Sophis RISQUE Brochure - Misys
Sophis RISQUE Brochure - Misys Sophis RISQUE Brochure - Misys
SophiS RiSQUE CRoSS-ASSEt FRont-to-BACk tRAding & RiSk MAnAgEMEnt FoR CApitAl MARkEtS
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SophiS RiSQUE<br />
CRoSS-ASSEt FRont-to-BACk tRAding<br />
& RiSk MAnAgEMEnt FoR CApitAl MARkEtS
<strong>Sophis</strong> <strong>RISQUE</strong> – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets<br />
<strong>Sophis</strong> RiSQUE is a cross-asset trading and risk management solution<br />
that gives investment banks extensive coverage and flexibility across<br />
their trading activity. <strong>Sophis</strong> RiSQUE provides a suite of state-of-the-art<br />
products, designed to help traders to manage their books operationally<br />
and also from a risk perspective. From market-leading coverage for<br />
equity derivatives, securities financing and structured products through<br />
to high volume vanilla trading, <strong>Sophis</strong> RiSQUE is a powerful global<br />
cross-asset trading system used by many of the leading players in<br />
the derivatives and structured trading markets.<br />
highlights include:<br />
• Broad cross-asset coverage, including otC<br />
derivatives (equity, interest rates, credit,<br />
FX and commodities)<br />
• Full range of risk analytics and scenarios available<br />
in an integrated front to back office platform for<br />
traders, risk managers and compliance officers<br />
• Firm-wide control and visibility over market risk,<br />
credit risk and collateral management for risk<br />
managers, in addition to risk analytics such as<br />
VaR, stress tests and risk reporting<br />
• pricing models for all supported instruments,<br />
provided and managed by the <strong>Misys</strong> in-house<br />
quantitative team who ensure that customers have<br />
the means to meet the latest market requirements<br />
• Full flexibility, with totally customizable pricing<br />
models, scenarios and instruments<br />
• Streamlined operations and reduced costs<br />
through automated transaction processing<br />
from front to back office<br />
• dedicated implementation team with a renowned<br />
global deployment record to help to maximise<br />
the return on investment, quickly and efficiently<br />
• Cutting-edge financial research and engineering<br />
incorporated, drawn from more than 20 years’<br />
experience in capital markets.<br />
2 <strong>Brochure</strong><br />
Used by one third of the world’s<br />
top 25 banks, <strong>Sophis</strong> <strong>RISQUE</strong><br />
handles OTC derivatives with<br />
ease, incorporating sophisticated<br />
features for data management,<br />
pricing, hedging, portfolio<br />
management and risk analysis.
<strong>Sophis</strong> <strong>RISQUE</strong> – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets<br />
Unrivalled portfolio management and decision support<br />
Front Office<br />
Across all asset classes (equities, credit, interest<br />
rates, fixed income, inflation, foreign exchange,<br />
commodities and hybrids), <strong>Sophis</strong> RiSQUE delivers<br />
the p&l consolidation, pricing models and hedging<br />
tool capability the trader needs to keep one step<br />
ahead of the market.<br />
indeed, <strong>Sophis</strong> RiSQUE allows the portfolio to<br />
be analysed from as many angles as the trader<br />
chooses – as if holding it in their own hands.<br />
From the most vanilla of flow business to the<br />
most advanced reaches of the otC market,<br />
<strong>Sophis</strong> RiSQUE frees the trader from operational<br />
concerns to focus on innovation.<br />
ASCOT<br />
credit<br />
CPPI<br />
swaps<br />
Basket<br />
CPPI<br />
CFD<br />
Bonds<br />
Callable<br />
Structured swaptions<br />
CDS<br />
swaps<br />
<strong>Sophis</strong> RiSQUE instrument coverage<br />
Asset<br />
swaps<br />
CBs<br />
Credit<br />
bonds<br />
Equity<br />
Stocks &<br />
ABS<br />
futures<br />
Funds Indexes<br />
Corporate<br />
Stock<br />
Bank<br />
loans<br />
Hybrids<br />
• Real-time: position monitoring, p&l calculation<br />
with marked-to-market and theoretical prices.<br />
• User friendly: highly flexible and user-friendly<br />
hierarchical portfolio and gUi, full Excel link<br />
(copy paste and .CoM bus).<br />
• User adaptable: user-chosen view, parameter<br />
and data sets.<br />
• Flexible: unlimited model and instrument<br />
customisation with <strong>Sophis</strong> toolkit, instrument<br />
modelling with award-winning Structure Builder.<br />
Structured payoff & basket options<br />
loans<br />
Bond<br />
futures<br />
Variance<br />
swaps<br />
