IntelliMatch Customer Conference

Transcription

1 IntelliMatch Customer Conference London 11 June 2014

2 Welcome & Introductions Mark Rudland managing director, IntelliMatch, Asset Management, SunGard

3 Welcome» Welcome to the annual IntelliMatch Customer Conference» Delighted to be hosting our event as part of SunGard s Asset Management European Customer Conference» Comprehensive agenda designed to provide valuable insights and strategies to help you streamline your operationslp you improve» Introducing the SunGard team speaking today: Paul Clapis director of product management Wayne Riches director of business development & pre-sales Paul Spencer global sales, managed services Ruaidhri Garvey solutions manager Kevin Potter vice president, managed services Olivier Bessi director Andrew Ho product manager

4 Welcome» Delighted to welcome our customer speakers: Session: Leveraging Best Practices: The Key to Successful Centralised Reconciliation Donna Lansdown, director - Asia Head of Operations & Cross Product Technology & Head of Reconciliations Technology, Barclays Bank Raju Patel, executive director, Corporate & Post-Trade Technology, Morgan Stanley Session: Maximising Potential with Managed Reconciliation Services William Winkelman, manager FM Operations Control & FM Data Management, ING

5 Agenda Business Update Leveraging Best Practices: The Key to Successful Centralised Reconciliation Delivering More with Less: Strategies to Speed the On-boarding of Reconciliations The Rise of Reconciliation: An Operational Response to Regulation Lunch and Networking Maximising Potential with Managed Reconciliation Services Planning for 2014 and 2015: Product Roadmap Questions and Answers, and Closing Summary Refreshments and Networking Thought Leadership Sessions Networking Cocktail Reception

6 Thought Leadership Sessions» Three concurrent thought leadership sessions» Featuring key issues and topics impacting our customers today Regulatory Overload: Untangling the Complex Web Harry Stahl, partner, Alternative Investments and Asset Management, SunGard The Business Case for Managed Services Kevin Potter, vice president, managed services, Asset Management, SunGard Bridging the Technology Divide Carlos Recalde, global chief technology officer, Asset Management, SunGard

7 Business Update

8 Business Update Investing Through Growth» Supporting our customers Significant expansion of our professional services organisation to enable us to better service your needs 61 staff globally with 20 focused exclusively on servicing our European clients 24% increase since 2013 Technical team, training team and large transformation programmes» Investing in our solutions Launch of new solutions and services designed to meet the reconciliation mandates to support EMIR and Dodd-Frank Central clearing counterparty reconciliation Individual segregated account reconciliation Trade reporting reconciliation Launch of cash and liquidity monitoring/management for realtime cash positions, limit management, sweeping and adjustments, and forecasting to support Basel III reporting requirements

9 Business Update Investing Through Growth» Expanding our global reconciliation customer base Welcome to United Overseas Bank (Singapore), Taishin Financial Holdings (Taiwan), Tesco (UK), TD Ameritrade (US), Western Union (US), I&M Bank (Kenya), SFIL (Paris), Centerbridge (US), Commercial International Bank (Egypt) and Chenavari Investment Managers (UK) to our global IntelliMatch Operational Control user community» Understanding the market One-to-one client briefings Continue to invest in primary research with leading industry analysts to better understand the industry s reconciliation pain points and challenges Enables our product management team to align our roadmap to the report findings, and develop appropriate solutions Most recent research with CEB TowerGroup Avoid Complacency to Optimise Enterprise Reconciliation: An Assessment of the Global Market

10 Leveraging Best Practices: The Key to Successful Centralised Reconciliation Wayne Riches director of business development & pre-sales, IntelliMatch, Asset Management, SunGard Paul Clapis director of product management, IntelliMatch, Asset Management, SunGard

11 Leveraging Best Practices: The Key to Successful Centralised Reconciliation Panelists: Donna Lansdown director - Head of Reconciliations Technology Barclays Bank PLC Raju Patel executive director - Corporate & Post-Trade Technology, Morgan Stanley Moderators: Wayne Riches director of business development & pre-sales, IntelliMatch, Asset Management, SunGard Paul Clapis director of product management, IntelliMatch, Asset Management, SunGard

12 RECONCILIATION SERVICE VISION THE RECONCILIATION FACTORY» Rapid onboarding for new automated reconciliations: delivering the book of work Change the Business Define reconciliation standards Resolve data issues Achieve business process improvements Reduce time and cost to build and on board reconciliations Create transparent ROI for reconciliation process» Resources to scope, design and deliver new reconciliations» Navigation of peaks and troughs in reconciliation deliverables» Large scale upgrades and enhancements» Configuration harmonisation / consolidation» Optimisation of existing rules and reconciliations.

13 RECONCILIATION SERVICE VISION CENTER OF EXCELLENCE» Provides scalability for volume, account, reconciliation and process growth» Delivers consistently, and demonstrably, against Define reconciliation SLAs for both technical and standards business based metrics Resolve data issues» Ensures continual optimisation of rules / automation to lower manual interaction Achieve business process improvements» Creates Reduce time transparency and cost to across the build and on board operational landscape and simplified reconciliations management and regulatory reporting Create transparent ROI for reconciliation process Run the Business Create an environment and processes that scale Reduce the time and cost to manage reconciliations and resolve breaks Improve service level delivered to business Deploy intelligent tools to enable continuous process improvement.

