A barrage of regulatory initiatives is transforming the landscape in commodities and derivatives trading. New OTC regulations will demand changes to the way financial institutons clear and report trades, and manage collateral. At the same time, unprecedented pressure on operating costs is driving a renewed focus on costs and efficiency.
Banks, asset managers and other financial services institutions use OpenLink’s solutions for trading, risk management and operations processing.
With OpenLink you get one integrated solution for trade capture, valuation, compliance and limits monitoring, right through to position and risk reporting, collateral management, accounting, and cash management.
Because a single solution is used across Front and Back Offices, a correction on a deal will automatically generate a correcting accounting entry, eliminating much of the manual reconciliation work typically required in trading operations.
The data transparency delivered right along the trade lifecycle also allows users to click on an accounting entry, for example, and drill down into the underlying trade to quickly investigate issues when they do arise.
As a result, trade processes are streamlined and the business gets more timely and accurate information for decision making.
Our solution covers the full range of financial instruments, from simple investment securities and spot FX, to physical commodity contracts, through to highly complex derivatives. We can do this because we have a flexible model structure that supports virtually any type of transaction and contract.
With our real-time reporting tools, you can see your aggregated positions, risk and P&L across multiple commodities and financial instruments and then drill down to investigate areas of concern to the transaction level at the click of a mouse.
We are committed to staying at the forefront of regulatory reforms by working closely with regulators, clearing houses, service providers and trade data repositories to address regulatory challenges for our customers. For example, we have already delivered new capabilities including CFTC Position Limits Monitoring, Swap Data Repository Reporting and Clearing Workflows.
The OpenLink solution provides extensive stress testing functionality enabling you to model complex scenarios with a wide range of input factors. Our simulation engine provides a powerful and consistent application of risk factor shocks regardless of market. Risk can be attributed to hypothetical movements of any magnitude including rates, FX, equities, commodities and inflation.
Using OpenLink you get a better understanding of liquidity, credit and market risks under a wider range of circumstances.
The OpenLink enterprise credit solution extracts the relevant underlying data from multiple trading systems at the lowest level of granularity. The data is then held in an in-memory cube, which means you can query data and create reports or views in seconds.
This means you can start from a consolidated global view by counterparty and then drill all the way down to the individual trade legs if required. You have confidence that the data will be correct, and you no longer rely on spreadsheets and the people who understand them to produce the views and reports you need.
Further, with a view across the enterprise in one cube you can quickly do risk analysis using any factors in the system – for example, concentration risk by country, commodity or time period.
Our treasury management solution allows you to create a standard format for divisions and subsidiaries around the world to report their cash forecasts. With more configurability and flexibility you can set it up to work the way your business is structured, and to view and analyse the data however you want to.
So you can increase productivity, get more control and visibility across the organization and improve compliance. Finally, faster and more accurate reporting enables you to make decisions more quickly.
With OpenLink you can visually map business process workflows via point and click configuration and access any data (e.g. reference, trade/deals, accounting) captured by the system for that workflow. Once created business processes can be executed consistently and monitored in real-time for compliance.
The solution can check for compliance breaches in pre-process and post-process services. If there is a breach, an alert will be sent and/or the operation will be blocked. Once a pre-processing alert occurs, a separate workflow can be initiated to address the situation. As a result you can improve productivity, minimize errors and enforce polices.
Our solution uses an in-memory database for fast storage and retrieval of massive amounts of data. This ensures the OpenLink solution scales as transaction volumes grow and is able to deliver aggregated real-time position reporting for the largest trading operations.
With an enterprise-wide view of P&L available in real-time you can take swift action as market conditions change.
The OpenLink platform has been designed from the ground up to be open and extensible with APIs and client development environments enabling you to fully integrate in-house or 3rd party pricing models.
This eliminates the need to manually import and export data between 3rd party models and the trading platform reducing manual effort and eliminating errors.
Turning Reform into Competitive Advantage
As Europe embraces a new era of derivatives reform, market participants will have to maximize operational efficiencies to improve risk management, provide greater transparency to clients and counterparties, and to create smoother workflows.
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OpenLink representatives are available worldwide to guide you in finding the right solution for your business. Call one of regional offices today with your questions
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