Non-Core Business Migration
The capital markets business of a major UK bank needed to separate the most illiquid, long dated and/or high-risk client trades from the core business, to meet increasingly strict capital requirements. A transfer strategy was required, followed by a programme of work to coordinate the global front to back delivery of the target state. As part of the strategy, Risk Weighted Assets (RWA) and Third Party Assets (TPA) savings had to be identified and delivered in order to meet board commitments around reducing risk.
Synechron engaged key stakeholders from multiple business functions, including trading, sales, market risk, credit risk, finance, middle office, operations, and IT to define the transfer strategy and instantiate a front to back programme. We then built a golden source trade catalogue of trades to be separated into the non-core business, which was then updated and managed daily within a tactical database tool. The tool was used to generate simulations and impact assessments of the various business options available through the decision-making process, including the validation of impact to Risk and PV of various risk engine and model changes.
Along side this, a target operating model was defined, ensuring that all traders were matched to trade type, and that every trade type was mapped to an appropriate support model post-migration.
In the run-up to migration, we performed migration impact testing, demonstrating the pre- and post-migration P&L of the core and non-core business. We dealt with Dealing Authority updates, book set up, risk flattening and back-to-back trade bookings, as well as implementing new Sales and Trader tools. Migration planning and migration day execution were managed by Synechron, including the post-Go Live stabilisation period of high alert in readiness for any post-migration issues.
How we’ve helped our clients achieve their transformation goals for other large-scale, global programs
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