14 THE EVOLUTION OF THE RECONCILIATION SERVICE FRAGMENTATION 49% have 4 OR MORE vendorsupplied reconciliation systems. 51% have MORE THAN 10 different reconciliation systems. 57% have 4 OR MORE dedicated reconciliation teams. Source: CEB TowerGroup Assessing the Global Enterprise Reconciliation Market SERVICE QUALITY 37% report that less than 50% of their enterprise reconciliation needs are met by existing reconciliation team(s). Key side-effects of the FRAGMENTED RECONCILIATION environment can be communications breakdown within the firm. ENTERPRISE EFFICIENCY Only 17% have automated monitoring of reconciliation performance at the enterprise level. 39% indicate improvement planning is ad hoc or non-existent.

15 WHAT S DRIVING CHANGE? BENEFITS TO CUSTOMERS REGULATORY REPORTING AND INTERNAL CONTROL More robust INTERNAL SYSTEM VALIDATIONS comply with new regulations. This is in ADDITION to more TRADITIONAL ACCOUNTING RECONCILIATIONS against external statements. TRANSPARENCY AND RISK ESCALATION TRANSPARENCY across all reconciliations from common approach to reconciliation. Best practice EXCEPTION MGMT processes for LOWER OPERATIONAL RISK. COST REDUCTION PERFORMANCE IMPROVEMENTS across the infrastructure allow for higher volumes at no additional costs, DEEPER AUTOMATION leads to reduce manual activity and significant OPERATIONAL COST REDUCTION.

16 Organisation Profiles: Barclays Bank PLC Morgan Stanley

17 Question: What are your primary goals in developing an enterprise-wide reconciliation strategy?

18 Question: What is your biggest challenge in implementing an enterprise-wide reconciliation strategy?

19 Question: What is your most complex reconciliation to implement in your enterprise strategy and why?

20 Question: Run the Business: What metrics or analysis are you using to monitor your reconciliation process?

21 Question: Run the Business: What is your approach for managing / optimising the breaks resolution process?

22 Question: What advice would you give to others who are early in the process of centralising their reconciliation process?

23 Summary of Takeaways / Key Points Primary goals:» Reduce cost» Increase time-to-market Biggest challenges:» Data sourcing and cleanup» Deciding how to prioritise the list of new reconciliations» Migrating bespoke reconciliations to a standardised reconciliation» Need to build and communicate vision to stakeholders, and gain consensus by senior management» Need to secure funding incrementally» Regulatory challenge of moving to T +1 and real-time Most complex reconciliation:» High volume reconciliations tend to be the most complex» Largest reconciliation required move from 1000 match rules to 100 rules

24 Delivering More with Less: Strategies to Speed the On-boarding of Reconciliations Paul Clapis director of product management, IntelliMatch, Asset Management, SunGard

25 Top Industry Drivers for Faster On-boarding» Downward pressure on operations costs» Increasing demand for new reconciliations» Rising cost of auditing / regulatory compliance» Increased competition in the market

26 An Industry Perspective The austere financial environment has meant tight margins. As a result, firms need to be quicker to respond to opportunities and speed up the process of onboarding new clients and instruments to reconciliation platforms. Aite Reconciliation Technology - Check Yourself Before You Rec Yourself The gap between the known universe of reconciliation practices and the unknown represents both a risk and optimisation opportunity for firms. CEB TowerGroup Avoid Complacency to Optimise Enterprise Reconciliation

27 Definition: Changing the Business THE RECONCILIATION FACTORY» Creates a Reconciliation Inventory Define reconciliation standards Resolve data issues Achieve business process improvements Reduce time and cost to build and on-board reconciliations» Rapid onboarding for new automated reconciliations: delivering the book of work» Experienced resources to scope, design and deliver new reconciliations» Provide best-practice consulting for other reconciliation teams» Configuration standards and consolidation Create transparent ROI for reconciliation process.

28 Definition: Running the Business CENTER OF EXCELLENCE» Provides scalability for volume, account, reconciliation and process growth» Delivers consistently, and demonstrably, Define reconciliation against SLAs for both technical and standards business based metrics Resolve data issues» Ensures continual optimisation of rules / automation to lower manual interaction Achieve business process improvements Reduce time and cost to build and on board reconciliations» Creates transparency across the operational landscape and simplified management and regulatory reporting Create transparent ROI for reconciliation process. Create an environment and processes that scale Reduce the time and cost to manage reconciliations and resolve breaks Improve service level delivered to business Deploy intelligent tools to enable continuous process improvement

29 Metrics and Statistics from SunGard Customers 29

30 Key Phases of a Typical Reconciliation Project Five key phases:» Business Requirements and Analysis» Design» Build / Configuration» Testing» Promotion / Production Readiness Business Reqs Design Build / Config Testing Promotion Readiness

31 Example Time Required to On-board a New Reconciliation Hedge Fund Pension Plan Small Trust Tier 1 Bank FTE (days) Calendar (days)

32 Factors that Influence On-boarding Time» Data and sources Number of source feeds Complexity (# columns, lookups, transformations) Data availability Validation (data quality)» Business requirements Duplicate checking, purging, workflow Customisation (TTWTOSW)» Hardware Infrastructure availability IT availability (feeds, testing, support)» Reporting / exporting» Staff availability for testing» Length / type of testing

33 Frequency of Reconciliation Types (%) Nostro Portfolio System Trade Confo Derivatives Custodial

34 How Did Customers Do It? THE RECONCILIATION FACTORY» Created a standardised model for reconciliation builds Change the Business THE BANK A STORY» Maintained a core pool of IntelliMatch resources for creating new reconciliations across the bank» Delivered new reconciliations in 2,3 or 5 days depending on complexity» Highly experienced staff provided architectural and process support in key initial phases

35 How Did Customers Do It? THE RECONCILIATION FACTORY» Enterprise License with regional hub deployments in Asia, NA, and Europe Change the Business Define reconciliation standards Resolve data issues THE BANK B STORY Achieve business process improvements Reduce time and cost to build and on board reconciliations Create transparent ROI for reconciliation process» Wholesale upgrade to Version 9.1 R2, began with trial run in Europe» Prescriptive Reconciliation approach to reconciliation builds for rapid time-tomarket, low risk, low cost delivery» Technology excellence in-house provides a platform for growth, and data layer provides support for prescriptive reconciliation approach.

