ACTICO Rules supports financing in the secured money market business

Automating financing transactions

Master data management in securities trading

In 2015, Eurex Repo, one of the leading electronic vendors for secured financing transactions, introduced a new trading platform, which relies on a central, rule-based master data management system. With the support of STABILIT, a specialist in the area of rule-based data maintenance, Eurex Repo largely automated its master data management, improved data quality significantly and achieved maximum flexibility in the dynamic financial market.

Challenge

Ensuring continuous growth of the market place

The financial sector is changing and Eurex Repo has to face these challenges: The volumes in the repo market have declined, which is mainly due to the borrowing program of the European Central Bank. Similarly, the negative interest rates of the central banks are not conducive to our business. With the expansion of our business area to securities lending and the buy side, as mentioned in the previous question, we are responding to the challenges of ensuring the continuous growth of our market place.

Objectives

• Development of a new master data management
• Ensure the flexibility which is necessary to compile new baskets, introduce new currencies or create new customer groups
• Avoid complex software releases

Solution

Continuous data preparation

The data is subject to a continuous preparation process. It runs in a rule-based manner and is triggered as soon as we process an external data source (European Central Bank and Swiss National Bank) and receive it in the system. In the preparation process, the data passes through a maturity process over various stages: initial, valid, and released. There can also be more stages, though. As a result, new data are created, existing data are enriched, or entire data sets are deleted. The goal is to get as much data as possible into the released state and then deploy it to the trading system.

• Business is able to modify rules
• No profound IT knowledge needed
• More independence from IT and release planning

IMPACT

Keeping the central system up-to-date

Master data management is very important: If this system does not provide data, the trading system has no data basis. Master data management is therefore a central system for Eurex Repo: not only are securities managed here, but also the users, legal entities as well as all contract types. All basic master data that we need for trading come from the master data management system.