misys capital markets brochure 1-27-12

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experience solutions results Leading Technology and Innovation for Buy- and Sell-Side Financial Services Misys Capital Markets Solutions

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Page 1: Misys Capital Markets Brochure 1-27-12

experiencesolutions

results

Leading Technology and Innovation for Buy- and Sell-Side Financial Services

Misys Capital Markets Solutions

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Contents

Misys Overview 03Solutions for Lending 05Solutions for Cross-Asset Trading 06Solutions for Risk Management 09Solutions for Central Counterparty Clearing 10Solutions for the Buy-Side 11Solutions for Treasury 13Solutions for Post-Trade Processing 14Solutions for Collateral Management 15Professional Services – Leading the Way in Customer Service 16Partners 18

Misystop 20

leads the market across all capital

global markets firms as customersmarkets segments, with nineteen of the

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capital markets and buy-side market. Our customers use our solutions to enable more effective and efficient trading performance and processing, improved monitoring and reporting, and increased risk management across all asset classes.

Misys serves customers in 120 countries around the globe, and has over 4,000 staff members, including 1,800 capital markets experts, who are located in over 35 offices worldwide. In keeping with our commitment to leading technology and innovation, we have created six

Misys is a market leader in the capital markets, committed to providing innovation in financial services technology. We provide a broad range of solutions – from cross-asset, front-to-back portfolio and risk management systems, to commercial loan trading and processing systems, to post-trade confirmation matching solutions – that help all types of financial institutions run their businesses more efficiently and in a cost-effective manner.

Our solutions help our customers to comply with industry regulations, meet the changing requirements of their customers, attain competitive advantage, and grow their businesses through expansion into new sectors and geographical areas.

With the acquisition of Sophis, Misys is now the leading software provider for capital markets, with the broadest asset class coverage and the largest installed customer base in the industry.

For more than 20 years, the capital markets division of Misys has served over 500 customers globally, including 19 of the top 20 capital markets firms in the world. Misys’ capital markets solutions cover all segments of the treasury and

global development centres to provide centres of excellence for research and development, and we have established 24/7 customer support. Further, we have built a global network that connects us to more than 100 partners that provide us with the scalability and expertise to expand our coverage, extend our scope, and forge deeper customer relationships.

Our global footprint, expansive partner network, and diverse pools of talent ensure we provide the best software, services, and support to our customers, regardless of their location.

Misys Overview: Meeting the Needs of a Changing Financial Marketplace

The financial services market is changing rapidly. Both buy- and sell-side financial institutions need to stay abreast of regulatory requirements, respond to changing customer needs, manage risk, and grow their businesses.

Subject to a higher level of scrutiny than ever before, they also need to ensure transparency across all areas of their businesses. More and more, financial technology is playing a critical role in ensuring that firms have the tools they need to benefit from lower capital requirements, higher credit ratings, increased operational efficiency, and an improved competitive position.

Misys’ Suite of Solutions for the Capital Markets

LendingCross-Asset

Trading

Risk Management

Central Counterparty

Clearing

Buy-Side Treasury

Post-Trade Processing

Collateral Management

Improving the Customer

Experience

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With the need to improve return on investment, better manage and control risk across entire organisations, and adopt a heightened focus on regulatory compliance, today’s lending environment is characterised by growing and ever- changing demands.

Satisfying these demands requires solutions that help manage risk, improve operational efficiency, provide required transparency, and achieve growth under market conditions that have become very challenging.

Misys’ syndicated and commercial lending solutions benefit clients by providing more accurate and readily available data, streamlined workflows, increased loan processing efficiencies, and reduced operational risks and costs.

Loan IQ enables institutions to effectively manage from a single platform, their company-wide lending business – from simple bilateral loans to complex syndicated loans. Seamless coverage is provided at every stage of the loan’s life cycle. All Loan IQ modules are fully integrated and share the same database, resulting in a unique straight- through-processing solution. Over 50% of all global loan trades and 33% of all syndicated loans worldwide are processed in the solution.

Misys Origination provides support for all key activities in loan origination from prospecting and sales, through credit analysis and decision making, to covenant monitoring. Credit terms, borrowing conditions, and deal-related documentation are hosted on a single global platform. This results in critical deal information being more easily accounted for and accessible to all authorised users within organisations.