36 AREAS FOR BEST PRACTICE APPLICATION BUILD AND DELIVERY DESIGN & PROCESS PRODUCTION ON-BOARDING EXCEPTION MANAGEMENT Consulting & Implementation Data Transfer Manager Business Flow Manager

37 BEST PRACTICE BLUEPRINT On-boarding Process Accelerators» Data feed reuse» Data fields standardisation ADVISORY SERVICES» Data pre-processing (validation, cleansing)» Documentation / version control» Hardware procurement lead times» Dedicated / allocated IT resourcing IMPLEMENTATION SUPPORT» Dashboard vs reporting / exporting» Planned lead times for test resources

38 BEST PRACTICE BLUEPRINT Match Rules Auto Discrepancy Code For multiple-field criteria, create a Perfect Match rule where all fields match exactly: ADVISORY SERVICES IMPLEMENTATION SUPPORT

39 BEST PRACTICE BLUEPRINT Match Rules Auto Discrepancy Code Also create a Discrepancy Match rule where some fields are NOT mandatory: ADVISORY SERVICES IMPLEMENTATION SUPPORT

40 BEST PRACTICE BLUEPRINT Match Rules Auto Discrepancy Code Also create a Discrepancy Match rule where some fields are NOT mandatory: ADVISORY SERVICES IMPLEMENTATION SUPPORT

41 They side BEST PRACTICE BLUEPRINT Match Rules Auto Discrepancy Code The Perfect Match rule finds all items that match all of the fields: ADVISORY SERVICES We side Field1 Field2 Field3 Field1 Field2 IMPLEMENTATION SUPPORT Field3

42 BEST PRACTICE BLUEPRINT Match Rules Auto Discrepancy Code The Discrepancy Match rule finds all items that match the mandatory field and 0 or more of the non-mandatory ADVISORY SERVICES fields. We side Field1 Field2 Field3 Field1 Field2 IMPLEMENTATION SUPPORT Field3

43 BEST PRACTICE BLUEPRINT Match Rules Auto Discrepancy Code Perfect Match rule: Reason code = Perfect Match Match group state = Approved ADVISORY SERVICES Discrepancy Rule: Reason code = For Review Discrepancy code = <List of Non-matching Fields> Match group state = Proposed IMPLEMENTATION SUPPORT

44 BEST PRACTICE BLUEPRINT Data Transfer Manager» Can be used to create packages as a starting point for future reconciliations» Copies metadata from one database to an XML file» Copies from the XML file to a target database» Two-step audited process» Accelerates migration / for testing, production» Can move almost all IntelliMatch objects» Can move SQL Scripts, stored procedures» Can search / replace file paths, users, etc

45 BEST PRACTICE BLUEPRINT Data Transfer Manager PRODUCTION ON-BOARDING Data Transfer Manager

46 BEST PRACTICE BLUEPRINT Data Transfer Manager Accounts Group Categories Recon Accounts Automatch Jobs Group Criteria Recon Jobs Balance Pools Groups Recon Profiles Classes Import Formats Report Jobs Companies Import Jobs Scheduled Jobs Departments Lookup Tables SQL Script Jobs Jobs Purge Jobs Views Global Match Passes Reason Codes Writeoff Rules

47 Time Savings for DTM Rec Migration Object Count Time per object Total time saved Import Formats Lookup tables Accounts Global Match passes Groups Views Purge jobs Import jobs Automatch jobs Report jobs jobs SQL Script jobs Company Classes Balance Pools Departments Group Categories Recon Profiles Recon Jobs Recon Accounts Writeoff rules Custom columns Drive Mappings User accounts User privilege groups Custom SQL scripts Files File paths User name remapping Total

48 Time Savings for DTM Rec Migration # Objects Time Saved per Environment Time Saved for 3 Migrations hours 69 hours Source: small-medium recs, PS Americas

49 EXCEPTION MANAGEMENT: Business Flow Manager» Consistent break management and account attributes» Standard escalation criteria» Standard notification rules» Simplified management and regulatory break reporting» Hub or spoke model» Centralised or decentralised break management

50 BEST PRACTICE BLUEPRINT Business Flow Manager EXCEPTION MANAGEMENT Business Flow Manager

51 Applying Automated Workflow Business Flow Manager Transactions RAG Status Assign / Reassign Escalate Approve Notification s with attachments Accounts Approval Rejection Notification s with attachments 53

52 Summary Capabilities to Support Faster On-boarding» Auto Discrepancy Codes for Matching» Data Transfer Manager» IntelliMatch Business Flow Manager» IntelliMatch Trending and Analysis» Rules Analysis» Exception Management» IntelliMatch Enterprise Management Studio Execution Management SLA s

