Trading financial instruments is subject to constant change and transformation. With increasing market penetration of a product and growing maturity levels of evaluation and hedging models, the level of standardisation for the product also increases – thus resulting in reduced margins. At the same time, the expectations of digital transformation and product innovation remain high. More efficient processes and lower production costs are the key to a successful business in this regard.
This is added to new regulatory requirements regarding pre- and post-trade transparency and the increasing pressure to execute transactions using standardised trading platforms. These stringent basic conditions lead to dropping spreads between bid and asking prices when trading OTC derivatives as well as increasing execution costs.
In addition, investments must be made in IT systems and infrastructure, which leads to an additional strain on the income generated through trading. We are your partner for all questions regarding Capital Markets business. The speed and complexity in today’s trading world across all asset classes require a skilled partner with profound understanding of both the markets as well as their regulations. In recent years, Capital Markets have become the core of our business activities.
We boast an outstanding level of expertise in the products and processes in the Capital Markets sector, which, today, we underscore with successful system integrations and long-standing relationships with clients. Regardless of whether you are a buyer or seller – our consultants advise you in both the implementation as well as the optimisation of innovative, transparent and efficient processes.
of the 10 largest German banks rely on Firstwaters for Capital Markets projects
consideration of all asset classes, front to back
- Selection of suitable front-to-back trading systems
- Support in the integration, migration and development of trading systems
- Evaluation of trading processes and support in their standardisation/optimisation
- Cdesign and implementation of product innovations
- Digitisation of business processes
For more than 20 years, Firstwaters has been supporting clients in the Capital Markets sector – from the initial evaluation of systems through to the final roll-out of the respective platform.
Integration of securitisation business.
Firstwaters is supporting a major German bank in the integration of securitisation and the integration of a new standard software for the settlement of the securitisation transactions.
For more than 20 years, Firstwaters has been supporting clients in the Capital Markets sector – from the initial evaluation of systems through to the final roll-out of the respective platform. Our current consulting team boasts more than 200 combined years of project experience in the Capital Markets sector – be it for unregulated (OTC) or exchange-traded vehicles. Over the years, we have dealt with nearly all asset classes (IRD, FXO, EQD, CRD, bonds/securities) and represented them in system solutions of various vendors.
We are familiar with the various functions of Capital Markets. Together with you, this means that we are able to implement your functional and non-functional requirements and develop a front-to-back solution for your Capital Markets operations that stands out through its high degree of standardisation, absolute transaction security and impressive STP rates.
In the last few years, a total of 18 European financial service providers and insurance companies have placed their trust in Firstwaters for their capital market business. As part of these projects, we have implemented both front- and back-office processes as well as accounting and risk functions.
Currently, we are consulting – among others – a German state bank in the migration of its foreign exchange business and an Austrian state bank in the integration of a new front-to-back platform.
Introduction of securitisation business.
In the current summary of the Liquidity Risk – Stress Test 2019 results, the European Central bank (ECB) confirms that most banks have a high level of unutilised liquidity potential on their books.
Firstwaters is supporting a major German bank in the integration of securitisation. In doing so, the bank is working towards the goal of increasing its counterbalancing liquidity (in addition to realisable liquidity), of more actively managing the RWAs and thereby to meet, among others, the regulatory requirements of the ECB.
A new software is being integrated for the technical and business structuring of the securitisation which will be utilised to manage the underlying portfolios using individually defined criteria. A new software is being integrated for the technical and business structuring of the securitisation which will be utilised to manage the underlying portfolios using individually defined criteria. The ProMMiSe software from the vendor Hypoport supports the daily processes having to do with evaluation, risk management, data analysis and regulatory reporting requirements.
Firstwaters is consulting on the technical introduction and integration of the new software, the incorporation of business data requirements and the structure of the relevant data models and the coordination of the business and technical processes for all relevant stakeholders (Treasury, Finance, Regulatory Reporting, etc.), as well as on the project and vendor management.
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