http://www.pressebox.de/attachments/4729/AIM - Yield Issue 1

yield The Newsletter

Issue 1

Data Management Case Study

Fast integration for Mirabaud & Cie Martin Buchberger  Head of Client Projects, AIM Software AIM Software used its modular data management platform, the GAIN DataDesktop, to streamline the integration of the Telekurs Valor Data Feed (VDF) for Mirabaud & Cie in Geneva.

In March 2002, Mirabaud & Cie and AIM Software teamed up for a project to move the bank from the discontinued Telekurs RBA service to the VDF platform with as minimal migration effort as possible.

Mirabaud & Cie wanted to continue to use corporate actions data and corporate action reports and pricing information in an existing environment without changing the existing software. Since installation in May 2002, after only 3 months, the solution has been productive, without any recorded downtime.

Reduced costs and risk as main project motivation Mirabaud & Cie chose the GAIN DataDesktop – AIM’s modular data management platform – following a comprehensive evaluation process of the data management systems currently available on the market. Prior to selecting GAIN, Mirabaud was processing corporate actions manually. The move to an automated environment will enable the bank to substantially increase operational efficiency while reducing costs and risk.

Gain DataDestop 3.1

Extending data management to the next level page 4

Gain Risk Management

From Risk analysis to Risk control page 8

XML for market data

MDDL – Market Data Definition Language page 15

continue page 3

www.aim-sw.com

Yield

1

Content Yield | Issue 1

Editorial

Data Management Case Study Fast integration for Mirabaud & Cie

So what can you expect as a quarterly result of this conclusion?

page 1 Editorial page 2 GAIN DataDesktop Release 3.1 Extending data management to the next level page 4 Telekurs Financial New generation of display products page 6 Maintaining an edge in a market dictated by cost containment Achieving a high-quality, cost-efficient security back office page 7 GAIN Risk Management From risk analysis to risk control page 8 Partnership between AIM and Sources Expert A growing success in Switzerland

“When is it the right time to publish a newsletter?” When you can be sure that a user base of more than 50 clients, a partnership network covering 3 continents and a constantly expanding product line deliver enough material to fill a newsletter with information, not just stories …

Martin Buchberger

 A window to a vibrant community concerned with data management, financial markets’ analysis and more  News about upcoming events and new software releases  Case studies of real life projects and hands on examples  The presentation of partners and experts around the globe The intention of this newsletter is to create the right balance between different voices and perspectives and to present an impartial view on new trends and technologies.

I would like to invite you, valued reader, to voice your opinion or raise questions regarding this newsletter, a certain topic or the area as a whole at opinion@aim-sw.com.

Hopefully, you will now enjoy reading this first issue of Yield, containing a whole bunch of news, trends, views and facts around data- and riskmanagement.

Martin Buchberger, AIM Software

page 11 AIM & Reuters form partnership around DataScope The data you trust page 12 The AIM network page 13 Hyperlink STPforum for strategic thinkers page 14

AIM Software

XML for market data MDDL – Market Data Definition Language page 15

Founded in 1998, the software division of AIM specializes in data management and data analysis solutions for financial markets.

Yield suggests the following events …

www.aim-sw.com

Supported by the company’s experience in the areas of data- and risk management, corporate actions processing and financial instrument pricing, the creation of user-oriented software and services is the cornerstone of AIM’s philosophy.

page 16 AIM operates on an international scope and services the major financial centers together with its local service and solution partners.

2

Yield

… continued from page 1 Jean-Claude Schneider, First Vice President of Mirabaud says,“GAIN will play an integral part in our STP strategy. It will enable us to connect to the major data feeds on the market and to analyze and deliver the processed data to several systems with one platform.”

“We chose to partner with AIM Software due to its extensive track record in the area of corporate actions’ management and its ability to extend the solution to our growing needs in the area of STP.”

A key focus for Mirabaud is the realization of StraightThrough Processing (STP). The deployment of GAIN will allow Mirabaud to view and process all corporate action messages connected with a transaction, further enhancing efficiency and reducing operational risk.

“We chose to partner with AIM Software due to its extensive track record in the area of corporate actions’ management and its ability to extend the solution to our growing needs in the area of STP,” Schneider states.

Future proof solution will grow with needs Due to the easy handling of updates, the migration to new versions of a data feed is simplified. Extensions, like the complementary use of one or more additional data feeds, are supported by the GAIN DataDesktop.

From project kick-off to production in 3 months In the first step of the project, AIM Software analyzed the client’s needs and organized the delivery of the necessary instrument data from Telekurs Financial. Further in the project’s course, the user-friendly administration interface proved advantageous: all queries, reports, and mappings were developed graphically. Even without indepth knowledge of a data feed, searching for data or creating reports and surveys was an easy task.

In May 2002, the installation and user training took place.

Mirabaud & Cie now obtains all pricing information, static data, and corporate actions messages through VDF. The entire effort needed for the project was reduced to a minimum due to the turnkey modules of GAIN. The bank could fully automate the delivery of the VDF data feed without any frictions and with only minimal changes to the existing environment. The low maintenance effort never obstructed the production.

One platform serves all departments With the experience gained with this project, Mirabaud & Cie plans to automate further corporate actions. Since the banking application used by Mirabaud already supports intraday openings of positions, a project is planned to use this feature of the GAIN DataDesktop.

