IBM Global Business Services

Integrated Banking Solution

OTMS Asset and Process Management

– Order Management – Investment Management

– Integration Platform

– Concepts

– Service Offerings

What is the best Banking Business

Model?

In the light of customers’ broader, complex and fast changing

needs, banks need to continually rethink the way they operate.

This is especially true for investment services and products,

where customers are increasingly demanding access to a

broadening range of investment products and markets, and

seeking ever-more integrated investment advice and manage-

ment services.

Faced with growing regulatory demands (e.g. best execution)

and intensifying cost pressure, mastering investment execution

and operations has become imperative to offer sustainable and

efficient investment services.

The key to class-leading investment advice, execution and

operations is a clear and flexible business design enabled

with state-of-the-art technology, as delivered by IBM’s OTMS.

This will allow you to meet the ever increasing demands of the

banking industry, such as:

• Order management integrated with front-, middle- and back-

office systems

• Seamless interfacing with all internal and external data

providers

• Real-time interfacing with brokers, markets and trading

systems (e.g. GLOX)

• Real-time portfolio valuations

• Pre- and post-trade checks and rectifications (e.g. invest-

ment restrictions)

• Integrated investment and trade management functionalities

• Rich variety of order types

Today many banks try to tackle these demands with a wide

range of applications that impose an additional technical and

operational burden and reduce the automation potential (lower

STP rates), which ultimately leads to high operational costs and

a prolonged time-to-market of new business requirements.

What is OTMS? IBM offers OTMS, as a solution to all these challenges and

more.

OTMS is an Investment- and Order Management solution with

integrated functionalities such as Securities, Treasury and

Funds Transfers, state-of-the-art performance measurement

and much more.

OTMS is industry proven, with over fifteen years in use at some

of the most sophisticated private banks in Switzerland.

With OTMS we offer a very efficient asset and process manage-

ment system with high STP rates, allowing banks to significantly

reduce costs.

We are very proud to claim that OTMS is the best integrated

platform to meet the high requirements of Swiss banking. OTMS

not only automates all asset management-related processes, it

also ensures standardised business processes and leads to

consistent data quality.

Implementing OTMS is not just an IT project but a journey

which allows you to improve your business considerably. IBM

Global Business Services combines sound business process

know-how with IT expertise (with Swiss and international expe-

rience), and sets new standards in banking applications with

OTMS.

As the worldwide leading consulting firm and system integra-

tion specialist, IBM Global Business Services has delivered

numerous end-to-end solutions in partnership with its

financial services clients to help them to achieve a competitive

advantage.

OTMS Order Management

OTMS facilitates worldwide order processing, trading and

portfolio management. Our mission was to design an order

management system that integrates front- and middle-office

functions in one single application that simplifies connectivity

to back offices and diverse points of execution.

Our reliable and widely implemented solution is the best way to

start your STP initiative. OTMS allows you to achieve cost savings

by reducing transaction costs, resource use, and exception

handling. At the same time it enforces high standards in data

quality. Through the reduction of administrative workloads, your

front office personnel are able to better focus on relationship

management and acquisition. This competitive advantage is

the foundation for the improvement and consolidation of your

business. Our long-standing experience in process improve-

ments for banks is based on many national and international

projects in the financial services industry.

Speed and quality are key factors in today’s banking business.

Clients want to react swiftly to changing market conditions and

are investing in many and diverse financial instruments.

Under these conditions client advisors need control over the

orders they place for their clients. Traders need a tool, which

helps them handle the incoming flood of orders. Third party

applications and back office systems need to be fed without

error-prone paper interfaces.

Highlights • Ergonomic order entry and order execution frames (like the

order book), which provide all necessary information on

screen and allow quick order processing

• Order compliance by applying validation mechanisms,

authorization phases and plausibility checks throughout the

entire order process

• Supports all business order types including: securities,

funds and derivative instruments, money market (time and

call deposits as well as loans), payments (including standing

orders) and foreign exchange (spot, forward, swap and deriv-

ative orders).

• Matching rules and pre-trade checks

• Handling of the orders is completely configurable or adjust-

able to the corresponding business requirements

• The investment advisor simply enters the orders without

caring about the place of execution. The OTMS workflow

engine is responsible for the validation of business rules and

routes the orders to the appropriate place of execution based

on the bank’s definitions.

OTMS Investment Management The OTMS investment management system offered by IBM

automates most portfolio management related processes while

ensuring standardized business processes which leads to con-

sistent data quality. It is a solution specifically designed for the

wealth management industry.

Investment Management The OTMS investment management module enables both

automated and customized management of high-value port-

folios, and is seamlessly integrated to the order management

module in one application.

