Caceis_CaseStudy

8/2/2019 Caceis_CaseStudy

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AheAd of the curvecAceis delivers innovAtion

And true stPCASE STUDY


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innovation an sviiFFntiation

As a global provider of custodian and fund

management services for asset managers,

banks, broker-dealers, and institutional and

corporate clients, Caceis operates in a highlycompetitive market where new low-end fund

administrators enter the market in low-cost

locations such as Eastern Europe and Thailand.

Caceis differentiates itself through product

and technical innovation and its wide range of

client services. At the same time, by providing a

common platform for many services universal to

nancial institutions, Caceis enjoys economies

of scale while allowing its customers to improve

their operational efciency by outsourcing some

of their business processes to Caceis.

Cyrille Prigent, Head of Client Unit Derivatives

at Caceis said, We also expect regulatory

demands and risk management to have a greater

signicance. In the past, clients demanded

support for new instruments and functionalities

but after recent global events, regulators

are more active, demanding more detailed

information about fund positions as well as more

nuanced risk management processes.

atomat inFastt

In 2007 Caceis embarked on a multi-year strategyto meet its clients growing demand for innovation

at the same time as embracing global trends

for tighter regulation and risk management. To

achieve this, the custodian dened a vision for a

fully-automated and STP-enabled infrastructure

backbone, delivered incrementally through a

number of discrete projects, each giving tangible

benets to Caceis customers.

The initial focus was on support for derivatives

pricing. Since 2006, fund managers using the

Caceis platform started to include more complexderivatives in what had originally been relatively

vanilla portfolios and asked Caceis to support

the daily valuation of large portfolios of products

such as interest-rate (IR) swaps and credit default

swaps (CDS).

sppoting stt pots

With a three-month deadline imposed by one

of Caceis largest customers dealing with some

20,000 IR swaps per day, the custodian chose

a technology solution that could accommodate

its immediate valuation requirements and was

able to support Caceis long-term vision. With

its customers increasingly trading structured

products and one-off instruments, Caceis then

extended the technology to provide greater

exibility for instrument representation.

Having created a solid platform for the

representation of new products and the valuation

of non-traditional products, Caceis extended it by

rationalizing the downstream chain towards an

STP process encompassing the complete trade

lifecycle, from trade injection, valuation, and

back-ofce services, such as payments processing

and settlements, as well as risk management.

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aha oF th v ais livs innovation an t stp

Caceis, one of the worlds largest providers of custodian and fund

management services to buy-side institutions, has implemented

the Thomson Reuters Kondor+ Suite for the front-to-back

integration of its wide range of complex derivatives and structured

products, customer valuations and pricing, risk management and

straight-through processing.

kY bnFits

educed r capturing all derivatives

trades in a single system signicantly

reduces manual processing, errors and

exceptions, resulting in better controls

and risk management

r u a common

platform ensures consistent valuations

across portfolios

beer ye rce the STP

capabilities of the Kondor+ Suite result

in faster payments and settlement for

customers and reduced costs for Caceis

au d rue cere

the platform can be extended easily tosupport new instruments, irrespective of

their complexity


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Font-to-bak intgation withthomson ts

The common technical backbone supporting the

delivery of Caceis innovative and sophisticated

services was provided by Thomson Reuters,

standardized around its Kondor+ Suite for front-to-back trade and risk management.

The Kondor+ Suite is used as the core system

to capture and value derivative trades with its

structured products module supporting more

complex derivatives and one-off instruments.

Prigent said, The structured products module

includes a graphical designer application that

allows us to dene new nancial instruments on

the y and to associate them with any number

of pricing libraries. Completely integrated with

Kondor+ Suite processes for valuations andreporting, the module is an excellent tool for

delivering the quick injection of new products

that our customers demand.

wispa stp

Caceis is also using the Kondor+ Suite Trade

Processing module to support its back-ofce

processes, including a customizable, rules-

based workow engine and detailed audit

trails, as well as integration with the custodiansaccounting systems and external gateways such

as SwiftNET. Eric Bichel, Head of IT for Kondor+,

Dealing Room & Reconciliation Brokers at Caceis,

explained, This greatly simplies our processes.

For example, we now process 80 per cent of our

xed-income business via STP thanks to the

Kondor+ Suite.

Furthermore, as the foundation of the custodians

operations, the Kondor+ Suite has been

integrated with a number of standalone systems,

such as credit and market risk, to reuse existingtools and functionality but within the consistent

framework provided by the Kondor+ Suite.

Bichel added, Robustness and scalability were

also important to us. We performed internal tests

on the Kondor+ Suite and it performed well.

We are now looking at our downstream systems

as part of a joint project with Thomson Reuters.

2011 an bYon

Caceis intends to add more of its business units

and their corresponding instruments to theKondor+ Suite backbone, with xed income

added recently and equity swaps, involving more

than 60,000 trades per day, expected to be

added soon. The Kondor+ Suite is also expected

to be a strategic part of the custodians plans

to give customers access to trading room cash

management products and securities lending,

trade matching, and market and credit risk.

Prigent concluded, The Kondor+ Suite has

given Caceis a platform on which to evolve and

automate our business model while allowing theunderlying infrastructure to be rationalized and

made more efcient. Virtually all new products

are now managed in the Kondor+ Suite.

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abot ais

Caceis is a global provider of custodian and

fund management services for buy-side

institutions. Its depository/trustee custody

business has over 2.3 trillion in assets, and

its fund administration looks after 1.1 trillion

in assets. Based in Luxembourg with 13ofces worldwide and over 3,500 employees,

Caceis is one of the leaders in the custodian/

fund servicing industry rankings, being no.

1 in Europe and no.6 worldwide for fund

administration, and no.4 in Europe and no.10

worldwide in custody services.

ThE KonDor+ SUiTE hAS givEn CACEiS A plATform on whiCh To

EvolvE AnD AUTomATE oUr bUSinESS moDEl whilE Allowing

ThE UnDErlYing infrASTrUCTUrE To bE rATionAlizED AnD mADE

morE EffiCiEnT. AlmoST All nEw CACEiS proDUCTS ArE nowmAnAgED in ThE KonDor+ SUiTE

CYrillE prigEnT, hEAD of CliEnT UniT DErivATivES, CACEiS


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Thomson Reuters 2010. All rights reserved. 48002268.

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ABOUT THOMSON REUTERS RISK MANAGEMENT

Thomson Reuters is the largest provider of risk and trade management solutions globally, servicing

over 700 nancial institutions. Our solutions offer sophisticated, tailored functionality at every step of

the trade, from STP enabled front-to-back trading systems to enterprise wide risk management. We have

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Thomson Reuters proven track record of delivering complex solutions to meet their exact requirements.

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Caceis_CaseStudy

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