Overview
Technology is one of the key Differentiators for any leading Investment Banker. Every year, Investment firms make huge investments in technology, but the winners make smart investments. PhuocMinh works with its clients to make the right technology investments by bringing leading edge insight, experienced professionals, and a rigorous process to every project. In an information-intensive industry where time is of the essence, our rapid and robust software development and deployment methodologies helps clients reduce risk in their projects and implement them successfully on a crashed time frame.
Derivatives
Capabilities in Derivatives
PhuocMinh capabilities in Derivatives space encompass multiple instruments including treasury and corporate bonds, fixed and floating rate bonds, zero coupon bonds, securitized debt etc. In the derivatives space, our experience spans forwards/ futures and multiple flavors of options across various underlying including Equities, FI, FX; IR derivatives including FRA, Swaps, Swaptions, Caps and Floors; Structured products and Credit derivatives across Front office, Middle office and Back office operations.
Listed below are capabilities across each area of operation.
Front Office
• Deal Capture (manual and automated)
• Rate provision system: provide real-time, accurate and consolidated information to make timely and effective investment decisions
• Order Management System (Order Capture – single order/ basket trading; Order Modification/ Cancellation/ Validation; Order Routing)
• Order Matching Engine
• Pricing
• Online tools like the Blotters, Limit Monitoring etc.
Middle Office
• Risk Management
o Risk Measurement and Monitoring (Credit and Market risk) - VaR – Historical, Monte Carlo and Parametric; Scenario building and Analytics (Simulation/ Stress Testing/ Back Testing, Factor sensitivity analysis – Interest rate, market price, volatility etc.)
o Margining - Online margin calculation/ Pre-trade and post-trade margin monitoring
o Collateral Monitoring - Real-time MTM
o Credit Administration - Rule based administration of the credit value of the collateral; Credit Approval
o Dealer limit monitoring
• Market Information analysis and alerts to front office
• Performance Measurement and attribution
Back Office
• Billing
o Automated invoice generation and dispatch through auto email/ auto fax or manually
• Confirmation
o Confirmation generation through auto email/ auto fax or manually
o Automated and manual matching of confirmed deals
• Position Reconciliation
• Audit Trail
• Rule based accounting
• Clearing and Settlement
o Netting and obligation calculation
o Obligation intimation through auto email/ auto fax or manually
o Processing for Settlements, Delivery and Confirmation
o Seamless integration with depository and core banking systems enabling STP for settlement
Reporting & MIS
• Regulatory reporting
• Accrual and Accretion list
• MTM profit/loss
• Limit utilization
• Cost of holdings
• Open Positions
• Management action trigger
Money Market
Our Money Market Platform is an easy to use web-based interface that enables dealers to effectively capture deal details pertaining to risk, confirmation, settlement, and accounting information. Quick shortcuts facilitate entry of various dates, and amounts with minimal keystrokes.
Its real time, fully configurable, sophisticated Risk Sheet helps dealers manage their portfolio, exposure, MTM and P/L by tracking information based on branch, currency and warehouse.
System is multi-entity and is highly customizable as per bank’s business requirements. Currency, Counterparty, and Product static data information drive the transaction processing in the system.
Highlights
• Web enabled, multi-entity, multi-currency, multi-interfaces, multi-products support
• Straight Through Processing covering Front, Middle and Back office operations
• Designed to function as -
o A stand-alone money market module
o A group application, for risk consolidation using Back-to-Back functionality
• Provides rich functionalities -
o End-to-end automation of MM processes
o Covering activities from deal capture to final settlement
o Effectively manage risk, confirmation, settlement and accounting
• Real time configurable Blotters to manage Portfolios, Risk Exposure & Profit / Loss through currency and warehouse information tracking
• Interface with host system to facilitate online Risk Management (Settlement / Pre – settlement / Total risk)
• Online Position Management aiding effective management of interest rate risk.
