Digital transformation using calypso in capital markets
1 like605 views
The document discusses a digital transformation initiative in a bank's capital markets segment, focusing on implementing Calypso and SAP HANA for trade processing, risk management, and compliance with regulations like BCBS 239. Key benefits include improved risk reporting, actionable insights, faster product development, and reduced overall technology costs. The project aimed for rapid deployment within four months while adhering to strict governance procedures.
Digital transformation using calypso in capital markets
- 1. Digital Transformation using SAP, Calypso and SAP HANA in Capital Markets
- 2. HELLODavid Broderick Director, Digital Transformation AgoActum David.Broderick@agoactum.com 2
- 3. Capital Markets Shares, Bonds, Fixed Income, Long Term Investment, Managing Risk Calypso Cross Asset Front to back platform for trading, processing, risk management and accounting Digital Transformation Regulations, Market changes and interest rates are changing the whole operation and capital cost model. Change is now necessary Data by Design The bank needed a design that worked that enabled them to get data easily Insights & Actions Surface useful information quickly, that would enable direct actions from the insights Risk Management Consolidate different IT platforms to provide one view of the risk the bank faced to the board to support BCBS 239 SETTING THE SCENE Program delivered at a large, global bank 3 Timeline Bank needed this functionality in 4 months to increase client services faster Cloud Potential The bank sought a solution that could be implemented either on premise or on-cloud Program Governance The bank had strict program governance procedures that had to be followed, no matter what Key Points from a Digital Transformation for Risk Management using Calypso in Capital Markets
- 4. Environment at the bank ▸Use of Calypso for trade processing, risk management and accounting ▸SAP in use for Enterprise Applications ▸SAP data stored on ASE ▸Trial use of SAP HANA for non-production evaluation 4
- 5. Bank’s Actual Experience of Common Trends ▸Up-Time costs rising ▹Managing Complexity ▹Consultants ▹Business Disruptions ▹Energy and Operations ▸H/W Infrastructure costs shrinking ▹Hardware per unit of performance ▹Integration tools ▹Communications Infrastructure ▹Data Storage ▹Data Processing 5
- 6. Existing Environment 6 Enterprise Applications SAP SAP ASE Trade Processing and Risk Management on Calypso Oracle ExaData EMIR Reporting GL ReportingSAP BW Business Reporting
- 8. Planned New Transformed State 8 ▸One Source Risk Overview Reporting ▹Easier Compliance with BCBS 239 ▸Actionable Insights from the data, fast ▹Ability to explore, visualize and game the data ▸Increased Control ▹Low level unit recording of data for full analysis ▸Ability to introduce new products faster ▹Data driven new product development ▸Reduction in technology risk ▹Using known to work technology - SAP HANA ▸Reduction in number of technologies employed ▹Elimination of Oracle Databases
- 9. Solution Estate 9 Enterprise Applications SAP SAP ASE Cluster Trade Processing and Risk Management on Calypso SAP BW Enhanced Business Reporting SAP HANA Data Analysis Insights and Action Plan
- 10. Integration of SAP HANA with Calypso and SAP 10 ▸SAP HANA’s core strength (and reason for existence) is a massive in-memory database ▹Calculations can be done very fast ▹Actionable insights can be surfaced in seconds ▹Data Model becomes critical ▸SAP HANA can be run ▹On Site ▹In the Cloud (Either private or public cloud) ▸SAP HANA Data Federation ▹Access to Calypso API to query data ▸SAP HANA Remote Data Synchronization ▹Reduces cost of building mobile apps to see trade data
- 11. New Data Warehouse Built using SAP HANA 11 Trading Systems Order Management Systems Finance & GL Product Data Market Data Atomic Level Data and Results Sets Automated Compliance Based Business Rules Processes Data Sources Standard Sourcing External Disclosure INTEGRATE Data Warehouse VaR, Liquidity Risk, Credit Considerations Decision Makers and Managers Generate Once Store Once Analytic Apps Reporting and Analysis
- 12. Transformation Benefits 12 ▸One Source Risk Reporting ▹Easier compliance with BCBS 239 ▹Lower cost of report generation ▹Ability to explore risk status easier ▹Visibility of risk (and models behind them) much greater ▹Speed of risk calculations for whole bank measured in minutes ▸Cost ▹Reduced overall cost base of trading service ▹Reduced reporting costs ▹Eliminated ad-hoc report generation delays ▹Eliminated inefficient reporting for Dodd Frank ▸Technology ▹Simplified technology estate ▹Eliminated complexity and related human resources
- 13. 13 THANKS! Any questions? You can find more at ▸ www.agoactum.com ▸ David.Broderick@agoactum.com