Misys Portal for Loan IQ is a web-based front-end application that facilitates borrower self-service by enabling borrowers to easily view and manage all of their Loan IQ activities online. Borrowers are able to perform key, real-time Loan IQ transactions, such as initiating new drawdowns, increasing loan amounts, and managing repayments. The solution enhances the customer experience, while reducing risk exposure by providing a real-time view of transactions. A built-in interface to Loan IQ maximises straight-through-processing and operational efficiencies.

Solutions for Lending

of global loan trades and 33% Over 50%

Loan IQof all syndicated loans worldwide are processed through

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Cross-asset trading – bringing fixed income, equities, foreign exchange (FX), commodities, futures and options, along with other derivatives and complex structured products together on one platform – has seen significant growth over recent years. No longer can financial institutions treat these asset classes as distinct and separate businesses.

The changing competitive landscape is now forcing banks and other financial services providers to view their trading operations as a single, integrated global business. And this new business model highlights the need for integrated solutions that handle the end-to-end process including valuation, collateral management, and risk management.

The continued rise of regulatory demands – Dodd-Frank and its global equivalents – is also creating unique challenges in terms of how these instruments are valued and processed in a controlled environment. The use of spreadsheets to track and value the myriad products available to the market is no longer acceptable. Today’s financial institutions need to be able to integrate all aspects of these products

– everything from simple to complex structuring needs, valuation, collateral management, end-to-end processing, and risk controls – to produce a single, transparent view.

Today’s cross-asset users – global investment banks, regional banks, and buy-side firms – need an integrated solution that handles these complex demands; streamlining operations, providing a global and transparent view of all trading activity, and reducing market, credit, and operational risk.

Misys is the market leader in providing cross-asset trading solutions, and has comprehensive coverage, including both plain vanilla and highly complex cross-asset products. Our solutions are used by 19 of the top 20 global capital market firms to handle their global processing, including central counterparty clearing (CCP), collateral management, and margining. Misys’ solutions are designed to meet the needs of global investment banks, regional banks, hedge funds, and asset managers.

Summit FT is Misys’ flagship solution for global investment banks. It offers broad cross-asset coverage including exchange-traded and OTC derivatives, fixed income, commodities, FX, equity, and structured products. The solution processes the most complex of instruments while managing both market and credit risk. It provides the necessary oversight required to help clients successfully navigate today’s volatile market environment. It also enables rapid connectivity to central clearing counterparties (CCPs) and offers comprehensive collateral management and margining. Summit FT delivers lower costs through its unique single solution approach – increasing operating efficiency without compromise.

Opics Plus is a .NET service-oriented, treasury and capital markets solution with rich STP and back-office functionality. It is a comprehensive solution for front-to-back office, cross-asset processing of a wide range of financial instruments, including everything from vanilla to complex derivatives, as well as fixed income, and equity and treasury trades. Opics Plus provides a consolidated view of all financial instruments across the various business units within a financial institution.

Solutions for Cross-Asset Trading

More than of expertise with20 yearsincluding exchange-complex derivatives

traded, OTC and structured products

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Sophis RISQUE is a cross-asset trading, portfolio and risk management solution that enables investment banks to implement true straight-through-processing across the full trade life cycle. The solution efficiently manages the entire life cycle of structured product trades while providing precise valuation and hedge information. Structured products can be created on the fly, payoffs can be easily defined, and newly devised products can be booked quickly and efficiently. The combination of wide instrument coverage, high performance, open and flexible architecture, and user-friendliness makes Sophis RISQUE a unique global system that is used by more than a third of the world’s top 25 banks.

Sophis VALUE is a fully integrated, modular cross-asset solution for investment management. It leverages straight-through-processing to handle the complete trading life cycle from portfolio management, to middle- and back-office operations, to risk management and compliance. More than 80 buy-side institutions worldwide, ranging from start-up hedge funds to some of the largest global asset management companies, have adopted Sophis VALUE.

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Risk solutions need to improve operational efficiency, reduce costs, improve time-to-market for new business, enhance decision-making and provide transparency

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The continued turmoil in financial markets since the onset of the financial crisis, combined with the resulting regulatory changes, has changed the landscape for risk management. To enhance risk controls, maintain competitiveness, and preserve capital, while controlling costs, financial institutions need to increase the effectiveness of their risk management processes.

