digital transformation using calypso in capital markets

Digital Transformationusing

SAP, Calypso and SAP HANA in Capital Markets

HELLODavid BroderickDirector, Digital TransformationAgoActumDavid.Broderick@agoactum.com

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Capital MarketsShares, Bonds, Fixed Income, Long Term Investment, Managing Risk

CalypsoCross Asset Front to back platform for trading, processing, risk management and accounting

Digital TransformationRegulations, Market changes and interest rates are changing the whole operation and capital cost model. Change is now necessary

Data by DesignThe bank needed a design that worked that enabled them to get data easily

Insights & ActionsSurface useful information quickly, that would enable direct actions from the insights

Risk ManagementConsolidate different IT platforms to provide one view of the risk the bank faced to the board to support BCBS 239

SETTING THE SCENE

Program delivered at a large, globalbank

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TimelineBank needed this functionality in 4 months to increase client services faster

Cloud PotentialThe bank sought a solution that could be implemented either on premise or on-cloud

Program GovernanceThe bank had strict program governance procedures that had to be followed, no matter what

Key Points from a Digital Transformation for Risk Management using Calypso in Capital Markets

Environmentat thebank

▸Use of Calypso for trade processing, risk management and accounting▸SAP in use for Enterprise

Applications▸SAP data stored on ASE▸Trial use of SAP HANA for

non-production evaluation

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Bank’sActualExperience ofCommonTrends

▸Up-Time costs rising▹Managing Complexity▹Consultants▹Business Disruptions▹Energy and Operations

▸H/W Infrastructure costs shrinking▹Hardware per unit of performance▹Integration tools▹Communications Infrastructure▹Data Storage▹Data Processing

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ExistingEnvironment

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Enterprise ApplicationsSAP

SAP ASE

Trade Processing and Risk Management on

Calypso

OracleExaData

EMIR Reporting

GL ReportingSAP BW

Business Reporting

TRANSFORMATION

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PlannedNewTransformedState

8 ▸One Source Risk Overview Reporting▹Easier Compliance with BCBS 239

▸Actionable Insights from the data, fast▹Ability to explore, visualize and game the data

▸Increased Control▹Low level unit recording of data for full analysis

▸Ability to introduce new products faster▹Data driven new product development

▸Reduction in technology risk▹Using known to work technology - SAP HANA

▸Reduction in number of technologies employed▹Elimination of Oracle Databases

SolutionEstate

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Enterprise ApplicationsSAP

SAP ASE Cluster

Trade Processing and Risk Management on

Calypso

SAP BW

EnhancedBusiness Reporting

SAP HANA

Data Analysis

Insights and Action Plan

Integration of SAP HANAwithCalypsoandSAP

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▸SAP HANA’s core strength (and reason for existence) is a massive in-memory database▹Calculations can be done very fast▹Actionable insights can be surfaced in seconds▹Data Model becomes critical

▸SAP HANA can be run▹On Site▹In the Cloud (Either private or public cloud)

▸SAP HANA Data Federation▹Access to Calypso API to query data

▸SAP HANA Remote Data Synchronization▹Reduces cost of building mobile apps to see trade data

NewData WarehouseBuiltusingSAP HANA

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Trading Systems

Order Management

SystemsFinance & GL Product Data Market Data

Atomic Level Data and Results SetsAutomated Compliance Based Business Rules Processes

DataSources

StandardSourcing

External Disclosure

INTEGRATE

DataWarehouse

VaR, Liquidity Risk, Credit

Considerations

Decision Makers and Managers

Generate Once Store Once

Analytic Apps Reporting and Analysis

TransformationBenefits

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▸One Source Risk Reporting▹Easier compliance with BCBS 239▹Lower cost of report generation▹Ability to explore risk status easier▹Visibility of risk (and models behind them) much greater▹Speed of risk calculations for whole bank measured in minutes

▸Cost▹Reduced overall cost base of trading service▹Reduced reporting costs▹Eliminated ad-hoc report generation delays▹Eliminated inefficient reporting for Dodd Frank

▸Technology▹Simplified technology estate▹Eliminated complexity and related human resources

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THANKS!Any questions?You can find more at▸ www.agoactum.com▸ David.Broderick@agoactum.com