Sungard Global trading Presentation


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  • GL Combo Trader enables you to create, manage, and trade mono and multi-market, multi-asset, user-defined strategies across several exchanges. GL Combo Trader’s multi-legged functionality lets you generate multiple strategies quickly and easily, to mirror developments in your trading strategies.
  • Combo Trader Strategies can be defined via the Dictionary (this process is described in the Combo Trader User Guide) or directly in the GL WIN Entry Box. Once defined, strategies can be selected from Market Watch + for trading at any time, as shown on the slide.
  • Account allocations for derivatives trades are of particular importance, and need to be carried out as quickly as possible after each trade, because of the need to communicate updated client details to the clearing house so that margin adjustments can be made.
  • The underlying allocations routing module (SAM in this diagram) is used by the Derivatives Allocation module (DAM), which provides the derivatives-specific calculation options and user interface. The Stream Connector/GL Service Framework (GLSF) middleware is used to achieve the interface to Clearvision. Both SAM and DAM operate as blades on the Stream Server, using Stream Services middleware to interface with the server’s functions.
  • Multi-Asset and Multi-Currency Risk Management We have developed a comprehensive pre-trade risk management architecture in GL Selector , designed to optimize your ability to manage and make full use of available trading limits. GL Selector allows a particularly fine control of limits on a variety of dimensions and levels - market, department, desk and individual trader or client - and offers full multi-asset and multi-currency capability. Selector can operate on a single market gateway, or on a Trading relay to cover multiple markets. It is a high-performance application, designed to meet the demanding requirements of high-volume Direct Market Access business. The Delta Selector mode aggregates futures and options risk together at the maturity month level. It uses exchange-sourced information - deltas and initial margins per lot (obtainable from SunGard as part of the Fame Futures Data Service) - to convert options orders into ‘quasi-futures’ so that they can be combined with futures orders on the same maturity month.
  • A broker's traders (and most particularly his remote clients) may access a particular exchange via multiple different applications: ISV workstations or directly via exchange APIs. This kind of multiple architecture causes serious risk management difficulties: There is no global visibility of open & executed orders Each trading application’s pre-trade risk management is constrained essentially to simple avoidance of mistakes, rather than providing global risk management based on trading positions Dedicated disaster recovery solutions and export paths are required for each application. GES resolves these difficulties by enabling the supervision of all orders and executions at one point, independent of the systems used to send the orders. This supervision requires a drop copy of everything done at the exchange, and is therefore dependent on the exchange’s supervision API providing this complete, consolidated copy. An increasing number of exchanges are able to provide this, and most also allow cancellation of orders via the same interface. Some exchanges might provide this feature with some limitations (e.g. LIFFE Connect API sends executions only when the supervised user is connected to the exchange). GES has already (at Sep 2009) been installed at several clients in Asia , working also with several derivatives exchanges. Development has also been done for Eurex and LIFFE. The functionality tends to be of most interest to derivatives brokers, because of the complexities involved in derivatives risk management, but can also be applied in cash market contexts. Development of GES to work with further exchanges will be driven by client demand: the methodology is well proven.
  • The GES server is a dedicated order book handling all order-related messages from the exchange (entry, modification, cancellation, fills) for supervision and/or reporting purposes. It may be used by supervisors to cancel monitored orders whatever their origin (GL Win/GL Tr@der, other SunGard applications, or any other system). The Sydney Futures Exchange also supports amendment of the supervised orders (we have not yet found other exchanges that provide this capability). Notes: The GES server, while being based on SunGard’s Trading Server (SLE) technology, should not itself be used as a trading server: i.e. no traders should attempt to send orders through it. The same capacity limitation applies as with a normal Trading Server (SLE): Up to 1M messages per day can be handled (order creation, modification, acknowledgment, execution). The GES server is mandatory as a base: several options may be added, as described on the next slide. For the GL Win supervisor: note that amendment of orders is supported only by the Sydney Futures Exchange (of the exchanges that have been investigated up to Sept 2009). Global risk management Via a GL Selector connected to the GES server, the application allows the supervisor to receive alerts when clients reach predefined limits (for capital, P&L etc.) Note that this ‘remote’ Selector does not prevent clients from going beyond these limits, but shows in real time what each client is doing. The supervisor may of course then cancel/amend orders as described on the previous slide. Global export The GES server can feed any external system, such as back-office applications, with order execution details in real time, Via a GL Export or FIX export process. This export can also be used for ticketing, via GL T&R (Ticketing & Reporting). This tool has been developed in Asia to automate the creation of tickets and reports, and can be priced for further clients on request. Derivatives position keeper and Span engine Via persistent database storage, a more extensive position keeping function is provided with indicators such as underlying position, P&L etc. Alerts can be set, and reports generated. For the executed parts of orders, margin consumption can then be computed via SunGard’s Instant Margin Span engine.
  • The Kiodex product line comes to Global Trading via the separate SunGard acquisition of this specialist commodity-market risk management systems vendor. The three products cover the following requirements: Risk workbench for a wide range of analytics Global market data for a large specialist data set, sourced directly from leading OTC market participants Kiodex real-time for position-keeping
  • Our rules-based engine, on top of a fundamental software framework, can help all types of financial institutions efficiently manage a wide variety of credit-related issues they face.
