Comarch Deal Management

Problem

Today financial markets require banks to have a high integrity and complexity of platforms supporting traditional and structured financial instruments, money market and foreign exchange operations carried out within trading and investment as well as liquidity and risk management. Additionally, it has become increasingly important for the bank to provide its clients with modern financial products fulfilling their investment and hedging requirements, fully automated and controlled in terms of credit and settlement limits.

Challenge

To meet the needs of customers and implement their own dealing and investment policies, banks must obtain specific solutions that allow to manage the entire process, from testing transaction opportunities, transaction valuation, control of operations, credit and market limits, transaction processing, the calculation of capital requirements to the integration with risk management, accounting and reporting systems. These processes are primarily the domain of Treasury Departments.

Solution

Comarch Deal Management is a solution which enables transaction processing on the capital market, foreign exchange, derivatives and debt instruments, realized by bank dealers or internet banking customers. It includes comprehensive support for the transaction process and accounting services in the field of accounting and valuation of instruments/transactions and transaction limit calculations and billing for customers and the equivalent of the balance sheet and capital adequacy for the transaction. The system is responsible for the circulation of information (based on SOA architecture) of transactions between dealing systems, internet applications used by the bank’s customers, the accounting system and a bank’s risk management and market data services.

The system includes three key areas:

• Internet Front-end integrated with Comarch Internet Banking, allowing trade in foreign currencies, funds and derivatives by the bank's customers based on dealer quotes, current market data, up to date transaction limits and information about owned products and bank accounts
• Message Switcher is responsible for the information exchange between systems, queuing, controlling, and authorization of messages, as well as providing a transaction authorization window for dealers with credit limits and billing control
• Deal Management enables transaction booking, transactions accounting and fixing, monitoring credit limits, disposal of client account, the calculation of profit margins for contracts by business lines, dealers, head office, branches, etc.; calculation of the balance sheet equivalent and capital adequacy for contracts and contract valuation, the Greek indices, Value-at-Risk based on the system's or its own bank libraries

Business and Operational Benefits:

• Automates the customer service process in terms of foreign exchange and cash transactions as well as on derivate instruments based on an Internet platform
• Integrates and automates information exchange in the field of dealing
• Supports dealers through the mechanisms for limits control for transactions and valuation of contracts simulation
• Provides evidence support and valuation of a wide range of instruments, among others: ap/Floor, Forward Rate Agreement, Currency Interest Rate Swap, FX Forward, FX Option, FX Spot, FX Swap, Interest Rate Swap, Overnight Index Swap, deposits, bonds