53 BEST PRACTICE BLUEPRINT Enterprise Management Studio SLA DELIVERY & TRACKING Enterprise Management Studio

54 SLA TRACKING: Administration Monitor» Capture SLA and performance indicators against individual reconciliations, and their component tasks» Evaluate the execution of these tasks, and their outcomes, as they happen» Compare execution against expected outcomes to determine potential risk, or deviations from SLA» Provide timely and accurate management reporting against reconciliation execution and delivery

55 Trending & Analysis» System and rules performance optimisation through online adjustable analytics Performance: Including import and match statistics Automation: Including rules effectiveness, manual match stats Accuracy: Validation and analysis of match dissolves Exception management: Step counts and manual activity trending and tracking

56 BEST PRACTICE BLUEPRINT Trending & Analysis AUTOMATION OPTIMISATION Trending & Analysis

57 OPTIMISATION: Trending & Analysis» Focus on statistics that can help improve system, process or resource performance» Throughput and speeds» Manual matching» Manual processing (non-match related)» Rules performance

58 Rules Analysis Key Statistics and Interpretation

59 Key Statistics and Interpretation» Technical Performance Import speeds (records/s) Match speeds (matches/s) Volume handling» Rules Automation Manual match breakdown Discrepancy / reason codes Match rule effectiveness MTC ratio and similar» Rules Accuracy Match counts per record Match dissolves» Exception Management Step counts Edits Attachments s Comments

60 Execution Monitoring Expectation vs Reality

61 Capture Expectation / Evaluate Reality» SLA management Capture your SLA at the reconciliation level Determine expected outcomes for match rates / volumes / times» Monitor execution against your SLA» Determine deviations and automate your responses

62 Questions?

63 The Rise of Reconciliation: An Operational Response to Regulation Olivier Bessi director, IntelliMatch Derivatives, Asset Management, SunGard Ruaidhri Garvey solutions manager, IntelliMatch, Asset Management, SunGard

64 Agenda: The Rise Of Reconciliation» Regulation: The Operational Burden» EMIR, Dodd-Frank and Equivalents in other Jurisdictions» Liquidity Monitoring: Basel III and Equivalents» Questions

65 EMIR, Dodd-Frank and Equivalents in Other Jurisdictions

66 EMIR RECONCILIATION OVERVIEW IMPACT OF EMIR WHO DOES IT AFFECT? All buy-side and sell-side firms involved in derivatives trades, defined as any bilateral or exchange-traded transaction between two counterparties Geographically, any entity that was established in the EU or is trading either with an EU entity or on a European exchange HOW WILL IT AFFECT YOUR ORGANISATION? Report all derivatives trades to a registered repository Clear standard OTC contracts at a CCP Maintain individually segregated accounts (ISAs) at the CCP, for both OTC and ETD investments

67 EMIR RECONCILIATION OVERVIEW AN INDUSTRY PERSPECTIVE As a result of the inherent challenges and operational risks involved in meeting new regulatory reporting requirements, many institutions will be required to implement ADDITIONAL RISK MITIGATION STEPS to enhance their existing OPERATIONAL CONTROLS and PROCEDURES JP MORGAN CHASE & CO OTC Reporting and Reconciliation The once pretty simple process of confirming bilateral OTC trades via phone will soon morph into a LOT OF RECONCILIATION PROCESSES. Aite EMIR Trade Reporting Deadline: Manning the Panic Stations?

68 EMIR RECONCILIATION OVERVIEW 3 RECONCILIATION AREAS EXECUTING BROKER (SELF-CLEARED) BUY-SIDE FRONT OFFICE SEF FRONT OFFICE MIDDLE OFFICE AFFIRMATION PLATFORM MIDDLE/BACK OFFICE (IF REPORTING DIRECT TO TRADE REPOSITORY) CLEARING/CCP CLEARING BROKER BACK OFFICE TRADE REPOSITORY BACK OFFICE

69 CENTRAL CLEARING COUNTERPARTY RECONCILIATION HOW WILL IT AFFECT YOU? EXECUTING BROKER (SELF-CLEARED) Greater visibility required across positions, trades and cash Higher FRONT number OFFICE of trade economics now require matching SEF BUY-SIDE FRONT OFFICE Requirement to support feeds from multiple CCPs MIDDLE OFFICE AFFIRMATION PLATFORM MIDDLE/BACK OFFICE CLEARING BROKER CLEARING/CCP (IF REPORTING DIRECTLY TO THE TRADE REPOSITORY) CLEARING BROKER BACK OFFICE TRADE REPOSITORY BACK OFFICE

70 CENTRAL CLEARING COUNTERPARTY RECONCILIATION INTELLIMATCH DERIVATIVES CAN HELP T+1 TOTAL EQUITY / TOTAL SETTLEMENT RECONCILIATION Comprehensive position and trade reconciliation matching on all available trade attributes Proofing of total settlement with the CCP, including NPV change, Upfront Payment, PAI etc Support for additional reconciliations, such as collateral positions and future coupon flows CONSOLIDATE LISTED & OTC CCPS ON THE SAME PLATFORM Implement best practice standards across both asset types Provide greater visibility and deeper reporting across both reconciliations Deliver consistent audit and controls SUPPORT MULTIPLE CCPS & OTC ASSET CLASSES Support different data models for IRS, CDS and NDF Enable rapid on-boarding for new CCPs; support all cleared OTC asset classes