Jean Claude Schneider, First Vice President, Mirabaud & Cie

“The major reason why Mirabaud & Cie incorporated the GAIN DataDesktop into its IT strategy is its flexibility to grow with our expanding needs. We perceived AIM Software as an agile company and therefore decided on a long term relationship, partnering to deliver a packaged solution of our banking application with an advanced data management platform,” concludes Mr. Schneider.

Facts:  fast data feed migration  automated corporate actions processing  intra-day openings  packaged STP solution

Mirabaud & Cie at a glance www.mirabaud.com Mirabaud & Cie, private bankers, is one of Switzerland’s longest established banks. The group’s focus is on private and institutional asset management, with particular expertise in alternative funds – expertise developed over a 30-year period. During the last 10 years, the group has expanded significantly abroad.

Date established: 1819 Funds managed: CHF 10 billion approx.

Employees: 280 (180 in Switzerland) Offices: Geneva, Zurich, London, Paris, Montreal, Toronto, Nassau, Hong Kong The solution developed by Mirabaud & Cie, named Mirabel, is commercialized by MirServices SA, a company owned 100 % by the Mirabaud Group.

Currently, several banks external to the Mirabaud Group, are working with this software.

Contact  Mirabaud & Cie Mr. Jean-Claude Schneider First Vice President Boulevard du Théâtre 3, 1205 Genève T: +41-22-816 22 53 jean-claude.schneider@ mirabaud.com Contact  AIM Software Mr. Martin Buchberger Gonzagagasse 16/5, 1010 Wien Tel: +43-1-512 46 52 Martin.Buchberger@ aim-sw.com

Yield

3

GAIN DataDesktop Release 3.1

Extending data management to the next level Hans-Jörg Steffe  Head of Competence Center, AIM Software The new release of the flagship data management middleware of AIM Software introduces multi data feed support and extensive workflow management and reconciliation features. With facilities for security master file management and exception handling, the GAIN DataDesktop improves day-to-day data management and brings down overall costs.

The GAIN DataDesktop has so far been used in more than 50 installations throughout Europe and bases its further development on the feedback of more than 300 users.

Speed up ROI through modular projects Within those 50+ projects, the most important advantage of the GAIN DataDesktop was that a fast ROI could be achieved through the stepwise and modular integration of an extensive set of functions.

“AIM’s philosophy is not a brute force STP solution at any cost. We first analyze the return of potential improvements, then work to achieve a smooth and cost-reduced transition of currently manual processes,” states Martin Buchberger, Head of Client Projects at AIM Software. “ ��������� ��� ��������

����������� �������� ����������

������ ��� ������

Together with our clients, we focus on automating processes so that the largest gains in efficiency are moved to the beginning of the project.”

Surveys showed that by managing the delivery of prices, static data, and only 5-10 corporate events, most of the usually manual processes can be automated.

Most of the required data management tasks are almost standard. “ What can be provided as a turn-key solution should be.” Mr. Buchberger emphasizes the ability of the GAIN DataDesktop to manage much of the daily data management out-of-the-box.

Standardization and openness are the key factors Targeting a balanced blend between a standardized approach and customization, the GAIN DataDesktop supplies all necessary functions and delivers standard connectors both for the import and the export of data.

“The normalization of the various delivery formats and the full workflow control for the users have proven essential for creating successful projects,” states Markus Gutensohn, Head of Software Development at AIM.

GAIN DataDesktop Data management middleware

��������� ���� �������� ��� �������� � ����������

��

������ � ��� � ������ � �������� � ��������� � ������ � ������ � ����

���

��� � ��� � ����� � ��� � ���� � ������ ����

���

�������������� ����������� � ���� �������� ������� � �������� ������ ���������� ����� ��� ���� ����

���

���� � ����� � ������ � ������ � ������� � ��� � ����������� �������� ����

����� ��� ������� � ������ � ���� ������ ��� ���� � ����� ������� ��������� ��������� � �������� � ����� ������ ����� ���� ������ ��������� ����� ���� ���� ����� � ���� ����������������������

���

��� ����� ��� ���� ������� ���� �������

������������������ ���������

������ ��� ����� �������� ������ �������� ���� ����������

������� �������� ���� ���������� � ���������� ������� � ������������ ��� ����� ��������

������ ����� ���� ���� ����

Eliminate project risk with an open, modular and scalable data feed management platform

4

Yield

Areas of application Support for 15+ different data feed products Out-of-the-box workflow management and reporting Fully graphical definition of data flows and reports Security master file (SMF) + golden copy management Cleansing, exception handling, and reconciliation of data Filter criteria and date management for corporate events Further features Reports and requests can be archives and combined with internal data Calculation methods for deriving data Standard API Easy mapping of codes Multilingual user interface

Supported export formats

Supported data feeds

Text formats XML, RBA, ASCII, CSV, HTML, Excel, text drivers, etc.

Bloomberg Data License Per Security | Backoffice

DBMS formats DB2, Oracle, MS-SQL, InterBase, Informix, Sybase, Access, etc. in addition: ODBC databases

Financial Times Interactive Data FTS ExShare | ExBond | SIRS (MDDL)

Supplied systems AMIS, APSYS, AVALOQ, GLOBUS, OLYMPIC, SAP etc. supply of proprietary systems Supported GAIN modules Risk management Instrument pricing Benchmarking + Limit analyses Supported scripting languages SQL and PL/SQL as standard Optional: VBScript, JScript, Perl, Python, Delphi Script

“The integration time for a data feed was reduced significantly by relying on AIM’s products and services.”

