Client using the Trema Suite
(Management Consulting)
Challenge
Although several years in production the full potential of the Trema suite has not really been utilized. Functionality like Value-at-Risk, zero curve and time simulations, benchmark replication, performance attribution, advance credit and risk limits, etc still waiting to be implemented. Front office users are not 100% confidence in the system; frequent problems with market valuation, settlement and risk conventions have lead to parallel analysis in various spread sheets and programs. From time to times accounting, middle and front office analysis shows different results and portfolio capital basis. In large fire fighting is the main work load for the system support team.
Solution
First a quality review was performed to address the inconsistency between applications and divergence from established market conventions. The found issues were either solved by fine tuning the set-up (using e.g. filters in the monitors or customized reports) or by explanation and documentation such that the system behaviour gained acceptances by the various users. Incorrect instrument set-up was found to be a prime source of all kind of problems. The solution were to define Instrument Templates where all the market conventions and Trema Suite specific issues was set-up ones and for all. Users from the different departments meet at workshops to agree the priority of the not yet used functionality.
IIG assisted in the process of taking the new areas into live production.
Result
The users gained confidence in the system and step by step the full potential of the Trema Suit was utilized. Instead of fire fighting the support team played an active role here. The gained quality improvements, new functionality and instruments have lead to better overall performance of the investment activities.
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