Confidential
FX SPOT CREDIT LIMIT
CONSOLIDATION SYSTEM
December 13, 2005
Presented by:
William Hays
Amy Jackson
PRESENTATION OUTLINE
 Background
 Overview
 Goals
 Methodology
 Results
 Overview of new process
 Demonstration of new system
 Conclusions
 Recommendations
1
Project Background
 FX trading
 Spot credit limits
 Broker services systems
 Reuters
 Electronic Broker System (EBS)
 Credit Work Station (CWS)
2
PROJECT OVERVIEW
Spot and
Forward
matches
received
Matches
prioritized
Check if credit
limit exists
Current FX
credit data
received
Requests sent
to analysts
Estimated Total Manual Time: 2:40
Legend
Symbol Count
2
5
1
Credit limits
assigned
Investigations
logged
Description
Data
Manual operation
Manual input
Limits entered on
trading floor
3
PROJECT GOALS
1. View of the total FX limit allocation for each client.
2. Log of the clients.
3. Clean-up of sub-entities.
4. System’s interface integrated into CRM website.
5. Internal Technology team member to maintain and update
system.
6. Knowledge of FX trading and credit limits.
4
METHODOLOGY
UNDERSTAND
CURRENT
PROCESS
DESIGN NEW
PROCESS
IMPLEMENT
NEW SYSTEM
FINALIZE
DOCUMENTATION
TEST NEW
SYSTEM
5
MOVE NEW
SYSTEM TO
PRODUCTION
RESULTS: Understand the Current Process
System
*
*
Use-Case
User
 User meeting notes
 Research on systems involved
 Research on credit limits and FX trading
 Documentation of current process
6
RESULTS: Design the New Process
REBS_legal_entities
 Functional requirements
REBS_legal_entities_log
 Use-case and Sequence
diagrams
 Proof of Concept
REBS_client_history
 Database structure
REBS_subentities
 Interface prototype
REBS_reports
REBS_source_update_history
7
RESULTS: Implement REBS FX
 Database structure
 Views/Stored
procedures
 Application layer
8
RESULTS: Move REBS FX To Production
TESTING
STAGING
IN Q & A
PRODUCTION
9
OVERVIEW OF NEW PROCESS: Steps
Current FX
credit limit
data
received
Data sent to
technology
Database
updated
Matches
checked with
REBS FX
Spot and
Forward
matches
received
Unlinked/new
groups
investigated
Problematic
counterparties
updated
Requests sent to
analysts
Credit limits
assigned
Credit limits entered
on trading floor
Investigations
logged in
REBS FX
Legend
Symbol Count
Description
5
Manual operation
2
Stored data
2
Data received
1
Manual input
Estimated Total Manual Time: 1:55
10
OVERVIEW OF NEW PROCESS: Demo.
11
CONCLUSIONS
 Requirements met:
2:52
 User
2:24
 Technical
1:55
 Informational
1:26
2:40
Previous Process
New Process
1:55
0:57
0:28
0:00
1st Qtr
12
RECOMMENDATIONS
 Post Project
 Long Term
 Automated feeds
 Readily available CRM implementation standards
 REBS FX extension
 Global use of REBS FX
 WPI project continuation
13
ACKNOWLEDGMENTS
 Lehman Brothers:












Ayoob, Mahvish
Burton, Scott
Chang, Scott
Eisen, Daniel
Fox, Andrew
Girard, Jocelyn
McConnon, Thomas
Moeller, Christian
Murphy, Brendan
Tan, Ford
Wilkins, Simon
Wong, Leesan
 Worcester Polytechnic
Institute:
 Abraham, Jon P.
 Ciaraldi, Michael
 Gerstenfeld, Arthur
14
QUESTIONS
15
16
Database
Structure
Database Structure for new system
credit..REBS_client_history
credit..REBS_legal_entities
PK
PK
entityID
dealing_code
group_name
line_limit
source
change_date
FK1
historyID
description
actiondate
actioncode
entityID
user_code
credit..REBS_source_update_history
PK
updateID
credit..REBS_entities_subentities
PK,FK1
PK,FK2
filename
source
file_asof
load_date
entityID
subentityID
credit..REBS_reports
credit..REBS_legal_entities_log
FK1
credit..REBS_subentities
PK
subentityID
dealing_code
description
17
entityID
dealing_code
legal_name
line_limit
source
client_code
change_date
delete_date
PK
reportID
query_string
description
reportname
author
filter_fields
sort_fields
check_column
highlight_regex
last_run
create_date
Demonstration (1)
First screen shows
possible reports. The
default is the unlinked
entities (that have been
imported from
Retuers/EBS systems)
18
Demonstration (2)
Second screen shows a list
of possible reports (from
the reports table)
When a report is selected,
it is queried for viewing.
19
Demonstration (3)
Third screen
shows the
“existing
limits” report
corresponding
to limits
related to all
CWS
counterparties
20
Demonstration (4)
When a user
clicks on a
CWS client
code in the
reports
window, the
details for that
counterparty
are shown.
Shown are the
associated
Reuters/EBS
accounts.
21
Demonstration (5)
Below the
associated
accounts are
the subentities (or
branches)
related to the
counterparty.
22
Demonstration (6)
Below the
sub-entities is
a log of the
history for
that client.
History
entries are
changes to the
database as
well as userentered
history items.
23
Demonstration (7)
Wherever an
entity ID is
shown, the
entity detail
page can be
opened.
Shown on this
page is
linking/unlink
ing to CWS
counterparty
functionality.
24
Demonstration (8)
The user
searches CWS
for the
counterparty
name and then
updates the
link to the
counterparty
once one is
found.
25
Demonstration (9)
Further down
on the entity
detail page
you will find
similar subentity and
history
information as
found on the
client detail
page.
26
Demonstration (10)
This is an
example of an
unlinked
entity. This
will occur for
new clients
and clients
that do not
exist in CWS.
27
Demonstration (11)
This is an
example of a
changed limit
when
importing
from
Reuters/EBS
systems.
28