Equity Swap Operating Model Implementation

November 11, 2015

A major US Custodian bank was undertaking a full front-to-back build out of an entirely new equity derivative product, which needed to be integrated into the organisation’s existing infrastructure. The product required an operating model to be defined for multiple areas of the bank across several workstreams. Brickendon was brought in to assess the existing infrastructure, help with system vendor selection, and create and document the global operating model.

The Challenge

  • To work with limited product and business knowledge (as divulged by the client) during the early stages of the project
  • To ensure compliance with differing regulatory requirements in multiple jurisdictions
  • To remove some of the complexities and anxieties associated with the introduction of a new product and overcome the operational, risk, control and regulatory hurdles in these areas
  • To reduce the impact and encourage acceptance of the significant organisational changes brought about by the new operating model
  • To ensure all teams across the firm support the project
  • To determine the most efficient and best-in-class way of defining the change process

The Solution

  • To provide an in-depth assessment of project scope, definition and requirements in order to create a new operating model
  • To provide the necessary business knowledge and influencing skills
  • To establish multiple workstreams, in which specific work packages could be progressed, organised and completed
  • To create documentation outlining full business and product requirements for use by all client support groups and system vendors to define the scope of their build work and project teams. Requirements were across workstream and covered front-to-back process
  • To establish rapid milestones and tightly manage the project team to meet these
  • To communicate clearly with stakeholders for each workstream and ensure all necessary parties are updated regularly with standardised workstream packs giving details on status, issues, timelines and approach
  • To foster an inclusive working relationship, where the onsite consultant team is treated as key members of the project

Client Benefits

  • A single framework operating model was delivered and all control, client, funding and product requirements were defined and implemented
  • The work package delivery allowed the client to move to the implementation stage quickly, within budget and without issue
  • The operating model was a key part of the internal signoff from the client’s senior management for the business go-live
  • Differing regulatory requirements were addressed within a single framework

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