Driven by increasingly complex regulatory requirements, financial services firms require integrated, easy-to-implement enterprise risk solutions.These solutions need to improve operational efficiency by aggregating risk across all assets, as well as reduce costs, improve time-to-market for new business, enhance decision-making, and provide greater transparency for shareholders and regulators alike.

Misys has leveraged its deep expertise in developing portfolio management, trading, and enterprise risk systems to develop risk solutions that meet the needs of large global investment banks, smaller regional banks, and buy-side firms.

Misys Risk is an enterprise risk system that allows financial institutions to proactively manage their cross-asset market risk. The solution leverages valuations in front-office platforms to provide risk managers with the ability to centrally run consistent scenario generation across all assets in the traded portfolio. It also gives users the ability to calculate Historical VaR and Monte Carlo VaR, including hedging analyses (parallel, perturbation, and curve hedging). Misys Risk customers benefit from an efficient risk framework, where pricing duplication is avoided, limits and alerts are centrally managed, and the risk of doing new business is immediately measured – all helping to build bridges between trading and risk management.

Risk Vision is an enterprise-wide risk management system used by banks to manage their credit risk and limits in an integrated way with a single view of all risk exposures across all business areas. Risk Vision is central to a bank’s risk management function as it provides a consolidated view of risk exposures

across multiple systems, incorporating both the trading and banking books. Risk Vision delivers real-time trade approval to maximise market opportunity, responding to pre-deal checks in 0.100 seconds and enabling accurate real-time analysis of exposure across multiple scenarios.

Almonde provides a risk and compliance platform for liquidity management, thereby addressing one of the growing challenges faced by banks and other financial institutions. It integrates modules for Basel II / III, Asset Liability Management (ALM), Funds Transfer Pricing (FTP), and IAS functions, in accordance with the various accounting standards. The solution provides an interface to data held in disparate source systems being used by the financial institution, and uses this data to compute various enterprise-wide risk measures and present results through its advanced multi-dimensional report viewing tools.

Solutions for Risk Management

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Market events and financial volatility have led regulators to call for more transparency, enhanced straight-through- processing (STP), better risk mitigation, and improvements to capital and margin management. As a result, over the coming years the OTC derivatives market could face some of the most significant changes in its history.

With the recent enactment of Dodd-Frank legislation and its global equivalents, transparency (price and volume information, trade repositories), risk mitigation (central clearing, capital and margining constraints), and enhanced STP (best practice, electronic formats, connectivity), are receiving renewed emphasis by bankers and regulators alike.

Since 2009, Misys representatives have been working with customers to help them address regulatory demands for improved transparency and enhanced risk management in a centrally cleared environment. Adopting a componentised approach to development, Misys has enhanced the Summit FT solution to include new functionality that will ensure customers can respond quickly and efficiently to central clearing requirements as they arise, with minimal disruption and risk.

Already deployed at a number of customer sites, the solution is testimony to the on-going commitment of Misys to provide a comprehensive counterparty clearing solution to the market.

Summit FT has been enhanced to provide advanced STP, a comprehensive trade repository, and cross-asset collateral and margin management for both OTC and exchange-traded derivatives. These enhancements ensure that firms can effectively manage the complexity associated with multi-participant workflow, and meet regulatory requirements for margin and collateral management in a single, comprehensive system.

Offered as extensions of the existing Summit FT solution, a package of standalone components enables users to adopt independent components, adding new functionality as and when they need it. This approach allows for an immediate response to changing regulatory requirements along with the advantage of causing minimal disruption, risk, or cost.

Solutions for Central Counterparty Clearing

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Following a period of intense financial turmoil, asset managers and hedge fund managers need to balance innovative strategies with the constant requirement to reduce costs. The need to react quickly to market demands and the emphasis on the ability to rapidly develop and deploy new cross-asset products that meet client needs continue to drive competitive advantage.

Investment managers also need to adapt to more stringent risk requirements and trade monitoring, not just because of regulations, such as MiFID and UCITS, but also because of increasing pressure from investors, who are understandably much more cautious and selective about how their money is invested.

Asset managers and hedge fund managers therefore need solutions that are capable of valuing, processing, and managing all types of asset classes, including both listed and OTC instruments. In addition, there is a growing requirement for straight-

through-processing (STP) to facilitate the automation of cumbersome manual processes, reducing the scope for trading errors, saving time, and lowering operational costs.

