IBM Global Business Services
Integrated Banking Solution
OTMS Asset and Process Management
– Order Management – Investment Management
– Integration Platform
– Concepts
– Service Offerings
What is the best Banking Business
Model?
In the light of customers’ broader, complex and fast changing
needs, banks need to continually rethink the way they operate.
This is especially true for investment services and products,
where customers are increasingly demanding access to a
broadening range of investment products and markets, and
seeking ever-more integrated investment advice and manage-
ment services.
Faced with growing regulatory demands (e.g. best execution)
and intensifying cost pressure, mastering investment execution
and operations has become imperative to offer sustainable and
efficient investment services.
The key to class-leading investment advice, execution and
operations is a clear and flexible business design enabled
with state-of-the-art technology, as delivered by IBM’s OTMS.
This will allow you to meet the ever increasing demands of the
banking industry, such as:
• Order management integrated with front-, middle- and back-
office systems
• Seamless interfacing with all internal and external data
providers
• Real-time interfacing with brokers, markets and trading
systems (e.g. GLOX)
• Real-time portfolio valuations
• Pre- and post-trade checks and rectifications (e.g. invest-
ment restrictions)
• Integrated investment and trade management functionalities
• Rich variety of order types
Today many banks try to tackle these demands with a wide
range of applications that impose an additional technical and
operational burden and reduce the automation potential (lower
STP rates), which ultimately leads to high operational costs and
a prolonged time-to-market of new business requirements.
What is OTMS? IBM offers OTMS, as a solution to all these challenges and
more.
OTMS is an Investment- and Order Management solution with
integrated functionalities such as Securities, Treasury and
Funds Transfers, state-of-the-art performance measurement
and much more.
OTMS is industry proven, with over fifteen years in use at some
of the most sophisticated private banks in Switzerland.
With OTMS we offer a very efficient asset and process manage-
ment system with high STP rates, allowing banks to significantly
reduce costs.
We are very proud to claim that OTMS is the best integrated
platform to meet the high requirements of Swiss banking. OTMS
not only automates all asset management-related processes, it
also ensures standardised business processes and leads to
consistent data quality.
Implementing OTMS is not just an IT project but a journey
which allows you to improve your business considerably. IBM
Global Business Services combines sound business process
know-how with IT expertise (with Swiss and international expe-
rience), and sets new standards in banking applications with
OTMS.
As the worldwide leading consulting firm and system integra-
tion specialist, IBM Global Business Services has delivered
numerous end-to-end solutions in partnership with its
financial services clients to help them to achieve a competitive
advantage.
OTMS Order Management
OTMS facilitates worldwide order processing, trading and
portfolio management. Our mission was to design an order
management system that integrates front- and middle-office
functions in one single application that simplifies connectivity
to back offices and diverse points of execution.
Our reliable and widely implemented solution is the best way to
start your STP initiative. OTMS allows you to achieve cost savings
by reducing transaction costs, resource use, and exception
handling. At the same time it enforces high standards in data
quality. Through the reduction of administrative workloads, your
front office personnel are able to better focus on relationship
management and acquisition. This competitive advantage is
the foundation for the improvement and consolidation of your
business. Our long-standing experience in process improve-
ments for banks is based on many national and international
projects in the financial services industry.
Speed and quality are key factors in today’s banking business.
Clients want to react swiftly to changing market conditions and
are investing in many and diverse financial instruments.
Under these conditions client advisors need control over the
orders they place for their clients. Traders need a tool, which
helps them handle the incoming flood of orders. Third party
applications and back office systems need to be fed without
error-prone paper interfaces.
Highlights • Ergonomic order entry and order execution frames (like the
order book), which provide all necessary information on
screen and allow quick order processing
• Order compliance by applying validation mechanisms,
authorization phases and plausibility checks throughout the
entire order process
• Supports all business order types including: securities,
funds and derivative instruments, money market (time and
call deposits as well as loans), payments (including standing
orders) and foreign exchange (spot, forward, swap and deriv-
ative orders).
• Matching rules and pre-trade checks
• Handling of the orders is completely configurable or adjust-
able to the corresponding business requirements
• The investment advisor simply enters the orders without
caring about the place of execution. The OTMS workflow
engine is responsible for the validation of business rules and
routes the orders to the appropriate place of execution based
on the bank’s definitions.
OTMS Investment Management The OTMS investment management system offered by IBM
automates most portfolio management related processes while
ensuring standardized business processes which leads to con-
sistent data quality. It is a solution specifically designed for the
wealth management industry.
Investment Management The OTMS investment management module enables both
automated and customized management of high-value port-
folios, and is seamlessly integrated to the order management
module in one application.
