deutsche Bank, UBS, Harman, Avaya, Alstom, and Sabre, based on the culture of engineering excellence, innovation, and deep domain expertise. Luxoft offers international delivery capability through its network of state-of-the-art delivery centers in North America, Eastern Europe, and Asia. Luxoft`s customers benefit from the right mix of technology skills, industry knowledge, proprietary processes and methodologies, and a choice of engagement models. For more information about Luxoft, visit www.luxoft.com www.luxoft.com/financial-services/
Š 2012 Luxoft