Experience, expertise, integrated
IBM Capital Markets Business Consulting for Innovations
© 2012 IBM Corporation
Experience, expertise, integrated
Use new opportunities and control the risk. We know the industry details. We identify potential together and tap it sustainably in terms of your business model. Capital markets
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Challenges
IBM approaches
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Need to benefit from economies of scale in capital markets business and at the same time gain a high degree of flexibility in the process flow.
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Competitive analysis/benchmark Deduction of strategic and operational actions Assume responsibility for realisation
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Changes of law permanently force financial services providers to check impacts and need for adjustments.
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Detailed analysis: e.g. on the level of product or business area Concept/realization: adjustment of business processes Attended introduction
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The value-added chain in securities business has to be adjusted continuously. Only in this way your business model can be ensured permanently.
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Advisory/processual and technical realization planning Realization: business and technical realization Introduction of productional and operational support
© 2012 IBM Corporation
Experience, expertise, integrated
We are specialised in capital markets business to consolidate processual and IT solutions successfully and to convert into competitive advantages for you. Financial Services – Capital markets consulting Business subjects
Competencies
Market trend FATCA Target2 securities Electronic asset flow Market data management
Financial Industry Solutions – "Center of Excellence" for solutions and services Industry solution
Market/industry studies Process modeling Functional design Business analysis System parameterisation
Strategy Business segmentation Growth strategies Market entry strategies
Competencies
Valuta-Direct® Trading Valuta-Direct® OROM Operational area − Electronic sales / trading and routing − FX and money market − Securities and derivatives Operational area: B2B / B2C Multi-client solution (ASP model)
System integration Application development and maintenance Bank test factory Local and global delivery management
Functional subjects Front office Shares and bonds trading Derivatives and structured products Process management
Middle office Risk management Reporting Compliance
Back office Transaction and securities settlement Order routing and management Regulatory requirements, tax
Consulting services for established third party products Murex
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Calypso
Others
Own assets & systems
© 2012 IBM Corporation
Experience, expertise, integrated
With our excellent expert knowledge and professional vision we offer solutions to you that contribute measurable achievements to your company‘s success. Customers Investment banks Direct banks, brokers Transaktion banks Exchanges and custodians
IBM Capital Markets Consulting
IBM is a leading consultant of the German capital markets industry
IBM Germany Financial Industry Solution GmbH (FIS)
Long-time capital markets know-how Outstanding process and project management knowledge International industry expertise by IBM network Execution of market studies
IBM Germany Financial Industry Solutions GmbH (FIS) is "Center of Excellence" for banks and insurance solutions. The FIS bundles the IBM industry competencies in software and services and distinguishes itself by a unique portfolio, consisting of assets, qualifications and experiences. Historic roots in a bank – FIS speaks, understands and acts like a bank.
Investment company Over 40 capital markets industry consultants in Germany central location: Frankfurt
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IBM "Center of Excellence" Solutions und Services
• More than 32 financial markets specialists/ main focus capital market • 120 IT specialists, architects, business analysts/financial services
© 2012 IBM Corporation
Experience, expertise, integrated
Portfolio - IBM Consulting Services Foreign Account Tax Compliance Act/FATCA Your challenges FATCA is part of the Hiring Incentives to Restore Employment Act that came into effect in March 2010 USA pursues the objective to fight tax evasion sustainably With FATCA the financial services providers are confronted amongst others with − additional obligations to notify, − application of enlarged due diligence proceedings/withholding obligations and − resulting adjustments in the process and IT environment.
IBM approach
Your benefits
IBM has engaged early in FATCA and budled experiences. Main topics:
Asset-based approach – consisting of concepts, predefined software components and an integrated methodology – allows for a flexible integration into your processes and systems with a high degree of automation Speed and little efford with realization because the FATCA rules for customer screening and processes for Client Due Diligence applied on top are already implemented in the IBM solution. Sustainability by open concepts: future rule changes can be maintained easily.
Development of a business reference model; flexible for new or changed requirements Business concept and development of a standard software (WebSphere Operational Decision Management/WODM) that can be integrated as a component into an already existing process and IT environment.
