luxoft software development

1. For more information about Luxoft, visit
www.luxoft.com
www.luxoft.com/financial-services/
case study
Order Management System for Equity
Derivatives
Summary
13.09.2012
Develop a pre-trading order management application that supports over-
the-counter (OTC) and exchange-traded derivative (ETD) contracts, provides
management information related to the trades, and facilitates straight-through
processing (STP).
uu Client: A top ten global investment bank
uu Business Area: Multi-asset class trading, order management,
front office
uu Asset Classes: Equity derivatives
uu Technology Set: Java SE, Swing, Spring, Hibernate, Tomcat, JMS, Tibco
EMS/Rendezvous, IBM MQ, RMI, REST, SOAP, FIXML, XSLT, Sybase, Oracle,
JUnit, Shell scripts, TeamCity
uu Integration: Markit Wire, RFQ-Hub, pricing tool, client’s data source,
ETD/BClear source, Underlying source, risk database, ETD settlement
system, revenue calculation service, authorization audit service
uu User Profile: Sales managers and traders (40+ users)
uu Geography: Europe, Japan
uu Relationships Status: Ongoing ODC, T&M
uu Services Provided: Full cycle: Business analysis, Development, QA/
Testing, Maintenance with Production support
uu Team Size: 5 team members
uu Duration: 1 year

2. Business Challenge
In order to take advantage of cost savings and process improvement
opportunities, a global investment bank elected to automate its pre-trade
order management and negotiation workflow. The system must be
designed for use by sales managers and traders to support OTC, ETD and
BClear trading using a variety of options and swaps, including vanilla
options, combinations, options spreads and variance swaps. The high-level
requirements for automation included order entry, price negotiation,
hedging, and maintenance of all data attributes required to support
straight-through processing.
02Luxoft - Case Study
Figure 1:
Pre-Trade Order
Management and
Negotiation
Workflow
SYSTEMSALES TRADING
DOWNSTREAM
SYSTEM
(10) ENTER REMAINING DETAILS
& CONFIRM TRADE
(11) PUSH TRADE
(2) PICK UP RFQ
(3) QUOTE PRICE (4) PICK UP QUOTE
(5) ENTER FURTHER DETAILS
& ACCEPT QUOTE (6) PICK UP ACCEPTANCE
(7) RETURN HEDGE (8) PICK UP HEDGE
(9) CONFIRM HEDGE
(1) ENTER RFQ DETAILS

3. 03Luxoft - Case Study
Luxoft designed a solid and stable distributed system framework built upon
multiple Linux and Solaris boxes.The system employs thick-client architecture
to exploit opportunities for rich functionality in negotiations and hedging.The
server-side processes are based on Java technologies to gain the cost saving
benefits of portable, reusable code. Middleware services, based on RESTful,
EMS, IBM MQ and RMI technologies, increase the level of service for transactions
in a secure manner. Lastly, integration between the bank’s internal and external
applications was designed using XML over EMS, FIXML over EMS and SOAP
technologies for maximum flexibility in a variety of message protocols.
Figure 2:
Pre-Trade Order
Management
Framework
Luxoft Delivered Solution
Working in close collaboration with all stakeholders, including third-party
representatives, the Luxoft development team collected requirements,
analyzed the gaps, and established the approach for controlling the project
lifecycle from requirements specification to application deployment.
To ensure the highest quality product, the Luxoft team organized continuous,
regular communications with business representatives to maintain current
priorities, verify functionality, and raise visibility to the project status.
Luxoft’s development team designed a system that met all of the high-level
requirements of the business and exceeded expectations by rewriting several
legacy system components, performing technical migrations, and upgrading
third-party application interfaces. The application is seamlessly integrated
with multiple internal and external systems, both inbound and outbound.
In addition, the system supports dedicated reconciliation processes with
reporting to facilitate the identification of missing, invalid or incomplete data.
N
MARKITWIRE
CLIENT
RFQ-HUB
GUI
PROCESSES
WEB
ULS
DBsFEEDS
OUT
FEEDS
IN
N
N

4. 03Luxoft - Case Study
Customer Feedback
Benefits
By establishing a sound project approach and a culture of transparent
communications, Luxoft was able to deliver the application on time and
within budget.
The new order management system has remained stable, without
unscheduled outages, thus substantial decreasing operating costs and
avoiding the incremental costs of unscheduled downtime.
The automated workflow provides the benefits of improved productivity,
increased compliance, greater agility in trading, and the costs and revenue
benefits of process improvement.
Detailed feedback is available on 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