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Wall Street Systems Central Banking Solution 23 September 2009.

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Presentation on theme: "Wall Street Systems Central Banking Solution 23 September 2009."— Presentation transcript:

1 Wall Street Systems Central Banking Solution 23 September 2009

2 Content 2 Brief overview of organization Central Banking clients Value proposition Solution overview Questions and Answers session

3 Agenda 3 Brief overview of organization Central Banking clients Value proposition Solution overview Questions and Answers session

4 4 Company Snapshot Clients 300+ clients from 45 countries Corporations, banks, central banks, government agencies, asset managers and financial institutions People 500+ employees Broad domain knowledge and experience Over 75% dedicated to serving clients Solutions Treasury – corporations and financial institutions Front-to-back trading Cross-asset back-office Offices New York and London headquarters 11 offices (7 Europe, 3 Americas, 2 Asia) 5 development labs Financial Approximately $150 million in revenues Growing and profitable Backed by Warburg Pincus

5 Agenda 5 Brief overview of organization Central Banking clients Value proposition Solution overview Questions and Answers session

6 28 Central Banking clients 6 Belgium $15 Billion France $113 Billion Finland $9 Billion Bulgaria $21 Billion Estonia $4 Billion Germany $142 Billion Greece $4 Billion Italy $104 Billion Morocco $26 Billion Netherlands $29 Billion Poland $74 Billion Portugal $12 Billion Russia $426 Billion Slovakia $18 Billion South Africa $32 Billion Spain $19 Billion Thailand $101 Billion Europe $530 Billion Trinidad & Tobago $8 Billion Uganda $1.4 Billion Over 98% of the Euro zone reserves, Over 60% of African Reserves Tanzania $2.4 Billion Nigeria $58 Billion Chile $18 Billion Croatia $14 Billion Algeria $138 Billion Qatar $6 Billion Oman $7 Billion Israel $47 Billion

7 Government Segment recent wins 2009: 2008: 2007: 2006: Croatia $14 Billion Algeria $138 Billion Qatar $6 Billion Netherlands $29 Billion Slovakia $18 Billion Italy $104 Billion Tanzania $2.4 Billion Nigeria $58 Billion Chile $18 Billion Oman $7 Billion Israel $47 Billion Contract closing with 2 other central banks before end of the year

8 Other government clients 8 State Treasury Of Finland Portuguese Government Debt Agency Ministry of Finance, Slovakia Andean Development Corporation The Netherlands Development Finance Company

9 Agenda 9 Brief overview of organization Central Banking clients Value proposition Solution overview Questions and Answers session

10 Value Proposition What makes our Central Banking proposal unique: 1.References 2.Software 3.Dedicated R&D 4.Pre-configuration 5.Specialized Consultants 6.Known as a partner of Central Banks 10

11 1. References - 28 Central Banks 11 Belgium $15 Billion France $113 Billion Finland $9 Billion Bulgaria $21 Billion Estonia $4 Billion Germany $142 Billion Greece $4 Billion Italy $104 Billion Morocco $26 Billion Netherlands $29 Billion Poland $74 Billion Portugal $12 Billion Russia $426 Billion Slovakia $18 Billion South Africa $32 Billion Spain $19 Billion Thailand $101 Billion Europe $530 Billion Trinidad & Tobago $8 Billion Uganda $1.4 Billion Over 98% of the Euro zone reserves, Over 60% of African Reserves Tanzania $2.4 Billion Nigeria $58 Billion Chile $18 Billion Croatia $14 Billion Algeria $138 Billion Qatar $6 Billion Oman $7 Billion Israel $47 Billion

12 2. Software - Business Process Support Support for numerous central bank business processes 12 Accounting Back office Middle office Front office Common framework for posting generation Monetary policy tenders General ledger Reserve management Other investment management Other Processes IMF, correspondent banking, payments, FX bank notes, etc. Representative interfaces Market info: Reuters, Bloomberg Trading: Reuters dealing, web portal Common operational processes + controls Common limits + compliance framework RiskMetrics: VaR data, RiskManager Rating agencies, external benchmarks SWIFT Domestic RTGS Domestic security settlement Common performance measurement framework Specific deal capture + position keeping using common tools Monetary policy

13 13 Examples of Supported Business Processes Execution of foreign exchange policy operations Management of own foreign reserve including Gold Correspondent Banking Payment Services IMF loans Loro accounts Monetary policy Liquidity forecasting Execution of monetary policy operations Cheque processing General investment management Own capital Employee/other government pension funds Deposit guarantee funds Funds to back bank note issuance Dependent state funds Oil fund Stabilization fund Private client Ministry of Finance funds Asset and liability management Bilateral lending Regional lending Service operations Banking operations Custodial services for central banks and foreign institutions Foreign currency debt administration Foreign currency banknote trading Banking services to corporate and private clients.

