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Real-Time Enterprise Liquidity Maximizing margins, reducing risk, advancing business objectives

Real-Time Enterprise Liquidity Maximizing margins, reducing risk, advancing business objectives Jerry Baulier CTO. Intraday Liquidity Management. Liquidity has to be available: at the right time in the right place in the correct currency. Intraday Liquidity Management: Situation.

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Real-Time Enterprise Liquidity Maximizing margins, reducing risk, advancing business objectives

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  1. Real-Time Enterprise Liquidity Maximizing margins, reducing risk, advancing business objectives Jerry Baulier CTO

  2. IntradayLiquidity Management • Liquidity has to be available: • at the right time • in the right place • in the correct currency

  3. IntradayLiquidity Management: Situation • Many disparate systems • Manual processes • Time delays • This lack of real-time information & accurate forecasting results in • excess liquidity (i.e., sub-optimal yields) • excess borrowing (i.e., increased costs)

  4. Benefits ofLiquidity Management • Maximize margins • Dynamically forecast cash with precision • Minimize uninvested cash • Minimize funding cost • Maximize yield on investments / assets • Reduce risk • Provide integrated view of liquidity / exposures • Avoid surprises, regulatory fines, and reputation risk • Advance business objectives • Deliver integrated view of customer positions • Adapt rapidly to customer behavior and events

  5. NET INFLOW OUTFLOW XXX FORECASTS XXX XXX XXX ACTUAL XXX XXX NET XXX XXX XXX DesiredState • Systems connected in real-time • Sophisticated predictive knowledge for intraday forecasting • Forecasted receipts and payments tracked and replaced with actual • Tight connection between funding desk and payments Internal External Debt Trading ALCO Custody NOSTRO DDA WEB SWIFT

  6. Accounting Systems RTGS Gateway Payment Systems SWIFT Gateway Lending Systems Settlement Systems The Aleri Liquidity Management System (ALM) • 30+ different systems • Streaming and static • Real-time position management • Actual and forecast positions with drill-down • Payment flow control • Highly customizable Authoring Environment Streaming Output On-Demand Queries Aleri Streaming Platform INPUT STREAMS Data Migration OLAP Database Clearing Data • Real-time OLAP • Queries across operational and historic data

  7. Aleri Liquidity Management– 85 “streams” at Barclays

  8. Why Event Processing Platform for ALM? • Traditional RDBMS technology can’t deliver the performance: • Complex data model, transformations, correlations, and analysis • Maintain all “Materialized Views” (e.g., account positions) in near-zero latency • Like RDBMSs, stream processing platform must also deliver: • Retention of large data sets (5 days of transactions) • On-demand SQL query access to retained data • Security (authentication, encryption, access control, audits) • Plus data integrity & flexible/fast data state recovery • Persistent source/sink queues • Synchronous data commits with minimal performance overhead • Data retention with optional (local) persistence

  9. Giving them a real-time consolidated view of liquidity Barclays Situation • Barclays has large volumes of payments and receipts across business units, currencies, and geographies • They didn’t know where they stood and had large buffers in place to ensure all obligations could be fulfilled • There was risk from manual processes and time delays of not knowing their positions in real-time • They had over 30 systems where this information resided and it was not an option to rip out and replace those Risk Requirements • To access information in real-time from the 30 plus systems • To persist the data • To hold the data for analytic analysis to improve predictive forecasting • To track payments and receipts throughout the lifecycle from forecast, to processing, to final settlement • Prior to the solution there was a significant potential for reputation risk should there ever be situation where obligations could not met due to poor liquidity management Solution System that can access the different inputs (30+ systems and 80+ actual streams of data), apply normalization and filtering logic to that information, provide real time data with ad-hoc query capability, and a historical database for trend analytics Benefits Key Features • Consolidated single access point to monitor and forecast intraday liquidity positions • Ad-hoc query analysis for drill down research • Historical database with OLAP • Reduced funding costs • Reduced risk from timing delays and manual processes • More value add understanding of how customers use cash on an intraday basis

  10. Jerry Baulier, CTO jerry.baulier@alerilabs.com

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