Risk System Demo Notes
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SunGard – Front Arena 1/23/07
• Overview
A system designed to be used for buyside clients that fully integrates trading, risk management
& reporting and operations across multiple asset classes. It’s flexible architecture provides
traders and portfolio managers with customizable analytical views and the tools to make the
right investment decisions. The system’s open architecture makes it highly configurable across
all user levels and can be easily integrated with other systems and data providers.
• Strengths
– A fully customizable trading risk management & reporting system with extensive analytics
– Easily links to internal systems (i.e. order management systems, Advent Geneva) and external systems and
data providers (i.e. Risk Metrics, Wall Street Office, Deriv Serve, Swaps Wire, Bloomberg, Reuters, Intex etc.)
– Existing interfaces to some of the major Fund Administrators and Prime Brokers
– Integrates with Monis for market standard conv. bond pricing and Kiodex for leading edge commodities
coverage
– Provides both broad asset class functionality and the flexibility of a toolkit
• FX, FX Options (under development), MM, Fixed Income, Interest rate derivatives and Credit Derivatives
• Open architecture, extendable at every level with an interactive development environment which includes
Python editor, ASQL query tool and ADFL.
• Ability to easily add your own proprietary models
– An Excel look and feel with the ability to slice and dice Portfolios by virtually any attribute in the data table
through a few clicks, and to easily change these on the fly.
– The Arena Data Server (ADS) shields the database from direct client communication thereby enhancing
reliability and uptime
– Scalability is easily achieved through our Service Oriented Architecture
– Proven ability to deliver a fast implementation in comparison with other competitors which is backed by a strong
record of on time deliveries. (Awarded ”Buy-side project of the year” in 2006 for the Peloton Partners
implementation)
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SunGard continued…..
• Weakness
– Asset Backed securities, Front Arena is continuing to develop support of this asset class,
the current recommendation is to integrate with BankWare that is another Sungard product
which easily integrates into the system
– Front Arena does not have direct linkages to the U.S. Exchanges, European exchanges are
supported
– There is no pre-paid model for Bank Debt
– Limited Commodity functionality which is now addressed through Front Arena’s integration
with Kiodex
– Relatively new Confirmations functionality
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SunGard – Front Arena System Flow
FA Output
Risk System
Swaps-
Wire &
OMS 1 OMS 2 Front Arena
Deriv Portfolio Mgr 1
Serv
Portfolio Mgr 2
Bloomberg
Open &
RealTime
Data
Trader 1
ADS
Static Data
Red
Trader 2
Sub G/L
Extra Data
Feeds
InTex
Trepp Risk Team
Advent
Geneva Ops & Acct’g Team
All views are fully customizable for
permissioning
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Calypso 1/31/2007
• Calypso is an enterprise wide risk and trading system that has originated on the sell side and has
been upgraded to support buy side clients. The system incorporates full straight through
processing while supporting an extremely broad range of products across multiple asset classes.
Calypso also provides real-time pricing and risk analytics and has links with most of the common
data service providers.
• Strengths
– A system that can provide a hierarchical view of a firm’s portfolio structures and can report risk across
multiple legal entities
– The system can easily link with third party order management systems for trade processing
– Has a fully customizable allocation screen for allocating all trades across funds or entities
– All of the interfaces have an “excel” like look and feel that is easy to use to view data in any way as well as
updoad or extract the data
– Has an extensive product list that includes amortized products such as MBS and ABS, exotic structured
products including hybrids, commodity derivatives, F/X derivatives and interest rate and credit derivatives
– Has real-time reporting capabilities through various canned reports or reports can be easily customized and
created with the report writing tool
– Has compliance capabilities by setting multiple firm wide trading limits by product, credit limit, exposure and
availability or virtually any trade characteristic. Limits can also be set to generate warnings when coming
close to a set percentage of total outstanding shares of a company or to block trades when a certain
percentage limit is at the threshold or when a percentage will be exceeded.
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