  • Sungard Global trading Presentation

    1. 1. Front-to-back offer for derivatives markets October 2009
    2. 2. SunGard Global Trading Organization Product Lines Post Trade Services Trading & Client Connectivity Market Data & information Services Regions: Sales and Client Support Services AMERICAS New York Chicago ASIA Tokyo Hong Kong Singapore Sydney Taipei Seoul Bangkok Mumbai LONDON NORTHERN EUROPE London Frankfurt Moscow Johannesburg Middle-East PARIS CONTINENTAL EUROPE Paris Madrid / Lisbon Milan Benelux Zurich/Geneva Global Trading Segment <ul><li>An international SunGard business segment with strong local presence </li></ul><ul><ul><li>1,300 employees </li></ul></ul><ul><ul><li>26 cities worldwide </li></ul></ul><ul><ul><li>1,000 clients </li></ul></ul><ul><li>Front-to-Back solutions and services for all listed asset classes </li></ul><ul><li>Strong focus on global derivatives markets </li></ul>
    3. 3. Portfolio Manager Sales / Dealer Trader Middle Office Back Office Back Office Exchange/Liquidity Pool Clearing House Network Depositary SunGard Global Trading addressable value chain Retail Branch Business Institutional Investor Market Data OMS Accounting Settlement Execution Management System Execution Management System Allocation/ Confirmation Trading System Risk Management Data & Content B U Y S I D E S E L L S I D E Order Management System Portfolio Management System
    4. 4. SunGard’s front-to-back offer for derivatives markets
    5. 5. Multi-asset trading: GL Stream and GL Net
    6. 6. Multi-asset trading: GL Stream and GL Net Go to SunGard’s post-trade for derivatives offering
    7. 7. SunGard’s post-trade for derivatives offering Smart gateways GL Clearvision GMI GL Ubix StreamCore Instant Brokerage Credit Monitor Options Watch Exchanges Clearing Houses Trading Systems GL Instant Map GL Instant Control Listed Derivatives Instant Fees GL Instant Web Clearing House Connectivity Middle-office Solution Back-office Solution Business-oriented Module Data Repository Back-office Data services Back-Office processing Contract Code Mapping Clearing House Connectivity Back-Office processing Consolidation / Aggregation / Normalization Matching & Clearing Back-Office Data Distribution Fame Futures Settlement Data Contract Data Market Fees Contract code Mapping
    8. 8. SunGard’s post-trade for derivatives offering Smart gateways GL Clearvision GMI GL Ubix StreamCore Instant Brokerage Credit Monitor Options Watch Exchanges Clearing Houses Trading Systems GL Instant Map GL Instant Control Listed Derivatives Instant Fees GL Instant Web Clearing House Connectivity Middle-office Solution Back-office Solution Business-oriented Module Data Repository Back-office Data services Back-Office processing Contract Code Mapping Clearin House Connectivity Back-Office processing Consolidation / Aggregation / Normalization Matching & Clearing Back-Office Data Distribution Fame Futures Settlement Data Contract Data Market Fees Contract code Mapping Back to SunGard’s front-office offering
    9. 9. GL Win
    10. 10. GL Win: multi-asset trading workstation <ul><ul><ul><li>Multi-asset, multi-currency </li></ul></ul></ul><ul><ul><ul><li>Fifty modules cover order sending and monitoring requirements </li></ul></ul></ul><ul><ul><ul><li>Derivatives-specific requirements integrated throughout </li></ul></ul></ul><ul><ul><ul><li>Modules for combo trading and derivatives allocations </li></ul></ul></ul>GL WIN
    11. 11. GL Win : main functions <ul><li>MarketWatch Plus </li></ul><ul><ul><li>multiple, flexible views of market data </li></ul></ul><ul><li>Market Depth </li></ul><ul><ul><li>full-depth view; fire order window via click </li></ul></ul><ul><li>SpreadMatrix </li></ul><ul><ul><li>straightforward tool for simpler spreads </li></ul></ul><ul><li>Order Book/Trading Watch </li></ul><ul><ul><li>full order monitoring </li></ul></ul><ul><li>QuickTrade </li></ul><ul><ul><li>one-click trade/mod/cancel </li></ul></ul><ul><li>P & L Calculation </li></ul><ul><ul><li>real-time, with filtering & simulation capability </li></ul></ul>
    12. 12. GL Win: Combo Trader GL SOR <ul><ul><li>Combo Trader has been designed to: </li></ul></ul><ul><ul><ul><li>handle any desired spread or strip trade </li></ul></ul></ul><ul><ul><ul><li>create multi-instrument trading strategies (spread, crack/crush, butterfly, strip etc.) </li></ul></ul></ul><ul><ul><ul><li>carry out pairs trading simply and effectively </li></ul></ul></ul><ul><ul><li>User-designed strategies may be: </li></ul></ul><ul><ul><ul><li>weighted in terms of quantity or price </li></ul></ul></ul><ul><ul><ul><li>multi-legged (up to 32 legs) </li></ul></ul></ul><ul><ul><ul><li>multi-asset class </li></ul></ul></ul><ul><ul><ul><li>traded in sniper (one-shot) or stalker (managed) mode </li></ul></ul></ul>
    13. 13. Combo Trader: rapid access to strategies GL Combo Trader GL SOR 1 Select the Combo you want to trade 2 Fill the quantity and price 3 Choose either Sniper or Stalker mode 4 Monitor fills of your Combo order in the Order Book Back to Trading overview
    14. 14. GL Stream Allocation <ul><ul><li>GL Stream Allocation generates and enriches client account allocations on derivatives orders (futures, options and strategies) and sends them to Clearvision or other mid-office systems </li></ul></ul><ul><ul><li>Operates as an application window in GL Win </li></ul></ul><ul><ul><li>Provides global visibility of the status of all allocations (simple/ complex/bulk) </li></ul></ul><ul><ul><li>Details are retained for orders marked for post-trade allocation </li></ul></ul><ul><ul><li>Enables a complete straight-through process to be implemented for client orders </li></ul></ul>
    15. 15. Stream Allocation: architecture Back to Trading overview
