Objective

End to End Structured Notes BAU management & support for a large US based Investment Bank including issuance management, new trade booking, life cycle support and retirements management

Solution

Issue Management

• Enter new trade (note issuances) details in the Primary Issuance Management System and requests for treasury approval
• Finalize trades 5 days before the settlement date of the trade

Trade Booking

• Risk Management System: Book the trade in RMS where the positions are priced and Issuance legs booked into three separate accounts –
  • Issuance account (subject to MTM accounting and linked to credit curve)
  • Hedge account (faces risk desk) &
  • Loan account (accrual accounting and facing treasury)
• Booking in secondary Position Management System, Middle Office System and Back Office System

Retirements

• The buyback positions with highest notional are selected and priced so that the net DVA cash flow is zero
• Request is raise to Treasury for approval in Primary Issuance Management System
• Booking of retirement of positions in issuance, hedge, loan in RMS and buyback account is done in Secondary Position Management System
• Update records in the Primary Issuance Management Systems

Client Impact
 

• Rapid scale up of new trade booking
• Reduction in error on new trade booking
• Decreased TAT with minimal impact on PnL reporting
• Ramped up Trade Retirement process and scaled up retirements to 80% of the available slots from existing 30%
• Retirement errors reduced to 1% from existing 10%

Questions

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