71 TRADE REPORTING ACCURACY FIRM FRONT OFFICE MIDDLE/BACK OFFICE HOW DOES IT AFFECT YOU? Ensure completeness EXECUTION by pairing trades between the trade repository and internal books and records Ensure accuracy by matching on key materials terms Translate/normalise AFFIRMATION data, including counterparty identifiers PLATFORM Respond to Match Status Report differences to resolve breaks or assign UTIs COUNTERPARTY FRONT OFFICE MIDDLE/BACK OFFICE (IF REPORTING DIRECTLY TO THE TRADE REPOSITORY) TRADE REPOSITORY

72 TRADE REPORTING ACCURACY FIRM FRONT OFFICE RECONCILE BETWEEN THE SOURCE SYSTEM & THE TRADE REPOSITORY Introduce accuracy and completeness checks EXECUTION Translate and match different types of counterparty identifiers Identify inaccuracies for previously reported trades COUNTERPARTY FRONT OFFICE MIDDLE/BACK OFFICE AFFIRMATION PLATFORM 01 MIDDLE/BACK OFFICE TRADE REPOSITORY Firm records Counterparty records

73 TRADE REPORTING ACCURACY MATCH FIRM AND COUNTERPARTY RECORDS AT THE TRADE REPOSITORY FIRM FRONT OFFICE MIDDLE/BACK OFFICE Ingest Match Status Report and flag exceptions Match counterparty EXECUTION and firm reported records to identify reasons for exceptions Identify reported trades without a UTI assigned, and propose potential UTIs based on internal identifiers, or key material terms Flag counterparties using other trade repositories AFFIRMATION PLATFORM 02 COUNTERPARTY FRONT OFFICE MIDDLE/BACK OFFICE TRADE REPOSITORY Firm records Counterparty records

74 ENHANCED PORTFOLIO RECONCILIATION BROKER/DEALER BUY-SIDE FRONT OFFICE MIDDLE/BACK OFFICE EXECUTION HOW WILL IT AFFECT YOU? Comply with agreement between counterparties to AFFIRMATION perform portfolio PLATFORM reconciliation and dispute resolution Perform portfolio reconciliation on a regular basis depending on counterparty type and portfolio size FRONT OFFICE MIDDLE/BACK OFFICE Ensure timely resolution of disputes once older than 5 days Provide regulatory reports TRADE on aged and high value disputes REPOSITORY (IF REPORTING DIRECTLY TO THE TRADE REPOSITORY)

75 ENHANCED PORTFOLIO RECONCILIATION INTELLIMATCH OPERATIONAL CONTROL CAN HELP 01 RECONCILE BETWEEN INTERNAL SYSTEMS & MULTIPLE COUNTERPARTIES Enable accurate and timely reconciliation of multiple counterparties Determine the frequency of reconciliation based on the number of trades 02 MANAGE EXCEPTIONS Provide automatic aging, tracking, escalation and reporting of discrepancies and disputes 03 ENSURE AUDIT & CONTROL Demonstrate consistent audit and controls to meet compliance and dispute reporting requirements

76 Liquidity Monitoring: Basel III and Global Equivalents

77 BASEL III Overview FOCUS ON LIQUIDITY Increased Capital Requirements Leverage Ratio Liquidity Ratios Liquidity Monitoring Tools

78 BASEL III COMPLIANCE LIQUIDITY MONITORING TOOLS WHO DOES IT AFFECT? All reporting banks Banks providing correspondent services Banks which are direct participants HOW WILL IT AFFECT YOUR ORGANISATION? Reduction in Return on Equity Increased Importance of cash management Meeting reporting requirements posing considerable challenges January 2015 Reporting Deadline

79 BASEL III COMPLIANCE MARKET RESPONSE The global financial crisis has highlighted the need to improve liquidity management. As a result, regulators are putting more stringent regulatory frameworks into place with short implementation deadlines that include the monitoring of intraday liquidity risk. SWIFT Information paper. Intraday liquidity reporting. Even in this post-crisis era, many banks use a spreadsheet-based Liquidity Risk Management approach that draws from multiple data sources, which leaves even sizeable firms at risk to manual process and data interface issues. AITE Leveraging technology to shape the future of liquidity risk management.

80 Requirements Products SUNGARD SOLUTIONS CASH & LIQUIDITY MANAGEMENT SunGard CM SunGard R&P IntelliMatch IntelliMatch CLM IntelliMatch CLM IntelliMatch CLM Operations Cash Manager Front Office Risk / Compliance Intra-day Matching Confirmation Matching Exception Management EOD Proofing Existing Reconciliations Global Position Position Drill-downs Projections Limit Management & Breaches Monitor Payments Manual Adjustments Sweeping Global Position Projections Market Data Trading Treasury Collateral Reporting Regulatory Reporting Stress Scenarios Survival Horizons Contingency Plans Liquidity Ratios 82

81 INTELLIMATCH CASH & LIQUIDITY MONITOR SOLUTION OVERVIEW Operations Cash Management Risk / Compliance Cash & Liquidity Monitoring Internal Systems Data Transformation Duplicate Processing Automatic Matching Dynamic Balances Manual Processing 2. PROCESSING Intra-day Global Position & Projections Dashboards & KPIs Monitor Balances & Cashflows Monitor Intra-day Payments Visibility Limit Management 3. PRESENTATION Payment Application Liquidity Risk Input to Stress Tests External Systems Opening Balances MT940/950 Intra-day Payments MT103/202 Intra-day 1. COLLECTION Cashflows MT942/900/910 Real-time Sources ledger of messages Liquidity Collateral, Reserves, Liquid Assets Limit Breaches & Alerts Interest Opportunities Manual 4. Adjustments ACTION & Transfers Exception Management Response Late Payments Workflows Reporting Business Intelligence 83

