Slide 1: An introduction to FINQUEST
A Finance Technology Solutions Company An introduction to FINQUEST TM © 2011 vertiv
Slide 2: Content
Content vertiv CONFIDENTIAL Introduction FINQUEST Overview Business Expectation Technology Challenges FINQUEST Components Business Modules Application Components Application Features Summary Appendix © 2011 Bintelgroup 2
Slide 3: FINQUEST Overview
FINQUESTTM Overview vertiv CONFIDENTIAL Contract Data Warehouse • Robust data model to capture trade level data • No loss of granularity Accounting Engine • Event Manager Contract Data Accounting, Trade • Accounting Template Warehouse Ledger & Reconciliation • Acct. Entries Generator • Trade Level L
Slide 4: Business Expectations
Business Expectations vertiv CONFIDENTIAL Detailed view of Efficient Mgt. of Faster Liquidity Risk , Data Accounting Rules Reconciliation Basel II/III & Reg. Reporting • Maintain data • Event based • Configurable • Solution for granularity application of and Faster ever-changing accounting rules reg
Slide 5: Technology Challenges
Technology Challenges vertiv CONFIDENTIAL • Adhoc systems (Excel/Access/Scripts) System • Data Integration Challenges Limitations • Accounting rules hard-coded into the system • Drill back from ledger to source not possible Implementation • Metadata and structural integrity missing Challenges • Reco
Slide 6: Component Diagram
Component Diagram vertiv CONFIDENTIAL Financial Rules Manager finquest TM Configurable approach to rule management Transformations, Enrichment, Allocations Built in Statistical functions and Accounting Reg. Reporting time-series analysis Contract Data Trade Ledger Liquidity Mgmt. Accountin
Slide 7: Advantages of FINQUEST
Advantages of FINQUEST vertiv CONFIDENTIAL Simple integration between front, middle and back office systems Creates standard business event mapping to standard accounting process Business Rules are consistent, visible and auditable Reporting available at Legal Entity and Business Unit Level Strong s
Slide 8: Content
Content vertiv CONFIDENTIAL Introduction Business Modules Contract Data Warehouse Accounting Engine, Trade Ledger and Reconciliation Liquidity Mgmt. Basel II/III and Regulatory Reporting Application Components Application Features Summary Appendix © 2011 Bintelgroup 8
Slide 9: Contract Data Warehouse
Contract Data Warehouse vertiv CONFIDENTIAL Consolidate data from various internal and external sources © 2011 Bintelgroup 9
Slide 10: Contract Data Warehouse - Data Management
Contract Data Warehouse - Data Management vertiv CONFIDENTIAL Centralized Contract Data, Reference Data and Finance data Strong and robust data model with extensive coverage of asset class and asset lifecycle Complete transaction data with no loss of granularity Complete historical and marke
Slide 11: Contract Data Warehouse - Data model Extract
Contract Data Warehouse - Data model Extract vertiv CONFIDENTIAL Data Elements: Trade Data Finance Data Market Data Risk Data Reference Data Enrichment Maps Accounting Rules Reconciliation Rules Exposures Calculations Reporting Mart © 2011 Bintelgroup 11
Slide 12: Contract Data Warehouse - Data Flow Extract
Contract Data Warehouse - Data Flow Extract vertiv CONFIDENTIAL Data Capture -> Business Rules -> Validations -> Entries © 2011 Bintelgroup 12
Slide 13: Accounting Engine
Accounting Engine vertiv CONFIDENTIAL Accounting Engine Accounting Template Trade Level Ledger Accounting Entries Event Manager Generates Accounting Entries for • Thin ledgers such as Local Ledger and Group/Corp Ledger as single book of records • Thick ledger as a Trade/Instrument/Contract ledger wi
Slide 14: Accounting Engine - Features
Accounting Engine - Features vertiv CONFIDENTIAL Provides core general ledger accounting capabilities via web interface Supports Book Configuration, Accounting Entry templates, Accounting process, Adjustments and Reporting Core data model captures all the key entities for financial flows that manage
Slide 15: Accounting Engine - Features
Accounting Engine - Features vertiv CONFIDENTIAL Metadata Accounting Accounting Manual Export to Repository Rules Entries Adjustments GL Accounting engine can support various types Accounting Engine can support following of transactions / business events type of amount calculations Equities and Fi
