The company

This company is a leading global investment bank, with a significant presence in the Americas, Europe and Asia. Proprietary trading as well as trading on behalf of clients provides the bank with a significant source of revenue.

The Challenge

Trade reconciliation is done in the hours and days following a trade, and the trade is not complete until the trade is reconciled with its counterparty. However, there were frequent problems with the reconciliation process. Various pieces of information in the trade sometimes didn't match. A source of many errors was the counterparty information - the name, address and other information about the party on the other side of the trade. There were multiple systems in the bank that stored this data, and there were many inconsistencies in the data of the different systems. Failed trade reconciliations meant extra resources to find the correct data, or even the possibility that the trade would be cancelled. The client recognized the need for a single source for all counterparty data, that would always be complete and accurate.

Our solution

Noetic team members were brought in to design, develop, manage and optimize The System, which consisted of a GUI for setup and administration, a database to store all information, and replication methods for propagating this information to all systems at the bank that needed the data.

Results

The System is a proprietary Master Data Management system developed using the Noetic Master Model on Sybase. The core system distributes client and counterparty information to hundreds of product processors using messaging distribution technologies in real-time, enabling additions, deletions and updates by a wide range of authorized users. The broker saved millions annually by reducing the number of trades that could not be reconciled because of incorrect data.