An optimal solution would also be open, scalable, and secure, while providing integrated, flexible, and user-friendly tools that can benefit all users at an investment company: portfolio and fund managers, risk controllers, operations managers, and IT personnel. In addition, the system must be capable of satisfying the need to comply with ever-changing regulatory requirements and providing the transparency currently demanded by investors.

Misys’ recent acquisition of Sophis enables the firm to deliver market-leading solutions for investment management firms. More than 80 institutions worldwide, ranging from start-up hedge funds to some of the largest global asset management companies, have adopted Sophis buy-side systems.

Sophis VALUE is a comprehensive, modular cross-asset portfolio and risk management solution that handles the complete trading life cycle: investment management, risk management, operations, and investment accounting. It combines sell-side level financial and technological capabilities with the user-friendliness, connectivity, transparency, and ease of implementation that is required by the buy-side.

iSophis is a Software as a Service (SaaS) solution that delivers integrated cross-asset portfolio and risk management services. It is primarily targeted at hedge fund managers who want to benefit from cutting-edge analytics for P&L, risk, and performance management in a secure, powerful and straightforward, hosted environment.

Solutions for the Buy-Side

Misys’ recent acquisition of Sophis enables us to deliver market-leading solutions for investment management firms

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As the face of finance continues to evolve, so does the role of the treasurer. Formerly, treasurers were primarily responsible for funding, along with managing cash, and liquidity. Today, corporate and financial services treasurers are also becoming involved in high-level strategic initiatives: everything from contributing to corporate financial management decisions, through instituting risk management and compliance measures, to overseeing enterprise-wide treasury operations.

Treasurers need real-time visibility of their cash positions across their entire institutions. They also need flexible management tools in order to control financial strategies and maintain corporate-wide policies. Furthermore, these requirements need to be delivered on a single platform in order to decrease costs and increase automation, whilst maintaining the appropriate risk controls.

In response to these evolving needs, Misys offers integrated solutions spanning a variety of functions across organisations and giving both corporate and financial services treasurers the ability to manage cash, liquidity, capital, and corporate financial risk.

Opics Plus is an out-of-the-box, automated front-to back-office treasury management solution designed for both corporate and financial services treasury operations. The solution provides cross-asset processing of a wide range of financial instruments, including vanilla and complex derivatives, fixed income, equity, and treasury transaction types. It is specifically designed to enable organisations to move into the treasury management market, via a rapid, low-risk approach and with the flexibility to grow in both instrument coverage and as business needs change.

Misys Portal for Opics Plus is a web-based customer facing solution which is designed to address the e-banking needs of a bank’s corporate customers. Delivered via a modern e-banking application integrated with Opics Plus, the solution is designed to reduce total cost of ownership while improving usability and overall customer service. Misys Portal for Opics Plus provides all of the benefits of the existing Opics Plus customer trading functionality as well as advanced provisioning of a web-based user-interface, security and user management capabilities.

Summit FT is Misys’ flagship solution for global investment banks supporting high volume treasury trading operations. The

broad cross-asset coverage includes FX and money markets, exchange-traded and OTC derivatives, fixed income, commodities, equities and structured products. The solution processes the most complex of instruments while managing both market and credit risk, providing the necessary oversight required to successfully navigate today’s volatile market environment. It also provides rapid connectivity to CCPs along with offering comprehensive collateral management and margining. Summit FT delivers lower costs through its unique single solution approach – increasing operating efficiency without compromise.

Confirmation Matching Service (CMS) facilitates the confirmation process between SWIFT and non-SWIFT counterparties across all treasury and capital markets instruments and the broadest spectrum of counterparties. The solution automatically tracks and responds to changing SWIFT standards and is compatible with a broad range of back-office systems. The seamless automation of the solution mitigates risk, and improves efficiency by reducing confirmation errors, enabling faster processing and enhanced compliance functionality. Over 980 customers use Confirmation Matching Service today, to improve efficiency and reduce risk.

Solutions for Treasury

customers use Misys’ treasur y solutions1 , 000Over

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Given the recent financial turmoil and the new legislation that has followed – Dodd-Frank and its global equivalents – the importance of post-trade processes has intensified significantly over the past few years. These two key factors have illustrated that the absence of adequate post-trade processing solutions increases operational risk and ultimately reduces long-term growth prospects.