Franco Menozzi, HSBC Guyerzeller Bank AG

Project case studies prove flexibility  Workflow management: Bank 1 streamlined the workflow management of corporate action messages. It used filter criteria (like instrument category, geographical information, etc.) to send messages to the right department and users.  Report visualization / Message notification: Bank 2 used the standard reports of AIM to visualize all corporate actions and to define alert reports (e.g. for changes in ratings and static data over a definable period are displayed on all clients subscribed to the server).  Straight through processing: Bank 3 created an STP interface to its banking application and uses it for initial loads and intraday openings.  Cleansing / Reconciliation: Bank 4 cleanses and reconciles several data feeds and manages resulting exceptions.  Golden copy / Security master file: Bank 5 created a data warehouse for centrally managing and routing reference data throughout the firm.  Risk management: Bank 6 uses the optional GAIN Risk Management module to report Value at Risk measures and rating information from Telekurs to their customers.

FIX MDDL | VRXML Reuters DataScope Portfolio | Equities | Fixed Income Swift (ISO 15022) Telekurs Valor Data Feed (VDF) | FIMS Wertpapiermitteilungen XML feed user defined loaders

Creation of custom web pages On-screen editing of messages Creation of a message diary

The main demand in modern data management is for a combination of cleansing, exception handling and reconciliation functions, and the creation of client specific data models and interfaces. “Central administration facilities are for sure the key factors, but the interfacing to downstream systems often remains unsolved,” Mr. Steffe comments.

The GAIN DataDesktop therefore goes a step further by supporting the reformatting of centrally managed data to existing interfaces and legacy applications.

“The main reason for HSBC Guyerzeller Bank AG to choose the GAIN DataDesktop was its ability to anticipate and support new data feed releases, and we value the multi data feed feature as well,” Mr. Menozzi concludes.

Contact  Hans-Jörg Steffe hans-joerg.steffe@aim-sw.com

“The integration time for a data feed was reduced significantly by relying on AIM’s products and services.

Further options and modules open the way for us to expand the installation step by step, synchronizing our expenditures with our needs,” states Mr. Franco Menozzi from HSBC Guyerzeller Bank AG. New features of the release 3.1  Ranking rules for different data sources  Conditional workflow management  Dynamic import of external databases  Expanded Architecture for real-time data feeds  New content management module supporting

Fast implementation due to simplified definition of graphical reports and queries for data feed content Yield

5

Telekurs Financial

New generation of display products Michel Benedetti  Communications, Telekurs Financial In June 2003, Telekurs Financial launched a new product strategy to take better account of current market needs. A new generation of display products is turning the patchwork of financial information software that has grown organically over the years into a standardised package, providing a Swiss-made alternative to other display solutions.

With the new product strategy, Telekurs Financial is developing a standardized generation that will replace existing display products. The new generation’s name, Telekurs iD, signifies intelligent display. It represents the intelligent way the product supports back office managers, analysts, and other financial specialists to daily gather vital financial information for their customers.

Based on Java technology, Telekurs iD gives access to Telekurs Financial’s entire range of support, including real time quotes and corporate actions. Around 1.8 million financial instruments are intelligently linked so back and front office users can create their own financial data profile. It combines the speed of a host application, the convenience of a Windows interface, and the userfriendliness and low-maintenance of a web browser.

All information is cross-referenced, with related items displayed next to each other.

Record development The first version of Telekurs iD was developed in only 15 months with five groups of data specialists collating the diverse information according to the needs of the

Telekurs iD will give users access to Telekurs Financial’s entire range of information, encompassing real-time quotes, corporate actions, and even news.

6

Yield

various bank departments. Using the latest iterative development methods (Rational Unified Process – RUP), customers influenced the product and supply feedback at each project phase.

This version of Telekurs iD consists of the Basic Package, a Search & Link Package geared to back-office requirements, and a Streaming Package that updates prices automatically on the screen. New packages for other bank departments are planned.

Find out more about Telekurs iD at www.telekursid.com.

Or email us at sales.tkf@telekurs.com.

Telekurs Financial Telekurs Group, to which Telekurs Financial belongs, is one of the world’s leading providers of financial information and payment instruments and systems. Telekurs Financial specializes in procuring, processing, and distributing international financial data for investment advisory services, asset management, financial analysis, and securities administration.

A global network of local market specialists procures real-time stock exchange information from the leading financial centers. The database operated and maintained by Telekurs Financial and its ten representative offices contains data on about 1.8 million financial instruments.

The official numbering agency for Switzerland and Liechtenstein, Telekurs Financial is responsible for allocating Swiss security (Valor) numbers. It is a founding member of the Association of National Numbering Agencies (ANNA) and leads the way in standards that simplify trading and securities administration.

Maintaining an edge in a market dictated by cost containment

Achieving a high-quality, cost-efficient security back office Mischa van Werkhoven î Ź Managing Consultant at IOW, Netherlands As performance of capital markets is falling behind, financial institutions are forced to focus on a cost-efficient strategy without harming customer satisfaction. This article addresses issues for back office departments that operate in the field of data management and handle corporate events.