82 84

83 85

84 86

85 87

86 CASH AND LIQUIDITY MONITORING SUNGARD CAN HELP CALCULATE INTRA-DAY BALANCES AND TRACK AGAINST LIMITS Intra-day cash-flow capture & processing Intra-day balance calculation Limit capture Limit tracking and escalation PROJECT POSITIONS AND FUTURE CASH FLOWS Calculate projected cash positions Capture future dated cash flows Escalate / alert to future position values SUPPORT MANUAL AND AUTOMATED ADJUSTMENTS AND SWEEPING Enable manual adjustment creation for users Automate sweeping between accounts based upon pre-defined position thresholds and limits Apply four eyes approval to movements SUPPORT GENERATION OF REGULATORY REPORTS Simplify the data collection for regulatory reporting Improve timeliness of report delivery

87 Questions?

88 Maximising Potential with Managed Reconciliation Services Kevin Potter vice president, managed services, Asset Management, SunGard

89 AGENDA THE LANDSCAPE CHALLENGES CUSTOMER IMPACT CUSTOMER CONCERNS SUNGARD S EXPERIENCE SUNGARD MANAGED SERVICES THE FUTURE - OUR VIEW WHAT OUR CUSTOMERS SAY

90 LANDSCAPE More and more organizations are implementing managed services to generate cost and operational efficiencies More than one-third of finance CEOs expect to outsource a business process in the next 12 months. By 2016, more than 60% of banks worldwide will process the majority of their transactions in the cloud. Managed services market will grow to more than $250 billion by 2018 with growth across every industry vertical

91 CHALLENGES A significant majority of applications and services remain in-house 81% applications are on premise and 19% are delivered via cloud or other outsourced service 43% of applications require daily management and maintenance 56% of organizations feel in-house IT skills could be better deployed

92 CUSTOMER IMPACT IT MAINTENANCE IS DRAINING RESOURCES AND DETRACTING ATTENTION FROM STRATEGIC GROWTH AGEING TECHNOLOGY STACKS CREATE ONGOING RISK OF BUSINESS DOWNTIME, INCREASE SUPPORT COMPLEXITY AND REDUCE BUSINESS AGILITY REQUIREMENTS FOR RESILIENCE AND SECURITY INCREASES RUNNING COSTS AND IMPACT COST EFFECTIVENESS MULTIPLE SYSTEMS AND VENDOR RELATIONSHIPS INCREASE SUPPORT COMPLEXITY INTERNAL IT AND OTHER IT OUTSOURCERS LACK SPECIALISM AND COMMITMENT TALENT ATTRITION AND IN SOME CASES, AN AGEING WORKFORCE, IS CREATING MORE KNOWLEDGE LOSS COMPLEX AND WIDESPREAD REGULATION IS CREATING GREATER OPERATIONAL STRESS AND EATING UP CAPITAL

93 CUSTOMER CONCERNS! Across the industry, Customer concerns are holding back broader service adoption Data lifecycle management is paramount: data is highly sensitive and frequently provides competitive advantage. 95 Trust is achievable through transparent operating models and end user control Costs should be transparent and predictable for the term of the contract and aligned to business needs

94 SUNGARD S EXPERIENCE Global provider of hosted and managed services to the Financial Services industry for more than 30 years Uniquely solution focused: SunGard technology integration and delivery expertise sourced directly from the vendor Reduce risk: transparent, best practice security and operational frameworks that give the Customer control whilst SunGard maintain responsibility Increased operational and cost efficiency through reduced complexity and greater economies of scale 96

95 SUNGARD S EXPERIENCE >300 Customers consuming Managed Services across Asset Management Private Equity 29% Asset Management and Fund Servicing 38% 308 Customers Hedge Fund Risk and Valuation 33% 97

96 SUNGARD S EXPERIENCE SINGLE TENANCY IS FREQUENTLY A REQUIREMENT LEVERAGED INFRASTRUCTURE IS ACCEPTED WITH COMPENSATING SECURITY SEGREGATION (AD, VLAN) INTERNET ACCESS IS ACCEPTABLE WITH APPROPRIATE SECURITY CONTROLS (2FA, IPSEC VPN) ACCESS VIA SMART DEVICES IS, SO FAR, LOW PRIORITY CUSTOMERS WANT TRANSPARENCY OF AND CONTROL OVER CHANGE SERVICE LEVEL AGREEMENTS NEED TO HAVE VALUE AND APPLICATION FOCUSED 98

97 99 SUNGARD MANAGED SERVICES

98 ENERGY SPECIFIC THE FUTURE - OUR VIEW BLAH BLAH BLAH Organisations will want to create MORE single BLAH solutions from Software as a Service building blocks Organisations will continue to bundle software with professional services, managed services and thought leadership. Business Process-as-a- Service will gain momentum. We will see more outsourcing of IT infrastructure and application management services......byod initiatives will have an impact but on a regional basis Organisations will look to managed service providers to operate and maintain multi-vendor complex solutions Managed Services offers a practical and tangible view into customer experience which should drive product innovation Regulatory and operational risk requirements will mean continued focus on the integrity and transparency of managed service providers. 100