For sell- and buy-side managers, effective matching and confirmation processes are an important subset of this overall post-trade trend, and will continue to gain significance over time. Additionally, as trade volumes continue to grow, the real-time matching and confirmation services that can keep up with these volume flows become more and more important.

The post-trade processing environment has become an area in which competitive advantages are won (and lost), through effective solutions. Those who continue to invest in these services will clearly win out over those who do not. And this trend will most likely accelerate as volumes continue to increase, and as regulatory and compliance standards become more demanding.

Misys offers a world-class post-trade processing solution that helps both sell- and buy-side clients to better manage operational risk, reduce costs, and help contribute to their post-trade competitive advantage.

Misys Confirmation Matching Service (CMS) fully automates the trade confirmation process for over 980 customers including banks, fund managers, and corporates globally. The seamless automation of the solution mitigates risk and improves efficiency by means of reduced confirmation errors, faster processing, and enhanced compliance. Delivered as Software as a Service (SaaS), Misys CMS is the industry leader in post-trade services, allowing clients to automatically match transactions from both SWIFT and non-SWIFT partners in one streamlined solution. The financial details of FX, money market, options, OTC derivatives, and metals instrument trades are confirmed in a secure environment.

Solutions for Post-Trade Processing

effective solutions

In post-trade processing,competitive advantage is won through

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Recent market events and the enactment of Dodd-Frank and other global regulations have elevated collateral management to the top of the agenda. Calls for greater transparency and better risk mitigation, along with the introduction of CCPs have also led to new margin management requirements.

Banks and investment managers need to make fast decisions on whether to trade and on what level of collateral is required. With the value of assets changing quickly, it has become imperative to assess the level of the collateral required and track valuations on a real-time basis – organisations can no longer perform this on a weekly or monthly basis. Additionally, organisations are migrating to an enterprise view of collateral in order to meet increased demands for liquidity and to satisfy ever-increasing regulatory requirements.

The solutions for collateral management offered by Misys include:

Summit FT is a proven collateral and margin management solution used today by major banks and other financial institutions. The collateral management and margining module enables the monitoring, measuring, and management of counterparty exposure in real-time. Fully integrated within Summit’s STP workflow, it delivers the full benefits of its cross-asset strength, helping clients manage, control, and minimise risk. The module has been extended to include real-time margin call management for futures and listed options. Users now benefit from comprehensive collateral and margin management of both complex OTC and exchange-traded derivatives for bi-lateral trades as well as cleared trades in one solution.

Solutions for Collateral Management

Sophis VALUE is a comprehensive buy-side solution that manages collateral risk for OTC products across all asset classes. The solution provides real-time management of all collateral positions including margin calls, and it allows users to better manage their overall credit risk and exposure. Transactions can be automatically generated to readjust exposures and customisable margin call tickets are fully integrated into the transaction workflow. Additionally, users can easily generate and send various notices and documents to counterparties, including call and collateral substitution notices, settlement and payment instructions, along with other third-party reports required by various regulations.

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Operating as a high performance team is a strategic imperative for the success of our professional services business. We believe that our value lies in our ability to unlock the full potential of our software efficiently and effectively, so that our clients can benefit from their investment in Misys solutions and expand the use of these within their particular organisations. To deliver the levels of performance that clients demand, our service strategy is centred around three key components:

•Creatingexceptionalvalue for our customers •Ensuringoperationalexcellence •Developinguniqueskillsand knowledge in our people

Ensuring absolute customer satisfaction – both in the short- and long-term – is a fundamental part of our business philosophy. As such, our professional services team is an integral part of any Misys solution.

Partner relationships complement services and support offerings across all Misys solutions. We engage with both global and local partners to help us deliver the best solution and the best level of service to our customers in their local language, and in a way that is appropriate to the region.

Whatever the scope of the project, our professional services team and our partners remain committed to ensuring client success. To help with this, Misys provides its customers with a powerful support network, including direct access to Misys’ support.

The business and product consultants on the Misys team bring a wealth of local and international financial services knowledge to your business. Specialist consultants – technical, product, and implementation – work collaboratively with customers at each stage of the relationship from pre-implementation, through solutions consulting, all the way to post-implementation training, support,

and maintenance. These services are provided through the Misys network of international branches, ensuring direct access to specialist expertise and knowledge of local products, including the specific implementation requirements of all regional markets.

