Better data, better decisions – from front to back office
Openlink Findur helps large organizations engaged in capital markets trade smarter, minimize risk, and streamline business processes in real time – all while reducing costs. By providing access to all critical decision-making information, and bringing it into a single, trusted and actionable source of intelligence, Openlink Findur helps break down silos across departments and functions. Collaboration increases, risks are mitigated, and profitable opportunities are uncovered.
With front-to-back office straight-through processing, Openlink Findur eliminates much of the manual reconciliation work typically required in operations. Openlink Findur makes access to all facets of the transaction lifecycle readily available so business gets more timely and accurate information for decision making.
Openlink covers the broadest range of asset classes in the industry, helping you tap new market opportunities quickly and cost-effectively.
Nimble, scalable, and comprehensive, Openlink Findur helps meet today’s challenges while paving the way to capitalize on tomorrow’s opportunities.
One solution from front-to-back officeChallenge
Costs and risks associated with front-to-back office reconciliation
Many firms utilize different systems across trading, risk management and operations functions. As these systems are not well integrated, users across the business are rarely using a single, consistent set of information simply because information is changing faster than it can be reconciled. Errors arise, and it can be challenging to keep up – especially in the face of increasing transaction volume.Solution
A single solution from front-to-middle-to-back office
With Openlink you get one integrated solution for trade capture, valuation, compliance and limits monitoring, right through to position and risk reporting, collateral management, clearing and settlement, accounting and cash management.
Because a single solution is used across the front, middle and back offices, all roles across the business can work within the same set of shifting opportunities and obligations, eliminating the possibility of unintentional disparities that could crop up between, say, front office trades and middle-office compliance.
The data transparency delivered right along the trade lifecycle also allows users to click on an accounting entry, for example, and drill down into the underlying trade to quickly investigate issues when they do arise.Value Delivered
As a result, trade processes are streamlined and the business gets more timely and accurate information for decision making.
Measure hedge effectiveness and minimize earnings volatilityChallenge
Regulatory changes impact hedge accounting
In order to avoid earnings volatility, hedges that qualify as “highly effective” can be afforded hedge accounting treatment. However, implementation of hedge accounting requires a large amount of work documenting the hedge relationship and proving – both prospectively and retrospectively – that the hedge relationship is effective. In addition, evolving regulations and accounting standards (e.g. IFRS 9) for measuring hedge effectiveness make it more difficult to keep systems current with the latest rules and methodologies.Solution
Measure hedge effectiveness and minimize earnings volatility
The Openlink solution automatically analyzes the effectiveness of hedges (under IFRS9, IAS39 or FAS 133) and invoke the appropriate hedge accounting treatment. It features our best-of-breed Hedge Analyzer module for robust hedge effectiveness testing, and provides complete transparency that enables users to drill into postings to verify all payment, accrual or valuation calculations on the trade.
The solution supports the statutory reporting required for hedge accounting.Value Delivered
You can automate the application of hedge accounting rules and methodologies to ensure hedges are being correctly treated; giving you the reassurance that earnings statements are being correctly reported and subject to minimal volatility.
Make more effective use of collateral in OTC tradingChallenge
New OTC derivatives regulations will require the more effective management of collateral
In order to improve transparency and reduce counterparty risk, Dodd Frank and other regulations mandate that standardized OTC derivatives be traded on an exchange or regulated trading platform, cleared through central counterparties (CCPs) and reported to a trade repository. With trades dispersed across multiple clearing venues, the ability of firms to “net out” with counterparties is diminished. Furthermore CCPs typically have a more restricted list of assets that they are willing to accept as collateral – a particular challenge when traditional AAA assets are downgraded.Solution
Make more effective use of collateral in OTC trading
Openlink’s collateral management functionality supports both cleared and un-cleared OTC derivative trades. It provides real-time information across credit support annexes (CSAs) for bi-lateral counterparties and central counterparties (CCPs) and counterparty netting agreements.
