luxoft software development

1. For more information about Luxoft, visit
www.luxoft.com
www.luxoft.com/financial-services/
case study
Liquidity Management
and Analysis System
Summary
13.09.2012
Develop a system to monitor, analyze, and report liquidity risk for use by the bank’s
Treasury and Liquidity Risk Operations departments.
uu Client: A top ten global investment bank
uu Business Area: Investment banking liquidity risk management
uu Asset Classes: Equities, fixed income, loans, equity derivatives, FI
derivatives
uu Technology Set: Oracle, Oracle BI, PL/SQL, Core Java, JMS, Spring,
Hibernate, Jasper, Tomcat, WebLogic, Messaging, KSH Scripts, Control M
Jobs, SharePoint, QlikView, iRise
uu Integration: Oracle, Ad-hoc Integration
uu User Profile: Treasury, Liquidity Risk Operations
uu Geography: Worldwide (US, UK, Europe, Asia Pacific, Latin America,
South Africa)
uu Relationships Status: Ongoing ODC, T&M
uu Services Provided: Business analysis, Development, QA/Testing,
Production support
uu Team Size: 20+ team members
uu Duration: 3+ years development and ongoing maintenance

2. Business Challenge
Increased regulatory requirements that followed the global financial crisis
compelled the bank to seek a new solution for liquidity management. They
wanted a flexible, scalable system that would measure and analyze the
end-of-day liquidity position in a way that complied with Basel II regulatory
requirements and that supported proactive liquidity management by
ensuring bank’s ability to meet obligations on time without incurring
unacceptable losses.
02Luxoft - Case Study
Luxoft Delivered Solution
The bank began the software development internally with support from
an offshore vendor. As the system’s complexity and size hit critical levels,
the bank looked for a new partner to complete system development and
delivery. Luxoft was selected as the bank’s new software development
partner and the project moved from India to the Ukraine.
Luxoft successfully delivered the system on time and within the budget,
providing the bank with the following key business functions:
uu Management of short-term liquidity gaps against existing limits
uu Management of overnight funding exposure
uu Scenario Analysis
uu Collateral Management
uu Maintaining liquidity reserve in the form of liquid assets
uu Internal and Regulatory Reporting
uu Analysis of liquidity risk drivers (ratings, regional crises, insecure funding,
insufficient collateral, etc.) for stress testing
The Liquidity Measurement and Analysis system performs the critical tasks
of extracting and cleansing data from upstream systems, modeling and
generating cash flows, running stress test scenarios, and publishing liquidity
risk data for end users and downstream systems. It manages over 70 data
feeds and generates over 100 reports and is optimized with data quality and
performance enhancements.

3. 03Luxoft - Case Study
UPSTREAM SYSTEMS
LIQUIDITY RISK MANAGEMENT AND ANALYSIS SYSTEM
DOWNSTREAM SYSTEMS USERS
TRADING DATA
(TRADES, CASH FLOWS,
POSITIONS, COLLATERALS)
ETL MAPPING
STATIC DATA
(SECURITIES, COUNTERPARTIESS,
BUSINESS HIERARCHIES)
MODELING
LIMITS MANAGEMENT
QUALITY CONTROL
TREASURY
LRO
FINANCESTRESS TESTING ENGINE
LIMITS MANAGMMENT SYSTEM EXTREMAL
REGULATORS
ENRICHMENT
REPORTING

4. 04Luxoft - Case Study
Benefits
Customer Feedback
With Luxoft’s technical expertise and advanced business domain
knowledge, the client realized the following benefits:
uu Increased financial flexibility by monitoring changes that require
strategic adjustments
uu More efficient distribution of investments through accurate, end-of-day
liquidity positioning
uu Reduced operational and management costs by fully automating the
data input and output
uu Increased visibility to, and thereby the control of, the cash flow
uu Improved decision-making and minimized risks with an enterprise-wide
solution
uu Provided more rigorous risk management for the Treasury and Liquidity
Risk Operations departments
uu Provided full compliance to Basel II reporting requirements
The detailed feedback is provided upon the specific request.

5. 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/
© 2012 Luxoft