• Profit calculation based on Cost to Close method using market interest rates
• Online and offline interfaces with internal and external systems -
o Dealing systems like Reuters 2K/3K,
o Settlement systems such as SWIFT,
o Host GL systems of the Bank
• Highly configurable system - Currency, Counterparty, Business Rules, Product static data
• Electronically capture MM contracts & memo deals from other product processors in the form of handoff files
• Schedules
o Generate Schedules
o Update Schedules
o Irregular Schedules
• User Friendly Features
o Floating windows
o User Configurable Workspace
o Excel Look for all deal and position blotters
o Use of colors to bring out dashboard effect, aiding quick identification of deals (authorized / unauthorized deals) in deal blotter
o Navigation allowed through mouse as well as keyboard
o Templates / Hot keys
o Icons and shortcuts for frequent operations
o Drop downs
o Type ahead
• Adjustable Column Order
• Deal Drill Down facility
Key Features
• Instrument Coverage - The MM module supports a comprehensive range of Money Market Instruments.
• Deposits
o Term Deposits
o Call Deposits
o Notice Deposits
• Placements
o Term Placements
o Call Placements
o Notice Placements
• Discounted Instruments as Loans, Bills
• Islamic Instruments
• Rollover of transactions
o Principal
o Principal + Interest
o Partial Amount
• Pre-termination of transaction
o Full
o Partial
• Interest Payments
o Interest At Maturity (IAM)
o Periodic Interest Payments
o Discounted (Zero-coupon)
o Reprice Frequency
o Amortization Frequency
• Interest Rate
o Fixed
o Floating (linked to a market indeed e.g. LIBOR, T-Bills etc.)
o Positive or Negative Interest rate
• Interest Calculation
o Simple
o Compound
• Interest Basis
o actual / 360
o 30 / 360
o actual / 365
o 30 / 365
o No Interest
o Fixed interest
• Brokerage
• Holiday Logic
• Back to Back Deals
o Customer Back to Back
o Inter Branch Back to Back
o Intra Branch Back to Back
• Funding Swap
• Internal
• External
Business benefits of the system to its clients
• Country / branch / business-specific parameter maintenance.
• Treasury services for high net worth individuals and corporate entities.
• Supports deal booking at two levels – Front Office and Back Office.
• Dual control functionality (Maker – Checker) both at Front Office and Treasury Operations (Back Office).
• Product level standard takedown and settlement instructions defined for customers, with flexibility for change at the time of deal booking.
• Rate Reasonability Check. It compares transaction date and time entered in the deal with the Reuters feed for RRC. Linear interpolation is done for deals not falling on exact bucket dates.
• Risk monitoring and mitigation. Counter party risk monitored through main line sub-line credit limits defined for each counter party. Settlement Risk (SRI) and Pre Settlement Risk (PSR) are also tracked.
• Web enabled Multi-user system.
• Interfacing with Armor.
• Completely menu-driven with intuitive function groupings. Mouse and keyboard based navigation of the menus.
• Logging of all system events and audit trail of user maintenance.
• Supports online and offline interfaces with external systems, Host GL systems of the Bank.
• Updation of positions updated in the host system.
• Accounting entries generated at various stages of the deal life cycle.
• Electronic messaging system. Ability to send payment messages and remittance advices generated by the system and routed through telex, mail or SWIFT.
Forex
PhuocMinh’ capabilities encompass both manual & automated trading solutions across equities and FX products. Our experience covers the entire gamut of trading cycle from deal booking, order management, trade execution, pricing, clearing & settlement and providing interfaces to external parties such as exchanges, clearing houses & depositories. Our capabilities extend to:
• Automating all legs of the trade - Front Office, Middle Office & Back Office
• Open and modular architecture allowing easy building of interfaces to different systems, making it fully operable with third party trading systems
• High scalability at very low marginal cost
• Highly optimized and controlled batch runs can be scheduled for either End-of-Day (EOD) or Beginning-of-Day (BOD) processing
• Enabling Straight Through Processing
• Adopting and implementing latest financial messaging and other protocols such as FIX, SWIFT
• Providing extensive reporting and MIS capabilities to meet internal as well as regulatory requirements
• Extensive security features for tighter monitoring and control in a distributed environment