Using our system, firms can quickly decide on the most efficient use of collateral, and trade with counterparties who offer the most favorable CSA terms for the assets they are willing to accept as collateral. Furthermore with full visibility of CSA terms, firms can put in place contingencies to post additional collateral in the event of a downgrade to the assets they are holding.Value Delivered
You can make more effective use of collateral and make less demands on other capital within the firm.
Reduce the complexity and cost of managing both cleared and bilateral tradesChallenge
Handling cleared and bilateral categories of trades
Having a market with two categories of trades where some are cleared and some are struck bilaterally is complicating processes.Solution
Reduce the complexity and cost of managing both cleared and bilateral trades
Openlink provides a single system to connect to OTC clearing for multiple asset classes – we were the first solution to interface with ICE for OTC clearing in 2002. We support workflows for both OTC cleared and bilateral trades including confirmation, settlement, legal documentation, credit risk exposure and margining.
In addition, Openlink will provide interfaces for major new exchanges, clearing houses and brokers as they emerge in the marketplace. We have also developed standard gateways to clear trades via service providers such as Markit, Bloomberg and CME.Value Delivered
As a result, Openlink reduces the complexity and cost of managing both cleared and bilateral trades.
High performance technology for real-time positionsChallenge
Transaction volumes impacting the calculation of positions in real-time
Firms need their trading applications to scale across a large number of transactions so they can see their positions and P&L in real-time. However, many existing systems based on older technology are under pressure.Solution
High performance technology for real-time positions
Our solution uses an in-memory database for fast storage and retrieval of massive amounts of data. Furthermore, the Openlink Grid enables remote processing, distributed and parallel processing in a reliable and scalable environment. This combination ensures the OpenLink solution scales as transaction volumes grow and is able to deliver aggregated real-time position reporting for the largest trading operations.Value Delivered
With an enterprise-wide view of P&L available in real-time you can take swift action as market conditions change.
Rely on Openlink to provide a cost effective solution for regulatory complianceChallenge
Regulation – preparing for the inevitable
A wave of high-profile regulation is steadily being codified into rules by government agencies especially the CFTC for commodities trading. With the stakes so high and the cost of regulation escalating, firms are looking to understand the implications of the regulatory onslaught and build the necessary solutions.Solution
Rely on Openlink to provide a cost effective solution for regulatory compliance
Openlink is committed to staying at the forefront of Dodd-Frank and other regulatory reforms, working closely with clients, regulatory agencies, clearing houses, clearing members, service providers and trade data repositories to keep pace with the rapidly evolving derivatives landscape.
We have a strategy and a roadmap to address the impact of regulatory change as and when enforcement starts. We have already delivered Dodd-Frank Regulatory Compliance Reporting Package, CFTC Position Limits Monitoring, Swap Data Repository (SDR) Reporting, OTC Clearing Workflows and Margin Analytics for Cleared Swaps – all available as plug-ins for new and existing implementations. And we provide flexible and configurable reporting tools to analyze and report on the data as required by the regulators.Value Delivered
You can rely on Openlink to provide a cost effective solution for regulatory compliance.
Get a better understanding of future risk exposureChallenge
Imperative for more rigorous stress testing
Firms are paying much more attention to stress testing – modeling hypothetical scenarios to evaluate the impact of possible future events. And they are looking to model increasingly complex scenarios to better understand their liquidity, credit and market risks under a much wider range of circumstances.Solution
Get a better understanding of future risk exposure
Solution 5 goes here in Value Delivered Item Block
The Openlink solution provides extensive stress testing functionality enabling you to model complex scenarios with a wide range of input factors. Our simulation engine provides a powerful and consistent application of risk factor shocks regardless of market. Risk can be attributed to hypothetical movements of any magnitude including rates, FX, commodities and inflation.Value Delivered
Using Openlink you get a better understanding of liquidity, credit and market risks under a wider range of circumstances.