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© 2012 IBM Corporation
Experience, expertise, integrated
Portfolio - IBM Consulting Services TARGET2 Securities/T2S Your challenges
Free choice of the executing Central Securities Depositories (CSDs) Enlarged supply of other service providers, e. g. custodians Cost reduction in securities settlement, e. g. by economies of scale Changes in commissions and fee structure Depending on the role: future positioning means early dealing with the subject
IBM approach
Your benefits
IBM has dealt early with T2S and consolidated the knowledge.
Since more than 4 years we are working successfully at the T2S stakeholders and know the market practices. Furthermore, we support the exchange of experiences between stakeholders and market participants via a strong T2S network. You benefit actively from our deep insight knowledge when validating your strategic positioning and options for action. References at major market participants − central banks of the Euro system − leading central custodians
Business and technical analysis to work out solutions – amongst others based on a reference model Business and IT concept as well as realization of service models and technical target models Adjustment and implementation of IBM standard software in the existing process and IT environment
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© 2012 IBM Corporation
Experience, expertise, integrated
Portfolio - IBM Consulting Services Electronic „asset flow“ in global capital markets Your challenges Enforced regulation: leads to new trading standards and more transparency of executions and in reporting − „Cost effective business“ models: investment banks must decide between − „Single dealer platform“ scale model and − „Full service“ offering for selected assets and platforms. Budget pressure leads to new electronic business strategies at mid-tier banks: white labeling is an option.
IBM approach
Your benefits
IBM specialists provide advice in business/technical aspects concerning dealer platforms.
Cooperation at eye level: first class business specialists offer a high level of quality and innovation. Tailored services: from on-site integration up to development and maintenance of dealer platforms in Centers of Excellence for banks and insurance solutions Short and direct ways to product suppliers and solution producers like − Murex or − Calypso
Business know-how: shares, bonds, derivatives, FX/MM, STP, process management, broker, exchanges Product competency: trading systems, order management and transaction systems, product evaluations and test of products IT know-how: IT process consulting, software development, system integration, operational support
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© 2012 IBM Corporation
Experience, expertise, integrated
Portfolio - Software Factory Global Financial Markets (GFM) Electronic sales/trading and routing Your challenges
High margin pressure in online brokerage intensifies pressure to automate Optimization of the multi-channel strategy plays an increasing role Cost pressure: consolidation of frontend systems/consolidation into one target system Instrument of customer loyalty: New financial products/trading variants need to be implementable promptly and without basic and time-consuming structural changes.
IBM approach
Your benefits
Valuta-Direct® offers solution components for money market, foreign exchange and securities trading
Quick return on investment by efficient integration into existing IT infrastructure Cost benefits by efficient settlement in shares, bonds and share in a fund trading Reliable control by means of continuous monitoring of all internal status and statistics; realtime inquiry of single transactions Project risiks are reduced by reusable software modules and at the same time ensuring a time advantage
STP: fully automated and thoroughly tried and tested in practice Comfortable handling with comprehensive functions like transaction overview and details, filters and detailled descriptions of failed transactions, messages on cause and frequency as well as export and report functions
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© 2012 IBM Corporation
Experience, expertise, integrated
Some of our Valuta-Direct® references – financial services providers have chosen us as their partner.
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© 2012 IBM Corporation
Experience, expertise, integrated
Portfolio - IBM Consulting Services Market data management Your challenges Professional market data management needs solutions for continuously growing data volumes from markets that are characterized by a high volatility and continuous proceeding of algorythmic trading. New market rules let emerge new markets. Trading moves more and more from classic trading places to new ECNs and MTFs that become indispensable also as market data sources with growing transaction volume.
IBM approach
Your benefits
IBM offers the complete services scope: from analysis via implementation to operation.
IBM provides transparency of your full cost in market data management (TCO). IBM has developed an integrated solution approach together with business partners and successfully realized in international projects. Noticable reduction of costs by process and organizational optimizations. Potential savings have been identified from up to 25% of the yearly total costs and have been realized in projects.
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Benchmark of the data licence fees Consideration of applications and premium products Architecture of market data distribution Operation and administration
© 2012 IBM Corporation