Highlights
• OTMS allows the definition of several strategies and various
regulatory and client restrictions, which enables efficient
rebalancing of all or selected portfolios. This results in col-
lective orders which are directly routed to the trading depart-
ment
• Supports the definition of complex asset allocations
• Comprehensive and professional compliance and control,
automatic rebalancing, reporting and risk management
functions
• Automated compliance and control workflow, which performs
pre- and post-trade validations and provides various reports
and overviews
• Quick portfolio reinvestments after changes in the firm’s
investment strategy and instant response to market changes
by using powerful rebalancing functions
• Real-time settlement of orders through the intelligent integra-
tion of the back-office system
• Transparent investment control through risk management
functionality such as: duration definition and control, invest-
ment fund decomposition, market exposure calculation for
basket- and derivative instruments, hedging proposals and
portfolio analysis
Performance Measurement The performance measurement system complies with Global
Investment Performance Standards and is grouped into three
main categories:
• Performance calculation
• Comparison (benchmarks and composites)
• Analysis contribution and attribution (planned)
OTMS Integration Platform OTMS is designed to electronically route orders on a rule-
based procedure to the respective markets, ECNs (Electronic
Communication Networks) or brokers either directly or via the
bank’s trading desk.
OTMS is also capable of receiving orders or trades created in
other applications like eBanking, PMS (Portfolio Management
Systems) or FMS (Financial Management Systems). These can
be either be handled manually (Order Book) or routed auto-
matically to whichever electronic trading system or system as
configured within OTMS.
An electronic audit record of all related actions is generated.
Investment advisors and traders are therefore constantly
informed about the status and progress of all orders.
OTMS interconnects to electronic counterparties directly or
through the bank’s existing trading systems:
• Swiss Stock Exchange – SIX
• Virt-x
• Xetra
• Reuters Order Routing – ROR
• Bloomberg
• Thomson Autex
• Instinet
• Archipelago – NASDAQ
• Credit Suisse First Boston – CSFB
• EUREX
• UBS (FX2B)
• EBS (FX) It uses standard protocols to connect to electronic trading
systems (mainly FIX) and configurable interfaces to back office
systems.
OTMS allows monitoring of the correct operation of the inter-
faces and provides an option to create notifications of potential
malfunction in the interfaces.
OTMS offers extensive integration to back-end systems (e.g.
Avaloq) for transaction booking and master data load (instru-
ments, portfolios, positions, etc.).
OTMS Concepts OTMS is a modular solution where the implementation of
the different modules is based on your business needs. The
flexible approach of our product allows you to integrate addi-
tional functions and modules with little effort. All functions are
accessible using one convenient rich user interface.
Highlights • Powerful and flexible workflow engine to reflect the bank’s
specific processes
• Portfolio workbench for detailed investment analysis and
order generation
• Real-time intraday position keeping
• Advanced authorisation concept
• Broad and fully configurable validation concept to meet regu-
latory and bank regulations
• Sophisticated business object browser to easily access and
display all data
• Multi-branch concept to support centralised and cross-bor-
der order execution
• Multi-currency capabilities depending on your branch
accounting currencies
• Multi-lingual capabilities
• Generic import & export adapters based on a flexible middle-
ware for 3rd party access
• Generic overviews
• Multi-banking capabilities
• Various technical order types (single, collective and bulk) as
well as direct deals
• OTMS is a 3-tier application written in Java and is highly
scalable.
Additional Service Offerings
IBM Global Business Services combine sound business
process know-how with IT expertise. As the worldwide leading
consulting firm and systems integration specialist, IBM Global
Business Services have delivered numerous end-to-end
solutions together with its financial services clients to help them
achieve a competitive advantage.
Feasibility Studies: find out if OTMS can improve your
business needs. We review your requirements and technical
environment, and assess the impact of the proposed solution
technically and organisationally.
Implementation Support: our specialists support you in
implementing our solution according to your bank’s require-
ments. We assist you in establishing system parameters, in the
building of the required interfaces and in complex migration
tasks.
Business Process Management (BPM): benefit from
our profound competence in re-engineering your business
processes considering best practice investment and order
management processes.
Project Management: our project leaders combine project
management skills with business expertise ensuring an OTMS
implementation within the given time and cost frame and meets
high quality standards.
Training: tailored training ensures that your key staff is able
to run OTMS independently and reduces operating costs
considerably. Close co-operation ensures further on-the-job
knowledge transfer.
Help Desk Support: for production support, IBM offers
several helpdesk SLA’s ranging from standard office hours to
24/7 standby services including weekends and holidays. The
helpdesk acts as a direct gateway to our subject matter experts
and development team and it includes guaranteed response
times and access to an online ticketing system, e-mail support
and a dedicated telephone hotline. Additionally we offer a
knowledge base and product documentation through a Wiki
site.
Contact
Jan Seffinga
Global Business Services
Partner Financial Services
Sector
Head of Banking Solutions
Center ALPS
+41 (0) 79 431 79 71
Markus Spoerri
Global Business Services
Financial Services Sector
Head AMS Assets & Engineering
+41 (0) 79 352 52 10
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