By implementing Digia’s business application suite, Carnegie has achieved a cost effective and flexible back-office trade platform suitable for meeting future needs. Applications automated the management of derivative deals supporting multiple instruments using existing equities as collaterals.

Solution benefits

• End to end Straight Through Processing
• Reduced manual workload and entries in disparate systems
• A flexible environment ready for future changes and directives
• Increased control and efficiency
• A modern technology platform
  
  

Minimize manual procedures and staff workload

In order to manage the investments and securities custody of its customers in the most efficient way Carnegie prioritises constant improvement in the securities trading back office systems. The aim is to enable fully automated post-trade straight-through processing (STP), minimize manual procedures and staff workload. To face new requirements and the increasing volume of business transactions Carnegie defined a new initiative to improve the back-office processes flow and system architecture.

The project needed to provide automated clearing and settlement processing including a generic settlement flow, easier administration and an intuitive user interface. To achieve best practice STP, they also defined a second phase in this key initiative.

The requirement included realtime order capturing and the ability to process securities and foreign exchange trades with increased efficiency. In addition to improving the securities trading, Carnegie also defined another project in order to improve operations and management of equity financing via derivates deals. The projects are part of a long-term strategy to create modular application architecture for a “pan-Nordic” setup. New applications are loosely coupled around the core back-office portfolio and custody system to provide a flexible environment for future enhancements.

Cost effective and flexible solution

Digia delivered its Trade Management Business Applications suite in two phases. In first phase, Carnegie’s solution for handling domestic and cross-border clearing and settlement was introduced using the Clear application. This included real-time integration to CSD and global custodian systems. The application provided a generic settlement flow and reduced administration with focus on deviations.

The second phase encompassed of three projects running in parallel. The Trade application provided full STP in post-trade processing, handling trade executions and integrated to external business systems for order capturing, currency conversions and matching without manual intervention. In November 2007, the TRS reporting module was installed for compliance of securities trading according to EU’s MiFID directive in both Sweden and Finland. In the beginning of 2008, the first version of the Finance application was put in production in the equity finance department.

The approach for Carnegie presents the new generation of solutions for trading back office 

The application automated management of derivative deals supporting multiple instruments using existing equities as collaterals. By implementing Digia’s business application suite, Carnegie has achieved a cost effective and flexible back-office trade platform suitable for meeting future needs. “We use Digia as our partner because their knowledge and long experience as a reliable application provider for the trade finance sector. Cooperation during the project was excellent, even when timetables were tight”, says Per von Elern, Carnegie’s Project Manager for Business Support.

“Our software solutions for the securities trade finance management are designed to meet the specialised needs of the industry. The modular approach for Carnegie presents the new generation of solutions for trading back office and proves our capability in delivering projects with expertise and within agreed timeframe”, says Niklas Lager, Business Group Director at Digia.

Applied technology

• Digia Trade Management Business Applications:
  • Trade
  • Clear
  • Finance
  • TRS

• Java based platform
• J2EE, ESB, Application Server
• MS SQL Server