Societe Generale Corporate & Investment Banking (SG CIB) has signed a deal with Message Automation (MA) to support the collection and harmonisation of SG CIB’s group wide CCP, exchange and broker data.
This is a global relationship and the first phase of the implementation is scheduled to go live in December 2016.
Philippe De Brossard, head of fixed income clearing solutions at SG CIB, says. "Monitoring and reporting of CCP exposures, is by nature a very complex process, particularly when having to collate and consolidate multiple information sources from a variety of subsidiary companies and over 80 external relationships. Our project objective is to streamline and simplify the entire process and we are working with the MA team to satisfy two very specific initial requirements. The first being the desire to fully automate our complete exposure reporting capabilities, to reduce our overall operational risk exposure by dramatically reducing manual tasks. Our second is to create a centralised database to improve data quality. Consolidating the many diverse formats into a single harmonised data store will provide our internal consumers with immediate access to the information that they need in a consistent way, regardless of source, be it a CCP, exchange or clearing broker.
"We have an ambitious implementation plan and speed to market was a key factor in our overall decision making process. Before partnering with MA, we looked at various options including building everything in-house. However, after very careful evaluation of all the possibilities, we decided to engage the services of an external partner to support this high profile project. Improved regulatory reporting was also a very important consideration and in particular providing regulatory information to satisfy BIS and ECB requirements on CCP exposures. MA were able to demonstrate a proven track record of delivery for both these essential requirements."
Apart from their overall simplification and automation goals, other major requirements for the bank include increasing productivity by improving the overall user experience on CCP Exposure monitoring, enabling faster access to relevant detailed information and delivering enhanced business intelligence capabilities by using shared integration and dashboard monitoring functions.
Hugh Daly (pictured), CEO at Message Automation, says. "The relationship with SG CIB is very significant for our business and we are delighted to have been selected to support this new endeavour. As the number of cleared trades grows with mandatory OTC clearing regulations, it is becoming even more complex and expensive for banks to manage these functions effectively in house. Working in close partnership with our clients we have already significantly increased the number of CCPs, exchanges and clearing brokers our solution extracts data from as well as extending the range of data being received from each. These enhanced capabilities makes our offering even more beneficial to multiple areas of the bank including collateral management, operations, risk, house and client clearing, reconciliations, treasury and liquidity management."