Equity swaps
trade support

Client-first is at the heart of everything that JDX does.

We shape our consulting capabilities, services, and experiences around our clients, working with them, and our partners, to design and deliver solutions with outcomes that target our clients’ pain points, unmet needs, and real business problems. We use our unique perspective to provide optionality in the client outcome, while unlocking value throughout the journey. Today’s JDX client story showcases one of our Post Trade projects.

JDX were engaged by a Tier 1 Investment Bank to perform an operational middle office role in their equity swaps trade support space.

Context

JDX were requested to join FT staff at a Tier 1 Investment Bank in their Middle Office trade operations team, specifically supporting the Equity Swaps Trading Desk. The main objective here was to aid BAU processes in identifying and mitigating against risks in the trade lifecycle. We currently support two desks in multiple functions covering corporate action events on positions the desk hold, FX executions and ongoing trade reconciliation to clean breaks and remove unnecessary exposure.

The team works with IT departments on system development and optimisation, dev teams, corporate action specialist teams and other trade support teams in the cash world in order to holistically and efficiently answer queries and find solutions to problems.

Our approach

JDX deployed 1 associate consultant and 1 consultant to work within the client’s Equity Swaps TSG team. Our consultants sat alongside 1-2 FTEs and underneath a Team Manager and Executive Director. The project focused on BAU processes to:

  • Resolve trade completion issues
  • Address ad hoc queries from the trading desk and other op’s team within the firm
  • Mastering the complexities of Equity Swap products
  • Advising on the best course of action to resolve ad hoc issues within the trade lifecycle to resolve daily PnL discrepancies.

The ops team worked with internal technology teams to ensure correct trade flows are set up in trade booking systems, ensuring timely straight through processing of live trades and efficient reconciliation of the desks’ risk and position against parallel systems. There was a key focus on supporting the Corporate Action function within the ops team by proactively monitoring upcoming events, informing the desk where elements of risk arose and mitigating against these wherever possible.

Our team worked from a shared mailbox and checklist that ensured control functions were consistently met and were effectively capturing issues. We were on hand to liaise with client facing teams to swiftly make amends to bookings and ensure client relationships were upheld. Each morning the team reconciled and cleared more than 60 breaks between positions and systems that have flagged overnight.

Outcomes / Measurable impact

  • The output of each Analyst increased following a reduction in the size of FTEs
  • JDX continues to support trade operations in daily BAU processes
  • JDX continues to investigate areas in which efficiency can be improved on the Equity Swaps Desks
  • JDX Consultants have taken over several functions that were previously exclusively the responsibilities of FTEs

Contact us

For more information on our Post Trade services, contact Dominic Amura.

Up