    16. 16. GL Tr@der
    17. 17. GL Tr@der: professional trading on the move <ul><ul><li>Thin-client trading software, accessible anywhere </li></ul></ul><ul><ul><li>Designed for derivatives brokers and their clients </li></ul></ul><ul><ul><li>No client-side installation </li></ul></ul><ul><ul><li>Used by some of the largest global FCMs </li></ul></ul>GL Tr@der Back to Trading overview
    18. 18. GL Tactics
    19. 19. Synthetic orders and algorithmic trading GL Tactics GL Tactics Studio <ul><ul><li>GL Tactics provides a comprehensive library of synthetic order types, including: </li></ul></ul><ul><ul><ul><li>Iceberg </li></ul></ul></ul><ul><ul><ul><li>Peg </li></ul></ul></ul><ul><ul><ul><li>Random iceberg </li></ul></ul></ul><ul><ul><ul><li>Ghost orders </li></ul></ul></ul><ul><ul><li>GL Tactics Studio allows users to develop more complex, tailored algorithms </li></ul></ul><ul><ul><ul><li>Minimum of programming knowledge required </li></ul></ul></ul><ul><ul><ul><li>Builds on components from GL Tactics </li></ul></ul></ul>Back to Trading overview
    20. 20. FIX and APIs
    21. 21. FIX and APIs <ul><ul><li>Clients have in many cases developed their own trading applications </li></ul></ul><ul><ul><li>SunGard’s role is to facilitate communication with our systems </li></ul></ul><ul><ul><li>We offer comprehensive, high-performance support for FIX standards and routing, via Stream FIX </li></ul></ul><ul><ul><li>FIX Network Service provides complete managed service for order collection </li></ul></ul><ul><ul><li>Full market data is available from GL Net, via API </li></ul></ul><ul><ul><li>GL Win offers workstation-based API (Open GL Win) </li></ul></ul>Back to Trading overview
    22. 22. Market Gateways
    23. 23. Market Gateways <ul><ul><li>SunGard has been a consistent leader in enabling trading access to electronic markets since 1987 </li></ul></ul><ul><ul><li>Today we provide high-performance trading and market data gateways for 130+ world-wide markets </li></ul></ul><ul><ul><li>This total includes gateways for 60+ derivatives exchanges: more than half also offered in ASP </li></ul></ul>Back to Trading overview
    24. 24. GL Selector
    25. 25. Multi-asset and multi-currency risk management GL Selector <ul><ul><li>GL Selector provides a comprehensive pre-trade risk management architecture </li></ul></ul><ul><ul><li>Manages and makes full use of available trading limits </li></ul></ul><ul><ul><li>Controls limits on a variety of dimensions and levels </li></ul></ul><ul><ul><li>Capable of handling high-volume DMA traffic </li></ul></ul><ul><ul><li>Delta Selector mode allows consolidation of futures & options risk </li></ul></ul>
    26. 26. GL Selector <ul><ul><li>Market-specific parameters enable compliance with regulatory requirements of all supported markets </li></ul></ul><ul><ul><ul><li>Information consolidated in one screen </li></ul></ul></ul><ul><ul><ul><li>Global and detailed position information available </li></ul></ul></ul><ul><ul><li>High performance, hot backup </li></ul></ul><ul><ul><ul><li>Based on standard Stream Services architecture </li></ul></ul></ul><ul><ul><ul><li>Manages up to 600,000 accounts </li></ul></ul></ul><ul><ul><ul><li>Backed up within 20 seconds </li></ul></ul></ul>GL Selector Back to Trading overview
    27. 27. Global Execution Server
    28. 28. Multi-platform risk mgmt: Global Execution Server <ul><li>Traders and clients may access an exchange via multiple applications </li></ul><ul><li>GES enables supervision of all orders and executions at one point </li></ul><ul><li>Receives drop copy of all exchange activity via Supervision API </li></ul><ul><li>Gives global visibility of all daily orders (open and executed) </li></ul><ul><li>Provides the ability to cancel orders whenever required </li></ul><ul><li>Enables global daily position monitoring, inc. open orders </li></ul><ul><li>Allows global export and confirmation via a single connection </li></ul>
    29. 29. GES architecture Back to Trading overview
    30. 30. Kiodex
    31. 31. Kiodex: risk management for commodities Kiodex Real Time Greeks P&L Real Time Position
    32. 32. How is Kiodex used? <ul><li>Corporations </li></ul><ul><li>Designing and implementing a hedging program </li></ul><ul><li>Pre-execution pricing tools </li></ul><ul><li>Hedge monitoring/reporting (MTM, settlements, P&L) </li></ul><ul><li>Banks </li></ul><ul><li>Cross-margining OTC customers (VaR) </li></ul><ul><li>Counterparty exposure </li></ul><ul><li>Indicative quotes for clients </li></ul><ul><li>Hedge Funds </li></ul><ul><li>VaR for investor reporting </li></ul><ul><li>System of record </li></ul><ul><li>Trading reports (P&L, position, greeks, stress testing) </li></ul>Back to Trading overview
    33. 33. GL Net
    34. 34. GL Net: world-wide order routing and market data
    35. 35. GL Net: DMA execution services and market data <ul><ul><li>700+ institutions connecting daily on average </li></ul></ul><ul><ul><li>300 brokers providing execution services </li></ul></ul><ul><ul><li>110+ markets offered </li></ul></ul><ul><ul><li>Multi-asset </li></ul></ul><ul><ul><ul><li>Equities </li></ul></ul></ul><ul><ul><ul><li>Futures </li></ul></ul></ul><ul><ul><ul><li>Options </li></ul></ul></ul><ul><ul><ul><li>Commodities </li></ul></ul></ul><ul><ul><ul><li>FX </li></ul></ul></ul><ul><ul><ul><li>Fixed Income </li></ul></ul></ul><ul><ul><li>GLEAM electronic on-boarding system </li></ul></ul>(snapshot Q4 2008)
    36. 36. GL Net: market connectivity made simple <ul><ul><li>ASP service allows 140+ clients to outsource technology and connectivity </li></ul></ul><ul><ul><li>80+ markets worldwide, including 36 derivatives exchanges </li></ul></ul><ul><ul><li>Over 400 trading gateways under management </li></ul></ul><ul><ul><li>A mutually beneficial relationship with exchanges </li></ul></ul>The ASP service principle Back to Trading overview
