Special Advisory: Trading Desk Transfer & FX Risk Management

Client Story: Multinational London / Tokyo

MapleRisk have been successfully helping our global markets clients deliver complex change programmes through an Agile DevOps approach. Our domain experts are embedded within your team. They collaboratively work within our Agile DevOps framework that draws from multiple disciplines including solution architecture, engineering, and data scientists backed by a deep understanding of front-to-back trading and risk management fundamentals.

In this post we discuss how our external resources and expertise provided analytical and technical support for a large scale trade transfer project which needed to be completed within a strict deadline. The nature of the transaction also demanded our expert knowledge of the Murex platform as well an in-depth understanding of the energy trading business.

Upon completion of the desk transfer MapleRisk was invited to conduct a review of the business processes and supporting trading technology related to the trading lifecycle of the FX hedging process. The review was mandated to assess various control points in place and identifying any areas that represent an ongoing operational risk.

MapleRisk Approach

MapleRisk were asked to complete many different functions including, but not limited to, trading and market risk, credit reporting, and technology support leading up the actual trade transfer.

Following the book transfer MapleRisk further supported a credit risk transfer process by way of novating existing OTC customer positions to the buyer of he client’s energy trading book.

After delivering the trade transfer and novation project MapleRisk completed multiple strategic reviews mandated by the CEO and CTO in the area of risk management, business processes, and technology selection.

Outcomes

Both trade transfer and the novation projects were delivered within the mandated strict timeframe with minimal turbulence from an operational perspective. The client was very happy and had this to say:

From a personnel perspective we often use external consultants. However, we rarely receive the amount of dedicated and knowledgeable attention, which MapleRisk offered and so I confirm my experience of MapleRisk was beyond first class. – Business Unit CEO

It was perfectly clear to me they possess a vast amount of knowledge and market expertise. Certainly from my perspective, their Murex knowledge is without question. – COO