14 3. Dedicated Research & Development 14  The total development effort Wall Street Systems has invested in Wallstreet Suite is estimated as over 1,000 men years  Central Bank’s needs and operations differ from those of commercial banks’  Since 1997 more than 200 men years effort has been invested to enhance our product to cover all the Central Bank specific functionality  This includes:  The Central Bank Accounting Module (ECB guidelines) now in its third release.  Enhanced Real Time Limit Management  Performance Measurement and Attribution as well as Portfolio Modeling  Extended Instrument Support (various bonds, BIS instruments, etc.)  Collateral Management  Risk Management  We maintain a dedicated roadmap for Central Banks

15 4. Preconfigured System for Central Banks  Wall Street Systems is the only vendor that has a dedicated pre- configured solution to support foreign reserve management and monetary policy operations  Pre-configured system contains components like Instruments, Workflow, Portfolio Structure, Counterparts, Limits, SWIFT messages, and Reports  This solution was originally based on the ECB configuration and later evolved to adapt to the requirement of other central banks.  Our central bank implementation methodology is based on this pre- configured system. 15

16 5. Dedicated Team  Wall Street Systems is the only vendor who has a dedicated Central Banking business unit.  This includes experienced consultants with personal background or experience in Central Banking.  It has taken years for Wall Street Systems to build up that level experience.  Since every country has only one Central Bank such knowledge can only be established by a global dedicated central bank business unit. 16

17 6. We are known as a partner for Central Banks 17  We know Central Banks and they know us.  We are honored member of the CB forums.  Central Bank User Forum chaired by ECB provides an excellent opportunity to work together with Central Banks.  We work together with World Bank in many projects.

18 Agenda 18 Brief overview of organization Central Banking clients Value proposition Solution overview Questions and Answers session

19 Full support for the entire investment management process Investment policy Benchmark and guidelines Core portfolio data Investment strategies/ benchmark deviation Asset selection Risk management & compliance Performance measurement and attribution Set in terms on benchmarks and guidelines Benchmarks to be created and maintained. Positions to be monitored in relation to benchmarks and investment guidelines. Strategies to be assessed using simulation and scenario analysis to assess their impact on risks and returns Transactions executing the strategy to be captured, settled, controlled and accounted for Compliance to be monitored and controlled using limits and other checks Performance to be measured and assessed, and sources of performance identified.

20 Complete range of instruments Wallstreet Suite On-Balance Spots Forwards Split-date deals Non-deliverable forwards Derivatives Swaps Options (American, European, Compound, Digital) Futures* *Planned for (December 2006) Cash Payments, Transfers, Balances, Forecasts Cash accounts, Call money On-Balance Deposits/Loans Discount papers Repos Derivatives FRAs Option on FRAs Discount papers Forwards and Futures On-Balance Equity & Index linked (single and basket) Mutual fund shares Subscription rights Derivatives Forwards Futures Index forwards Index futures Options Option on indices Complex payoff Multiple legs Composite type of swap Time split Optional/triggered call-put/cancel Optional/triggered currency conversion Flippable (conversion option from one structure to another) Dual currency Rainbow (multi-currency) Range accrual On-Balance Bonds/Convertible bonds Index-linked bonds Step-up/down, ABS/MBS FRNs/Inverse FRNs Schuldsscheindarlehen, Brazilian instruments Fixed, Floating and Variable rate Loans/Notes Derivatives Interest rate swaps Constant maturity swaps Bond futures & forwards, Bond options Swaptions, Caps, Floors, Collars

21 21 Broadest range of risk figures Basis point risk Duration & convexity FX exposure Equity exposure Greeks Parametric VaR Expected tracking error 21 IR, EQ Scenario Price shift (MM,FX,EQ) Volatility Time, horizon return analysis Multi factor simulations Tracking error Volatility Standard deviation Sharpe ratio Jensen’s alpha Treynor measure Regression analysis Issuer Counterparty Settlement Rating Position & Transaction Information Position & transaction information Valuation cashflows over time Price Market value

22 22 Some Basic Concepts Concepts of:-  Portfolio hierarchy  Workflow / STP  Real-time

23 23 Portfolio concept

24 24 Workflow concept

25 25 F/O – B/O – Acc: Trade Workflow OPENVERIFYFINAL F/O Pricing, Capture B/O Verification, Confirmation, Settlement Confirmation Settlements Accounting

26 26 Trade Workflows concept Open F/O-Verify B/O-Verify F/OB/O B/O-Verify- 2nd Final Commit If junior trader If complex trade Verify Fully configurable transaction flow (forward and backward, unlimited number of states, parallel flows) Rule based transaction flow Rules based on User, Instrument group, Portfolio, Counterparty group, Transaction type, Deal Nominal Amount etc.

27 27 Real-time principle Wallstreet Suite always displays the latest available information without a new query being launched (risk, position, and valuation). Risks, Market Value, Limits and other Key Figures are re-calculated as soon as there is a change in the position and/or a market variable.

28 Agenda 28 Brief overview of organization Central Banking clients Value proposition Solution overview Questions and Answers session

29 Questions and Answers


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