Front-Office Trading Solutions
An investment bank needs a front-office team highly proficient in trading strategies, asset classes, and technology, as it is responsible for buying and selling products such as derivatives, commodities among others.
This is where CRISIL Global Research & Analytics' expertise comes in. We support front-office trading, structuring and modelling teams on derivative strategies and products, and also on technology services including development and support of risk management systems.
With our expertise across all asset classes such as equity, FX, fixed income and commodities, we provide end-to-end solutions to clients across the trade life cycle.
- Quant-based trading strategies such as developing volatility forecasting models and implied and local volatility surface modeling framework for buy side firms, generation of new trade ideas for sell side, among others
- Derivatives pricing, valuation & model validation using client-proprietary tools and third-party valuation systems
- Portfolio & investment analysis including conceptualising and developing investment strategies, back-testing, portfolio development, exit strategies and rebalancing.
Front Office Technology
- Front-office development and support round the clock for various risk management systems (both proprietary and third party) and other front-office applications
- Technology consulting in areas like Risk Management Systems, Market Data Management, front office project management and others
- Change management support for migration and front office process re-engineering projects
- Data management support required for regulatory reporting requirements
Our middle-office outsourcing solutions help investment banking clients control risks by minutely tracking the entire trading process. To ensure uninterrupted support, we have developed a 24x7 business and technical support model for the product control function in managing and troubleshooting risk runs and daily P&L attributions.
Provides expertise across all aspects of structured trade review process including accounting and regulatory treatment of trades, valuation, and others
Product control activities
Supports clients across a range of product control activities such as P&L attribution, price validation, front-office back-office reconciliation and others
Other middle-office activities
Provides support for cash reconciliation, corporate action monitoring, and trade life-cycle management.
Provides solutions to automate or re-engineer multiple middle-office and product control processes.
Collateralisation is a key focus area for financial institutions globally, driven primarily by regulations mandating collateralization of over the counter (OTC) derivatives trades. Additionally, collateral management itself is evolving into a tool for competitive advantage, through savings in cost and providing most optimal risk hedge at the lowest cost to customers.
CRISIL Global Research & Analytics has a proven track record of building and implementing collateral management frameworks that meet regulatory requirements.
- Valuation advisory services: Supports valuation and monitoring of counterparty exposures and collateral exposures, end-to-end management of multi-currency yield curves and computation of independent amounts.
- Collateral optimization: Managing the collateral pool efficiently by identifying the cheapest-to-deliver collateral assets and opportunities for collateral substitution and netting as well as exposure reduction.
- Margin management: Help in the development and implementation of integrated margin management infrastructure to efficiently handle multi-fold increase in margin call volumes, margin settlements and collateral segregation challenges.
- Data management and reporting: Building and implementing systems to capture and validate ISDA and reference data as well as migrate data across different risk management systems.
- Portfolio reconciliation and dispute resolution: Provide well tested frameworks for portfolio reconciliation (material and valuation) that gives the flexibility to handle different scales of operations effectively.