For more information about Luxoft, visit www.luxoft.com www.luxoft.

com/financial-services/

case study
13.09.2012

Liquidity ManageMent and anaLysis systeM Summary

Develop a system to monitor, analyze, and report liquidity risk for use by the banks Treasury and Liquidity risk Operations departments.

u Client: a top ten global investment bank u Business AreA: Investment banking liquidity risk management u Asset ClAsses: Equities, fixed income, loans, equity derivatives, FI derivatives u teChnology set: Oracle, Oracle BI, PL/SQL, Core Java, JmS, Spring, Hibernate, Jasper, Tomcat, WebLogic, messaging, KSH Scripts, Control m Jobs, SharePoint, QlikView, irise u integrAtion: Oracle, ad-hoc Integration u user Profile: Treasury, Liquidity risk Operations u geogrAPhy: Worldwide (uS, uK, Europe, asia Pacific, Latin america, South africa) u relAtionshiPs stAtus: Ongoing ODC, T&m u serviCes Provided: Business analysis, Development, Qa/Testing, Production support u teAm size: 20+ team members u durAtion: 3+ years development and ongoing maintenance

BuSInESS CHaLLEngE
Increased regulatory requirements that followed the global financial crisis compelled the bank to seek a new solution for liquidity management. They wanted a flexible, scalable system that would measure and analyze the end-of-day liquidity position in a way that complied with Basel II regulatory requirements and that supported proactive liquidity management by ensuring banks ability to meet obligations on time without incurring unacceptable losses.

LuxOFT DELIVErED SOLuTIOn

The bank began the software development internally with support from an offshore vendor. as the systems complexity and size hit critical levels, the bank looked for a new partner to complete system development and delivery. Luxoft was selected as the banks new software development partner and the project moved from India to the ukraine. Luxoft successfully delivered the system on time and within the budget, providing the bank with the following key business functions: u management of short-term liquidity gaps against existing limits u management of overnight funding exposure u Scenario analysis u Collateral management u maintaining liquidity reserve in the form of liquid assets u Internal and regulatory reporting u analysis of liquidity risk drivers (ratings, regional crises, insecure funding, insufficient collateral, etc.) for stress testing The Liquidity measurement and analysis system performs the critical tasks of extracting and cleansing data from upstream systems, modeling and generating cash flows, running stress test scenarios, and publishing liquidity risk data for end users and downstream systems. It manages over 70 data feeds and generates over 100 reports and is optimized with data quality and performance enhancements.

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UPSTREAM SYSTEMS

TRADING DATA (TRADES, CASH FLOWS, POSITIONS, COLLATERALS)

STATIC DATA (SECURITIES, COUNTERPARTIESS, BUSINESS HIERARCHIES)

LIQUIDITY RISK MANAGEMENT AND ANALYSIS SYSTEM

ETL ENRICHMENT

MAPPING MODELING REPORTING

LIMITS MANAGEMENT QUALITY CONTROL

DOWNSTREAM SYSTEMS

USERS

STRESS TESTING ENGINE LIMITS MANAGMMENT SYSTEM

TREASURY LRO

FINANCE EXTREMAL REGULATORS

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BEnEFITS
With Luxofts technical expertise and advanced business domain knowledge, the client realized the following benefits: u Increased financial flexibility by monitoring changes that require strategic adjustments u more efficient distribution of investments through accurate, end-of-day liquidity positioning u reduced operational and management costs by fully automating the data input and output u Increased visibility to, and thereby the control of, the cash flow u Improved decision-making and minimized risks with an enterprise-wide solution u Provided more rigorous risk management for the Treasury and Liquidity risk Operations departments u Provided full compliance to Basel II reporting requirements

CuSTOmEr FEEDBaCK
The detailed feedback is provided upon the specific request.

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Luxoft, a principal subsidiary of IBS group, is a provider of advanced application and software engineering outsourcing services for global and regional enterprises. Luxoft builds partnerships with its clients, such as Boeing, IBm, Deutsche Bank, uBS, Harman, avaya, alstom, and Sabre, based on the culture of engineering excellence, innovation, and deep domain expertise. Luxoft offers international delivery capability through its network of state-of-the-art delivery centers in north america, Eastern Europe, and asia. Luxoft`s customers benefit from the right mix of technology skills, industry knowledge, proprietary processes and methodologies, and a choice of engagement models. For more information about Luxoft, visit www.luxoft.com www.luxoft.com/financial-services/

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