| Case Study |
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Patni's portfolio management solution
enables real-time risk analysis for
precise and timely decision-making |
|
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Patni's automated portfolio management system integrates risk with
Trade analysis, for a global asset management firm.
The Client
A global asset
management firm with
over 65 years of
investment experience
and more than $200
billion in assets under
management
The Challenge
The fundamental requirement of every portfolio manager is the
ability to track, analyze and predict the performance of an
investment portfolio and at the same time understand and manage
the associated risk. As assets under the client's management
increased, the amount of data to be analyzed and correlated
outstripped the portfolio manager's ability to perform effectively.
Moreover, the client wanted to get involved in futures trading
and needed an integrated, technology-driven approach to
conduct portfolio analysis, and a structured approach to picking
stocks. However the following challenges were encountered:
 |
Futures trading at the desktop became complex. Data
sources were older and difficult to integrate, requiring manual
analysis. This lead to back-end systems not being able to keep
pace with the growth of the firm. |
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Difficulty in understanding the value of assets and the
relative positioning. This happened because portfolio
positions were released at the beginning of every business day
but never updated during the course of the day. |
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Inconsistent benchmark data and incomplete analytics.
This resulted from reconciliation being done manually at the
end of every day. Analysis done was extremely labor-intensive
and required active involvement of up to 15 assistant portfolio
managers. |
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No way to check for compliance till the trade was
completed. This led to millions of dollars of cost to the
corporation, when a trade was required to be unwound.
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To counter these challenges, the client approached Patni to design
and implement a suitable solution.
The Solution
Patni leveraged its deep understanding of the information
required by portfolio managers and its expertise in providing
suitable IT solutions, for developing a portfolio management
system for the client. Patni's solution - a real-time, desktopbased
portfolio management system enabled access to
comprehensive information for examining and modeling any
aspect of a prospective transaction for immediate execution.
Patni's responsibilities included:
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Moving the customer to a technology-driven solution that would
enable them to easily launch new lines of investment services |
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Combining technology with process that eliminated all manual
processes |
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Systems architecture and design, which seamlessly integrated
disparate trading, cash management and compliance systems
needed to establish a portfolio position |
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Providing each trader with an integrated desktop that provided
tailored access to all integrated systems.
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The Technology
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App - J2EE JAVA/Swing |
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Messaging - TIBCO |
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Database Oracle. |
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The Benefits
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Automated and real-time risk management leading to precise and
timely decision-making, improved portfolio performance and
increased investor profitability |
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Ability to clone trades off a lead account which dramatically
accelerated trade placement and execution |
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Ability to handle thrice the weekly trading volume |
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Multimillion dollar savings in compliance fines |
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Streamlined systems implementation that dramatically reduced
operational costs. |
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