    37. 37. Smart Gateways
    38. 38. Smart Gateways - A new generation of gateways <ul><ul><li>Smart Gateways use up-to-date components: </li></ul></ul><ul><ul><ul><li>Existing gateways were based on Object Rexx, interpreted IBM language </li></ul></ul></ul><ul><ul><ul><li>Smart gateways use Java and industry-standard frameworks, avoiding development of already existing parts of the product </li></ul></ul></ul><ul><ul><li>Smart Gateways provide: </li></ul></ul><ul><ul><ul><li>Scalability : architecture is ready for high volumes. </li></ul></ul></ul><ul><ul><ul><li>High availability : scalability also introduces high availability. </li></ul></ul></ul><ul><ul><ul><li>Portability : components run on any operating system that supports Java (depends on market APIs). </li></ul></ul></ul><ul><ul><ul><li>Increased stability </li></ul></ul></ul><ul><ul><ul><li>Genericity : use standard FIX messages to allow connections from external applications </li></ul></ul></ul><ul><ul><li>Smart Gateways will replace all existing gateways by 2010 </li></ul></ul>Back to SunGard’s post-trade for Derivatives offering
    39. 39. GL Clearvision
    40. 40. GL Clearvision – Automated matching & clearing <ul><li>An automated system matching orders with executed trades in real time and sending clearing instructions to clearing houses including automatic Give Ins and Give Outs. </li></ul><ul><li>An industry standard platform used by major banks and FCMs worldwide. </li></ul>
    41. 41. GL Clearvision – Trade Flow
    42. 42. GL CLEARVISION: Automatic clearing system <ul><li>Extensive market connectivity with coverage of 35+ Derivatives exchange gateways </li></ul><ul><li>Upstream link and full integration with SunGard trading workstations, for example GL Stream </li></ul><ul><li>Extensive and real-time connectivity with major third-party systems </li></ul><ul><li>Downstream link with major back-office systems including SunGard’s GL Ubix and GMI </li></ul><ul><li>Full scalability dedicated to coping with high volume growth </li></ul><ul><li>Automated acceptance of incoming give-in and management of give-up based on give-in details ( Carte-Blanche ) </li></ul><ul><li>Portability on major operating systems (Unix, Linux, Windows) and high availability using java and industry standard frameworks (JMS bus & FIX messages) </li></ul><ul><li>Loading facilities for orders & trades from files, FIX messages, emails attachments and database source </li></ul>GL Clearvision - Main Features
    43. 43. GL CLEARVISION: Automatic clearing system <ul><li>Real-time reconciliation and exception management to track discrepancies from floor business </li></ul><ul><li>Clearing control mechanism providing the ability to control further automatic give-in acceptance using limits (Riskvision module) </li></ul><ul><li>On-line audit trail for orders, trades and static data </li></ul>Monitor Risk & meet Compliance Requirements
    44. 44. GL Clearvision – Modules & Services <ul><li>Modules </li></ul><ul><li>eFlow : Automate the up and down stream with external applications (static data, tickets, orders…). </li></ul><ul><li>eScheduler : Schedule tasks, monitor GL Clearvision processing in real time and receive alerts. </li></ul><ul><li>eExportBack : Export Tickets and orders to different Back Offices Systems. </li></ul><ul><li>Riskvision : Monitor counterparty risk. </li></ul><ul><li>Services </li></ul><ul><li>Facilities Management : Leverage SunGard’s hosting expertise and focus on your core business. </li></ul><ul><li>Follow the Sun : Leverage SunGard worldwide organization and benefit from 24/5 support. </li></ul>Back to SunGard’s post-trade for Derivatives offering
    45. 45. GL Ubix
    46. 46. GL Ubix – Trade Flow
    47. 47. GL Ubix – A flexible, real-time, single global Platform <ul><li>Full clearing (exchange feed, margins, prices, regulatory reporting) on 35+ exchanges </li></ul><ul><li>Margins and prices on further 40+ exchanges </li></ul><ul><li>Manage listed & OTC Derivatives/Spot, Forward & OTC FX/CFDs, Equities and Bonds </li></ul><ul><li>Real time transaction gateways with clearing brokers </li></ul><ul><li>Time zone processing by market allowing fragmentation of traditional End of Day batch </li></ul><ul><li>Automated reconciliation process with clearing houses of trades, positions and balances </li></ul>
    48. 48. GL Ubix – Main Features <ul><li>Flexible re-runs by market/client </li></ul><ul><li>Intraday open positions and cash balances </li></ul><ul><li>Multi-firm capacity with automated inter-company reconciliation </li></ul><ul><li>End of day process and reporting automation via AutoPilot scheduler </li></ul><ul><li>Flexible report customization through Report Writer </li></ul><ul><li>email and FTP report distribution to clients through eCom </li></ul>
    49. 49. GL Ubix – Accurate Margining and Cost Control <ul><li>Better assess market risks based on accurate initial margin </li></ul><ul><li>calculation </li></ul><ul><li>Regulatory margining per counterparty and exchange standards </li></ul><ul><li>Detailed margin reports production allowing automatic reconciliation with counterparties </li></ul><ul><li>Cross margin capability and web-based interactive margin simulation facilities for end customers using GL Instant Web </li></ul><ul><li>Reduce reconciliation costs via brokerage management </li></ul><ul><li>Drill down into trading records </li></ul><ul><li>Comprehensive payable/receivable tracking function and aged debtor analysis </li></ul><ul><li>User defined invoices </li></ul><ul><li>Links to common general ledger packages </li></ul>
