Will building a Liquidity Monitoring System from the bottom-up satisfy regulators?

Eight years after the credit crisis, banks are still struggling to map out and build a comprehensive collateral/liquidity management solution that will satisfy Dodd-Frank. From the bank’s perspective, the new normal is to accept the fines. This is viewed as a far more cost effective solution than justifying a sizeable investment to fix a system that is deemed too complex for a department that is traditionally considered to be a cost center. 

Liquidity management on the go

The business requirement

A major financial institution needed to build a liquidity management system to monitor its positions and give management the tools to determine exposure while monitoring for regulatory compliance and risk. The initial delivery was a desktop-based solution using a tired architecture of:

  • Data acquisition and ingestion
  • Business rules processing
  • Web services
  • UI framework
  • Desktop browser

HTML5 in the trading room

The business requirement

A client needed to replace its execution management system (EMS) that was based on repurposed technology – an Excel sheet that had evolved over time. Given the increasingly critical role of the system, the level of usability and robustness was no longer sufficient. Its performance was lacking. The system was unable to keep up with market updates, leaving traders unsure of what e.g. constituted the current price versus the executed price.

How to future proof regulatory change?

The business requirement

A major financial institution engaged Eikos Partners to determine how their current risk and financial systems needed to be changed to future proof regulatory change as well as its business requirements. We concluded that a structural change had to be put in place so that our client would be able to reconciliate its data from all required – and disparate – sources.