OTC Derivatives Portal

Nov 3, 2015 | Case Studies, Case Study - Digital, Practice - Digital

A large UK bank required a solution to advise OTC derivative traders if they could trade a derivative with a counterparty

The Challenges

  • The user interface must be quick and easy-to-use in a busy trading environment
  • Advice should be clear and specific. Can I Trade? How Do I Trade?
  • The solution should be multi-asset, supporting Rates, Credit, FX, Commodity and Equity derivatives
  • Consideration needs to be paid to the introduction of new regulations as they are introduced by different authorities, and the impact they could have on the solution
  • Advice needs to be tailored according to the bank’s legal entity and counterparty locations
  • Some client data may not be up to the quality necessary to provide good advice

The Brickendon Solution

  • To engage in usability workshops with sales traders to design a user interface that they were happy to use on the trading floor
  • To design a framework for trading rules that would support initial requirements, as well as allowing the addition of new rules in the future
  • To work with business experts to implement trading rules that would advise on compliance, business conduct, clearing, execution, and timely confirmations, in accordance with CFTC and EMIR regulations
  • To utilise test-driven development (TDD) to facilitate the generation of correct business logic
  • To implement a comprehensive rule testing framework to verify correctness and track regression
  • To develop data access logic to read from different sources and provide a simple data model to the rules engine
  • To use data quality validation rules to highlight if data is missing for a counterparty

Client Benefits

  • Sales traders are able to quickly determine if they can do a trade with a counterparty. The number of non-compliant trades should be very low
  • The client is able to demonstrate to regulatory bodies that they have appropriate procedures and controls in place to ensure compliant trading
  • Data-mining of advice could provide suggestions for making more counterparties and trades compliant, in turn generating more business

We are an award-winning transformational consultancy with the drive, skills, knowledge and experience to help you change your business for the better. Let us show you what we can do.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. To view our full policy click here