capgemini capital markets

8/6/2019 Capgemini Capital Markets

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Capital Markets the way we do it

In the period after the recent financialcrisis, capital markets firms face thetwin challenge of driving innovationand growth while simultaneouslymeeting new regulatory requirements.

Achieving growth in response to pent-up client demand requires continuousinnovation in financial products andever-higher client service levels; whileregulatory compliance demands changesto operations and reporting, coupledwith high level oftransparency tounderstand the impact on financial

performance and risk.

Capgeminis Capital Markets consultinggroup focuses on these issues holisticallyand, in collaboration with our industryalliances, offers our clients solutionsthat support sustainable growth whileproviding transparency.

Market Focus

We have deep industry experience,demonstrated globally throughengagements with demanding,complex delivery. Our industry focus

is primarily on Trade Life CycleManagement, Wealth Management,Asset Management, andRisk &Compliance, with a core competencyin Data Management underlying allfour areas.

Capgemini Capital MarketsDelivering the Global Edge for Demanding Clients

More than two years afterthe collapse of LehmanBrothers sparked the credit

crisis, capital markets

continue to experience bothhighs 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


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Trade lifecycle management ischanging swiftly and dramatically.Products and trading strategiescontinue to evolve, as do regulations,and mandates to use clearing centralcounterparties (CCPs) and swapexecution facilities (SEFs) requirechanges in business process andoperations including collateralmanagement, reconciliations, risk, andreporting along with updating orreplacing the supporting technologies.

Capgemini brings operationalexperience in all aspects of trade lifecycle management from executiononward, including order management,

position management, collateralmanagement, reconciliations, clearing& settlement, corporate actions, andreference data.

In combination with our deeptechnology expertise, we can organizeand manage an integrated programto coordinate and help executethe multiple dimensions of thesechanges. Our solutions in this spaceare complemented by our Centers ofExcellence with offerings from ourvendor alliances especially Calypso,Murex, and Asset Control.

Trade Life Cycle Management


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Capital Markets the way we do it

Capgemini Capital Markets

Experience & Solutions

Capgemini has rich experience inbuilding bespoke post-trade solutionsfor fixed income, equities, derivatives(FX, IR and Credit), and treasuryfunctions. Our related Center OfExcellence also offers:

Complete FIX Protocol TestingAccelerator solution for Equities,

Fixed Income, Futures, optionsand Forex

SWIFT Testing Solution forSecurities (MT 5XX) and Payments(MX-pain, pacs, camt, acmt)

Calypso Test Accelerator: apackaged pre-built solution for end-to-end Calypso implementations thatprovides a complete solution withindustrys best quality assurancepractices and technology for front-,middle-, and back-office systems

integrationOrder Management System (OMS)

Test Accelerators: comprehensivecoverage of various security typessuch as NMS, NNMS, Bulletin Board,and Pink Sheet and all order typeswith various order capacities, specialsettlement conditions and market

data across price tiers, spreadsand market upticks /

downticks.

Offer Description I want a service provider to

give me a..

1. Implementation:

Configuration,

Integration,

Validation

Implementation

specific to Front-

Office/Middle-Office/

Back-Office across

asset classes

Delivery methodology and

implementation services

consisting of:

Methodology,

Default configuration values with

exceptions captured

Architecture for interfacing

Calypso with legacy systems

Verification process, scenarios,

test cases

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

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:

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

Accelerator:

Capgemini AMS Framework

Accelerator:

1. Data Loader for migration (XLS, CSV,XML), version upgrade (Calypso ML based)

2. Validation & Build Automation Framework

Calypso Service Offerings


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Capgemini helps wealth managers innovate and grow by delivering an improvedclient and advisor experience. Our solutions apply to firms serving mass-affluentto ultra-high net worth clients. We specialize in driving an improved advisorexperience by optimizing existing platform investments or helping firms toimplement next-generation solutions for an integrated advisor where we can helpdrive up to 30 percent productivity gains. Key areas of workflow optimizationinclude: streamlining client on-boarding, optimizing the client relationship reviewprocess, and integrated portfolio and risk management solutions.

Capgeminis client experience focuses on unified client reporting across assetsand liabilities, and on delivering a consistent multi-channel service experienceacross on-line, advisor and specialist collaboration, and integrating social mediatechnologies. Capgemini is a strategic implementation partner for Temenos for their

Wealth Manager and T24 solutions.

