Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Derivatives

No description
by

Geraldine Bouckaert

on 7 May 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Derivatives

Derivatives
Want to learn more about
DERIVATIVES
&
OUR COMMUNITY
here at Capco?
Derivatives Community
Innovation in Action
InnAct: Vision & Objectives
Functional View
Communication
Solutions
Knowledge Management
Vendor Landscape
InnAct Derivatives:
Vision & Objectives
Huge amount of information available & fast rate of change across the industry
Need to structure our collective experience and thoughts in an efficient manner

Derivatives: What do we mean?
A derivative is a financial instrument that DERIVES its value based on the value or performance of some underlying asset, instrument or
thing.
General Derivatives Categories
Forwards:

contracts between 2 parties to buy or sell an asset at a specified future time at a price agreed upon today

Futures:

contracts obligating the buyer to purchase an asset (or the seller to sell an asset) at a predetermined future date and price.

Options:

contracts which give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before a specified date.

Swaps:

contracts in which two counterparties exchange cash flows of one party's financial instrument for those of the other party's financial instrument.
Market Night InnAct - Derivatives
Improve efforts to be contributors to industry discussion & fuel our ability to create differentiated solutions
Need to form communities aligned with area of interest
Innovation in Action
Capco's real-time thought leadership and Community Development Initiative
Dynamic thought leadership
Give our brand a voice, drive innovation, & increase sales opportunities
Functional View
Communication
Marc-to-Market
Knowledge Management
Training
Vendor Landscape
Schedule delivery of Blogs
Coordinate internal and external communication
Create marketable, commercial solutions relevant to our clients
Partner with FIS for offerings
Creation of online video series by our Subject Matter Experts

Coordinate catalog of project artifacts, pitches.

Develop catalog of vendor landscape related to derivatives
Solutions
Communication
Monthly blogs that give a
personal view
on a topic of choice within the Derivatives space
Act as a platform for providing constant
news updates
about the activities of the community and its members
Actively involve the Capco community by
engaging everyone to blog
about their experiences related to Derivatives, whether they are business or regulatory driven
The blogs will discuss a
current trend or topic and its impact
on our clients from a perspective where Capco can add value
The general tempo of the blog will be light hearted, but provide
key takeaways
to the audience.
Audience responses
will be constantly monitored to define the direction of future blog posts and hence the community.
Market Research
Vendor Tie-ups
Knowledge Management
Carry out the As-is analysis
List the number of derivative projects handled by Capco currently and in the past
Create a
centralized repository
Collect
Subject Matter Expert resumes
,
requests for proposal
, and project
artifacts
Vendor Landscape
Market Research
Carry out extensive
market research
and develop understanding on the vendor situation
Map the solutions
on the derivative trade life cycle
List the
vendor contracts
for further discussion
Analyze the
impact of regulations
on the vendor solutions
Vendor Tie-ups
Carry out the high level
cost benefit analysis
on the vendor solutions
Analyze the possible fitment with Capco and its clients
Provide
recommendations
on tie-ups
Solutions
Higher capital requirements, simplified legal structures, shrinking spreads, cost of regulatory burden and overall market volatility are just some of the
challenges
investment banking participants face in this new era.
The Solutions work stream is looking to do an analysis of Capco’s capabilities and to a build-out a
framework for a portfolio of standardized
, marketable solutions it can bring to our clients in the form of tools and accelerators.

To develop derivative solutions that cater to the current and future
client needs by managing assets, generating demand and measuring results
Reinvent the solutions
continuously to be always in demand
What do investors do with Derivatives?
Hedging/Managing a Risk
that is unwanted
Airlines use derivatives to
MANAGE THEIR EXPOSURE
to the price of oil

Speculation
Derivatives often have a great deal of built in
LEVERAGE

Arbitrage
Allows you to find opportunities for
RISK-FREE PROFIT
Standard "Capital Markets" jargon applies:
buy/sell, long/short, bought/wrote
How do Capco's clients interact with Derivatives?
Market Making:
Dealer:
Makes profits from the difference between the
BID AND ASK
prices (spread)
Broker:
Matches
TRANSACTIONS
between buyer and seller (commission)
Intermediation:

STEP IN
between client and their counterparties (fee)
Bilateral vs Cleared:
Bilateral exposures have significant infrastructure around
VALUATION
and
COLLATERAL MANAGEMENT
FCMs are the interface to
CLEARING HOUSES
which provides a way for derivatives traders to limit counterparty risk
SEF Connectivity
Derivatives Reg Reporting
Derivatives Onboarding
Derivatives Platform Migration
New
Markets & Product Integration
for Listed and OTC Cleared Derivatives
Cross Product Portfolio Margin
across Listed and OTC Derivatives
Swaps Data Repository (SDR)
Reporting
Collateral and Trade Capture Renovation across Bilateral and Cleared Derivatives

Correction of v
aluation model for Equity Options
to calculate FX exposure of trade positions for Regulatory Reporting.
Assess the
impact of new regulations
in Mexico on Swaps trade reporting.
Compliance
of the reporting of Equity Forwards and Options with the new regulations in Mexico
Project Genesis
Derivative onboarding
for PWM Clients
Perform margining, collateral management, portfolio accounting and performance
Derivatives workflow

Options and futures
trading migration
to Consensys
BAML
used to manually feed these trades into GMI
With this process being automated, BAML can now be much more
efficient
when executing future/option trades

Current & Recent Derivatives Projects
Contact us at
derivativesDL@fisglobal.com

Coordination between L&D and Derivatives Community
Close skills gap
Continuously monitor Capco’s
knowledge
in the Derivatives space
Full transcript