Corporate Treasury

Central Banking

Central bank risk management software that maximizes security, market oversight, trading and control

  • The Challenge

    Increasing pressure on national governments to maintain economic stability while managing market impact places a premium on control and risk management. The ability to quickly and efficiently oversee counterparties and monitor changing market conditions enables central banks to take proactive actions when needed. A comprehensive set of tools, analytics and benchmarks, backed by a robust infrastructure, is necessary to provide the support needed to manage risk more effectively.

    The Opportunity

    By having a securely hosted integrated database and risk management system, central banks can manage and control their data, collateral and balance sheet more effectively and leverage a single source of truth across the enterprise. Reliability and accessibility provide increased protection from cyber risks. Scalability enables responsiveness to market changes.

  • The Openlink Solution

    Openlink has been a recognized risk management leader for central banks since 1997. Openlink can adapt to evolving securities processing needs across multiple markets and instruments, such as money markets, investment securities, foreign exchange, commodities and all associated derivatives, with unparalleled flexibility. Openlink helps you gain insight into transaction flows across middle- and back-office functions, accounting and reporting processes. Openlink’s advanced tools help optimize investment, funding and operations, including configurable trade entry facilities, real-time position management, advanced pre-trade portfolio analytics, risk management and reporting, settlement processing and accounting.

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    • Streamline operations with a single solution that reduces total cost of ownership

      Challenge

      Many central banks and other public institutions use disparate trading and risk management software and operations systems to cover different asset classes and markets. As a result, ad-hoc integrations are needed to consolidate data, losing the benefits of an integrated system.

      Solution

      Openlink offers one integrated solution for trade capture, valuations and risk management. Bringing together compliance and limits monitoring, position and risk reporting, collateral management, clearing and settlement, accounting and cash management within a single source of record, minimizes systemic risk and increases oversight. At the same time, cost efficiencies from scale, consolidation and automation across your workflows with one solution are realized.

    • Maximize security and minimize risks with complete control

      Challenge

      Institutions such as central banks manage multiple market participants and credit conditions. Response mechanisms and controls are needed to monitor workflows, identify cyber threats, ensure compliance and minimize systemic risks for the highest levels of oversight and control. Off-site hosting alternatives may be less secure.

      Solution

      Openlink hosts its platform independently on-site or in the cloud, on our premises or yours, offering the highest level of security to meet your unique technology, compliance and business requirements. In addition, the platform offers segregation of duties for managing and monitoring security access levels. Administrators control user access rights at a granular level and can limit access by system, functional area or role and staff responsibility. Full audit trails cover changes made by designated users to trade terms, confirmations, correspondences, valuation data, prices or clearing information. Our solution is designed with your data security and scalability needs in mind.

    • Comprehensive collateral and cash management tools

      Challenge

      As central banks and public debt managers are required to take market action, appropriate tools and analytics for monitoring and oversight are needed. Activities like quantitative easing or unwinding balance sheet positions require scenario planning and stress testing to assess potential impact and evaluate timing. Greater transparency is also needed around the ability to manage payments in different currencies and collateral requirements across member banks.

      Solution

      A full collateral management solution has been embedded in Openlink’s platform to manage hedge accounting and asset allocations and track multiple portfolios. An integrated accounting solution completes the offering to deliver extensive oversight and control across funding, repos and treasury operations. SWIFT payments and messaging are embedded in the system to streamline the trade lifecycle process.

    • Monitor and benchmark portfolios

      Challenge

      Overseeing positions, tracking portfolio funding and benchmarking performance can be a complicated process for central banks. Measuring portfolio attributions and monitoring member bank compliance is an ongoing requirement that demands flexible tools.

      Solution

      Openlink provides extensive portfolio monitoring tools that can be used to manage and measure risk requirements, including credit limits, counterparty exposures and margin requirements. Attribution tools track historical details of positions, transactions and cash flows. Portfolio analytics and audit capabilities can be used to follow mandates and review performance changes. Data for benchmarking is maintained in real-time to facilitate the creation of customized analytics. Our platform is differentiated in its ability to measure fixed income benchmarks and commodities, both physical and exchange-traded, which can often be challenging to track – all within one solution.

    • Extensive risk oversight tools and automation enhance control

      Challenge

      Monitoring treasury and repo operations can be critical to daily workflows. Central banks and other public banking institutions are regularly required to respond to and handle increasingly complex instruments as new market innovations are developed. There is also the need to enforce internal compliance requirements and carry out asset performance attribution.

      Solution

      Openlink provides a single source for complete risk management within one system. Scalability and flexibility are designed into the architecture to create bespoke risk metrics and build analytics that measure and monitor mission-critical business activities. We support the development of the tools your organization needs to increase its efficiency and control.

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