Equities<br />
Fixed income<br />
Inflation<br />
Vanilla options<br />
VIX<br />
Government<br />
bonds<br />
Inflation<br />
swaps<br />
Inflation<br />
options<br />
Future<br />
Commodities<br />
<strong>Sophis</strong><br />
<strong>RISQUE</strong><br />
Money<br />
IR futures<br />
Commodity swaps<br />
Interest rates<br />
markets<br />
Indexes<br />
Currencies<br />
Repos<br />
FRA<br />
FX spots & futures CMS<br />
IR swaps<br />
FX swaps<br />
Basis swaps<br />
Cap/Floors Swaptions<br />
<strong>Brochure</strong><br />
3
<strong>Sophis</strong> <strong>RISQUE</strong> – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets<br />
<strong>Sophis</strong> RiSQUE integrates market, counterparty and<br />
operational risk management within the same platform<br />
Risk Management<br />
Market risk<br />
<strong>Sophis</strong> RiSQUE offers the most advanced<br />
integrated risk control tools:<br />
• Model calibration<br />
• Real-time calculation and consolidation<br />
of risk indicators<br />
• Full range of standard and customisable<br />
simulations and risk scenarios<br />
• historical, Monte Carlo and parametric<br />
VaR calculation<br />
• Compliance management<br />
Counterparty risk<br />
<strong>Sophis</strong> RiSQUE Collateral Management module<br />
determines the credit risk exposure for any<br />
instrument and offers accurate management<br />
of all collateral positions and margin calls.<br />
<strong>Sophis</strong> RiSQUE is compatible with most BASEl ii<br />
and MiFid standard rules.<br />
Real-time exposure report by risk factor<br />
4 <strong>Brochure</strong><br />
Operational risk<br />
<strong>Sophis</strong> RiSQUE integrates a flexible, rules-based<br />
workflow that fits any internal validation process and<br />
provides a highly secure platform, with full reporting<br />
facilities, defined user rights and audit trail.<br />
Reporting<br />
An integrated tool allows the generation of standard<br />
reports. Users can also rapidly create and customise<br />
additional user-defined Crystal Report templates.
<strong>Sophis</strong> <strong>RISQUE</strong> – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets<br />
Streamlines operations and reduces costs with automatic<br />
Stp transaction processing front-to-back<br />
Operations<br />
Data management<br />
• <strong>Sophis</strong> RiSQUE is based on a single database.<br />
this means that all its current functionality is<br />
linked to the same data warehouse, integrated<br />
front-to-back and across all assets.<br />
• it offers a comprehensive solution for automatically<br />
updating security and data masters from external<br />
data sources with all the types of static and market<br />
data that define financial instruments.<br />
• <strong>Sophis</strong> RiSQUE gives the possibility to verify the<br />
accuracy of market data and its computation for<br />
instrument pricing, p&l, end of day procedure<br />
and risk scenarios, thanks to the delivery of highly<br />
reliable indicators and reports.<br />
• Multi site capability ensures business continuity<br />
managing 24/5 updates, multiple business time<br />
zones and currencies as well as multiple local or<br />
global business lines.<br />
<strong>Sophis</strong> RiSQUE full Stp transaction chain<br />
Back office<br />
• Secured workflow: Automatic management<br />
of statuses and events, all fully customisable<br />
as required in <strong>Sophis</strong> RiSQUE, throughout<br />
the full lifecycle of all trades from the front<br />
office to the back office.<br />
• Confirmations and payments: generation of<br />
template-based validation and notification<br />
messages to multiple third parties (depositaries,<br />
brokers, clearing agents and all other parties).<br />
• Settlement instructions: generation of all<br />
settlement messages with generic and<br />
user-tailored gUis.<br />
• Accounting: Straight through processing<br />
integration of accounting entries in the general<br />
ledger, marked-to-market revaluations and<br />
corporate actions management.<br />
• nostro Management: designed to undertake real<br />
management of cash accounts on a daily or weekly<br />
basis, or at the end of any period users specify.<br />
<strong>Brochure</strong><br />
5
<strong>Sophis</strong> <strong>RISQUE</strong> – Cross-Asset Front-to-Back Trading & Risk Management for Capital Markets<br />
<strong>Sophis</strong> RiSQUE offers adaptability as standard<br />
Technology<br />
Customisation<br />
Because all institutions have different goals,<br />
structures and priorities, <strong>Sophis</strong> RiSQUE can be<br />