A thorough analysis of current back office operations enables organisations to evaluate their workflow effectiveness and efficiency. Daily routines must be monitored closely for possible improvements, and those requiring a relatively small effort with modest impact on workflow should be automated promptly.

In addition, more drastic measures such as Straight Through Processing (STP) of financial data can lead to an increase in efficiency and improved overall quality of the process. Although STP could have excellent impact on workflow costs, an analysis of the costs and benefits should be considered. but even the preparatory work for implementing STP can lead to considerable benefits.

The user should evaluate operations effectiveness and determine whether all back office workflows are in line with corporate strategy. The organisation could decide to outsource ineffective activities, which would add to efficiency since the focus would remain on core competencies. Another option is to redefine the scope of operations. Reducing the number of stock markets served, for example, could positively affect cost strategy. Clearly such a change of service should be

One of the key elements of data management is ensuring that reference data is clean.

prepared in close cooperation with sales and marketing departments to control the effect on customers.

Higher quality A high quality information infrastructure is vital to organisations dealing with securities and can strengthen their competitive edge. A key element of data management is ensuring that reference data is clean; in order to prevent matching errors, unique identification is becoming more important as global integration increases, and it enables comparison between data provided by different data vendors. This increases the quality of the information handled by the organisation workflow and eventually leads to improved customer satisfaction.

Automation Manually processing electronic data is a risk to the competitive position of an organisation. It is inefficient and poses a threat to the quality of the process since errors are more likely to occur. STP of financial data eliminates this vulnerability. Choosing an integrated system to support the STP solution adds to the stability of the process while lowering system management costs because fewer interfaces are required. Another way of realizing a low maintenance environment is using an industry standard interface protocol like XML. Conclusion While this article can only provide a short overview on how security back offices can reduce costs and improve customer satisfaction, it should emphasize the importance of STP to stay competitive in a cost driven market.

Contact î Ź Mischa van Werkhoven, IOW mischa.van.werkhoven@iow.nl

Yield

7

GAIN Risk Management

From risk analysis to risk control Robert Gutlederer  Head of Financial Engineering, AIM Software The new release of AIM Software’s financial analysis platform focuses on operational risk and introduces extended support for derivative instruments.

AIM Software continues to emphasize a synergetic risk management approach by eliminating the troublesome separation between data feed connectivity, pre- and postprocessing, instrument pricing, and risk management.

Mr. Gutensohn, Head of Software Development at AIM states, “It was our target at AIM to provide state-of-theart financial analysis, but we soon realized that we needed to cover the diverse needs of our users as well. Therefore we enriched GAIN with features for benchmarking, stress testing, and scenario analyses, and consequently focused on the intuitive handling of the system.”

Reduced operational risk through an intuitive graphical user interface

Risk management takes more than risk analysis GAIN offers a consolidated view of performance and risk figures of positions and portfolios. Through a dynamic portfolio definition, the user can analyze the impact of changes to position values and benchmark tracking before ultimately engaging in a transaction. The definition of proprietary benchmarks can be accomplished by using model portfolios or synthetic baskets.

“Due to the simplified assignment of scenarios, users are not overwhelmed by the potential complexity of analysis tasks anymore. By using various risk management methods in parallel, banks can actively identify and control their risk exposures,” Mr. Gutensohn from AIM Software adds.

Risk management starts at the data source Offering links to 15+ data feed providers, GAIN grants access to the highest quality fundamental, corporate events, and pricing data for an unrivaled amount of instruments. Combining the intuitive user interface with automation features, GAIN reduces operational risk by reducing handling errors.

Still many risk management systems ignore that risk not only stems from the volatility but also from the quality and continuity of the available data. An extensive part of a system’s precision derives from input quality and the power of its data pre- and post-processing; a far smaller fraction depends on the analysis itself. Put in other

GAIN Risk Management Interactive risk management platform Areas of application Pricing of instruments Risk management + performance analysis Measuring Value at Risk, market risk, credit risk and performance Scenario analyses and category analyses Risk and performance reporting Simulation- and stress-tests Grouping and limit analyses Benchmarking (definition of proprietary benchmarks, sub-benchmarks, and baskets)

8

Yield

Further features Checking + cleansing facilities Work-flow management Filter criteria and date management Rule-based routing and archiving of data and reports Statistical indicators (MAV, MACD, Stochastics etc.)

Flexible triggers and alarms (e.g. send mail or notify) Easy definition of user specific macros and work-flows Advanced charting abilities, live reports (export to Word, Excel, Powerpoint, HTML, PDF, ...)

Supported instruments

Supported measures

Non derivatives Equities Funds Commodities Currencies Indexes Interest rates Swaps

Value at Risk Variance/Covariance Historical Monte Carlo (GARCH) Risk Metrics™

Bonds (Zero) Coupon Bonds Convertible Bonds Floaters

Many risk management systems ignore that risk not only stems from the volatility but also from the quality and continuity of the available data.

Derivatives Futures + Forwards Forward Rate Agreements Options + Warrants Asian Options Barrier + Binary Options Compound Options Quanto Options Dual Asset Options Collar Swaptions

Precise instrument pricing as prerequisite GAIN comprises a powerful pricing framework that computes prices for an extensive number of instrument types. It can be used to mark-to-market, identify arbitrage opportunities, or as a professional simulation tool where market scenarios are applied to portfolios.

