Optimize. OPTIMIZING CASH FOR COMPLIANCE

Optimize. OPTIMIZING CASH FOR COMPLIANCE

01 Why perform intraday liquidity monitoring? 2

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 3 Optimizing cash for compliance

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 4 Optimizing cash for compliance

02 How is the global market responding? 5

Intraday liquidity: regulation timeline UK PRA Principles for sound liquidity risk management and supervision 2009 DNB ILAAP BCBS248: monitoring tools for intraday liquidity management Australia APS210 China ILM US Dialogue BCBS248 Compliance 2008 UK FSA ILAA 2013 Singapore Guidelines on LRM 2014 HK MA(BS)22 2015 Jan 1 2017 Basel III: the liquidity coverage ratio and liquidity risk monitoring tools India BCBS248 Global Regional Canada BCBS248 6 Optimizing cash for compliance

03 What are you required to do? 7

Bank requirements BCBS248 and beyond Intraday liquidity reporting Daily maximum liquidity usage Available liquidity Total payments Time-specific obligations Value of payments made Intraday credit lines extended Stress testing Intraday liquidity management Additional reporting requirements More frequent reporting Sound liquidity management Liquidity buffers Charges for liquidity Negative interest rates 8 Optimizing cash for compliance

Bank requirements Key challenges 01 Turning complex data into real time 02 information Achieving accuracy for improved funding decisions 03 Managing system integration for greater automation 04 Satisfying regulatory compliance now and in the future 9 Optimizing cash for compliance

Bank requirements How to respond Calculate intraday 01 02 positions Intraday cash-flow capture and processing Intraday position calculation Flexible views and drilldown capabilities Project positions and track against limits Calculate projected and actual cash positions Escalate / alert to future position values Limit tracking and escalation Payment interaction and 03 04 sweeping Payment hold and release for response to potential limit and funding breaches Enable manual adjustment and manual sweep creation for users Automate sweeps between accounts based upon pre-defined position thresholds and limits Generation of regulatory reports and business intelligence Simplify the data collection for regulatory reporting Improve timeliness of report delivery Improve decision making by analyzing over time 10 Optimizing cash for compliance

04 Operational steps to optimize liquidity 11

Cash and Liquidity Monitoring Operational stages to optimize liquidity and cash management Movements Capture and validate transactions Dynamic balances Calculate real time positions and respond 02 03 Payment Cash flow validation Intraday Liquidity monitoring 01 Nostro EOD reconciliation 04 Financial close Automation Positions Establish initial position Start accuracy and resolve differences Signoff Capture approvals and ensure specific activities 12 Optimizing cash for compliance

Cash and Liquidity Monitoring Operational stages to optimize liquidity and cash management Movements Capture and validate transactions 2017 SWIFT accord retirement MT103, 210 messages Time critical process Data integrity challenges Mismatch acceptance criteria Resolution process management BCBS248 compliance Accurate funding decision making Counterparty risk mitigation Regulatory compliance Mitigation of fees and charges Dynamic balances Calculate real time positions and respond Proof account details between balances and transactions Match individual transactions to identify payment exceptions Track and resolve exceptions quickly Balance sheet management Month-end account attestation Multi-layered signoff process Complex task completion management Demonstration of controls Positions Establish initial position Start accuracy and resolve differences Signoff Capture approvals and ensure specific activities 13 Optimizing cash for compliance

05 What are the benefits of automation? 14

Key benefits 01 Calculate intraday positions Intraday cash flow capture and processing Intraday position calculation Flexible views and drilldown capabilities 02 Project positions and track against limits Calculate projected and actual cash positions Escalate / alert to future position values Limit tracking and escalation 03 Payment interaction and sweeping Payment hold and release for response to potential limit and funding breaches Enable manual adjustment and manual sweep creation for users Automate sweeps between accounts based upon pre-defined position thresholds and limits 04 Generation of regulatory reports and business intelligence Simplify the data collection for regulatory reporting Improve timeliness of report delivery Improve decision making by analyzing over time 15 Optimizing cash for compliance

06 Learn more 16

Learn more To find out how to implement a centralized approach to the calculation, analysis and monitoring of intraday liquidity positions, contact FIS at getinfo@sungard.com FIS has acquired SunGard. Pushing the pace of financial technology, together we ll help our clients solve technology challenges for their business. 17 Optimizing cash for compliance

Optimize. OPTIMIZING CASH FOR COMPLIANCE