Large Regional Asian Bank
The client had been using a known vendor for collateral management for several years for its operational workflows. In light of BCBS-IOSCO Margining Reform, it wanted to assess the feasibility of moving towards a front office collateral model but with additional inventory aggregation and optimisation capabilities.
Description of Engagement:
Deriv Asia-InteDelta was engaged by the to develop a future state architecture for a front office collateral model as well as an Enterprise operating model where inventory aggregation could be performed along with optimisation of their collateral.
This required a change in the target operating model and a move from a Silo’d model towards an Enterprise Model where collateral & inventory is controlled centrally by a newly created front office unit. Deriv Asia-InteDelta along with creating the TOM also installed a Transfer Pricing Methodology for the business units in front office. Additionally, Deriv Asia-InteDelta did a vendor due diligence on both the back office collateral system and for the front office optimisation engine.