Better usability reduces operational risk “GAIN Risk Management is one of the most complete risk management solutions available and is fully compliant with the Basel II guidelines on market risk. Despite the extensive amount of features, its intuitive user interface and the predefined settings guarantee very short training periods,” Mr. Gutensohn is convinced.

GAIN provides interactive real time reports and allows for the monitoring and analysis of daily profits and losses, the attribution of specific risk components, and the analysis of the influence of term structure effects on overall risk.

Reports can be created interactively and easily modified.

Furthermore, it is possible to export finished reports, including all graphics, to other formats like PDF, Word, or Excel for further processing.

Skill Information Coefficient Value Added Information Ratio Fixed Income Basis Point Value (BPV) Duration + Convexity Modified / Price Duration Fast yield calculators Options Delta, Gamma Rho, Theta, Vega ...

Benchmarking Alpha, Beta Tracking Error

words, “Garbage in, garbage out.” If a system is being fed with faulty data it will definitely yield wrong results.

GAIN allows for time series cleansing and the correction of outliers. The system can work with incomplete time series by statistically correcting for gaps or can generate new time series based on predefined distributions. In all analyses, GAIN supports drill-downs to the level of the raw time series data, thus enabling the user to extract and compare foreign exchange and price effects and to define the desired exception handling for flaws in the source data.

Risk Specific Risk Risk Aversion Volatility T-Statistics

Return Active Return Excess Return Sharpe + Treynor Ratio

Fast integration speeds up ROI GAIN’s modularity and the use of scripting focuses on reducing the effort of interfacing with other applications.

Designed for plugging on to existing systems and data warehouses, fast customization and easy scalability are guaranteed.

“GAIN is not based on a proprietary database structure but can be integrated with virtually any software package and database management system. Even multiple and different types of databases can be used as a source or destination for data,” Mr. Gutensohn comments.

Combined with other products of AIM Software, like the GAIN DataDesktop, AIM’s data management system, a fully fledged platform for financial analysis can be built.

“Nowadays it is not sufficient to simply calculate risk measures. End users demand an unprecedented degree of interactivity that enables them to move from pure risk analysis to risk control. Systems also have to focus on the quality of upstream or downstream processes like data quality and visualization to remain competitive,” Mr. Martin Buchberger, Head of Client Projects, adds.

Contact  Robert Gutlederer robert.gutlederer@aim-sw.com Yield

9

���������� ����� ������������� ������������������������������������������������������ ������������������������������������������������������������������� �������� ������������������������������������������������������������������������ ��� ����� ����������� ���� ����� ���� ���������� ��� ��������� ��������� ���� ���������������������������������������������������������������������� ���������� �������� ���������������������������������������������������������� ������ ��� �������������������� ����������� ���� ��� ��������� ���� ������ ������������ ����� ��� ��� ����� ��� �� ����������� ���� ������������ ������� ������������������������ ��� ��������������������� ��������������������� ��������������������������������������������������������������������������� ��������������������� ����������������������������������������������������� ���������������������

� � � � � � � � � � � � � � � � ��� � � � � � � � � � � � � �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

����������� ������������������������� � ���������������������� � �������������������������������� 10

Yield

��������� ��� ������� ����� ���� ������

Partnership between AIM and Sources Expert

A growing success in Switzerland Philippe Le Gallo, Charles Maillard  Associates, Sources Expert The partnership between AIM Software and Sources Expert Geneva was established at the end of 2002 and is rapidly extending the GAIN installation base already composed of well-known players in the Geneva banking marketplace.

Mirabaud, Pictet, Deutsche Bank, SCS Alliance, and Bank Audi, to name a few, have implemented GAIN and are using it more and more extensively.

Implementing a quality, centralized, security master file is ranked as a high priority to improve working processes and move towards STP, and GAIN customers recognize that the most recent versions of the product have very competitive features and proven benefits.

Multiple data feeds GAIN connects to major data feed providers with the ability to merge quotes and securities information coming from external sources (Reuters, Telekurs, Bloomberg, FTID) with internal files (internal databases, information provided by other banks and depositories), thus improving the reliability and the quality of the banks’ securities master database considerably. The user can select the best source of information and can restrict the request for information to the active securities in its portfolios, an efficient way to reduce the cost of the data.

Opening of securities The import / export library of tools available in GAIN supports a large number of formats, and, with the user-friendly data mapping tools, any user can import the records and attributes needed to open and modify securities. This reduces the amount of errors and facilitates the continuous, rapid opening of new securities, a concrete step towards the automation of securities administration.

Automating processes The notification of corporate actions has always been pretty painful and expensive. GAIN provides a complete set of tools to answer that need. For example, the user can import information coming from its depository in SWIFT format, process the information automatically, and feed the formatted result directly to applications that process the actions. Projects so far proved the ease of interfacing with banking applications (e.g Avaloq, Apsys, AMIS or Olympic). Development partnerships in this area aim at providing standard interfaces.

Cost-effectiveness GAIN not only offers impressive capabilities, its main competitive advantage is the ease of rapid and cost-effective and modular implementation. The banking and securities industry is familiar with projects that call for lengthy implementation and provide payback only after several years. This is not the road chosen by AIM and Sources Expert. As stated by one of our customers, “A GAIN project is rapid, cost-effective, and low-risk.”

Installation experiences so far show that a basic GAIN implementation is executed in man-weeks, not man-years.

