Luxoft developed a system for a large Russian bank to automate its foreign exchange conversion processes. The system tracks FX rates, customer orders and conversions, forms conversion batches, and calculates profits and losses. It was developed using .NET technologies within an 8 month timeframe to meet the bank's needs. The system provides improved transparency, accuracy and reduced costs for the bank's FX treasury sales operations.

1. For more information about Luxoft, visit
www.luxoft.com
www.luxoft.com/financial-services/
case study
FX Position Keeping and
Netting System for Treasury
Summary
13.09.2012
System is used by FX Treasury Sales who are responsible for quoting FX rates for
common and privileged customers of Bank. System tracks all possible FX rates
for different types of Bank customers, keeps track of conversion orders, forms
conversion batches and calculates actual FX rates and P&L.
uu Client: TOP 3 largest bank in Russia
uu Business Area: Retail Banking, Corporate Banking
uu Asset Classes: FX
uu Technology Set: ASP.Net, MS SQL Server 2008, Reporting Services,
Web Services, MSMQ, IBM Message Broker
uu Integration: Internal systems
uu User Profile: Treasury FX Sales
uu Geography: Headquarters and local branches in Russia
uu Relationships Status: Ongoing, Fixed Price
uu Services Provided: Full cycle: Business analysis, Development,
QA/Testing, Maintenance.
uu Team Size: 13 members at peak
uu Duration: 8 months

2. Business Challenge
Luxoft Delivered Solution
Bank FX Treasury Sales department was not able to track the performance
associated with FX conversions within the sufficient accuracy order. The
reasons were the broad variety of Client rate plans and the actual rate
dependence on many factors, such as:
uu Order amount (there is a special threshold, an order that exceeds the
threshold is converted using privileged rate).
uu Different rate plans (common and standard rates, rates plus
commissions, privileged rates).
uu Constantly changing market conditions and actual Trader rate.
Bank FX conversion order is processed in accordance with the workflow
depicted below.
Bank was actually lacking profit, because of the inability to make precise
and quick calculations and keep history of conversion operations.
The business processes automatization challenge was exacerbated by
the fact that the information sources for each operation were always
constituted by several systems: one for the current exchange rate, one for
the client status and one for the rate type.
Time to market for the first version of System was of very importance for
the business – the release had to go in Production in a month term from the
development start.
Luxoft has proposed, designed and implemented System that automates
FX conversion process in Bank and complies with all the needs and
requirements of Bank Treasury Sales and IT.
02Luxoft - Case Study
CREATE
ORDER
CREATE
ORDERS BATCH
INITIATE
TRADER TX
EXECUTE
BATCH
CALCULATE
PNL

3. 03Luxoft - Case Study
Although Bank IT was technology agnostic, to minimize the TTM and
future TCO, Luxoft proposed implementing System based on Microsoft .Net
technologies, including MS SQL Server 2008 and ASP.Net 3.5. The choice
was dictated by the fact Bank already had MS SQL Server infrastructure
deployed and had other systems built on .Net technology.
The client part of System is implemented using traditional WinForms
technology which gives the ability to use System in a traditional manner
with intensive usage of shortcuts and keyboard instead of mouse. The client
part does not contain any business logic and serves as pure UI component
responsible for user interaction. The client part is connected to the server-
side part by means of traditional Web Services technology and hence can
easily be replaced by other UI technologies, such as ASP.Net, Silverlight or
mobile device-based ones.
The server part of System includes business and data-access logic. The
server side also comprises infrastructure logic, such as Authentication
and Authorization, Integration and Notification. The sever side includes
Reporting subsystem that is responsible for flexible reports generation.
Authentication subsystem is implemented using embedded authentication
service that stores user credentials in System database. However, the service
can be substituted by an implementation that is integrated in the corporate
authentication framework such as LDAP or Active Directory.
System can be deployed in different configurations starting from a simple
one-host based solution and stretching the configuration to a highly
available multi-host solution with NLB and database clustering.
System uses MSMQ
and IBM Message
Broker for integra-
tion with CRM and
ABS.
WINDOWS SERVER
2003 BOX
BUSINESS LOGIC LAYER
ORDER ENTRY
AND LISTING
RATES AND SPREAD
MAINTENANCE
CLIENTS AND
DICTIONARES
MAINTENANCE
USER
ADMINISTRATION
WS INTERFACE
LAYER
MS SQL
INTEGRATION SERVICE
(EXPORT / IMPORT)
MS SQL
SERVER 2008
MS REPORTING
SERVICES
MSMQ
STATEFULL CONNECTION
LAYER
DATA ACCES LAYER
AUTHENTICATION AND
AUTORIZATION SERVICES
NOTIFICATION SERVICES

4. 04Luxoft - Case Study
Benefits
Customer Feedback
Bank received fully functional and extensible System, which implemented
all the needs, in accordance with the schedule.
System fetches rates from ABS and client data from CRM and receives
notifications about client status change – so as to react rapidly on any
changes in client status or rate plans. System provides the ability to import
conversion Orders in bulk in case a set of Orders are coming from some
legacy subsidiary in a form of an attached Excel file. Comprehensive
reporting capabilities of System allow end users and Sales Managers to
track current statuses of client conversions, P&Ls and overall department
performance.
All user activity is logged and can be reviewed, limiting the possibility of
System misusage and erroneous rate quotation.
System took all the burden of keeping track of orders and client statuses,
rate plans, current market conditions and conversion histories. The features
substantially reduce the operational costs and increase the transparency of
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