Capital Markets

the way we do it

Capgemini Capital Markets

Delivering the Global Edge for Demanding Clients

More than two years after the collapse of Lehman Brothers sparked the credit crisis, capital markets continue to experience both highs and lows. But with an IT priority list dominated by compliance projects, firms will be challenged to balance regulatory demands with business goals. In order to achieve both, CIOs will turn to a number of emerging and maturing technologies.
Wall Street & Technology, December 2010

In the period after the recent financial crisis, capital markets firms face the twin challenge of driving innovation and growth while simultaneously meeting new regulatory requirements. Achieving growth in response to pentup client demand requires continuous innovation in financial products and ever-higher client service levels; while regulatory compliance demands changes to operations and reporting, coupled with high level of transparency to understand the impact on financial performance and risk. Capgeminis Capital Markets consulting group focuses on these issues holistically and, in collaboration with our industry alliances, offers our clients solutions that support sustainable growth while providing transparency.

Market Focus We have deep industry experience, demonstrated globally through engagements with demanding, complex delivery. Our industry focus is primarily on Trade Life Cycle Management, Wealth Management, Asset Management, and Risk & Compliance, with a core competency in Data Management underlying all four areas.

Trade Life Cycle Management

Trade lifecycle management is changing swiftly and dramatically. Products and trading strategies continue to evolve, as do regulations, and mandates to use clearing central counterparties (CCPs) and swap execution facilities (SEFs) require changes in business process and operations including collateral management, reconciliations, risk, and reporting along with updating or replacing the supporting technologies. Capgemini brings operational experience in all aspects of trade life cycle management from execution onward, including order management, position management, collateral management, reconciliations, clearing & settlement, corporate actions, and reference data. In combination with our deep technology expertise, we can organize and manage an integrated program to coordinate and help execute the multiple dimensions of these changes. Our solutions in this space are complemented by our Centers of Excellence with offerings from our vendor alliances especially Calypso, Murex, and Asset Control.

Capital Markets

the way we do it

Experience & Solutions Capgemini has rich experience in building bespoke post-trade solutions for fixed income, equities, derivatives (FX, IR and Credit), and treasury functions. Our related Center Of Excellence also offers: Complete FIX Protocol Testing Accelerator solution for Equities, Fixed Income, Futures, options and Forex SWIFT Testing Solution for Securities (MT 5XX) and Payments (MX-pain, pacs, camt, acmt) Calypso Test Accelerator: a packaged pre-built solution for endto-end Calypso implementations that provides a complete solution with industrys best quality assurance practices and technology for front-, middle-, and back-office systems integration Order Management System (OMS) Test Accelerators: comprehensive coverage of various security types such as NMS, NNMS, Bulletin Board, and Pink Sheet and all order types with various order capacities, special settlement conditions and market data across price tiers, spreads and market upticks / downticks.

Calypso Service Offerings

Offer Description I want a service provider to give me a.. Delivery methodology and implementation services consisting of:

1. Implementation: Configuration, Integration, Validation

Implementation specific to FrontOffice/Middle-Office/ Back-Office across asset classes

Methodology, Default configuration values with exceptions captured Architecture for interfacing Calypso with legacy systems Verification process, scenarios, test cases

Accelerator: 1. FX, FI, IRD, MM Pre-configured database

2. Version upgrade

Upgrade from 8.x to 9.x / 10.x

Approach and Migration process and services:

Migration strategy and plan for data migration Dry run plan and analysis Automated reconciliation process Process for parallel run after upgrade

Accelerator: 1. Data Loader for migration (XLS, CSV, XML), version upgrade (Calypso ML based) 2. Validation & Build Automation Framework

3. Application Support

Onsite / Offshore support

Level 1, Level 2, Level 3 Support:

AMS methodology, tools Service Level Agreement and dashboard Transition Framework Knowledge Transfer Approach

Accelerator: Capgemini AMS Framework

Capgemini Capital Markets

Wealth Management
Wealth management firms face simultaneous challenges in improving the client and advisor experience across a broad range of wealth bands, each of which has its particular requirements and challenges.
Experience & Solutions Capgemini helps wealth managers innovate and grow by delivering an improved client and advisor experience. Our solutions apply to firms serving mass-affluent to ultra-high net worth clients. We specialize in driving an improved advisor experience by optimizing existing platform investments or helping firms to implement next-generation solutions for an integrated advisor where we can help drive up to 30 percent productivity gains. Key areas of workflow optimization include: streamlining client on-boarding, optimizing the client relationship review process, and integrated portfolio and risk management solutions. Capgeminis client experience focuses on unified client reporting across assets and liabilities, and on delivering a consistent multi-channel service experience across on-line, advisor and specialist collaboration, and integrating social media technologies. Capgemini is a strategic implementation partner for Temenos for their Wealth Manager and T24 solutions. Investment Advisory & Advisor Workstation: Improved competitive position to retain existing clients and attract new business Meeting sponsors needs for enhanced online capabilities to enable participant readiness for retirement Important component in overall client satisfaction and service In-depth insights into leading practices for retirement services on-line channels Recommendation for key capability investments required to retain existing clients and gain market share Business Value Full view of client and relationship holdings with firm to better understand client needs and cross sell opportunities Increase advisor productivity by 25 to 30 percent, using time to drive new sales, client evaluations, and increased client focus Important component in overall client satisfaction and service Provide firm consistency and compliance in reporting to clients