Slide 16: Reconciliation Engine
Reconciliation Engine vertiv CONFIDENTIAL Reconcile Journals & Balances Posted to all Ledgers (Local, Global & Trade) Capabilities of automating the reconciliation process between multiple data sets (e.g. finance-risk reconciliation). Designed using a common rules framework and a web based applicati
Slide 17: Liquidity Risk Management
Liquidity Risk Management vertiv CONFIDENTIAL • Real-time configuration of Asset Class • Configurable of Rules, Formulae • Real-time trace-back from to sources • Data Lineage Tracking • Cash flow Calculations • Mismatch Calculations • Concentration Risk • Stress Testing and What-if analysis • Adjust
Slide 18: Liquidity Risk Management - Extensive Coverage
Liquidity Risk Management - Extensive Coverage vertiv CONFIDENTIAL OTC derivatives, ETD margins, OTC margins, OTC derivatives (downgrade triggers), FX, Debt securities, Own account Asset Class debt securities, Equities, Repos and reverse repos, Stock Coverage borrowing and lending, Deposits, Loans,
Slide 19: Liquidity Risk Management – Reports Coverage
Liquidity Risk Management – Reports Coverage vertiv CONFIDENTIAL Report Name Description FSA047 Enhanced Mismatch Report (EMR) Daily Flows – Parts 2,5 & 6 FSA048 Enhanced Mismatch Report (EMR) Main Details - Parts 1,2,5,6,9,10,11. Columns A-J FSA50 Liquidity Buffer Qualifying Securities: Market Valu
Slide 20: Liquidity Risk Management Calculations Support
Liquidity Risk Management Calculations Support vertiv CONFIDENTIAL High performance Tightly integrated with underlying data model Support simulations Support stress testing Support complex mathematical functions © 2011 Bintelgroup 20
Slide 21: Liquidity Risk Management – Process Flow
Liquidity Risk Management – Process Flow vertiv CONFIDENTIAL © 2011 Bintelgroup 21
Slide 22: Basel II/III
Basel II/III vertiv CONFIDENTIAL Consolidated Data Management • Fin-Risk, Reference • Single point of control Extensive Coverage • Standardized, Foundation and Advanced IRB Approach • RWA, EC, RC , RORAC, correlation Pillar II – Supervisory Review support Basel III – Liquidity Management BASEL II/II
Slide 23: Basel II Framework
Basel II Framework vertiv CONFIDENTIAL Investors should be Regulatory capital provided with a should be more more transparent closely aligned with view of a Bank’s risk the risk profile exposure of the Bank BASEL II/III Supervision Regulators should have greater supervisory powers to increase capita
Slide 24: Vertiv Basel Process Flow
Vertiv Basel Process Flow vertiv CONFIDENTIAL © 2011 Bintelgroup 24
Slide 25: Credit Risk
Credit Risk vertiv CONFIDENTIAL Credit Risk Methodology Standardised Approach AIRB Exposure Classes Risk weights are derived at facility (product) Wholesale level (Similar in principle to Basel I) Central Governments and Banks Institutions Foundation Internal Rating Based (FIRB) Corporate - Speciali
Slide 26: Credit Risk
Credit Risk vertiv CONFIDENTIAL Measure credit risk pursuant to fixed risk weights based on external credit assessments Standardised Least sophisticated capital calculations; generally highest capital burdens Most Japanese banks will start Basel II as standardised banks Most US banks will st
Slide 27: Market Risk
Market Risk vertiv CONFIDENTIAL Vertiv’s risk management module clients now can perform key risk management tasks in one piece of software with one data base, one graphic user interface and one set of analytical libraries: • Calculate Historic and Monte Carlo VaR • Pricing of various instruments • S
Slide 28: Operational Risk Capital Charge
Operational Risk Capital Charge vertiv CONFIDENTIAL The board of directors and senior management are actively involved in the oversight of Operational risk management framework. It has an operational risk system that is conceptually sound and implemented with integrity. It has sufficient resou
Slide 29: Operational Risk Calculations
Operational Risk Calculations vertiv CONFIDENTIAL Basic Indicator Approach (¶¶ 649-651) 15% of bank’s average annual gross income over previous three years Standardised Approach (¶¶ 652-654, ¶¶ 660-663) Capital charge for each of 8 business lines calculated against average annual gross income fo
Slide 30: Regulatory Reporting