Wealth management

firms face simultaneous

challenges in improving

the client and advisor

experience across a

broad range of wealth

bands, each of whichhas its particular

requirements and

challenges.

Wealth Management

Investment Advisory & Advisor

Workstation: Improved competitive position to

retain existing clients and attract newbusiness

Meeting sponsors needs forenhanced online capabilities to enableparticipant readiness for retirement

Important component in overallclient satisfaction and service

In-depth insights into leadingpractices for retirement serviceson-line channels

Recommendation for key capabilityinvestments required to retainexisting clients and gain market share

Business Value Full view of client and relationship

holdings with firm to betterunderstand client needs and cross sellopportunities

Increase advisor productivity by 25to 30 percent, using time to drivenew sales, client evaluations, andincreased client focus

Important component in overallclient satisfaction and service

Provide firm consistency andcompliance 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 andefficiency, 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 Managementthan those without

Streamlined cost and managementof multiple systems and platforms

Capgemini Differentiators Competitive benchmark of over 30Wealth Manager firms

In depth knowledge of advisor needs and

priorities by Wealth Manager practiceorientation

Vendor assessment and best ofbreed knowledge of Wealth Managerapplications


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Capgemini has deep domain experience in asset management. We haveimplemented fund accounting solutions for a wide array of investment vehiclesand fund structures, as well as integrated Web portals for accounting, custody,compliance, and performance measurement. Our consulting experience andsolutions cover comprehensive portfolio accounting and Net Asset Value (NAV)reporting. Our team has in-depth understanding of tax-lot-level portfolio accountingand NAV calculations, for both multiclass and master-feeder accounting structures.

Our Centers of Excellence complement these solutions with in offerings from ourvendor alliances, including InvestOne And Eagle PACE/STAR.

Capgemini also has deep equity research experience that covers all aspects ofresearch support including analytics, market data sourcing and model generation.

Business ValueAnalytics: Revenue Forecast modelssupport across fund models. Buildingcommon methodology and frameworkacross all funds, supporting multi-yearforecasts with better insights into theproject fund performance.

Asset Management: Capture assetmanagement and financing data acrossreal estate product lines to includeinformation Assets, Investments,Funds, Loans and Investors.Framework for comprehensiveperformance and financing reports forall assets.

Fund Accounting: Deep experiencein re-engineering fund accounting

systems from legacy to commercialproducts including Invest One/Eagle. This includes migratingdependent applications, upstreamand downstream data dependenciesand moving thousands of fundsand fund families with full businessreconciliation.

Capgemini Differentiators Deep migration experience,

with templates, frameworkand accelerators for businessreconciliations

Business domain experience in assetmanagement and fund accounting

Very rich Center Of Excellencein commercial Asset managementproducts and DataManagement

Emerging from the

downturn, asset

managers are eager

to focus on forward-

looking initiatives,

including re-tooling the

investment managementprocess 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 ofreal-

time predictive analytics

solutions to help build

stronger ties with

clients.

Asset Management


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For most large Financial Institutions,developing an enterprise riskmanagement capability is a regulatoryimperativewhether driven by BaselII, new Basel III guidance, or BaselIA requirements in development.However, the most successfulinstitutions are also realizing thecompetitive advantages of aggregatingrisk information and developing riskmodels that promote a true risk vs.return approach:

More profitable and effective pricing

More efficient capital allocation

More active management of the loanportfolio

Cost savings through the retirementof isolated databases and manualprocesses

Reduced dependency and relianceon legacy systems and individualcontributors

Enterprise risk management hasalways been inherently difficult, asno single database typically houses allrisk-related data. Many institutionsspend hundreds of hours manuallysynthesizing data from reports, fileextracts, spreadsheets and othersourcestime better spent actuallydoing risk analysis.

Risk Management ExperienceCapgemini, in conjunction withindustry alliances, has developed SigmaMap Enterprise Risk Frameworkfor institutions looking to proactivelymanage risk across the enterprise.Our solution is a comprehensive setof templates, tools and models thataddress common risk challenges andhelp firms both reduce the costs andspeed the implementation of a riskmonitoring and reporting solution.