For example, the implementation of a Title Bulletin™ substitute can be achieved within one week, including the training of end-users. Versions are upwardly compatible, so a client can gradually activate new functions according to his schedule.

GAIN is a proven asset for improving the data management in banks established in Western Switzerland and for the 50+ other banks using it in Europe.

Sources Expert – A professional partner Geneva-based Sources Expert, the local partner of AIM in Western Switzerland, was founded by Charles Maillard and Philippe Le Gallo for the design and delivery of banking software solutions. Sources Expert manages the complete sales process of GAIN in Western Switzerland and provides local support and on-site project management on demand. Sources Expert also provides skilled human resources, specializing in both business/banking operations and IT. GAIN and its customers benefit from the natural synergy between AIM and Sources Expert.

GAIN not only offers impressive capabilities, its main competitive advantage is the ease of rapid and costeffective implementation.

Yield

11

AIM & Reuters form partnership around DataScope

The data you trust Rudi Stenzel  Manager Data Content Reuters SA, Zurich The partnership between AIM and Reuters enables DataScope, a comprehensive, cost-effective pricing, historical and reference data delivery for the mid and back-office, to be easily interfaced with the GAIN DataDesktop.

Reuters DataScope is a new service providing quality data that is accurate, complete, and timely. DataScope draws on the resources of the Reuters network to deliver validated end-of-day and intra-day prices from more than 180 global exchanges for all equity instruments, over 1.9 million fixed income instruments, money, and futures. Pricing data is backed by in-depth supporting information such as bond terms and conditions, equity corporate actions, and extensive price histories.

Efficiency and reliability DataScope makes data management easier and encourages faster and more reliable deal confirmation, trade reconciliation, and settlement. Because DataScope uses the same information supplied by Reuters’ real-time services, it integrates front, mid, and back offices and moves the whole enterprise towards Straight Through Processing (STP). DataScope provides the flexibility to customize the service so users receive just the data they need; it’s also easy to define an FTP flat file, or an on-site database through a browser-based interface.

The stock market situation over the last months and subsequent slower growth rates continually incite banks and financial institutions to optimize processes, integrate systems, deploy synergies, and save costs.

Added value The increasing importance of STP results in additional requirements for institutions. Thus, integrated ‘One-

“An installation of Reuters DataScope is easy from a technical point of view, especially in relation to AIM.”

Stop-Shop’ solutions that close the loop of the entire order processing chain and additional process optimization consultancy services offer true added value for banks and financial institutions.

Improve operations consistency Raw data from one single source offers a better reliability and consistency, with fewer errors. Based on current experience, 30 % of all mistakes in the processing of order transactions are due to poor reference data. This results in operational risks as well as losses and higher costs due to duplication and the need for manual intervention. Subsequently, customer service is affected negatively. The main reasons are the lack of a conclusive “Data Strategy and Standards.”

However,with Reuters DataScope,you receive extensively crosschecked data, providing your organisation with the reliability needed to fulfil mission-critical operations. In fact, this is the same highly regarded information that more than half a million financial professionals trust every day to track the markets. With Reuters DataScope, you receive the Reuters technological know-how and years of experience that not only help you develop an enterprise-wide STP solution, but also enable your firm to reduce risks, improve operating efficiencies, and eliminate costs.

Smooth conversion An installation of Reuters Datascope is easy from a technical point of view, especially in relation to AIM Software, as this partnership will for the first time provide the ability of an easy integration of DataScope and the GAIN DataDesktop.

For further information speak with your Reuters representative about a cost-effective way to get the quality data you need for mid and back office operations or find further details on our website at www.about.reuters.com/ productinfo/datascope/.

The AIM network EUROPE  Austria AIM Software GmbH Gonzagagasse 16/5 1010 Vienna www.aim-sw.com office@aim-sw.com T: +43 1 512 46 52 F: +43 1 512 46 52 0 Sales Christian Trnka sales@aim-sw.com Technical Questions Frank Maltais support@aim-sw.com Partnership Management Matthias Rahmatian matthias.rahmatian@ aim-sw.com  Luxemburg Datagate (Luxembourg) SA 124, route d´Arlon 1150 Luxembourg Marc Staudt marc.staudt@datagate.lu T: +352 44 78 69 www.datagate.lu

 Netherlands IOW IT bv Riouwstraat 150 2585 HV Den Haag Mischa van Werkhoven info@iow.nl T: +31 70 338 90 50 www.iow.nl

 Switzerland AIM Software AG Schindeleggistrasse 3 CH-8308 Pfäffikon Sales: Nikolaj Tsenov nikolaj.tsenov@aim-sw.com T: +43 1 512 46 52 www.aim-sw.com

Sources Expert 5 chemin de Floraire 1225 Chêne Bourg / Genève Charles Maillard sources@sources-expert.com T: +41 22 348 00 68

APSoft Via Motta 42 6900 Lugano Antonio Lo Priore info@apsoftsa.com T: +41 91 922 27118 www.apsoftsa.com

 United States AIM Software plc 67 Wall Street Suite 2211 NYC 11005 Richard Bertossa richard.bertossa@aim-sw.com T: +1 212 859 3498 www.aim-sw.com

Fin-Log AG Zürichstrasse 107 8123 Ebmatingen Frank Müller Erkelenz info@fin-log.ch T: +41 43 366 21 10 Informatik für Banken AG Buckhauserstrasse 24 8048 Zürich Fredi Studer fredi.studer@ifb.ch T: +41 1 405 72 72 www.ifb.ch Profidata AG Industriestraße 7 5432 Neuenhof T: +41 56 416 31 11 www.profidatagroup.com

