risk systems achieving a singular view of trading operations worldwide pascal emile global head of...
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Risk Systems
Achieving a Singular View of Trading Operations WorldwideAchieving a Singular View of Trading Operations Worldwide
Pascal EmileGlobal Head of Market Risk Technology13 July 2004
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Risk Systems
Risk Systems
Dresdner Kleinwort WassersteinRisk Systems
Dresdner Kleinwort Wasserstein
• DrKW is the investment bank of Dresdner Bank AG and a member of the Allianz Group
• Headquartered in London and Frankfurt, with offices in leading international financial centres such as New York and Tokyo, it employs approximately 6,000 people around the world
• DrKW provides a wide range of investment bank products and services to European and international clients through its Corporate Finance & Origination and Capital Markets business lines
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Risk Systems
Risk Systems
Our Approach to Risk SystemsRisk Systems
Our Approach to Risk Systems
• DrKW uses a combination of packaged software and bespoke development to provide systems solutions to business problems that need to combine financial information across products, business lines and locations into a consistent and current view of the enterprise
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Risk Systems
Risk Systems
Our Approach to Risk SystemsRisk Systems
Our Approach to Risk Systems
• DrKW uses a high performance calculation and information delivery platform in a real-time, event-driven and component-based J2EE architecture to provide a financial information backbone across its trading floors
• This financial information backbone provides the data to support all market and credit risk reporting requirements across the trading floors
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Risk Systems
Risk Systems
Our PartnerRisk Systems
Our Partner
• To provide this backbone DrKW uses bespoke software from Yolus, a software company founded by banking and IT professionals and that was spun-off from DrKW.
• Yolus designs and build robust, extendible and highly scalable real-time management information and decision support systems for the financial services industry
www.yolus.com
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Risk Systems
Risk Systems
Risk ApplicationsRisk Systems
Risk Applications
• Our risk applications connect directly with the IT systems already in place: we engineer solutions that deliver value to business lines by extending the capabilities of their existing IT assets rather than replacing outright
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Risk Systems
Risk Systems
Delivering the BenefitsRisk Systems
Delivering the Benefits
• This approach helps the bank to:
• Manage trading risks
• Increase capital efficiency
• Lower operating costs
• Lessen operational risks
• Deliver higher levels of service to internal and external clients
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Risk Systems
Risk Systems
Risk Systems High Level ObjectivesRisk Systems
Risk Systems High Level Objectives
• To collate financial information published by the bank’s front-office position keeping and risk systems
• To calculate consistent aggregate P&L and risk figures across products, business lines and locations in real-time
• To give users the capability to drill-through and analyse position level information
• To be deployed in one location and used globally
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Risk Systems
Risk Systems
Risk Systems in Dresdner Kleinwort WassersteinRisk Systems
Risk Systems in Dresdner Kleinwort Wasserstein
• Delivery to the front-office
• a real-time view of the bank’s trading activities around the globe
• Delivery to the back-office
• one consistent source of position, P&L and risk information across products, business lines and locations for the whole back-office
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Risk Systems
Risk Systems
Core ComponentsRisk Systems
Core Components
• Online Data Server
• Intelligent Caching
• Real-time Vector Aggregation
• Managed Business Components
• Data Cross-Reference Service
• Data Hierarchy Service
• Data Explorer
• Overall System Manager
• Security & Access Control Manager
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Risk Systems
Risk Systems
Real-Time Trading Risk ManagementRisk Systems
Real-Time Trading Risk Management
Online Data ServerX-Reference Service
Access Control Manager
Hierarchy Service
Instrument
Reference Data
Institution
Company
Derivatives Cash FX
Europe
Derivatives Cash FX
Asia Pacific
Derivatives Cash FX
North America
Trading Limit Management
Trading P&L and Risk Reporting
Concentration Risk Reporting
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Risk Systems
Risk Systems
Deployment RoadmapRisk Systems
Deployment Roadmap
define connect customize
base applicationbusiness
applicationextended
business solution
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Risk Systems
Risk Systems
A Controlled EnvironmentRisk Systems
A Controlled Environment
• The applications are deployed with tools to benchmark the system for increasing data volumes, throughput rates and client connections: to know how the application will perform as demands on the system increase.
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Risk Systems
Risk Systems
One Data Source for All RisksRisk Systems
One Data Source for All Risks
• This solution enables the organization to share its data and rapidly communicate results of calculations to businesses around the globe
• The Market Risk data backbone provides a single platform on which additional risk and control systems can be connected for:
• P&L Explanation
• Scenario Analysis
• Market Risk VAR
• Liquidity Risk Management & Control
• Trading Counterparty and Issuer Risk Control
• Back-office reconciliations
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Risk Systems
Risk Systems
Extended Risk Management SolutionRisk Systems
Extended Risk Management Solution
Group Regulatory Reporting& Capital Allocation
X-Reference Service
Access Control Manager
Hierarchy Service
Trading Limit Management
Trading P&L and Risk Reporting
Concentration Risk Reporting
Trading Performance Analysis
P&L Explanation
VAR
Liquidity Analysis
Instrument
Reference Data
Institution
Company
Online Data Server
Derivatives Cash FX
Europe
Derivatives Cash FX
Asia Pacific
Derivatives Cash FX
North America
Online Data Server
TradedPositions
SpotLadders
MarketData
Position History
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Risk Systems
Risk Systems
A Federated Real-time Collaborative EnterpriseRisk Systems
A Federated Real-time Collaborative Enterprise
Instrument
Reference Data
Institution
Company
Derivatives Cash FX
Online Data Server
Derivatives Cash FX
Online Data Server
Collateral
Online Data Server
Equities Debt Collateral
X-Reference Service
Access Control Manager
HierarchyService
Online DataServer
Trading Limit Management
Trading P&L and Risk Reporting
Concentration Risk Reporting
Equities Market Risk
Access Control Manager
HierarchyService
Online DataServer
Trading Limit Management
Trading P&L and Risk Reporting
Concentration Risk Reporting
Debt Market Risk
Access Control Manager
HierarchyService
Online DataServer
Trading Limit Management
Trading P&L and Risk Reporting
Concentration Risk Reporting
Credit Risk
C