    50. 50. GL Ubix – Designed for STP & Scalability <ul><li>Improve STP and reduce operational risk </li></ul><ul><li>Real-time connectivity with SunGard’s middle-office system GL Clearvision </li></ul><ul><li>Single process to maintain static data across GL Clearvision and GL Ubix </li></ul><ul><li>A proven robust and open Platform </li></ul><ul><li>Multi-Tiers, Oracle-based solution with an excellent price/performance ratio </li></ul><ul><li>Two-way communication with external systems through a set of business-oriented APIs </li></ul><ul><li>Available in-house or ASP or FM </li></ul>
    51. 51. GL Ubix – A modular Approach Back to SunGard’s post-trade for Derivatives offering
    52. 52. GMI
    53. 53. What is GMI? <ul><li>A back-office clearing and accounting software solution for the global, listed derivatives marketplace </li></ul><ul><li>Handles the acquisition, processing, management, dissemination, integration, and booking of all clearing and trade processing activities </li></ul><ul><li>Helps your organization eliminate manual processes and provides comprehensive, consistent, and accurate information in one integrated accounting system </li></ul>
    54. 54. GMI - Solve your problems <ul><li>Today’s financial markets are truly global, and most firms operate across time zones and international borders. Yet many institutions rely on different systems in different geographic markets. </li></ul><ul><li>For utmost efficiency, they need a back-office platform that is also truly global. This would help them </li></ul><ul><ul><li>Improve efficiency </li></ul></ul><ul><ul><li>Create an enterprise-wide view of the firm </li></ul></ul><ul><ul><li>Increase automation and reduce the opportunity for errors </li></ul></ul><ul><ul><li>Eliminate the need to maintain multiple systems and accounts, thus reducing cost and complexity and increasing transparency </li></ul></ul>
    55. 55. GMI - A global product with global reach <ul><li>Supports over 150 listed exchange “markets” today </li></ul><ul><li>Provides full clearing (interface and regulatory reporting) support for all major global derivative markets </li></ul><ul><li>Features true Japanese domestic clearing capability, with Kanji screens, statements and reports </li></ul><ul><li>Processes listed equities business (including warrants) and has powerful equity option processing capabilities </li></ul><ul><li>Provides integrated FX and OTC product support </li></ul><ul><li>Handles CCP, equities, repos, swaps, energy, and emissions markets </li></ul>
    56. 56. GMI - Key Features <ul><li>GMI ASP provides the same functionality for less investment. </li></ul><ul><li>The Regional Processing Module offers special support for global operations by allowing customers to perform End of Market runs as soon as a market closes, helping to save time, money and file space. </li></ul><ul><li>APIs incorporates advanced technology to help GMI users streamline operations. </li></ul><ul><li>GMI is based on fast and reliable technology. </li></ul><ul><ul><li>IBM iSeries provides speed, stability and reliability. </li></ul></ul><ul><ul><li>One global database supports a multi-regional operation. </li></ul></ul><ul><ul><li>GMI provides a granular level of user authority. </li></ul></ul>
    57. 57. GMI - The value proposition <ul><li>One global system </li></ul><ul><ul><li>GMI can process any exchange-traded or OTC product, including those with special processing requirements (rolling spot, flex-options, energies, emissions, swaps, etc.). </li></ul></ul><ul><ul><li>GMI provides a single platform for global processing, eliminating the need for multiple systems or installations and providing access to all of a customer’s information in one place. </li></ul></ul><ul><li>Fast and efficient </li></ul><ul><ul><li>GMI is a fast and highly efficient processing system that can handle large transaction volumes. </li></ul></ul><ul><li>Customizable </li></ul><ul><ul><li>GMI can be customized to conform to your business needs. </li></ul></ul><ul><li>Open system </li></ul><ul><ul><li>Anything manually entered into the system can be automated. </li></ul></ul>Back to SunGard’s post-trade for Derivatives offering
    58. 58. Instant Brokerage
    59. 59. Instant Brokerage <ul><li>A back-office business oriented solution that automates the ETD brokerage process for firms offering brokerage services, execution only (Give-Up) and/or clearing (Give-In) management. </li></ul><ul><li>A proven solution used by global firms for complete STP from capturing trades, managing payables and receivables to issuing accounting entries along with ETD brokerage invoicing. </li></ul><ul><li>A dedicated independent component offering a complete workflow process to monitor revenues and expenses. </li></ul><ul><li>Fully integrated with exchange systems and firms’ legacy back-office solutions via Stream, SunGard’s data repository. </li></ul>
    60. 60. Functionalities designed for executing brokers… <ul><li>Instant Brokerage allows brokers to reduce aged debt and litigation, to track outstanding invoices to speed up cash recovery and enhance STP with downstream systems: </li></ul><ul><ul><li>Set up execution fees schedules </li></ul></ul><ul><ul><li>Load daily “execution” trades </li></ul></ul><ul><ul><li>Deal with exceptions </li></ul></ul><ul><ul><li>Compute fees and commissions per trade </li></ul></ul><ul><ul><li>Generate customizable, flexible and accurate invoices per clearer </li></ul></ul><ul><ul><li>Manual and automatic load of cash entries </li></ul></ul><ul><ul><li>Reconcile cash payments and invoices – Full reconciliation process at the trade level </li></ul></ul><ul><ul><li>Track outstanding payments </li></ul></ul><ul><ul><li>Monitor the aged debt balance </li></ul></ul><ul><ul><li>Post ad hoc accounting entries </li></ul></ul>