AMERICA

ASIA  Singapore Finetik 23 Eastwood Terrace Singapore 486493 Miroslav Janjic T: +65 9011 8645 miroslav.janjic@finetik.com www.finetik.com

Response-Card I would like to receive more information about the article(s) on page: __________________________________ I would like to receive the AIM Newsletter  By post  By email as pdf Format  I would like to be informed about events of the AIM network  Please contact me by phone Phone:____________________________ Comments __________________________________ __________________________________ My Name:__________________________ Address:___________________________

For more information on partnerships, please go to: www.aim-sw.com/ partners

__________________________________ E-Mail: ____________________________ AIM Software would be delighted to receive this response card by fax (+41 1 512 46 520).

Alternatively you can also send a mail to office@aim-sw.com.

Yield Thanks for your feedback.

13

Hyperlink

STPforum for strategic thinkers Part of the Risk Waters Group

http://www.stpforum.com As the name indicates, this site is the online version of the STPforum hardcopy magazine. The main topics are back office systems, corporate actions, data management, exchanges, FIX, messaging, trading systems, and vendor news. The “latest news” section, which is updated regularly, the event calendar, and a list of very useful links are some of the most valuable features. The “search archive” function offers the visitor easy access to past articles. Also, at the end of each article, a section named “related items” contains links to other articles associated with the topic, thus facilitating the search for specific information. The site also offers a free weekly email news service, providing articles from all Risk Waters Group publications.

STPforum is a free magazine for strategic thinkers in STP. Every issue brings in-depth analysis and comment on

the latest trends in Straight-Through Processing; you’ll get the inside view on corporate actions, reference data, middleware, FIX, and compliance, plus all the latest news, people moves, and industry comments. It is a very informative read for all front, mid, and back office personnel with     

Securities Firms Institutional Investors Custodian Banks Non-Custodian Banks Electronic Trading Platform/Networks

Browse the website and review the quarterly publication for in-depth comment and analysis on the key issues in STP: reference data, corporate actions, settlements, architecture, derivatives, and much more.

IInN F O R M A T I K F Ü R B A N K E N AG

Many IT specialists have a lot of know-how in the field of computer science.

We also know something about banking.

Perhaps that is why we get on so well with our clients.

We are the Swiss high-end IT service providers for the banking and finance sector.

Our speciality is to provide business consulting for small to middle-size commercial, merchant and private banks with regard to process engineering, hardware and application consultancy. However, our major strengths are also in developing systems, system integration and architecture consultancy. We place a lot of emphasis on a hands-on, solution-oriented approach, whereby the focus is on a mutual

14

Yield

understanding for one another. This philosophy is also reflected in the way in which we select our employees, where we not only look for comprehensive IT know-how, but also a sound knowledge of the finance industry, as well as communicational skills and team spirit. Our effective team of around 50 experienced business data processing specialists, IT consultants and system developers provide sustainable reconstruction and development work for a demanding clientele.�

IfB The partner to AIM in the Germanspeaking part of Switzerland.

Informatik für Banken AG Buckhauserstrasse 24, CH-8048 Zürich Tel 01 405 72 72, Fax 01 405 72 82 www.ifb.ch, info@ifb.ch

XML for market data

MDDL – Market Data Definition Language MDDL is an open XML based industry standard, providing a glossary of fields and flexible extensions necessary for describing financial instruments, corporate events and market-related, economic and industrial indicators.

The main function of MDDL is to promote data interoperability as well as to provide a standard taxonomy for market data. The initial use of MDDL was for end-of-day and snapshot applications but is being extended to streaming, historical, and other appropriate applications.

MDDL for market data exchange MDDL will finally allow to efficiently and accurately understand and exchange market data between software applications. The principal function of MDDL is to enable entities to ex-change market data by standardizing formats and definitions.

classes of interest. Scheduled future releases will include corporate actions as well as risk and portfolio support information.

MDDL Mission Statement The goal of Market Data Definition Language (MDDL) is to define a publicly available standard that provides a generic XML-based interchange format on the fields needed to describe financial instruments (including identifiers and current/historical values), corporate events (including specific corporate and instrument information affecting value and tradability) and marketrelated information (including economic and industrial indicators). The aim is to promote data interoperability.

Through the Eyes of the User Market data user firms distribute a significant amount of pre-defined market data to a wide variety of database applications and spend a significant amount of time and money translating market data formats and modifying applications for internal communication.

MDDL provides a common format for market data so that it can be efficiently passed from one processing system to another. Furthermore it provides a common understanding of market data content by standardizing terminology and by normalizing the relationships of various data elements to one another.

From the user perspective, the goal of MDDL is to enable users to integrate data from multiple sources by standardizing both the input feeds used for data warehousing (i.e. define what’s being provided by vendors) and the output methods by which client applications request the data (i.e. ensure compatibility on how to get data in and out of applications).

The history of MDDL MDDL V1.0 was launched on the 2nd of November 2001 by a cross industry group of market data vendors and users sponsored by the Financial Information Services Division (FISD) of the Software & Information Industry Association (see www.fisd.net for more information).