99 WHAT OUR CUSTOMERS SAY INSURANCE Solution: iworks Result: Agile Growth MATT YANCISIN CFO RIVERSIDE HEALTH, INC. SunGard s integrated, outsourced solutions for insurance provide us with the opportunity to begin with the right systems that will help us meet time-to-market requirements quickly, facilitate more seamless communication with our members and providers, and keep our administrative costs low. 101

100 WHAT OUR CUSTOMERS SAY TRADING Solution: Front Arena Result: Build Smarter Operations LARS WILBERG HEAD OF EXECUTION TRADING ABG SUNDAL COLLIER When we needed to replace our order management system, it became clear that by choosing SunGard s Front Arena s hosted and managed solution we could improve our workflow and enhance our overall business efficiency. Working with one vendor to provide our trade execution, order management, and proprietary trading operations on one platform will help ABG Sundal Collier to operate smarter in today s competitive trading landscape. 102

101 WHAT OUR CUSTOMERS SAY TREASURY Solution: AvantGard Quantum Result: Reduce Risk JORAM VESTERS EMEA DIRECTOR OF OPERATIONS AND IT CBRE GLOBAL INVESTORS One of the main advantages that SunGard offers is its ability to host and manage software and many of the peripheral daily operational tasks associated with its solutions within a control and service framework that is aligned with our own commitment towards our investors. We are impressed with SunGard s ability to move the AvantGard Quantum solution to a hosted environment in less than four weeks. 103

102 Maximising Potential with Managed Reconciliation Services Paul Spencer global sales, managed services, Asset Management, SunGard

103 AGENDA HOW CAN SUNGARD HELP? OPERATIONS TEAM? IT TEAM? SCOPE OF SUNGARD S MANAGED RECONCILIATION SERVICE BENEFITS OF SUNGARD S MANAGED RECONCILIATION SERVICE 04 PANEL DISCUSSION

104 HOW SUNGARD CAN HELP COMPREHENSIVE MANAGED RECONCILIATION SERVICE Multiple levels available designed to minimise risk and costs - helping improve operational performance while you focus on your core business MANAGING THE HARDWARE Infrastructure Managed Service for comprehensive hardware and infrastructure support SUPPORTING THE SOFTWARE Application Managed Service for end-to-end solution support RUNNING THE WHOLE PROCESS Full Business Process As A Service to manage the entire reconciliation operation in line with agreed Service Level Agreements

105 HOW SUNGARD CAN HELP THE SERVICE 24HRS Dedicated team to run your automated reconciliation operation Responsible for dayto-day matching and reconciliation 24 hours/7 days application monitoring provided by a dedicated reconciliation service desk Management of third party data feeds and administration of user access requirements Detailed reporting for exception management and audit purposes Commitment to meet agreed service level agreement targets

106 OPERATIONS TEAM RECONCILIATION MANAGER BUSINESS ADMINISTRATOR INVESTIGATOR AGENTS Supervise all reconciliation team members Manage existing reconciliation issues Approve transactions and submit KPIs to senior management Configure and extract reports and KPIs Optimise match rules to enhance system efficiency Analyse, resolve and reload rejected items Investigate all outstanding transactions and discrepancies Ensure the accuracy of reconciliations Follow up escalations with relevant departments

107 INFORMATION TECHNOLOGY TEAM DATABASE MANAGER APPLICATION ADMINISTRATOR DEVELOPER INFRASTRUCTURE OFFICER Perform daily database backups Monitor scheduled jobs on a daily basis Configure and setup new reconciliations Install hardware components Manage and maintain all database users and privileges Monitor database performance and growth Maintain security access for all user groups Liaise with system coordinators to ensure daily files are provided on time Develop new reports Manage changes and updates to file formats Upgrade and install regular software patches

108 SUNGARD S MANAGED RECONCILIATION SERVICE BUSINESS OPERATIONS TEAM INFORMATION TECHNOLOGY TEAM RECONCILIATION MANAGER BUSINESS ADMINISTRATOR DELIVERED BY SUNGARD S MANAGED DATABASE MANAGER RECONCILIATION SERVICES APPLICATION ADMINISTRATOR INVESTIGATOR AGENTS DEVELOPER INFRASTRUCTURE OFFICER

109 BENEFITS OF SUNGARD S MANAGED RECONCILIATION SERVICES END-TO-END MANAGEMENT OF YOUR RECONCILIATION OPERATIONS Ensure reconciliations are available to the business Address all issues associated with delivering reconciliations Help optimise business and solution performance Enable the service to be measured against application availability Provide monitoring tools to proactively manage the availability and performance of applications and services 111

110 Managed Reconciliation Services Panel William Winkelman manager FM Operations Control & FM Data Management, ING Paul Spencer global sales, managed services, IntelliMatch, Asset Management, SunGard Kevin Potter vice president, managed services, Asset Management, SunGard 112

111 Planning for 2014 and 2015: Product Roadmap Andrew Ho product manager, IntelliMatch, Asset Management, SunGard Paul Clapis director of product management, IntelliMatch, Asset Management, SunGard 113

112 Agenda» Development Strategy Summary» Product Release Update» Product Roadmap» Questions and Answers Confidential Information 114

113 Development Strategy Summary» Agile development methodology and coaching» Usability studies and customer reviews» Adoption of Infinity HTML5 framework» Secure coding initiatives» Performance benchmarking» Continuous integration» Parallel development teams Confidential Information 115

114 Agenda» Development Strategy Summary» Product Release Update» Product Roadmap» Questions and Answers Confidential Information 116