tailored to fit seamlessly into any environment.<br />
• C++ & .net toolkit allows unlimited modification of<br />
the application through access to all its functional<br />
libraries including those for calculation, database<br />
and instruments. this allows our clients to integrate<br />
their own pricing models, independently meet<br />
new market practices, trade new instruments,<br />
etc. as they wish.<br />
<strong>Sophis</strong><br />
<strong>RISQUE</strong><br />
Developer station<br />
Enrichment &<br />
customisation<br />
(pricer, instrument,<br />
scenario, etc.)<br />
Standard reports<br />
<strong>Sophis</strong> CB<br />
Data providers<br />
External<br />
systems<br />
Basic architecture<br />
<strong>Sophis</strong> users<br />
Core servers<br />
Core services<br />
Real time<br />
Data<br />
<strong>Sophis</strong> RiSQUE service oriented architecture<br />
Citrix ®<br />
servers<br />
<strong>Sophis</strong> Middleware /<br />
ORACLE<br />
database<br />
Scalability and openness<br />
• <strong>Sophis</strong> RiSQUE Api (Application program<br />
interface) allows the client to build strong<br />
connections to external applications. <strong>Sophis</strong><br />
RiSQUE functionality is accessible through either<br />
<strong>Sophis</strong> proprietary format, XMl messages or<br />
.CoM port. in addition, new services can be built<br />
on the <strong>Sophis</strong> RiSQUE Api, complementing its<br />
service oriented architecture (SoA) with specific<br />
functionality as required.<br />
Business &<br />
performance<br />
Risk management<br />
Performance<br />
Back Oce<br />
<strong>Sophis</strong> SOA<br />
Web Services<br />
Transaction,<br />
Instrument,<br />
Third party,<br />
Portfolio,<br />
Valuation & Risk<br />
<strong>Sophis</strong> Calculation Server /<br />
Grid computing farms<br />
External<br />
BO systems<br />
External<br />
FO systems<br />
Web portals<br />
<strong>Brochure</strong><br />
7
MISYS RECENT MARKET RECOGNITION<br />
NUMBER ONE TRADING SYSTEM<br />
TECHNOLOGY PROVIDER<br />
RISK TECHNOLOGY RANKINGS 2011<br />
number one overall trading System<br />
number one pricing and Analytics – Equity<br />
number one pricing and Analytics – infl ation<br />
NUMBER ONE RISK MANAGEMENT<br />
TECHNOLOGY PROVIDER<br />
ASIA RISK TECHNOLOGY RANKINGS 2011<br />
number one overall Risk Management<br />
number one trading System – Equities<br />
number one trading System – Foreign exchange<br />
number one trading System – interest rates<br />
number one derivatives pricing and risk analytics – Equities<br />
number one derivatives pricing and risk analytics – interest rates<br />
number one derivatives pricing and risk analytics – hybrids<br />
number one Support services – implementation effi ciency<br />
STRUCTURED PRODUCTS<br />
TECHNOLOGY RANKINGS 2011<br />
number one trading System – Equities<br />
number one trading System – interest rates<br />
number one pricing and Analytics – Equities<br />
ABOUT MISYS<br />
<strong>Misys</strong> is at the forefront of the fi nancial software<br />
industry, providing the broadest portfolio of<br />
banking, treasury, trading and risk solutions available<br />
on the market. With 1,800 customers in 120<br />
countries our team of domain experts and partners<br />
have an unparalleled ability to address industry<br />
requirements at both a global and local level.<br />
<strong>Misys</strong> and the <strong>Misys</strong> “globe” mark are trade marks of the <strong>Misys</strong> group<br />
companies. Copyright© 2012 <strong>Misys</strong>. All rights reserved.<br />
MS0053<br />
STRUCTURED PRODUCTS<br />
TECHNOLOGY RANKINGS 2012<br />
number one trading System – Credit<br />
number one trading System – Cross Asset<br />
number one trading System – Foreign Exchange<br />
number one trading System – Rates<br />
number one Risk Management – Collateral Management<br />
BEST TRADING PLATFORM BACK OFFICE<br />
ASIAN BANKER TECHNOLOGY AWARDS<br />
LEADING SINGLE TECHNOLOGY<br />
PLATFORM – PORTFOLIO, TRADING<br />
AND RISK MANAGEMENT<br />
HEDGE FUND JOURNAL AWARDS 2011<br />
BEST RISK MANAGEMENT INITIATIVE<br />
ASIA ASSET MANAGEMENT AWARDS<br />
<strong>Misys</strong> was formed by the merger of <strong>Misys</strong> with<br />
Turaz, which includes the award-winning Kondor+<br />
product line. Combined they are able to address<br />
all customer requirements across both the banking<br />
and trading book businesses. <strong>Misys</strong> is the trusted<br />
partner that fi nancial services organisations turn to<br />
for help solving their most complex problems.<br />
Find out more at www.misys.com