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BACKGROUND

Our client’s businesses encompass a broad range of financial services asset management, banking and consumer finance, credit and charge cards, insurance, investments, investment banking and trading and use diverse channels to make hem available to consumer and corporate customers around the world. Our client is largely organized into five business groups.

BUSINESS / FUNCTIONALITY

Capital Markets Data Warehouse (MSDB) is intended to provide a basis for improved surveillance tracking and reporting for the areas of compliance that support the Capital Markets areas of the firm. The overall business purpose of the warehouse is to allow the Business Users to access Order, Execution and Trade information for two of the client’s businness groups from a single Information Repository using a front-end User friendly Query and Reporting tool (Brio).

The client’s traders and salesmen use the MDTS (Mortgage Desktop Trading System) to book Institutional or Retail trades for different products that are available in the market.

The MDTS Enhancement project for MSDB involves a feed of MDTS trade data to MSDB for regulatory trade monitoring.

OBJECTIVE

  • The scope of this project is to enable monitoring trading activity and patterns to identify situations that may suggest potential violations of regulations, laws, standards, rules etc. Currently, there is no formal procedure or central repository where all the trade feed information is stored over time.
  • Develop a batch system to create a trade data file. The file will consist of executions and will be fed to a central repository (GTS-IQ) that will then be responsible for routing this data to MSDB.
  • As soon as the trade hits the back office, it would be persisted into a new database table. At the end of the business day, all the trades would be appended to the xml file. This code is expandable to be able to provide intraday trade feeds later on if required.
  • Since either GTS-IQ or MSDB would be archiving all the trade feeds at their end for a large period of time, significant resources will be freed up from the MDTS application support / development community at the time of audit or ad-hoc compliance related data requests.

The MDTS enhancement project covers the following business requirements:

  • GFI (Framework internally developed by the client) Trade capture systems to feed execution and trade information to MSDB. This will be in the form of one day’s activity only. All versions of a given business date will be sent to the MSDB data warehouse; with any subsequent versions being fed on the day they occur.
  • Linkage between orders, executions and trades
  • Availability of archive data
  • Timestamp analysis

THE CHALLENGE

The major challenges include the following:

  • As MSDB is a external application it always a challenge to understand the structure of the data and map it with MDTS system.
  • Build internal expertise for GFINET Framework.
  • The entire project required knowledge of multiple technologies and also required domain knowledge of the system.
  • Testing with multiple external systems.
  • Co-ordination with Multiple development team.
  • The time duration provided for doing the task was very tight and hence there was immense pressure on the delivery of quality results.
  • There is no data provided for the test cases, to collect the data different types of trades was executed with different systems. Understanding of different types of trade bookings was a challenge.
  • Project management was identified as critical success factor to meet the aggressive delivery timelines. The challenges were detailed task planning for optimum resource utilization, communication between onsite/offshore team & risk management considering the project complexity.

THE SOLUTION

Enhance the MDTS system to report all MDTS retail and institutional mortgage trades that generate settlement activity to MSDB. This includes TBA’s, CMO’s, TBA Options and hedged trades like treasuries and Euro futures. IA breakouts and splits for Fedwire CMO’s and FICC eligible trades would also be reported. Only the trades that are accepted or rejected by B/O will be appended to the xml file.

MSDB process creates an XML file, which contains all the order, execution and trade details for MDTS for each business day. At the end of each business day, MDTS will ftp this XML file to GTS-IQ in pre-defined model, which in turn would route this info to MSDB every night.

Implement the recovery processing to be able to resend the data if the msdb gateway is down for some reason.

TECHNOLOGY ARCHITECTURE DIAGRAM

PRODUCT DEVELOPMENT & DEPLOYMENT ENVIRONMENT

The client’s product is developed by Xoriant using:

  • C/C++ using Forte 6.2
  • Xerces 2.2
  • Sun Solaris 2.5.1 / 2.8
  • Sybase v 11.9.2 / 12.5.
  • The in house libraries developed by the client like GFIFWK Framework.

STANDARDIZED DEVELOPMENT METHODOLOGY OFFERS FLEXIBILITY TO THE CLIENT

The client and its customers have benefited greatly from the use of Xoriant software development methodology and processes. The use of web based Xoriant’s Knowledge Management repository, Active Communities, has been the key to ensuring 24x7 access to all project documents including status reports, issue logs, escalation issues and data conversion templates. This has been particularly important for remote users enabling them to communicate in real time with local team.

Xoriant not only brought the requisite technical understanding to the project, but significant market expertise as well. Xoriant and worked together for a mutual result and team involvement was encouraged at every phase, giving users the hands-on preparation and exposure they’d need for post- implementation success. This was a demanding & rapid development situation. The commitment and expertise of the Xoriant India team was a major factor in this achievement.

COMMUNICATION PROTOCOLS

Xoriant and the client jointly took a well-defined approach for tracking progress for successful completion. This involved the following activities:

  • Daily Activities
  • Technical query resolution process with defined escalation mechanism for critical queries
  • Centralized Knowledge repository for benefit of entire team (Active Community)
  • Daily status updates to all stake holders at operations level
  • Weekly conference calls for Progress review, Issue resolution & Next plans
  • Monthly management reviews

KEY SUCCESS POINTS

The client has realized a number of benefits, including:

  • Access to large technical pool of resources.
  • Built Domain expertise within the team.
  • Standardized & matured development methodologies.
  • Delivery was done in phases, which enabled the client to have much better control on the modules being promoted to production.
  • Delivered a logging tool that could be used by the client for validation during any of their enhancement projects.
  • Cost Effective solution
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