Highlights

• OTMS allows the definition of several strategies and various

regulatory and client restrictions, which enables efficient

rebalancing of all or selected portfolios. This results in col-

lective orders which are directly routed to the trading depart-

ment

• Supports the definition of complex asset allocations

• Comprehensive and professional compliance and control,

automatic rebalancing, reporting and risk management

functions

• Automated compliance and control workflow, which performs

pre- and post-trade validations and provides various reports

and overviews

• Quick portfolio reinvestments after changes in the firm’s

investment strategy and instant response to market changes

by using powerful rebalancing functions

• Real-time settlement of orders through the intelligent integra-

tion of the back-office system

• Transparent investment control through risk management

functionality such as: duration definition and control, invest-

ment fund decomposition, market exposure calculation for

basket- and derivative instruments, hedging proposals and

portfolio analysis

Performance Measurement The performance measurement system complies with Global

Investment Performance Standards and is grouped into three

main categories:

• Performance calculation

• Comparison (benchmarks and composites)

• Analysis contribution and attribution (planned)

OTMS Integration Platform OTMS is designed to electronically route orders on a rule-

based procedure to the respective markets, ECNs (Electronic

Communication Networks) or brokers either directly or via the

bank’s trading desk.

OTMS is also capable of receiving orders or trades created in

other applications like eBanking, PMS (Portfolio Management

Systems) or FMS (Financial Management Systems). These can

be either be handled manually (Order Book) or routed auto-

matically to whichever electronic trading system or system as

configured within OTMS.

An electronic audit record of all related actions is generated.

Investment advisors and traders are therefore constantly

informed about the status and progress of all orders.

OTMS interconnects to electronic counterparties directly or

through the bank’s existing trading systems:

• Swiss Stock Exchange – SIX

• Virt-x

• Xetra

• Reuters Order Routing – ROR

• Bloomberg

• Thomson Autex

• Instinet

• Archipelago – NASDAQ

• Credit Suisse First Boston – CSFB

• EUREX

• UBS (FX2B)

• EBS (FX) It uses standard protocols to connect to electronic trading

systems (mainly FIX) and configurable interfaces to back office

systems.

OTMS allows monitoring of the correct operation of the inter-

faces and provides an option to create notifications of potential

malfunction in the interfaces.

OTMS offers extensive integration to back-end systems (e.g.

Avaloq) for transaction booking and master data load (instru-

ments, portfolios, positions, etc.).

OTMS Concepts OTMS is a modular solution where the implementation of

the different modules is based on your business needs. The

flexible approach of our product allows you to integrate addi-

tional functions and modules with little effort. All functions are

accessible using one convenient rich user interface.

Highlights • Powerful and flexible workflow engine to reflect the bank’s

specific processes

• Portfolio workbench for detailed investment analysis and

order generation

• Real-time intraday position keeping

• Advanced authorisation concept

• Broad and fully configurable validation concept to meet regu-

latory and bank regulations

• Sophisticated business object browser to easily access and

display all data

• Multi-branch concept to support centralised and cross-bor-

der order execution

• Multi-currency capabilities depending on your branch

accounting currencies

• Multi-lingual capabilities

• Generic import & export adapters based on a flexible middle-

ware for 3rd party access

• Generic overviews

• Multi-banking capabilities

• Various technical order types (single, collective and bulk) as

well as direct deals

• OTMS is a 3-tier application written in Java and is highly

scalable.

Additional Service Offerings

IBM Global Business Services combine sound business

process know-how with IT expertise. As the worldwide leading

consulting firm and systems integration specialist, IBM Global

Business Services have delivered numerous end-to-end

solutions together with its financial services clients to help them

achieve a competitive advantage.

Feasibility Studies: find out if OTMS can improve your

business needs. We review your requirements and technical

environment, and assess the impact of the proposed solution

technically and organisationally.

Implementation Support: our specialists support you in

implementing our solution according to your bank’s require-

ments. We assist you in establishing system parameters, in the

building of the required interfaces and in complex migration

tasks.

Business Process Management (BPM): benefit from

our profound competence in re-engineering your business

processes considering best practice investment and order

management processes.

Project Management: our project leaders combine project

management skills with business expertise ensuring an OTMS

implementation within the given time and cost frame and meets

high quality standards.

Training: tailored training ensures that your key staff is able

to run OTMS independently and reduces operating costs

considerably. Close co-operation ensures further on-the-job

knowledge transfer.

Help Desk Support: for production support, IBM offers

several helpdesk SLA’s ranging from standard office hours to

24/7 standby services including weekends and holidays. The

helpdesk acts as a direct gateway to our subject matter experts

and development team and it includes guaranteed response

times and access to an online ticketing system, e-mail support

and a dedicated telephone hotline. Additionally we offer a

knowledge base and product documentation through a Wiki

site.

Contact

Jan Seffinga

Global Business Services

Partner Financial Services

Sector

Head of Banking Solutions

Center ALPS

+41 (0) 79 431 79 71

jan.seffinga@ch.ibm.com

Markus Spoerri

Global Business Services

Financial Services Sector

Head AMS Assets & Engineering

+41 (0) 79 352 52 10

spoe@ch.ibm.com

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