Municipal Bond Trading System Solution

The Problem:

One of the five largest dealers in the U.S. municipal bond turned to Adeptyx to help with challenges it faced with their new issue trading desk. The primary concern was that the existing process was manual, increasing the potential for errors to occur and in time needed to complete the process. The system also needed to accommodate portfolio managers in multiple locations and the growing number of funds that were purchasing new issues.

What We Did:

Adeptyx and the client worked together to develop a solution, which automated much of the new issue trading process from data sourcing, indication of interest and the order entry and filling process. The application allowed the client to enter indications of interest for new issues, submit their new issue orders systematically and allowed the traders to aggregate, allot and allocate them on the trade desk on a highly configurable web sphere application. The application handled various “Preference” and “SMA” trading logic inherent in the new issue trading environment for municipal bonds.

Adeptyx Consulting followed a project strategy to:

  • Identify core and general functionality for the system, build consensus on the solution approach and engage the organization on execution initiatives by conducting workshops and discussions with participants from business and IT.
  • Write business and technical specifications for the system to cover the core as well as general functionalities for the users needs and provide IT with direction and design.
  • Identify a data source for the system to keep the system updated with the current new issues and their various structures.
  • Provide full test case building and review for the system to ensure that all requirements are met.
  • Integrate the system to flow trades into the latest version of Charles River OMS for compliance and settlement purposes.

The Results:

Following this effort, the client was able to deploy the new issues trading application throughout their enterprise cutting down on manual errors and work time.

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