digital transformation using calypso in capital markets
TRANSCRIPT
Digital Transformationusing
SAP, Calypso and SAP HANA in Capital Markets
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