Capgemini Differentiators Competitive benchmarking Database of competitive offerings Functional and operational requirements Vendor evaluations for full and point solutions Client Experience Reporting Self serve access for client to supplement advisor interaction Improved advisor productivity and efficiency, and service to clients Reduced servicing costs

Business Value Extends Wealth Manager Advisors ability to acquire new clients, and improved productivity to service existing clients Advisors with desktop tools have 34 percent higher Assets Under Management than those without Streamlined cost and management of multiple systems and platforms

Capgemini Differentiators Competitive benchmark of over 30 Wealth Manager firms In depth knowledge of advisor needs and priorities by Wealth Manager practice orientation Vendor assessment and best of breed knowledge of Wealth Manager applications

Asset Management
Emerging from the downturn, asset managers are eager to focus on forwardlooking initiatives, including re-tooling the investment management process and developing new businesses to catch the next wave of growth. With investors decidedly shifting away from products and toward relationships, one area of innovation is new types of realtime predictive analytics solutions to help build stronger ties with clients.
Experience & Solutions Capgemini has deep domain experience in asset management. We have implemented fund accounting solutions for a wide array of investment vehicles and fund structures, as well as integrated Web portals for accounting, custody, compliance, and performance measurement. Our consulting experience and solutions cover comprehensive portfolio accounting and Net Asset Value (NAV) reporting. Our team has in-depth understanding of tax-lot-level portfolio accounting and NAV calculations, for both multiclass and master-feeder accounting structures. Our Centers of Excellence complement these solutions with in offerings from our vendor alliances, including InvestOne And Eagle PACE/STAR. Capgemini also has deep equity research experience that covers all aspects of research support including analytics, market data sourcing and model generation. Business Value Analytics: Revenue Forecast models support across fund models. Building common methodology and framework across all funds, supporting multi-year forecasts with better insights into the project fund performance. Asset Management: Capture asset management and financing data across real estate product lines to include information Assets, Investments, Funds, Loans and Investors. Framework for comprehensive performance and financing reports for all assets. Fund Accounting: Deep experience in re-engineering fund accounting systems from legacy to commercial products including Invest One/ Eagle. This includes migrating dependent applications, upstream and downstream data dependencies and moving thousands of funds and fund families with full business reconciliation. Capgemini Differentiators Deep migration experience, with templates, framework and accelerators for business reconciliations Business domain experience in asset management and fund accounting Very rich Center Of Excellence in commercial Asset management products and Data Management

Capgemini Capital Markets

Risk & Compliance

For most large Financial Institutions, developing an enterprise risk management capability is a regulatory imperativewhether driven by Basel II, new Basel III guidance, or Basel IA requirements in development. However, the most successful institutions are also realizing the competitive advantages of aggregating risk information and developing risk models that promote a true risk vs. return approach: More profitable and effective pricing More efficient capital allocation More active management of the loan portfolio Cost savings through the retirement of isolated databases and manual processes Reduced dependency and reliance on legacy systems and individual contributors

Capgeminis Sigma Map The Capgemini Sigma Map framework represents our significant experience in risk measures, risk models, risk reporting, risk technology infrastructure and risk literacy and organization: Map risk types to balance sheet Operationalize of Sigma Map Measure maturity of risk management

Balance Sheet Assets

Loans & Leases Securities

Credit Risk

Market Risk

Operational Risk

Contagion Risk

Liquidity Risk

Reputation Risk

Deposits

Liabilities

Government Funds & Repositories

Borrowings Subordinate Notes

Equity

Equity is affected by all types of risks which would in turn affect your assets and liabilities

Enterprise risk management has always been inherently difficult, as no single database typically houses all risk-related data. Many institutions spend hundreds of hours manually synthesizing data from reports, file extracts, spreadsheets and other sourcestime better spent actually doing risk analysis. Risk Management Experience Capgemini, in conjunction with industry alliances, has developed Sigma Map Enterprise Risk Framework for institutions looking to proactively manage risk across the enterprise. Our solution is a comprehensive set of templates, tools and models that address common risk challenges and help firms both reduce the costs and speed the implementation of a risk monitoring and reporting solution.

