most lucrative business unit, the high-yield bond … trade support project fact sheet.pdfmost...

Dynamic Services Internat ional , Inc .


Dynamic Services Internat ional , Inc .Dynamic Services Internat ional , Inc .



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High-Yield Bond Trading Application Project Fact Sheet

High-performance trade support system for a Major Investment Bank's most lucrative business unit, the High-Yield Bond Trading Desk

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BackgroundA Major Investment Bank that was positioned as an issuer of Fixed-Income securities worldwide approached Dynamic Services International, Inc. (DSI). They sought our expertise in designing and implementing a high-performance trade support system for their most lucrative business unit,the High-Yield Bond Trading Desk. The firm knew us from previous successful engagements involving their trading and sales operations.

ChallengesWith revenues frequently spiking to $1 million dollars a day and beyond, the volume of transactions was overwhelmingthe ability of the traders, their managers, and the support staff to keep up. There was persistent concern that the desk might go into the next trading day without all the position and profit and loss (P&L) data from the previous day being fully reconciled. DSI re-engineer a Paradox desk top application to an enterprise Client/Server for branches in USA and Europe.

Project ObjectivesThe High-Yield Bond Desk Trade Support and Reporting System were designed to eliminate volume sensitivity from the trading, trade management, and trade support functions. As the volume of transactions went up, the process of recording the transactions, calculating the P&L, and then reconciling the desk's figures with the books and records of the firm began to tax the abilities of the desks' support staff to keep up. Errors in calculations began to occur more frequently, and the staff was staying later and later each

DSI designed and installed a system to capture the data and automate the processes that the desk depended upon. The system captures transactions in real time from different trade-input systems. It simultaneously captures real-time updates to product master and customer name-and-address tables. It uses this information, both indicative and quantitative, to validate transactions as they flow to the system, alerting support staff if there is an error in the message, and providing a means to correct a transaction on the fly. The application allows traders, managers, and support staff to take "$1 million days" in stride.

Business HighlightsAs the transaction enters the database, the application performs yield calculations and P&L calculations, both realized and unrealized, to reflect accurately the status of the transaction from a revenue and risk perspective. Each time a transaction enters a trader's account, and each time a trader marks a position to market, the same calculations are performed. The application keeps the trader's positions continually in synch for trading, as well as for intra-day and

Trader view

* Support the US largest Junk Bond trading * Generates over 1 million dollars/day revenue * Client/Sever based financial application * Web based reporting * Re-engineer from desk top application * Bloomberg market data integration

PROJECT AT A GLANCE

night to complete their work, and produce and distribute their reports.. A reduction in demands on trading support staff that currently must enter the same data multiple times during the day and then download data at end of day for review and possible reconciliation of positions before the reporting cycle can begin.. More timely reporting both for management at end of day and for trading and sales during the day.. Automatic reconciliation of the Firm's Books and Records with traders P&L

during the nightly batch cycle.

Project Benefits

57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297






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end of day status reports for management.Results from operations worldwide are retrievable from a single database. Capture Bloomberg market data on daily basis. Develop a real time trade feed from corporate main frame system.. Real time trade feed or alternated batch security, position and account feed. Yield and spread calculation. A common thread for P&L reporting and business analysis throughout the application. More timely reporting both for management at end of day and for trading and sales during the day. Full security, including login authorization, version control, and complete audit trails. Real-time interactivity for data solutions and research scenarios. Exporting and importing data to other software and platforms including Excel and HTML. Instant graphic analysis at the push of a button, fully configurable dynamic online or hard-copy reporting. Operator free batch processing: daily, weekly, monthly and annually. System processing security products

such as Certified deposit, Commodities, Common stock corporate bonds, Currencies and agency, Government securities, Indices, Money market

in object.6. Building application base on reusable

Trade activity summary

Portfolio Management System Department

Trader Position instruments, Mortgage-backed securities, Municipal bonds, Options, Preferred stock, Units and warrants

Technology Highlights1. The front-end GUI application is developed in PowerBuilder, Microsoft Visual C++, and Java. PowerBuilder is an object-oriented software tool; Microsoft Visual C++ is used primarily in the stored procedures; Java is used for communications with the other systems. 2. The relational database is Microsoft SQL Server running on Microsoft NT for Servers. 3. Data driven, maximize the database data depository.4. Minimize hard code value, control system environment in Windows INI files, database tables, or environment variables.5. Building component based application encapsulate business logic, processes

Trade maintenance

framework library.7. Application development enforces object-oriented programming discipline, inheritance, encapsulation, and polymorphism.8. Enhance the application with web base reporting feature. Recently under technology enhancement using .NET.







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Features List

. Flexible tools and platforms that allow firms to reduce risk and manage transactions.

. Timely accurate reporting of trading and sales activities for use on the trading floor and by management.

. Leverage existing enterprise infrastructure and data streams and create a transaction processing environment that addresses the specific needs of sales staff, traders, and their managers.

. Front-end graphic user interface application provides both data administration and data analytic functions.

. Data administration function includes real time data entry, business processing support, operational control, sales force and trading group organizational maintenance, customer account tracking, rate and P& L calculation, trade correction and repair.

. Decision support function includes trade search, trade analysis, production rankings, customer's yield and spread calculation, trade monthly summary reports, ad hoc report generator, and static report viewer for browse batch reports.

Project duration

2/96 - 10/08 and on going enhancement and support

References

Available upon request

Technology Platforms

Database: MS SQL Server 2000

Languages: PowerBuilder, C, Java script, Perl, ASP, Crystal Report, ASP.NET, C#.

DSI contact

[email protected] (212)997-2000


Trade listing

Trade search

Trade position Listing

most lucrative business unit, the high-yield bond … trade support project fact sheet.pdfmost...

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