    61. 61. The Receivables Process (Executing Broker)
    62. 62. … as well as Clearers <ul><li>Clearers can, on their side, better control execution brokers’ invoices and monitor monthly accrued fees and enhance STP as well: </li></ul><ul><ul><li>Reflect execution brokers’ fees schedules </li></ul></ul><ul><ul><li>Load daily “clearing only” trades </li></ul></ul><ul><ul><li>Deal with exceptions </li></ul></ul><ul><ul><li>Load broker invoices through user-defined generic interface </li></ul></ul><ul><ul><li>Compute execution fees and commissions per trade </li></ul></ul><ul><ul><li>Reconcile incoming invoices against take-up trades </li></ul></ul><ul><ul><li>Fully reconcile at the trade level </li></ul></ul><ul><ul><li>Adjust differences </li></ul></ul><ul><ul><li>Feed accounting with daily accrued figures </li></ul></ul><ul><ul><li>Automate validation of brokers’ invoices </li></ul></ul><ul><ul><li>Authorize payments </li></ul></ul>
    63. 63. The Payables Process (Clearer) Back to SunGard’s post-trade for Derivatives offering
    64. 64. Options Watch
    65. 65. The Cost of Option Exercise/Abandon <ul><li>The cost of not reacting on time: it can be difficult to identify in real-time the impact a decision to exercise or abandon may have on profit and loss (P&L) </li></ul><ul><li>Potential financial losses as result of incorrect exercises / abandonment (fat finger) </li></ul><ul><li>Costly daily manual tasks generating high operational risks </li></ul>
    66. 66. Options Watch, an innovative automated Solution <ul><li>Options Watch is made of two distinct complementary functionalities: </li></ul><ul><ul><li>A workflow to manage the option exercise/abandonment process, offering a higher STP rate </li></ul></ul><ul><ul><li>A fully automated close-out process with exchanges </li></ul></ul><ul><li>Leading to a dedicated solution delivering greater automation and better risk control </li></ul><ul><li>SunGard has innovated to solve issues never addressed before by the derivatives industry or the ISV community </li></ul>
    67. 67. Options Watch – The Exe/Abd/Ass Process The Exe/Abd/Ass Process within the Derivatives Trade Flow Request of Exe/Abd Ack/Rej/Not/Pos Real-time position Exe/Abd Ack /Rej Ass Exe/Abd/Ass
    68. 68. A fully automated Workflow STP Process Uploading of positions and static data from Stream , SunGard’s aggregated and normalized data repository Collecting clients’ requests for exercises using standard interfaces and channels Managing requests’ exceptions , which requires a recovery procedure by exception Providing online direct access for final customer through an internet portal <ul><li>Systematically performing sanity checks : </li></ul><ul><li>“ Open positions” control </li></ul><ul><li>“ In the Money calculation” (P&L) </li></ul>Authorizing the exercise instructions to be sent to the exchange Monitoring market’s notifications such as confirmation/rejection/notification messages <ul><li>Reporting back to internal teams and customer </li></ul><ul><li>Feeding the back-office system </li></ul>Set up of user profiles by administrator with appropriate rights Request of Exe/Abd File/Message/Email GL Instant Web Internet request of Exe/Abd/Off Manual Entry Request of Exe/Abd/Off File Request of Exe/Abd/Off Fixing Exceptions Exe Abd Off Ack Rej Not Pos
    69. 69. Options Watch– The Close-Out Process The Close-Out Process within the Derivatives Trade Flow Pos Pos Off Pos Pos Off
    70. 70. Business Benefits <ul><li>Reduce drastically potential of financial loss on option exercise </li></ul><ul><li>Substantial operational risks mitigation via full process management </li></ul><ul><li>Estimated « profit and loss » in real-time with « in and out the money » calculator </li></ul><ul><li>Reduce daily man hours spent on painful tasks by automating the daily close-out process </li></ul><ul><li>Better assess the risk of being assigned by the automatic close-out process of exchange open positions </li></ul><ul><li>Delivering high quality client services providing a unique hedge against competition </li></ul>
    71. 71. Monitoring Screen Detailed position for a selected request
    72. 72. Close-out Screen Enables to close-out two defined trades of a specific position (to control the P&L) Back to SunGard’s post-trade for Derivatives offering
    73. 73. GL Instant Control
    74. 74. <ul><ul><li>Financial Institutions Problematic: </li></ul></ul><ul><ul><li>Increasing market volatility & volumes </li></ul></ul><ul><ul><li>Growing client base and client defaults becoming more frequent </li></ul></ul><ul><ul><li>Need for real-time monitoring and alert system to act swiftly when exposure increases </li></ul></ul><ul><ul><li>GL Instant Control Solution Benefits: </li></ul></ul><ul><ul><li>A better approach to client exposure: choose risk indicators and use account grouping functions to monitor exposure on different levels </li></ul></ul><ul><ul><li>Accurate monitoring of the trading activity with real-time information </li></ul></ul>GL Instant Control – Problematic & Benefits
    75. 75. <ul><li>Select risk indicators to monitor (balances, positions, margins ...) </li></ul><ul><li>Set up thresholds & limits (warning, alert, critical) </li></ul><ul><li>Apply to account groupings (bottom up structure) </li></ul>GL Instant Control calculates, monitors and warns in real time. GL Instant Control – Main Features
    76. 76. <ul><ul><li>Net Open Position (Quantity or Face Value) </li></ul></ul><ul><ul><li>Cash Balance </li></ul></ul><ul><ul><li>Profit & Loss </li></ul></ul><ul><ul><li>Open Trade Equity </li></ul></ul><ul><ul><li>Option Market Value </li></ul></ul><ul><ul><li>Net Liquidating value </li></ul></ul><ul><ul><li>Initial Margin Requirement </li></ul></ul><ul><ul><li>Collateral Cover </li></ul></ul><ul><ul><li>Margin Excess / Default </li></ul></ul><ul><ul><li>Coverage (Equity to Margin ratio) ) </li></ul></ul>GL Instant Control – Risk Indicators