Regulatory Reporting vertiv CONFIDENTIAL Real-time configuration • Asset Class • Rules, Formulae and Cells Real-time trace-back • Results to sources • Data Lineage Hierarchical Rule Definition Interface Regulatory Reporting Reports Metadata for Rule-Cell association Rapidly changing regulatory requi
Slide 31: Regulatory Reporting - Features
Regulatory Reporting - Features vertiv CONFIDENTIAL Architected for changing regulations Metadata driven approach makes it easy for on boarding new reports Two step rule transformation approach brings modularity to process Extensive support of finance functions ensure good coverage of the requ
Slide 32: Regulatory Reporting - Features
Regulatory Reporting - Features vertiv CONFIDENTIAL Report metadata links Report – Schedule – Part – Line - Cell This allows marrying a regulatory rule to a report cell Rule to Cell association allows trace back from cell to source Report metadata also ensures if all the line items are being
Slide 33: Content
Content vertiv CONFIDENTIAL Introduction Business Modules Application Components Data Integrator Financial Rule Manager Calculation Engine Reports Metadata Process Scheduler and Security Application Features Summary Appendix © 2011 Bintelgroup 33
Slide 34: Components - Data Integrator
Components - Data Integrator vertiv CONFIDENTIAL Consolidate the data from the various internal and external data sources These sources include streaming data, real-time data or batch data Designed for mass volume processing Effective dated logic for integration template Database Agnostic © 2011 Bin
Slide 35: Components - Data Integrator
Components - Data Integrator vertiv CONFIDENTIAL Data Integrator Source Definition Page • Definition details • Input File Info • Column Mappings • Destination DB info © 2011 Bintelgroup 35
Slide 36: Components – Financial Rule Manager
Components – Financial Rule Manager vertiv CONFIDENTIAL Web interface for business, semi-technical, operational and power users to define and execute rules on the data Capabilities to create complex data/event driven rules and rule sets (combination of several rules into a logical flow chart)
Slide 37: Components – Financial Rule Manager
Components – Financial Rule Manager vertiv CONFIDENTIAL Business Rules Manager Rule Creation Page • Definition Details • Step/Target • Sources • Fields Mappings • Conditions • Binds • Groups • Order • SQL © 2011 Bintelgroup 37
Slide 38: Components – Financial Rule Manager
Components – Financial Rule Manager vertiv CONFIDENTIAL Business Rules Manager Hierarchical Reporting Rule Rules Creation Page Rule Creation Page • Business Tree • • Definition Details Cell Definition • • Step/Target Account • Sources • • Fields UnitMappings • • Conditions Scaling Factor • • Binds C
Slide 39: Components – Calculation Engine
Components – Calculation Engine vertiv CONFIDENTIAL Combines asset and liability management, Trade Data, Position Data, Collateral Data. Calculates cash-flows for major asset classes Calculates concentration risk Calculated liquidity ratios Calculates above under stress conditions Provid
Slide 40: Components – Position Management
Components – Position Management vertiv CONFIDENTIAL Calculations Position Management Page • Position by Asset Class • Collateral Capture • Trade Details • Filter Options © 2011 Bintelgroup 40
Slide 41: Components – Reports Metadata
Components – Reports Metadata vertiv CONFIDENTIAL Users have an option to setup the following: Report Overall Details (e.g. Name of report, reporting agency, format etc) Schedules and Section Line Items (e.g. Asset Exposure for Foreign receivable) Cell Items/MDRM items (e.g. A101, L104 etc
Slide 42: Components – Reports Metadata
Components – Reports Metadata vertiv CONFIDENTIAL Report Metadata Line Creation Page • Ability to define Report Line • Line Number • Cell ID • Default Rule Set • Over Ride Rule Set © 2011 Bintelgroup 42
Slide 43: Components – Process Scheduler and Security
Components – Process Scheduler and Security vertiv CONFIDENTIAL Process Scheduler Ability to define Process Types, Processes, Jobs and Job Streams. Supports recurrences and provides run time configuration (via Run Control) to enable Jobs and Job streams to be scheduled. Jobs can be run on-de
Slide 44: Application Framework
