Services
Treasury & Capital Markets Consulting
FinMechanics Consulting practice is focused on Capital Markets, Treasury and Risk Management. We have carried out a variety of consulting assignments spanning the front, middle and back offices of capital markets desks of banks. Some typical assignments have been
- P&L Investigation and Reconciliation between Front, Middle and Back Office
- Assisting structuring desks in analyzing and risk profiling structured products
- Reporting FVA numbers based on OIS discounting and Monte Carlo based expected exposure calculations
- Implementing tools to monitor CSAs with optimal choice of collaterals.
- Customer Profitability and Exposure Analysis
- Enhancing front office, middle office & operations reporting and monitoring tools
- Establishing online P&L reporting for Performance and Risk
- Defining Cash, Funding, P&L Sell-down and Year End processes
- Analysis and streamlining workflows and business processes
- Assisting clients in system selection, RFP and Evaluation Process
- Middle and back-office Process re-engineering and automation
Risk Consulting
Risk management has taken front seat in today’s financial world. Just as market participants have suffered unprecedented losses in the financial crisis, regulators have become proactive and prescriptive. Some of the Risk Consulting assignments undertaken by FinMechanics have been
- Setting up Market Risk Frameworks (Basel, Internal Models)
- Calculation of Risk Weighted Assets
- Adapting existing bank processes to align with on-going regulatory changes
- Enhanced Value at Risk Reporting (e.g. estimating EVT over HS VaR)
- Asset Liability Management Reporting and Implementation
- Recommending appropriate Stress Tests / Scenario Analysis
- Establishing Hedge Effectiveness Testing
Package Implementation
FinMechanics provides an exhaustive range of services on leading treasury solutions such as Murex, Kondor+, Calypso and OpenGamma.
Many of our projects have involved solution scoping, design and configuration of full front-to-back functionality across multiple asset classes along with reporting and integration of the platforms in the bank's overall architecture. We have successfully implemented both in a phased approach or in big bang approaches according to different clients' requirements. The range of services provided encompasses:
- Project Management of full front to back implementations
- Configuration for trading, risk management, middle and back office
- Configuration of structuring tools
- Configuration of trader’s risk views
- Financial Instrument and User Interface Configuration
- Configuration of the Value at Risk framework
- Configuration of Limit monitoring tools
- Configuration of Accounting Modules including extraction of postings to General Ledger
- P&L Reporting via Reports or online Dashboards
- Data migration (Conversion) and Reconciliation
- Design a reporting framework and develop reports
- Interfaces both upstream and downstream
Integration
We have carried out various integration assignments for our clients as part of package implementation assignments and otherwise. We have built real time and batch interfaces for all asset classes which are file, message broker or middleware based. Some of our assignments have been
- Interfacing high volume online FX trading systems into a bank’s central trade repository
- Interfacing customer facing trade portals into bank’s primary treasury system
- Integrating market data from traders’ spreadsheets, broker pages and real time providers into bank’s trading platforms
- Integrating confirmation and payment messages into RTGS/SWIFT gateways
- Client specific enhancements using various API’s available in leading treasury platforms
Pricing Models
Changes in valuing derivative transactions in the post financial crisis world have led to major new developments required in the pricing models used for pricing trades and revaluing portfolios. Widening of spreads between LIBOR and OIS rates, Multi-Curve Pricing, significant increase in basis spreads and pricing in Counterparty defaults on a pre-trade basis – have all led to overhaul of pricing models and underlying platform changes. FinMechanics services include
- Model validation for vanilla/exotic derivatives
- Multi-Curve validation in the post-crisis financial world
- Integrating proprietary pricing models to trading and risk management platforms
- Comparison of FX Option Models (Vanna-Volga, SABR, SLV) implemented across popular systems by our client banks
- Integrating leading third party pricing libraries such as Numerix CrossAsset and OpenGamma
Treasury & Capital Markets Consulting
FinMechanics Consulting practice is focused on Capital Markets, Treasury and Risk Management. We have carried out a variety of consulting assignments spanning the front, middle and back offices of capital markets desks of banks. Some typical assignments have been
- P&L Investigation and Reconciliation between Front, Middle and Back Office
- Assisting structuring desks in analyzing and risk profiling structured products
- Reporting FVA numbers based on OIS discounting and Monte Carlo based expected exposure calculations
- Implementing tools to monitor CSAs with optimal choice of collaterals.
- Customer Profitability and Exposure Analysis
- Enhancing front office, middle office & operations reporting and monitoring tools
- Establishing online P&L reporting for Performance and Risk
- Defining Cash, Funding, P&L Sell-down and Year End processes
- Analysis and streamlining workflows and business processes
- Assisting clients in system selection, RFP and Evaluation Process
- Middle and back-office Process re-engineering and automation
Risk Consulting
Risk management has taken front seat in today’s financial world. Just as market participants have suffered unprecedented losses in the financial crisis, regulators have become proactive and prescriptive. Some of the Risk Consulting assignments undertaken by FinMechanics have been
- Setting up Market Risk Frameworks (Basel, Internal Models)
- Calculation of Risk Weighted Assets
- Adapting existing bank processes to align with on-going regulatory changes
- Enhanced Value at Risk Reporting (e.g. estimating EVT over HS VaR)
- Asset Liability Management Reporting and Implementation
- Recommending appropriate Stress Tests / Scenario Analysis
- Establishing Hedge Effectiveness Testing
Package Implementation
FinMechanics provides an exhaustive range of services on leading treasury solutions such as Murex, Kondor+, Calypso and OpenGamma.
Many of our projects have involved solution scoping, design and configuration of full front-to-back functionality across multiple asset classes along with reporting and integration of the platforms in the bank's overall architecture. We have successfully implemented both in a phased approach or in big bang approaches according to different clients' requirements. The range of services provided encompasses:
- Project Management of full front to back implementations
- Configuration for trading, risk management, middle and back office
- Configuration of structuring tools
- Configuration of trader’s risk views
- Financial Instrument and User Interface Configuration
- Configuration of the Value at Risk framework
- Configuration of Limit monitoring tools
- Configuration of Accounting Modules including extraction of postings to General Ledger
- P&L Reporting via Reports or online Dashboards
- Data migration (Conversion) and Reconciliation
- Design a reporting framework and develop reports
- Interfaces both upstream and downstream
Integration
We have carried out various integration assignments for our clients as part of package implementation assignments and otherwise. We have built real time and batch interfaces for all asset classes which are file, message broker or middleware based. Some of our assignments have been
- Interfacing high volume online FX trading systems into a bank’s central trade repository
- Interfacing customer facing trade portals into bank’s primary treasury system
- Integrating market data from traders’ spreadsheets, broker pages and real time providers into bank’s trading platforms
- Integrating confirmation and payment messages into RTGS/SWIFT gateways
- Client specific enhancements using various API’s available in leading treasury platforms
Pricing Models
Changes in valuing derivative transactions in the post financial crisis world have led to major new developments required in the pricing models used for pricing trades and revaluing portfolios. Widening of spreads between LIBOR and OIS rates, Multi-Curve Pricing, significant increase in basis spreads and pricing in Counterparty defaults on a pre-trade basis – have all led to overhaul of pricing models and underlying platform changes. FinMechanics services include
- Model validation for vanilla/exotic derivatives
- Multi-Curve validation in the post-crisis financial world
- Integrating proprietary pricing models to trading and risk management platforms
- Comparison of FX Option Models (Vanna-Volga, SABR, SLV) implemented across popular systems by our client banks
- Integrating leading third party pricing libraries such as Numerix CrossAsset and OpenGamma