Unified command center

Overview

The transition of LIBOR as a benchmark rate in the upcoming years has far-reaching implications for financial institutions (FIs) worldwide. Buy-side players would be impacted in their portfolio management decisions, performance attribution and new product development, to mention a few areas whereas Sell-side and hedge fund players would need to take an extremely focused look at the implication of outstanding financial contracts to preclude undue ‘winner’ and ‘loser’ situations in complex derivatives and thus legal and financial risk. This is where Hexaware provides the solution for the LIBOR transition approach. The platform will allow collaboration between all stakeholders for devising the overall strategy, executing it, and continually aligning it. The Unified Command Center or UCC solution allows banks and financial institutions to carry out the LIBOR transition in a very coordinated and governed fashion. It is one place where all different workstreams of the transition can be closely tracked, so that overall risk is reduced.

Key Features & Functionality

Hexaware’s offering addresses the afore-mentioned challenges effectively. A product centric, consultative strategy helps delineate a comprehensive roadmap. A Unified Command Center (UCC) approach, centered on Appian platform workflow capabilities stitches together the entire planning, collaborative execution, communication (internal and external) and risk management across all the three lines of defense - Business, Risk Management and Transition Audit, where chosen roles will come from different departments. In future versions, User-led ML (Machine Learning) and NLP technologies will leverage contract events and semantic domain awareness to generate deep insights, enabling faster and more accurate remediation of financial contracts. Automation based tools will help perform systematic and exhaustive impact analysis for application changes.

Four workstreams we are covering as part of this solution are:

• Contracts Remediation.
• Product Modification or new product creation.
• Application change projects.
• Tracking the application changes impacted via LIBOT transition.

Benefits & Business Impact

Hexaware offers an innovative solution for the complex and important transition from LIBOR to alternative global benchmark rates. We possess the right set of skills, capabilities, strategies, and technologies for enabling seamless LIBOR transition. Our partners are entities that bring relevant expertise to address the LIBOR transition challenge. Hexaware can enable banks and financial institutions in seamless transitioning to an alternative rates regime through our effective strategies.

• Cross Functional View
  • Multiple groups in customer business and operations may not have a clear view of each other’s processes to produce an effective transition plan on their own. Execution of any agreed plan will bring challenges of responsibilities in different units and of tracking work completion in various streams with the UCC, transparencies will be provided.
• Multiple Product Lines
  • Customers will be dealing in hundreds of financial products. UCC will provide a comprehensive governance view. UCC will provide the workflow and insight to allow subject matter expertise to channelize their task for an effective transition.
• Multiple Applications
  • Customer will have multiple applications, with contract and master data spread across systems, particularly where acquisitions have added to systems’ complexity which, UCC is designed to solve. Normally applications interdependencies will be complex to analyze for LIBOR products impact and remediate but, with the UCC this process will be made transparent across business units and applications.
• Enterprise Level Control
  • UCC will employ all three lines of defense (Business, Risk and Audit) bringing all parties to a unified platform for execution and communication. All responsible groups will be able to communicate internally as well as externally in an effective manner.