Professional Services – Leading the Way in Customer Service

Ensuring absolute customer satisfaction is a fundamental part of our business philosophy

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Services The services team appoints a single point of contact who will work closely with your appointed project leader. This person is responsible and accountable for project success. Every project leader bears a significant responsibility and provides a safe pair of hands to guide the project from planning and scoping through to “going live”.

Most Misys project managers are PMP-certified leaders. Misys has also introduced a PMP certification programme to ensure project managers get the training and certification they need. Throughout all projects, project risks are quantified, scoped, and managed through the application of the Misys project methodology.

Using this methodology, the Misys professional services team ensures that customers receive a quick and efficient implementation, and that the value of the customer’s investment is realised as soon as possible. With hundreds of successful implementations behind us, we’re proud of our track record.

Support Misys is in a unique position to understand the importance that banks and other financial institutions place on improving business resilience and lowering total cost of ownership.

Support is critical to customer satisfaction. With more than 30 years of experience in the capital markets industry, Misys Support delivers application support to more than 500 financial institutions in 100 countries.

With dedicated support centres in London, New York, Manila, and Singapore to provide round-the-clock support, and with our global staff of experienced product specialists, we ensure the smooth running of your day-to-day financial operations.

Misys also offers a suite of Premium Support Services to help clients more effectively address the myriad of challenges facing their businesses: the mitigation of IT operational risk, a rapid response to demands from changing business conditions, and improving the availability of Misys applications.

Training Misys training centres provide educational facilities in various locations around the world. Our education services are designed to ensure that clients derive maximum benefit and return-on-investment from all Misys solutions through comprehensive, structured, end-to-end training programmes.

Offering a distraction-free learning environment and access to our capital markets solutions, training is led by the Misys development and support staff. For users who do not want to leave the office, we also provide training courses and consultancy either at the clients’ premises, or via the internet.

Misys Academy also develops and delivers e-learning training materials as a complement to a customer’s overall training program. E-learning resources help to ensure full user adoption and to accelerate the return-on-investment for the customer.

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Partners

No one company can provide all the solutions to meet the diverse needs of financial institutions in today’s marketplace. Partnerships are essential in helping Misys provide our customers with comprehensive, innovative and world-class solutions that meet their changing requirements, in a more efficient and cost-effective way. Together we create compelling solutions that enable customers to differentiate themselves and help drive competitive advantage.

We have built a global partner network of over 100 partners that provide us with the scalability and expertise to expand our coverage, extend our scale and drive deeper customer relationships. Our partners span global, regional and in-country partnerships across all our business lines and market segments. The depth and breadth of our network ensures better alignment to our customers’ demands for integrated, end-to-end solutions and provides the skills and services they require.

Working with key technology and development partners, we ensure our solutions leverage the latest technology and knowledge to deliver optimal performance, provide cost-effective propositions to our customers and

supplement our development skills to accelerate time-to-market for new solutions. Our third-party solution partners provide complementary solutions to complete our solution offerings.

At a global level we work with leading consulting, system integration and implementation partners whose industry knowledge, focus and presence enables us to better serve our customers. At a local level we have developed in-territory and in-country partners to ensure we have the requisite domain, support, language, and cultural expertise to ensure we deliver for the customer.

We work as “one team” with our partners to ensure we are fully aligned. Our network of world-class partners enables us to execute with more speed, scope and scale. In turn, our partners provide Misys with greater reach into the marketplace and greater scale to execute on customer requirements.

The depth and breadth of our network ensures better alignment to our customers’ demands for integrated, end-to-end solutions and guarantees that we are equipped to provide the skills and services they require.

A deep and broadpar tner net work

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A deep and broadpar tner net work

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For further information on Misys solutions contact: [email protected] or visit: www.misys.com

Copyrights and Trademarks

“Misys” and the “M device” are trademarks of Misys plc.

Copyright© Misys plc. All rights reserved.

For a current list of Misys operating companies, please refer to the Misys website using the following link: http://www.misys.com/About_Us/misys_operating_companies.html

Global Misys Offices

Corporate Headquarters

Misys

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Tel: +44 20 3320 5000

Local freephone: 0800 097 0026

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