Money Market (Case Study #15-120116)

At a Glance

This Bank is more than a marketplace organizer for the trading in shares and other securities. It is one of the largest exchange organizations worldwide.

Product and Service Portfolio

Securities and derivatives trading and clearing, netting and transaction settlement, custody, the provision of market information, as well as the development and operation of electronic trading systems.

Employees

About 9,800 employees in Europe, America, and Asia

Business Areas

• Trading Stock Exchange: spot market

• Global market leader in trading and clearing futures and options

• Integrated banking, settlement, and custody services for the trading of fixed interest securities and shares

• Market Data & Analytics: data dissemination and index calculation

This Bank provides access to capital markets for investors, financial institutions, and corporations worldwide and offers extremely reliable systems and process. Starting from securities and derivatives trading to clearing, settlement, custody, market data, and electronic trading systems:

This bank is one of the largest exchange organizations worldwide. Their comprehensive product and services portfolio provides international investors, financial institutions, and organizations with secure transactions in capital markets.

They recognized the significance of electronic trading and order processing earlier than other capital market organizations. Exchange participants gain access to large securities through the electronic trading system, Transactions from licensed traders’ at all international connection points are matched on a central computer. In addition, they established themselves as one of the leading international derivatives market. Their subsidiary offers integrated banking, settlement, and custody services for fixed-income securities and equities.

Leading technologies for capital markets

One thing above all is crucial for electronic trading and subsequent services: the systems must run with reliability and availability. This invests continuously in the performance of its systems and networks to ensure that normal as well as peak load processing are fast and reliable. The IT subsidiary is responsible for this. This Bank system also supports international customers, with innovative IT solutions, and it works with external consulting and development specialists on numerous projects.

This bank has counted on me as Subject Matter Expert (SME) to help them to make it happen. “We looked for a solid, long-term SME with the essential process and technology know-how in the capital market business, and one that affords us flexible and highly qualified resources,” From over 10 years of cooperation with SME and projects with other stock exchanges, clearing and depository houses, I have found exactly these skills in trading, clearing, and settlement with this SME Explains Member of the Executive Board.

Success with integrated teams

Large no of consultants were active in integrated project teams for bank Systems onsite and offshore. “Cooperation within the team is outstanding,” explains Member of the Executive Board.

I supported with additional development and testing of applications for trading platforms, as well as integration with Clearing system. For projects, requirements are specified in local geography; development specialists from India then implement the tasks in a reliable and cost-effective manner. I also leverages the critical knowledge acquired from banks Systems’ individual technologies and processes into new projects and initiatives.

Teams work smoothly together across national and international borders and time zones. “Particularly in project management, SME have adapted itself very flexibly to our requirements. In the process we were able to learn something ourselves – for example, precise coordination of sub-projects throughout several locations,” states Member of the Executive Board.

Success story

Collaboration with SME has created important advantages for bank Systems, particularly given their tight schedules and budgets. The collaboration helped accelerate the implementation of Linkup Markets: This joint venture with other securities depositories enables more cost-effective post trade processing for cross-border securities transactions. Development specialists offshore helped fulfill the necessary technological requirements in the shortest possible time – the system went live one month ahead of schedule.

The Linking up of Markets has created long-term cost advantages for all cooperation partners. For almost all asset classes, the various security depositories’ provide simple, secure, and cost-effective access to the country-specific services of their partners. Transactions can be executed with cost savings of up to 80% – a convincing argument worldwide.

Continuous improvement through cooperation

The well-established bank Systems and SME have are jointly worked on another major engagement: This bank is developed a standardized global infrastructure for its trading systems. For the various markets and financial instruments, it was envisaged a single architecture, as well as standardized interfaces for data transmission between stock exchange systems and those of the trader. It also included new technological tasks, about which this remains calm and confident:

“Our cooperation with SME continues to bring improvement in an evolutionary way. Together, we will manage these challenges as well. – Member of the Executive Board of this bank.