Emerging Markets Gravitate to Automation11.18.2011
Leading Pakistani bank deploys advanced technology in response to regulations.
The evolving regulatory environment is not limited to developed markets.
Within emerging markets, financial firms are mandated to respond quickly to clearing regulatory requirements, increase transparency and enhance straight-through processing capabilities, while minimizing risk.
Muslim Commercial Bank (MCB), one of the largest private banks in Pakistan, has tapped IBM and Misys to automate the bank’s treasury operations.
The project is part of MCB’s efforts to streamline existing operations in line with new regulations aiming at revamping and integrating financial services by making collection and credit operations much more efficient.
“The bank was looking for a solution to drive efficiency and enhance operational speed and flexibility,” Michel Daenen, sales director for the capital markets business in Middle East and Africa at Misys, told Markets Media. “It needed to centralize its operations onto fewer systems and meet the complex capital markets challenges it is faced with.”
The project will improve efficiencies and help the bank to comply with new regulations from the State Bank of Pakistan. IBM will provide implementation services to deploy Misys Opics Plus, which will standardize financial mechanisms and minimize complexity.
Misys Opics Plus is a .NET service-oriented, treasury and capital markets solution with straight through processing (STP) and back-office capabilities.
“It is a comprehensive solution for front-to-back office, cross-asset processing of a wide range of financial instruments,” said Daenen. “In a single system, it handles vanilla and complex derivatives, fixed income, and equity and treasury trades.”
In response to market demands, Misys is providing financial institutions with advanced STP, a comprehensive trade repository, and cross-asset collateral and margin management for both OTC and exchange traded derivatives.
Adopting a componentized approach to development, Misys has enhanced its Summit FT solution to enable customers to efficiently to central clearing requirements as they arise, with minimal disruption and risk.
Summit FT is a cross-asset front-to-back solution specializing in derivatives and structured products, which is used by more than 150 firms, including sell-side banks, asset servicers, development banks and asset managers.
Most participants are generally supportive of clearing.
The total traded repo volume on Eurex across all markets has doubled this year.
The service facilitates clearing and settlement via Cboe Digital's U.S. regulated, real-time clearinghouse.
The impact of the SEC’s Treasury clearing proposal could be significant.
Members that trade and clear U.S. Treasuries and CME interest rate futures will have capital efficiencies.