Deutsche Bank and T-Zero

Integration and Automation of Credit Derivatives Trade Processing Flows

Background

Digiterre works closely for and on behalf of T-Zero to provide consulting and integration services to their clients. Deutsche Bank made a decision to use the T-Zero Credit Derivatives Trade Processing Platform with the aim of reducing the time required to process trades and to reduce operational costs. However, Deutsche Bank mandated that it should be integrated seamlessly into their in-house trading systems.

"Digiterre delivered an excellent solution, on time, in a very complex, changing environment. They demonstrated an expertise in both technical and business knowledge, and I would highly recommend them", Michael Murray, Assistant Vice President, Group Technology & Operations, Deutsche Bank.

The Challenge

Once a trade has been received from the Deutsche Bank trading systems, it needs to be alleged on the T-Zero platform against the selected Hedge Fund. After the trade has been accepted by the hedge fund, the connector automatically inserts the fund allocations into the Deutsche Bank trading systems.

To achieve the required business benefits, a custom solution was required to link Deutsche Bank to T-Zero providing:

• Coverage for CDS Single Names & CDS Indexes.
• Coverage for core Deutsche Bank CDS workflow including new trades & trade amendments, as well as automated fund allocation insertion into Deutsche Bank systems.
• A robust architecture with guaranteed message delivery within the very tight timescales required by the two platforms.
• A solution with minimal configuration required for each additional client added to the Deutsche Bank systems.

The Solution

As a service provider with excellent domain knowledge in the credit derivatives area combined with a deep knowledge of the T-Zero messaging API, Digiterre was engaged to develop and implement the Deutsche Bank connector. This included specification, prototyping, development and testing.

The Technology

Java 1.4 on UNIX:

• Connector implements T-Zero messaging API.
• A multi-threaded asynchronous solution was required owing to the time sensitive and event driven nature of the platforms.

Digiterre worked closely with both Deutsche Bank and T-Zero throughout the development ensuring the Connector was integrated with the latest versions of the API and internal Deutsche Bank best practices were being followed. Regular reviews were carried out involving all three parties throughout the process, which helped to ensure that the project met the requirements of the business.