* Weaknesses in the systems infrastructure that facilitates product control processes, resulting in P&L and independent price verification (IPV) being highly manual,
* Inadequate valuation policies and procedures,
* Inadequate P&L attribution.
Some regulators have been vigilant in this area: more recently with audits of top investment banks in 2010 and 2011 as well with publicised recent cases where major International Hedge Funds and Investment Banks have been fined for "failing to conduct [their] business with due skill, care and diligence and... failing to take reasonable care to organise and control [their] affairs responsibly and effectively, with adequate risk management systems."
FinArch, international leader for integrated risk and finance software solutions for the financial services industry, is working with a number of major Investment Banks and Hedge Funds, helping them replace current manual work with a robust automated solution for P&L, P&L attribution and Independent Price Verification (IPV). The solution, Financial Studio Trading Ledger, is a module specifically designed for the needs of Product Control and is part of the market leading Financial Studio solution that uniquely integrates risk, finance and compliance.
Financial Studio's Trading Ledger environment, entirely built upon the latest Microsoft technology, supports Product Control across all required financial reporting and analytics as well as the monitoring of trading activities. Serving as a central point of control, it provides transparency and audit control to the P&L and P&L Attribution function and significantly reduces the cost of reconciliation between Front, Middle and Back Office. Financial Studio Trading Ledger delivers automated intraday P&L and P&L Attribution for the business through a single, standard set of processes and controls can be implemented across the enterprise, ensuring a significant reduction in Operational Risk. The Trading Ledger also delivers independent valuation of positions and prices on an enterprise wide basis, ensuring compliance with IFRS 7 as well as centralised portal to monitor KPIs and to adjust both P&L and the underlying trades and attribute sales credits.
The Trading Ledger environment is a fully integrated component of FinArchs Market Leading Financial Studio product, ensuring that Front Office and Product Control can sign off on the same P&L as the Finance organisation, and that reporting for every element of the enterprise, including Finance, Risk and Compliance, can be catered for in a single solution, driven from the same underlying source data set: the original transactions. By automating the production of P&L and P&L Attribution, it enables Product Controllers to manage by exception, spending their time investigating genuine errors rather than manual production and reconciliation.
"Through the deployment of the Financial Studio Trading Ledger, financial institutions are able to centralise and automate the production of P&L and P&L Attribution across their organisation, ensuring quicker delivery of key figures to the business that are natively reconciled with the underlying transactions. This inherently improves transparency and reduces risk. And with the regulatory pressures being exerted currently, it is something the banks cannot afford to ignore," states Dirk De Beule, Chief Executive Officer of FinArch. "It is not just about reducing operational risk, however. The days when Product Controllers waste their valuable time doing detailed data production and manipulation manually are over. With the Financial Studio Trading Ledger, organisations are able to streamline their product control teams, and deliver their numbers faster and more accurately than ever before to Front, Middle and Back office."
"Financial institutions are under extreme pressure to comply with local and international regulations in the area of reporting, risk and finance," said Joe Pagano, Managing Director, Banking and Capital Markets, Worldwide Financial Services, Microsoft Corp. "To develop an effective compliance framework, firms are moving away from data and process silos to more holistic, integrated and automated compliance solutions that are easy to deploy and monitor. The breadth of our platform across front, middle, and back office and partnerships with technology leaders such as FinArch uniquely position us to quickly integrate disparate 'silos' and unlock value. We do this by connecting systems that drive new efficiencies, increase transparency and help streamline finance, risk and compliance in direct response to the needs of our financial services customers."
On October 11 2011, FinArch is organising a webinar to explain how its real-time Trading Ledger solution supports Product Control. For more information or to register, please go to www.finarch.com/tradingledger_webinar. para rematar fallas en el equipo de Eruviel Ávila - Roberto Calleja Ortega lea mas... http://bit.mx/rco