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Polaris capabilities
in Derivatives space encompass multiple instruments
including treasury and corporate bonds, fixed
and floating rate bonds, zero coupon bonds, securitized
debt etc. In the derivatives space, our experience
spans forwards/ futures and multiple flavors of
options across various underlying including Equities,
FI, FX; IR derivatives including FRA, Swaps, Swaptions,
Caps and Floors; Structured products and Credit
derivatives across Front office, Middle office
and Back office operations.
Listed below are
capabilities across each area of operation.
Front Office
- Deal Capture (manual and automated)
- Rate provision system: provide real-time,
accurate and consolidated information to make
timely and effective investment decisions
- Order Management System (Order Capture –
single order/ basket trading; Order Modification/
Cancellation/ Validation; Order Routing)
- Order Matching Engine
- Pricing
- Online tools like the Blotters, Limit Monitoring
etc.
Middle Office
- Risk Management
- Risk Measurement and Monitoring (Credit
and Market risk) - VaR – Historical,
Monte Carlo and Parametric; Scenario building
and Analytics (Simulation/ Stress Testing/
Back Testing, Factor sensitivity analysis
– Interest rate, market price, volatility
etc.)
- Margining - Online margin calculation/
Pre-trade and post-trade margin monitoring
- Collateral Monitoring - Real-time MTM
- Credit Administration - Rule based administration
of the credit value of the collateral; Credit
Approval
- Dealer limit monitoring
- Market Information analysis and alerts to
front office
- Performance Measurement and attribution
Back Office
- Billing
- Automated invoice generation and dispatch
through auto email/ auto fax or manually
- Confirmation
- Confirmation generation through auto
email/ auto fax or manually
- Automated and manual matching of confirmed
deals
- Position Reconciliation
- Audit Trail
- Rule based accounting
- Clearing and Settlement
- Netting and obligation calculation
- Obligation intimation through auto email/
auto fax or manually
- Processing for Settlements, Delivery
and Confirmation
- Seamless integration with depository
and core banking systems enabling STP for
settlement
Reporting
& MIS
- Regulatory
reporting
- Accrual
and Accretion list
- MTM profit/loss
- Limit utilization
- Cost of
holdings
- Open Positions
- Management
action trigger
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