London Stock Exchange - MDDL Demonstration If you want to experience a demonstration of the capabilities of MDDL, please go to http://www.londonstockexchange.com/sedol/ where The London Stock Exchange SEDOL Master File is using MDDL.

The current release is MDDL version 2.2. It incorporates the basic setup and pricing information for most asset

More information about MDDL can be found at www.mddl.org Yield

15

Yield suggests the following events …

Date from

to

City

Country Name of the event

Type of Organizer the event

Homepage

Attendance price

Conference

Risk Waters

www.riskwatersevents.com

USD 499,-

Training

Risk Waters

www.riskwatersevents.com

GBP 2.999,-

Congress

MCH Messe Basel AG

www.orbitcomdex.com

Conference

Risk Waters

www.riskwatersevents.com

CHF 200,-/Session free for bank employees

Training

Risk Waters

www.riskwatersevents.com

GBP 2.349,-

Exhibition

Fiera Milano

www.smau.it

EUR 15,-

Exhibition Courses Forum Exhibition/ Conference

Screen Consultants Standard&Poors Fow

www.screenconsultants.com free www.standardandpoors.com GBP 2.500,www.fow.com/events free

SWIFT

www.swift.com

22/09/03 23/09/03 New York

US

22/09/03 23/09/03 New York

US

23/09/03 26/09/03 Basel

CH

Waters 2003 Annual Financial and Risk Management Technology Congress Practical techniques for the effective identification, measurement and management of operational risk Orbit/Comdex Europe 2003

30/09/03

London

UK

Inside Market Data Europe 2003

01/10/03 02/10/03 London

UK

02/10/03 06/10/03 Milan

I

09/10/03 Brussels 14/10/03 15/10/03 London 14/10/03 15/10/03 Madrid

B UK E

Advanced Credit Risk Measurement and Modelling Techniques for effective portfolio credit risk management SMAU - International exhibition of ICT and Consumer Electronics Screen Event Credit Risk Portfolio Management FOW’s Derivatives & Securities Forum

20/10/03 24/10/03 Singapore

SG

SIBOS 2003

21/10/03 22/10/03 London

UK

Credit Risk Summit Europe 2003

Congress

Risk Waters

www.riskwatersevents.com

21/10/03 24/10/03 Frankfurt

D

27/10/03

US

Corporate Credit Risk Analysis Efficient Management of Reference Data & Corporate Action Data Riskinvest Europe 2003 EBIF - European Banking & Insurance Fair 2003

Training Business Breakfast Congress

Standard&Poors AIM Software Standard&Poors Risk Waters

www.executive-events.info

free

www.riskwatersevents.com

GBP 1.409,-

Exhibition

MFA GmbH

www.ebif.com

EUR 13,5 - 45,-

www.riskwatersevents.com

New York

EUR 230,-/day

GBP 1.291 2.935,www.standardandpoors.com USD 3.500,-

27/10/03 28/10/03 London

UK

27/10/03 29/10/03 Frankfurt

D

27/10/03 28/10/03 New York

US

Credit Risk Summit USA 2003

Congress

Risk Waters

29/10/03 Milan 29/10/03 30/10/03 Frankfurt

I D

Screen Event DeutschesRisk 2003

Exhibition Conference

Screen Consultants Risk Waters

GBP 1.199 3.198,www.screenconsultants.com free www.riskwatersevents.com EUR 1.623,-

04/11/03 05/11/03 Zürich

CH

Finance Forum

Finance Forum

www.finance-forum.com

04/11/03 06/11/03 Madrid

E

Corporate Credit Risk Analysis

Exhibition/ Conference Training

Standard&Poors

05/11/03 07/11/03 New York

US

Waters Market Data

Course

Risk Waters

10/11/03 12/11/03 London

UK

Waters Market Data

Course

Risk Waters

www.standardandpoors.com EUR 2.825,USD 1.199 www.riskwatersevents.com - 2.878,GBP 749,5 www.riskwatersevents.com 1.799,-

13/11/03 14/11/03 London

UK

13/11/03

London

UK

17/11/03 19/11/03 London

UK

20/11/03

Luxembourg LUX

20/11/03 21/11/03 New York

US

02/12/03 04/12/03 Cannes

F

02/12/03 04/12/03 London

UK

02/12/03 05/12/03 Geneva

CH

Effective Integration of Market Risk and Course Credit Risk 11th Annual Clearing & Settlement Dinner Dinner Forum and GARP’s 2nd Asset Management Forum Exhibition Screen Event Exhibition Effective Integration of Market Risk and Course Credit Risk International Asset Management Market Trade Show FIMA 2003 Financial Information Conference Management Risk Management 2003

Imprint: Publisher: AIM Software GmbH, Gonzagagasse 16/5, 1010 Vienna, Austria.

Production: Egger & Lerch, www.egger-lerch.at Print: Druckservice Styrian GmbH

16

Yield

Conference

Risk Waters

www.riskwatersevents.com

FOW

www.fow.com/events

free

GBP 2.349,-

Screen Consultants

GBP 130,GBP 499 www.garp.com/events.com 1.598,www.screenconsultants.com free

Risk Waters

www.riskwatersevents.com

USD 2.999,-

Reed Midem SA

www.reedexpo.com

WBR

www.wbresearch.com

price on request EUR 1.519 2.733,-

ICBI /London

www.icbiriskmanagement.com

GARP

GBP 100 - 900,-

www.aim-sw.com