Risk Management Solutions Risk Measurement Credit Risk: Economic Capital Market Risk Integrating Market and Credit Risk Operational Risk Vendor Model Evaluation Contagion Risk Stress Testing Risk Modeling Scorecards Risk-Adjusted Return On Capital (RAROC) Model Validation

Regulatory 5 4 Reports 3 2 1 0 Organization

Infrastructure

Models

Measures

Infrastructure & Technology Our Solutions Risk Architecture Data Model Data Quality

Regulatory & Compliance Basel II OATS (Order Audit Trail System) / Reg NMS (Regulation National Market System) Dodd-Frank Exchange Reporting

Data Management
Data Management is at the heart of achieving transparency into any firms performance, risk exposure and regulatory compliance, more so for capital markets due to the complexity of the financial instruments involved.
Experience & Solutions Capgemini has deep industry expertise in Business Information Management. Our expertise and experience of enabling the following in our client organizations: Information Discovery Semantic Model What information is available & what does it mean? Information Reliability Certification Is It trustworthy? Information Traceability Lineage Where did it come from? Information Management Governance Who owns it and is accountable for it? Information Accountability Stewardship Who can change it? Information Value Information as a corporate asset How does the business derive value from it?

Solving for these, Capgemini has executed large and complex data management engagements: point solutions for market data quality using Asset Control; an enterprise-wide single version of truth for all reference data across all asset classes; data-driven engagements in the domain of risk and finance, reporting trade-desk P&Ls and reconciliation across various asset class; building central data warehouse & marts to enable regulatory compliance & reporting; supporting customer master data management to enable performance and analytics. Capgemini has a rich set of solutions, accelerators and Intellectual Property to help jump-start almost all engagements, including Governance, Organization and Workflow Models to operationalize data management across large organizations.

Center Of Excellence Capgeminis Center of Excellence in Data Management integrates in a multi-shore model capabilities in analytics, data modeling, data quality, governance, and warehousing. Our CoE team leverages leading-edge intellectual property comprising:

Methodology Frameworks Requirements & business templates Data/Mart models Reports/Dashboards Sources Acquire

Data Management Operations

Reconcile

Enrich

Distribute

Vendors Proprietary sources Transform: translate into canonical data formats, normalize Examine: parse and query

Internally standardized or canonical data Organize and restructure by category Reconcile based on rules to identify breaks or exceptions Notify counterparties & stakeholders of exceptions Exception rates by source and types

Standardized data

Enriched standardized data Translate content into external formats (e.g., client copy) Distribute through multiple channels and protocols

Data Management Functions Data quality: Understand and consistently define data quality and associated business rules, escalation processes, and quantification. Data Governance and stewardship: Understand and define business ownership of data with stewardship for execution with technology. Data management organization: formalize the data management organization to enable data management at the enterprise level. Meta-data management: Define meta-data required to enable data management.

Key functions

Check for completeness and fill gaps where appropriate Enrich semantic content based on known data relationships Update internal stakeholders Completeness statistics

Metrics

Data quality: completeness, consistency, match to standards Vendor services quality: servicelevel agreements

Delivery service levels: consistency and timing by type and channel Delivery content: data size, mix or composition

Capgemini Capital Markets

www.capgemini.com/financialservices

About Capgemini and the Collaborative Business Experience

Capgemini, one of the worlds foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Present in 40 countries, Capgemini reported 2010 global revenues of EUR 8.7 billion and employs around 110,000 people worldwide. Capgeminis Global Financial Services Business Unit brings deep industry experience, innovative service offerings and next generation global delivery to serve the financial services industry.

Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the With a network of 17,000 professionals About Capgemini servingthe 900 clients worldwide, and over Collaborative Business Experience. Collaborative Business Experience leading banks, Capgemini collaborates with The Group relies on its global delivery insurers and capital market companies to model called Rightshore , which aims to Present business and IT solutions and thought Capgemini, one of the deliver in 40 countries, Capgemini reported get the right balance of the best talent 2010 global revenues of tangible value. and worlds foremost providers leadership which create EUR 8.7 billion from multiple locations, working as one of consulting, technology and outsourcing employs around 110,000 people worldwide. team to create and deliver the optimum For more information please visit services, enables its clients to transform Capgeminis Global Financial Services www.capgemini.com/financialservices solution for clients. and perform through technologies. Business Unit brings deep industry experience, innovative service offerings and Capgemini provides its clients with next insights and capabilities that boost theirreserved. generation global delivery to serve the Copyright 2011 Capgemini. All rights financial services industry. freedom to achieve superior results Visit www.capgemini.com/capitalmarkets through a unique way of working, the With a network of 17,000 professionals toCollaborative Business Experience. learn more about our solutions. serving over 900 clients worldwide, Capgemini collaborates with leading banks, The Group relies on its global delivery insurers and capital market companies to Contact called Rightshoresending an e-mail to model us directly by , which aims to deliver business and IT solutions and thought capitalmarkets@capgemini.com get the right balance of the best talent leadership which create tangible value. from multiple locations, working as one team to create and deliver the optimum solution for clients. For more information please visit
www.capgemini.com/financialservices

Copyright 2011 Capgemini. All rights reserved.