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MasterFinance is a real-time
straight-through process portfolio management solution for treasury,
trading and selling, supporting risk management and ALM activities.
Its advanced portfolio analytics are used at both the desk and enterprise level for a consistent view of market and credit risk exposure right across a financial organisation. MasterFinance provides tools that streamline trading performance and support high volumes. |
| ALM service allows managing the typical financial instruments of the commercial area (e.g. Customer Loan and Deposit, Generic Loan (for Mortgage & Syndicated) as well as the trading and treasury instruments with a common market data scenario and operation methodologies. It supports structured analysis of interest rate risk, as well as «tactical balance sheet» and income statement forecasting. It takes into account all impacts (e.g. automatic elimination of matured positions and automatic roll over) between current and forward dates. It allows to model stress scenarios and to analyse their impact on the balance sheet. |
| VAR service allows superior analysis and management of risks through a common platform covering all major asset classes. It is able to calculate intraday Value-at-Risk figures and to provide daily back testing analysis. It provides to the management an aggregated measure of the company's overall exposure to market changes. In addition full drill-down capabilities are available to identify and attribute risks to their sources by business units, portfolios, positions and asset classes. |
| Credit risk service makes it easy to calculate counterpart, issuer and country exposure of your trading operations using add-on and mark-to-market values for potential exposure estimation. It has a flexible alarm limit function with warnings and alerts distributed in real time. It allows defining and monitoring a wide range of market limit structures and hierarchies. |
| Market risk service allows combined management of exchange rate, interest rate, price and volatility risks. Examples of functions include various sensitivity analysis, what-if analysis and extensive simulation capabilities. All management levels have access to the same analytical tools. This helps to close the gap between traders and high-level risk managers eliminating time-consuming reconciliation of risk figures. With a streamlined risk management operation spanning, all users have maximum control of their business. This service has a flexible alarm limit function of almost any calculated risk indicators with warnings and alerts distributed in real time. It allows defining and monitoring a wide range of market limit structures and hierarchies. |
| Front office service supports the full life cycle of trading activities around the clock. It includes pricing, simulation, deal entry, position keeping and risk analysis. Real time portfolio update is available to all users; this feature translates into instantaneous risk management each trade executed. Derivative instruments cannot be traded professionally without accurate pricing. You can simulate anything that affects pricing and consequently your risk exposure, such as market prices, exchange rates or yield curves. One immediately sees the changes to calculated values. Using a unique service, you can trade a variety of derivative instruments, while getting the consolidated risk with hedge recommendations in real time. All traders will benefit from an integrated position keeping, that aggregates views of all profit & loss and risks in real time and allows to include new columns, new values and new pricing algorithms. |
| Middle office service supports the full life cycle of derivatives through an homogeneous, flexible and automated process. The functional architecture is designed around a unique multi-instrument service that includes single and mass deals events (e.g. fixing, barrier knocking, exercises, expiries, stock splitting, confirmations, payments) and margin calculation for ET derivatives of major markets (e.g. CBOE, CBOT, CME, COMEX, EUREX, ICE, IDEM, LME, MEFF, NYBOT, NYMEX, NYSE EURONEXT, OCE, TSE). The trade information needs only to be entered once and is then shared by all services and user modules of the platform. User privileges control who is allowed to operate at the different stages of the deal’s life cycle. |
| Liquidity service allows to analyse the liquidity structure of the financial institution and to monitor its risk. It facilitates centralised cash positioning and liquidity management providing a global real time view of daily flows and balances available on different types of accounts. |
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Accounting service allows a multi-currency, company and instrument accounting. It generates accounting entries from any economic event, with a high degree of flexibility. Several standard accounting methods are available to cover hedging as well as trading strategies, following IAS 39 guidelines. Supported events cover hedge, mark-to-market, accruals, interest and dividend recognition, amortizing, off-balance sheet measurement and more. The profit & loss and cash flow engine offers highly granular details and homogeneity across instrument types. As an example, yearly, monthly and daily profit & loss, including cost of carry and realised/unrealised breakdown, can be produced at portfolio, position and instrument level and converted into any currency. Internal deals are available for accurate distribution of exposure and profit & loss across portfolios. A daily automatic reconciliation of profit & loss figures between trading and accounting statements eliminates time-consuming activities and discrepancies. |
| Data warehouse service is an essential tool to publish current and historical specialised data in formats readily available for client's specific reporting or interface building. The data can be triggered during the day or after the daily closing process through standard data base access protocols. Coverage includes profit & loss, cash flows, accounting, risk figures, trade information and static data. |
| Market interface service allows a real time automatic deal capture from all major trading platforms (e.g. Barklays BarCap, Bloomberg TDS, Reuters Deal Tracker & Dealing, ICAP EBS, UBS FX2B, e-MID, GFI FENICS FX, IDEM, IMI J-Trade, MTS, MTS/PCT, T360s TEX, Saxo WLP & ETC, Trading Technologies X_Trader PRO) and real time automatic market data feed from all major market information providers (e.g. Bloomberg B-PIPE & Data License, Reuters Triarch & DataScope, RiskMetrics, Prometeia). |
| Back office interface service allows an automatic transfer from and to the client's back office system of deals, reference and market data. For derivatives, it transfers daily and periodic events to General Ledger systems and specific information to Compliance, Hedging Accounting and Cost Accounting systems. It also interfaces Liquidity and Credit systems. |
| The risk manager can satisfy his needs across specific functions managing market and credit risks. He measures portfolio sensitivities in many different dimensions and different aggregated levels, with independent risk control. Aggregated risk and profit & loss can be viewed on an intraday basis or for any arbitrary time period. Risk limits can be set in real time. If a trade is made or simulated its nature is instantly visible, as well as whether the trade has broken or will break the risk limit. |
| The treasury manager can satisfy his needs through a platform designed to support transaction processing of forex, money market, interest rate derivative and bond instruments. Through the impact of financial instruments of trading and commercial areas and through a sophisticated internal transfer price procedure, the treasurer has a global view of all financial flows and manages the liquidity and interest rate risk of the entire financial institution as a real profit centre. |
The forex & commodity trader, acting
as market maker or selling manager on foreign exchange and commodity markets,
will benefit from a comprehensive system that supports trading of all
major traditional and derivative instruments, such as:
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| The interest rate trader, acting as market maker or selling manager,
will benefit from a comprehensive system that supports trading of all major traditional
and derivative instruments, such as: Money market:
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The credit derivatives trader, acting
as proprietary trader or selling manager, will benefit from state of the
art analytics, presented in a simple and clear manner that support trading
of all major traditional and derivative instruments, such as:
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| The bond & equity trader, acting
as proprietary trader or selling manager, will benefit from state of the art
analytics, presented in a simple and clear manner that support trading
of all major traditional and derivative instruments, such as: Bond:
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| The back office operator will benefit from an exception-based logic for maximum automation to support high volume financial instruments, through features (e.g. split deals, split positions, automatic internal deals), links to standard electronic trading and event-driven straight-through processing. The system's kernel is able to adapt to multi-entity, branch, desk, currency and profit centre organisations and implements the highest audit levels and standards of security access. New financial instruments need only to be entered once in the platform eliminating the common time lag caused by entering instruments in multiple systems and ensuring that operation risks are not being ignored in the meantime. |
| The system administrator will appreciate MasterFinance's breadth and depth administration and system management tools. An automatic, robust and parametric closing procedure allows moving portfolios forward and interfacing with other systems. Sophisticated on-line monitors allow the administrator to control and manage all processes in the system. |
