WEPEX Unternehmensberatung

Hummel & Partner

Stephanstraße 10
60313 Frankfurt am Main

Contact us via email info@wepex.de

Phone number and Fax

Phone: +49 (0)69/ 719140 - 92
Telefax: +49 (0)69/ 719140 - 94

or write a letter:

WEPEX Unternehmensberatung
Stephanstraße 10
60313 Frankfurt am Main

Member of GPM:

Gesellschaft für Projektmanagement e.V.

Capital markets

System Selection and Implementation

Commercial Bank: Selection and project management for the implementation of a front-to-back-system for equity derivatives.
Commercial Bank: Management of all measures for the range extension of the front-to back-system into OTC derivatives and repos.
Commercial Bank: Management of the implementation of structured equity derivatives in the trading and downstream applications.
Investment Bank: Management of the IT-development team to continuously enhance the structured equity derivatives trading application.

Trading platforms

Direct broker: Pre-study and business case for the offering of trading of retail derivatives via off-exchange platforms to clients.
Commercial Bank: Analysis and management of the implementation of an inhouse platform for fast structuring, pricing, capture, and settlement of structured OTC derivatives.

Process and Cost Optimisation

Commercial Bank: Program-management of downscaling of the Investment Banking Unit.
Commercial Bank: Process improvements in OTC derivatives settlement (equity-, interest rate- and credit derivatives).
Commercial Bank: Coordination of the integration of new trading products into IT and processes.
Commercial Bank: Program-management for the documentation and re-engineering of business processes and aligned streamlining of the IT-architecture of the investment banking unit.

Example of client benefits from Capital markets

Project: Re-structuring and -focussing investment banking unit

Client: Major German Bank

Business situation and scope

Client is a large German bank with investment banking operations in Frankfurt, London, New York, Tokyo und Hong Kong.
The units are highly volatile in revenues and operating on heterogeneous processes and systems.
The bank aimed at reducing the cost base of the investment banking unit by 30% p.a. This amounted to appr. € 300m p.a.
At the same time high risk business lines were to be wound down or fully closed to stabilize revenues.
Non-profitable locations were to be closed.

Our Tasks and Approach

Setup of a program for the COO to implement a set of 150 projects and measures to lift a savings potential of € 300m p.a.
Total project volume € 21 Mio.
Implementation of the program in cooperation with 14 support units.
Set up of controlling and reporting to COO and Board of Directors.
Main projects:

Closing of two locations
Consolidation of securities settlement platforms
Consolidation of front office application landscape
Consolidation of systems operations from four locations onto Frankfurt
Moving all trading activity onto one legal entity
Optimisation of exchange memberships
Optimisation of broker network
Optimisation of custodian network
Optimisation of structured products processing

The Results

Achieved the cost targets within 18 months.

Full cost transparency of processes, implementation of cost allocation on a cost-by-ticket basis.

Significant reduction of VaR / cost of capital by reducing proprietary trading activity.