115 Product Release Update» Tactical Roadmap: 2014 IntelliMatch Operational Control v9.1r2 SP1 IntelliMatch Operational Control - System Analyser IntelliMatch Enterprise Management Studio» Strategic Roadmap: Confidential Information 117

116 Planning for 2014 and 2015: IntelliMatch Family IntelliMatch Operational Control» Growth Build and on-boarding of new reconciliations» Consolidation Support centre of excellence deployment for reconciliations» Optimisation Long term rules and process efficiency IntelliMatch Enterprise Management Studio» Catalogue Collect and define expected behaviour across jobs and rules Enterprise T&A Admin Monitor Recon Inventory Enterprise BFM EMS Adapter and API» Monitor Track and trend the execution of activities against defined measurements» Respond Escalate and refine tasks based upon execution outcome Confidential Information 118

117 IntelliMatch Operational Control 9.1 R2 SP1 Release 1» Release 1 Usability Enhancements (GA released 11/04/2014) Ability to type in a date field (with calendar control) Database default date (01/01/1970) is treated as a blank Department level security support on web UI Enhanced web usability improved date controls and calendars better navigation better sorting and resizing of columns Faster matching for enhanced matching engine Improved error handling Resolution of customer-prioritised defects (and other content) Confidential Information 119

118 IntelliMatch Operational Control 9.1 R2 SP1 Release 2» Release 2 (August) Usability and Defects Focused View / edit search criteria from each pod Hot key support for main search and context search SQL Server 2012 support (bc mode) * IntelliMatch Payment Investigation Desktop and Payment Investigation Web client localisation Defect resolution / client reported issues (and other content) * Full regression testing post-sp1 Confidential Information 120

119 IntelliMatch Operational Control 9.1 R2 SP1 Release 3» Release 3 (EOY) New Business Functionality Ability to rename pods Ability to view / edit favorites IntelliMatch Business Flow Manager support Cross field search criteria Relative date support Field-level hyperlinks to other websites Single service account for all schedulers Tech Pack Windows 2012 / SQL 2012 / IE 9, 10, 11 (bc mode) Data Transfer Manager for Web Components KPI, BFM, favorites and user groups (and other content) Confidential Information 121

120 IntelliMatch Operational Control - System Analyser Identify configuration related issues Compare what is needed vs. what is configured / installed Repair functionality database scripts / conf files / registry Supports IntelliMatch 9.1 R2 + Confidential Information 122

121 IntelliMatch Operational Control - System Analyser Software version validation Ability to repair issues - auto and/or provide instructions Audit and logging of changes Environment Snapshot (Sept) Confidential Information 123

122 Agenda» Development Strategy Summary» Product Release Update» Product Roadmap» Questions and Answers Confidential Information 124

123 IntelliMatch Operational Control Product Roadmap Confidential Information 125

124 Planning for 2014 and 2015: IntelliMatch Family IntelliMatch Operational Control» Growth Build and on-boarding of new reconciliations» Consolidation Support centre of excellence deployment for reconciliations» Optimisation Long term rules and process efficiency IntelliMatch Enterprise Management Studio» Catalogue Collect and define expected behaviour across jobs and rules Enterprise T&A Admin Monitor Recon Inventory Enterprise BFM EMS Adapter and API» Monitor Track and trend the execution of activities against defined measurements» Respond Escalate and refine tasks based upon execution outcome Confidential Information 126

125 Planning for 2014 and 2015: IntelliMatch Enterprise Management Studio Enterprise T&A Admin Monitor Enterprise FM Ops Control v9.1 R2 Ops Control v9.1 R2 UAT v9.1 R2 DEV v9.1 R2 DEV v9.1 R2 Confidential Information 127

126 IntelliMatch Operational Control Roadmap Confidential Information 128

127 Planning for : Strategic Roadmap Project Everest Rapid on-boarding of reconciliations Improved matching efficiency and performance Real-time processing support (low latency / high volume) Transient reconciliation processing / In-memory database Confidential Information 129

128 Planning for : Strategic Roadmap Project Everest Rapid on-boarding of reconciliations Improved matching efficiency and performance Real-time processing support (low latency / high volume) Transient reconciliation processing / In-memory database EMS Adapter and API Enterprise Management Studio API and Adapters Standard API for capture of reconciliation catalogue Pre-packaged adapters for common reconciliation engines Support for proprietary / bespoke coded reconciliations Confidential Information 130

129 Planning for : Strategic Roadmap Project Everest Rapid on-boarding of reconciliations Improved matching efficiency and performance Real-time processing support (low latency / high volume) Transient reconciliation processing / In-memory database EMS Adapter and API Enterprise Management Studio API and Adapters Standard API for capture of reconciliation catalogue Pre-packaged adapters for common reconciliation engines Support for proprietary / bespoke coded reconciliations Rules Manager Capture of technical and business expected and required behavior across documented reconciliation catalogue Real-time monitoring of actual vs expected activities Integrated analytics for predictive rules and configuration Automated workflow and escalation for breaches Confidential Information 131

130 Agenda» Strategy Summary» Product Release Update» Product Roadmap» Questions and Answers Confidential Information 132

131 Questions? Confidential Information 133

132 Questions and Answers Mark Rudland managing director, IntelliMatch, North America, SunGard 134

133 Questions? 135

134 Closing Summary 136

135 Closing Summary» Thank you for attending our IntelliMatch Customer Conference Special thank you to our customer speakers» Questions after the event? Please contact your account manager or

136 IntelliMatch Customer Conference London 11 June 2014