    77. 77. <ul><ul><li>Proven solution using market leading technology </li></ul></ul><ul><ul><li>Multi-asset class portfolio monitoring </li></ul></ul><ul><ul><li>Real time computation using most recent risk parameters (SPAN, TIMS arrays, etc.) & last traded price </li></ul></ul><ul><ul><li>Efficient alert system via email/messaging </li></ul></ul><ul><ul><li>Rapid drill down to individual trades that trigger an alert </li></ul></ul><ul><ul><li>APIs allow fast & flexible implementation </li></ul></ul><ul><ul><li>Can complement all major back-office core systems </li></ul></ul><ul><ul><li>Extensible solution that can easily integrate new business and monitoring needs </li></ul></ul><ul><ul><li>In production on sites using different back-office core systems, clearing large volumes on different asset classes & active on tens of exchanges world-wide </li></ul></ul>GL Instant Control - Summary
    78. 78. Accounts Groupings Messaging Panel Risk Indicator Monitoring View GL Instant Control – Monitoring Screen Back to SunGard’s post-trade for Derivatives offering
    79. 79. GL Instant Map
    80. 80. Market Situation <ul><li>Multiple sources define their own contract code for the same future or option contract: each exchange, Data feed vendors, ISVs, Regulatory/Industry Bodies, Other Third Parties (ISIN). </li></ul><ul><li>Market participants thus have to deal with the contracts codes trans-codification each time they need to interface any systems (Front, Middle, Back, Accounting, Risk, OMS…) </li></ul><ul><li>A GL Clearvision or GL Ubix client has to manually enter synonyms in dictionaries for each new contract in any up or down stream interface </li></ul><ul><li>Cost-ineffective and full of potential mistakes processes leading to a poor STP rate achieved </li></ul>
    81. 81. Example - GL Clearvision without GL Instant Map
    82. 82. Example - GL Clearvision without GL Instant Map Without GL Instant Map, contract synonym for each non integrated order has thus to be entered manually in order for Clearvision not to reject it.
    83. 83. GL Instant Map Overview <ul><li>Clients receive daily files that contain the up to date list of contract code mapping for different sources and particular exchanges (GMI/CME, Bloomberg/EUREX…) </li></ul><ul><li>A process then manages to automatically populate each SunGard system‘s trans-codification tables based on these daily files and user’s defined parameters </li></ul><ul><li>GL Instant Map is a bundle of a data feed (Fame Futures-Contracts Mapping) and a software connector for each SunGard system </li></ul><ul><li>Available codes: GL Clearvision, GL Ubix, GMI, GL (front), Rolfe&Nolan, Bloomberg </li></ul>
    84. 84. Example - GL Clearvision with GL Instant Map Back to SunGard’s post-trade for Derivatives offering
    85. 85. Fame Futures
    86. 86. <ul><li>Fame Futures – Settlement Data </li></ul><ul><ul><li>Automatic FTP distribution of settlement data, closing prices and risk arrays of more than 80+ derivatives exchanges to be downloaded into UBIX </li></ul></ul><ul><li>Fame Futures – Contract Data </li></ul><ul><ul><li>Automatic FTP distribution of contract specifications for more than 80+ different derivatives exchanges to be downloaded into GL Ubix. </li></ul></ul><ul><ul><li>Since Ubix 6.08, new maturity dates data have been made available in Fame Futures CD . These dates are no longer calculated with maturity rules maintained into the back-office system but received from FOW Trade Data. </li></ul></ul><ul><li>Fame Futures – Market Fees </li></ul><ul><ul><li>Automatic FTP distribution of exchange and clearing fee schedules for automatic download into GL Ubix and GL Instant Fees </li></ul></ul><ul><li>Fame Futures – Contract Mapping </li></ul><ul><ul><li>Automatic FTP distribution of contract code mappings – providing root & series level for different providers – Management of information using GL Instant Map </li></ul></ul>Fame Futures – Back-office Data Services GL Ubix – Data Feeds Back to SunGard’s post-trade for Derivatives offering
    87. 87. GL Instant Web
    88. 88. GL Instant Web – Main Features <ul><li>From Net@ccess to GL Instant Web </li></ul><ul><li>Accessible data from all PTS-D products: GL Ubix, GL Clearvision, Options Watch, … </li></ul><ul><li>Open to other data sources. </li></ul><ul><li>Customizable user interface </li></ul><ul><li>Connectable to other applications through WebServices. </li></ul>
    89. 89. GL Instant Web - Screenshots <ul><li>Multi-components views </li></ul>
    90. 90. GL Instant Web - Screenshots <ul><li>Powerful customization (filtering, ordering,…) </li></ul>
    91. 91. GL Instant Web - Screenshots <ul><li>Users and Profiles management </li></ul>Back to SunGard’s post-trade for Derivatives offering
    92. 92. Stream Core
    93. 93. Sometimes data can be spread out in an organization Equity Back Office Derivatives Back Office Fixed Income Back Office Accounts Data Security Reference & Market Data Derivatives Data transactions, balances, positions Fixed Income Data transactions, balances, positions Equity Data transactions, balances, positions Calendars Client data Third party Vendors Other internal systems
    94. 94. … so a processing environment can look like this: <ul><ul><ul><li>Complex IT architecture </li></ul></ul></ul><ul><ul><ul><li>No consolidated views of customer or firm information </li></ul></ul></ul><ul><ul><ul><li>Lack of timely, accurate and complete information </li></ul></ul></ul>Market Data Calendar Data Company Data Account Data User Data Equities Bonds Listed Derivs OTC Derivs FX Foreign Markets Apps DB GL Print/ Mail Web Storage Corp Actions Margin Haircuts
