Trading Book Implementation

SUMMARY

The client, a multinational private bank and financial services company, wanted to implement a local Principal Trading capability which involved establishing a regulatory Trading Book to address several regulatory and business needs. Avantage Reply provide a team with trading, risk, finance and regulatory reporting expertise to assist the bank in the end-to-end implementation of the Trading Book. 

CUSTOMER GOALS

The client wanted to implement local Principal Trading capability which involved establishing a Trading Book with the following objectives:

• To satisfy the supervisory expectations regarding ‘centralised risk management’
• To diversify its counterparties and to stop relying exclusively on the back-to-back transactions with the Parent firm
• To better manage its Large Exposure towards its counterparties

CHALLENGES

The project scope touched almost every organizational level and department of the bank, such as trading, middle and back offices, finance and regulatory reporting, risk, and transactional reporting, which involved a significant number of stakeholders to manage and keep up to date. In addition, the project also involved several geographical locations which added to the logistical and communication challenges.

SOLUTION

Avantage Reply provide a team consisting of the trading industry experts, risk specialists, finance and regulatory reporting professionals and a project manager to assists the bank in the following areas:

• Define the “as-is” state of the trading operations at the bank
• Perform a gap analysis between the “as is” state, the regulatory requirements, and the market best practices
• Propose a remediation and implementation plan for the identified gaps 
• Provide risk, finance, trading and project management support during the implementation phase

CUSTOMER DESCRIPTION

A multinational private bank and financial services company offering wealth management, asset management and asset servicing to private clients and institutions.