Application Framework vertiv CONFIDENTIAL Orchestration Layer Business Enterprise Financial Enterprise Risk Services Governance Services Compliance Services Corporate Reporting Services Service Layer Data Collection Credit /Market / Reconciliation Services Business Activity Operational Reports Opera
Slide 45: Application Architecture
Application Architecture vertiv CONFIDENTIAL Vertiv Application Architecture Input Vertiv Engines Output Integration Services Rule Engine Distribution Services Front Office Batch Data Applications and OPs, Files, xml, Batch Reference Data Cache Trading Fixed, Delimiter Integration Product • Inst
Slide 46: Content
Content vertiv CONFIDENTIAL Introduction Business Modules Application Components Application Features Scalability Traceability and Lineage Stress Testing Support Adjustment Functionality Summary Appendix © 2011 Bintelgroup 46
Slide 47: Features - Scalable and Efficient
Features - Scalable and Efficient vertiv CONFIDENTIAL Minimized trucking of data ensures scalability Two stage approach for regulatory reporting ensures minimized data movement and enhanced performance Reporting Data mart (Cell Definition) Second Level Second Drill Level back Rules Contract Leve
Slide 48: Features - Traceability and Lineage
Features - Traceability and Lineage vertiv CONFIDENTIAL 1* Data lineage Transformation PATH from 1* 2* source to target is always maintained 1* 2* Drill back 1* 2* Intermediate VALUES at various 1* 3* 2* stage are also maintained from source to target Identify sources of potential liquidity
Slide 49: Features - Stress Testing support
Features - Stress Testing support vertiv CONFIDENTIAL Extensive Stress tests support to Identify sources of potential liquidity strain Ensure liquidity exposures are within limit Identify impact on pricing assumptions R The impact of liquidity stresses assessed on banks’ I Cashflow Liq
Slide 50: Features - Adjustments Functionality
Features - Adjustments Functionality vertiv CONFIDENTIAL Robust Adjustment Module Adjustments can be made at various stages of report gen Adjustments can be applied to other reports Adjustments are version controlled and audit trail generated Updating transactions supported for privileged
Slide 51: Features - Sample reporting metrics
Features - Sample reporting metrics vertiv CONFIDENTIAL Contractual Spot Open maturity < 1wk 1wk -1m 1m-3m 3m-6m 6m-12m >12m Total Assets 110 20 10 Total Liabilities 70 30 20 Off Balance 20 Sheet Liquidity Mismatch -20 10 10 Mismatch as % of total -18% 50% 100% Assets • Dimension rich data mart supp
Slide 52: Content
Content vertiv CONFIDENTIAL Introduction Business Modules Application Components Application Features Summary Appendix © 2011 Bintelgroup 52
Slide 53: Summary
Summary vertiv CONFIDENTIAL FINQUEST is ideal product for Trade data capture from several source systems Accounting, Trade Ledger and Reconciliations Liquidity Management Regulatory Reporting FINQUEST provides: Real-time configuration of rules and reports Real-time trace-back and lin
Slide 54: Content
Content vertiv CONFIDENTIAL Introduction Business Modules Application Components Application Features Summary Appendix FINQUEST Edge Implementation Methodology © 2011 Bintelgroup 54
Slide 55: FINQUEST Edge
FINQUEST TM Edge vertiv CONFIDENTIAL Dimension Traditional Rule Engines Vertiv FINQUEST Methodology Processed one row at a time - slow Many rows can be processed at a time Execution Java/C++ Based SQL, CCL based Processing Mechanism Out of procedure In place data processing • Longer Times (Latency)
Slide 56: FINQUEST Edge
FINQUEST TM Edge vertiv CONFIDENTIAL Dimension Traditional Rule Engines Vertiv FINQUEST Infrastructure Scalability Low-medium Highly Scalable • Clustering • Vertical • Grid / Cloud • Horizontal Processing choice Possible Limitations Diverse • Real-time (CEP) • Intra-day (Cache) • End-of-day (DB) Uti
Slide 57: Implementation Methodology
Implementation Methodology vertiv CONFIDENTIAL Definition Phase Testing Phase Define Liquidity Reporting Requirements Execute integration test cycle Define and Build Liquidity Reporting Business Case Execute system test cycle Define solution architecture Execute UAT test cycle Defi
Slide 58: FINQUEST Edge
TM RQUEST Edge vertiv CONFIDENTIAL © 2011 Bintelgroup 58