    95. 95. Stream simplifies the Processing Environment Market Data Calendar Data Company Data Account Data User Data Equities Bonds Listed Derivs OTC Derivs FX Foreign Markets Apps DB GL Print/ Mail Web Storage Corp Actions Margin Haircuts Stream Core Engine Data Consolidation
    96. 96. Benefits of this Approach <ul><li>Reduces cost and complexity associated with adding new products, services, and business lines </li></ul><ul><li>Streamlines operations by making it more agile and adaptable </li></ul><ul><li>Improves risk mitigation by improving data quality </li></ul><ul><li>Simplifies IT architecture by removing redundant processes </li></ul><ul><li>Eases the complexities of reporting requirements </li></ul><ul><li>Stream creates a holistic, enterprise-wide view </li></ul>Stream Unlock your data’s potential
    97. 97. <ul><ul><li>Data Management Framework Aggregates, normalizes and simplifies data into a single repository: </li></ul></ul><ul><ul><ul><li>Accounts </li></ul></ul></ul><ul><ul><ul><li>Product data </li></ul></ul></ul><ul><ul><ul><li>Transactions </li></ul></ul></ul><ul><ul><ul><li>Positions </li></ul></ul></ul><ul><ul><ul><li>Balances </li></ul></ul></ul><ul><ul><ul><li>Other </li></ul></ul></ul><ul><ul><li>Collection of Services Designed to help leverage data from across the enterprise to solve real business problems: </li></ul></ul><ul><ul><ul><li>Proprietary data </li></ul></ul></ul><ul><ul><ul><li>Third-party data </li></ul></ul></ul><ul><ul><ul><li>SunGard data </li></ul></ul></ul><ul><li>Stream solutions use aggregated data to help increase operational efficiencies by reducing risks and costs, increasing revenues, and providing a holistic view of customer and firm data </li></ul>What is Stream?
    98. 98. Stream Modules <ul><li>Core Engine & Data Model: Consolidate data from multiple processing systems </li></ul><ul><li>Report Writer : Create customized reports and run ad-hoc queries </li></ul><ul><li>Credit Monitor : Monitor credit requirements across accounts (Reg-T, Portfolio, Futures, collateral, counterparty exposure) </li></ul><ul><li>Stream Portal : Distribute documents to authorized customers and their clients </li></ul><ul><li>Reference Data Management : Load, transform and validate content from disparate sources </li></ul><ul><li>STN Settlements : Centralized interface management to external utilities, such as SWIFT, Euroclear, Crest, FICC </li></ul><ul><li>Instant Brokerage : Automate ETD brokerage processes for firms offering brokerage services, execution only (Give-Up) and/or clearing (Give-In) management </li></ul><ul><li>Options Watch : Unique workflow STP process for option exercise/assignment and close-outs. </li></ul>Back to SunGard’s post-trade for Derivatives offering
    99. 99. Stream Credit Monitor
    100. 100. What is Stream Credit Monitor? <ul><ul><li>Real-time, multi-currency application for collateral valuations and exposure monitoring specific to your firm’s credit policies </li></ul></ul><ul><ul><li>Credit and collateral management workflow tool Automated management of obligations and exposures with scalable warning and informational features </li></ul></ul><ul><ul><li>Historical repository of credit events and actions for internal and regulatory exams and audits </li></ul></ul><ul><ul><li>Customer service tool providing sophisticated credit transparency for your most demanding clients </li></ul></ul><ul><ul><li>Stream Credit Monitor provides : </li></ul></ul><ul><ul><li>Flexible Rules Engine (Synapse) </li></ul></ul><ul><ul><li>Customizable event filters </li></ul></ul><ul><ul><li>Customizable work grids </li></ul></ul><ul><ul><li>Predictive modeling </li></ul></ul><ul><ul><li>Warning events </li></ul></ul>
    101. 101. Stream Credit Monitor - Modules <ul><li>Counterparty Exposure </li></ul><ul><li>Automates the process of credit risk monitoring for repo and other financing products </li></ul><ul><li>Online inquiry of the calculation results – current and historical </li></ul><ul><li>Alerts to notify firms of counterparty exposure </li></ul><ul><li>Flexible rules engine to categorize haircuts </li></ul><ul><li>Collateral Monitoring </li></ul><ul><li>Real-Time monitoring of loans secured by negotiable assets </li></ul><ul><li>Alerts to identify troubled accounts </li></ul><ul><li>Flexible rules engine to categorize haircuts </li></ul><ul><li>Create loan account relationships to provide capability to combine accounts </li></ul><ul><li>risk-based </li></ul><ul><li>Reg T Margin </li></ul><ul><li>Sophisticated strategy based margin and option optimization </li></ul><ul><li>Cash Account Processing </li></ul><ul><li>Guarantee/Combined/Linked Processing </li></ul><ul><li>Concentration and Illiquidity measurements </li></ul><ul><li>Hypothetical Modeling </li></ul><ul><li>Portfolio Margin </li></ul><ul><li>Computes both strategy-based margin and risk-based margin </li></ul><ul><li>Derives margin computations from theoretical prices on securities, which are hypothetically evaluated to determine worst-case loss scenarios at a specific point in time </li></ul><ul><li>Reduces margin requirements in compliance with NYSE Rule 431 </li></ul><ul><li>Futures Margin </li></ul><ul><li>Computes the exchange margin for the majority of global futures exchanges </li></ul><ul><li>Segregates U.S. Regulated, Secured, and Non-U.S. Regulated account types </li></ul><ul><li>Offers sophisticated risk-based margin output and call management workflow </li></ul>REG-T MARGIN PORTFOLIO MARGIN FUTURES MARGIN COLLATERAL MONITORING COUNTERPARTY EXPOSURE Back to SunGard’s post-trade for Derivatives offering