Capgeminis Sigma Map

The Capgemini Sigma Map framework represents our significant experience inrisk measures, risk models, risk reporting, risk technology infrastructure and riskliteracy and organization:

Map risk types to balance sheet

Operationalize of Sigma Map

Measure maturity of risk management

Risk & Compliance

Risk Management Solutions

Risk Measurement Credit Risk: Economic Capital

Market Risk

Integrating Market andCredit Risk

Operational Risk

Vendor Model Evaluation Contagion Risk

Stress Testing

Risk Modeling Scorecards

Risk-Adjusted ReturnOn Capital (RAROC)

Model Validation

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

Balance Sheet

Assets

Liabilities

Equity

Loans &Leases

Securities

Deposits

GovernmentFunds &Repositories

Borrowings

SubordinateNotes

CreditRisk MarketRisk OperationalRisk ContagionRisk LiquidityRisk ReputationRisk

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

Regulatory

0

1

2

3

4

5

Measures

Reports

ModelsInfrastructure

Organization


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Capgemini has deep industry expertisein Business Information Management.Our expertise and experience ofenabling the following in our clientorganizations:

Information Discovery SemanticModel What information isavailable & 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 isaccountable for it?

Information Accountability Stewardship Who can change it?

Information Value Information asa corporate asset How does the

business derive value from it?

Solving for these, Capgemini hasexecuted large and complex datamanagement engagements: pointsolutions for market data quality using

Asset Control; an enterprise-widesingle version of truth for all referencedata across all asset classes; data-drivenengagements in the domain of risk andfinance, reporting trade-desk P&Ls andreconciliation across various asset class;building central data warehouse &marts to enable regulatory compliance& reporting; supporting customermaster data management to enableperformance and analytics.

Capgemini has a rich set of solutions,accelerators and Intellectual Propertyto help jump-start almost allengagements, including Governance,Organization and Workflow Models tooperationalize data management across

large organizations.

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.

Data Management

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

Acquire Reconcile Enrich Distribute

Sources Vendors

Proprietary

sources

Internally

standardized or

canonical data

Standardized

data

Enriched

standardized

data

Key

functions

Transform:

translate intocanonical

data formats,

normalize

Examine: parse

and query

Organize and

restructure bycategory

Reconcile based

on rules to

identify breaks or

exceptions

Notify

counterparties &

stakeholders of

exceptions

Check for

completenessand fill

gaps where

appropriate

Enrich semantic

content based

on known data

relationships

Update internal

stakeholders

Translate content

into externalformats (e.g.,

client copy)

Distribute

through multiple

channels and

protocols

Metrics Data quality:

completeness,

consistency,

match tostandards

Vendor services

quality: service-

level agreements

Exception rates

by source and

types

Completeness

statistics

Delivery

service levels:

consistency and

timing by typeand channel

Delivery content:

data size, mix or

composition

Data Management Operations

Data Management FunctionsData quality: Understand and

consistently define data quality andassociated business rules, escalationprocesses, and quantification.

Data Governance and stewardship:Understand and define businessownership of data with stewardshipfor execution with technology.

Data management organization:formalize the data managementorganization to enable data

management at the enterprise level.Meta-data management: Define

meta-data required to enable datamanagement.


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Copyright 2011 Capgemini. All rights reserved.

www.capgemini.com/financialservices

About Capgemini and the

Collaborative Business Experience

Capgemini, one of theworlds foremost providers

of consulting, technology and outsourcingservices, enables its clients to transformand perform through technologies.

Capgemini provides its clients withinsights and capabilities that boost theirfreedom to achieve superior results

through a unique way of working, theCollaborative Business Experience.

The Group relies on its global deliverymodel called Rightshore, which aims to

get the right balance of the best talentfrom multiple locations, working as oneteam to create and deliver the optimumsolution for clients.

Present in 40 countries, Capgemini reported2010 global revenues of EUR 8.7 billion and

employs around 110,000 people worldwide.

Capgeminis Global Financial ServicesBusiness Unit brings deep industry

experience, innovative service offerings andnext generation global delivery to serve thefinancial services industry.

With a network of 17,000 professionalsserving over 900 clients worldwide,Capgemini collaborates with leading banks,

insurers and capital market companies to

deliver business and IT solutions and thoughtleadership which create tangible value.

For more information please visitwww.capgemini.com/financialservices

Visit www.capgemini.com/capitalmarketsto learn more about our solutions.

Contact us directly by sending an e-mail [email protected]

capgemini capital markets

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