New Commodities Desk for Expanding FICC Business

Client Story: Tier 1 Bank Moscow / London

MapleRisk have been successfully helping our global markets clients deliver complex change programmes through an Agile DevOps approach.

In this post we discuss how our domain experts work collaboratively within our Agile DevOps framework drawing from multiple disciplines including solution architecture, engineering, and data science whilst backed by a deep understanding of front-to-back trading and risk management fundamentals to implement a new commodities trading desk and expand the risk management and operational requirements of the client’s Fixed Income, Currency, and Commodities (FICC) business.

An extensive knowledge and proven delivery expertise in commodities matched with Murex systems specialisms was a prerequisite to rapidly understand, design and develop the complex risk management and pricing toolsets. Advanced Murex functionality was envisaged to leverage the clients existing investments and further expand these capabilities through the use of the extensibility APIs and the FLEX Toolkit to integrate with proprietary models for more exotic products.

The MapleRisk Approach

MapleRisk partnered with the client to rapidly enable the new Commodities trading desk, provisioning custom pricing tools, risk management views and analytics whilst maintaining the existing services and minimising the impact on the growing FICC business with complex day-to-day operations.

MapleRisk’s extensive knowledge and expertise in the commodities sector enabled a business driven approach. Dedicated client engagement leads built a detailed understanding of the business from the Front Office down. Immediate pain points were removed whilst a plan was developed for a fully optimised and scalable solution that leveraged the value invested in the trading platform.

The team utilised our proven Agile DevOps delivery model to liaise between key internal stakeholders, the internal support teams and the vendor to deliver continuous iterative improvements whilst remaining focused on the long term ambitions and goals of the growing desk across FX, Oil, Base and Precious Metals and Bulk with integrated cross currency functionality and support for vanilla and more exotic derivatives utilising in house models through flex integration.

Outcome

MapleRisk were able to deliver a full suite of bespoke functionalities for FICC trading. Pre-deal pricing and analytics, Risk and PnL reporting, risk-matrix based stress-testing along with the complete underlying Murex base configuration to fully enable all key stakeholders; FO, Risk, Quants, IPV and Operations.

Through a process of continuous change key functionality was deployed and refined without disrupting the day to day business and enhanced modelling functionality deployed through FLEX integration.

Using an Agile DevOps methodology requirements that would otherwise require separate project budgets such as complex cross commodity Risk views, detailed PnL attribution breakdowns, bespoke Markit Totem submissions, QA validation of Murex patches and upgrades, FLEX related analytics and value-at-risk implementations can all be handled within the business-as-usual cycle.