Case Studies
November 2018

Leadenhall Capital Partners

Leadenhall Capital Partners, a global leader in insurance linked securities (ILS) and reinsurance-linked investment strategies, partners with Digiterre to design and build a gold standard trading platform to significantly improve all-round operational robustness and integrity and to greatly enhance the quality and speed of data used to inform key trading and other business critical decisions

Problem

LCP’s key technical challenge was how to reduce operational complexity by having a single source of truth for all their trading positions and cash flows. With the creation of this “single version of the truth” LCP would be able to improve data input and validation efficiencies, focus more on data optimisation and analysis and ultimately offer far greater value-add for their investors. However, no such ‘off the shelf’ product existed. As financial technology specialists with an in-depth knowledge and extensive experience of trading and risk systems, Digiterre was chosen to design and build a gold standard software and data platform to deliver on these requirements.

The main goals of the programme were:

• To support the scale aspirations of the business.

• To reduce overall operational risk and complexity.

• To improve team collaboration.

• To create a single and robust data source to run the trading operations of the business.

• To create a portfolio reporting tool designed to increase the efficiency and quality of reporting to external investors, which could be tailored to meet the needs of different investors groups.

• To develop a management information (MI) tool to increase the depth and efficiency of reporting to LCP management. A key requirement was the improved reporting within the business of the twin parameters of fund capacity levels on the one hand, (i.e. the deployment of money) and fundraising targets on the other, (i.e. the raising of money).
The main goals of the programme were:

• To support the scale aspirations of the business.

• To reduce overall operational risk and complexity.

• To improve team collaboration.

• To create a single and robust data source to run the trading operations of the business.

• To create a portfolio reporting tool designed to increase the efficiency and quality of reporting to external investors, which could be tailored to meet the needs of different investors groups.

• To develop a management information (MI) tool to increase the depth and efficiency of reporting to LCP management. A key requirement was the improved reporting within the business of the twin parameters of fund capacity levels on the one hand, (i.e. the deployment of money) and fundraising targets on the other, (i.e. the raising of money).

2018

Solution

The key features of the approach included:

• An ‘Agile’ approach to the overall development of the product. Particular benefits of the approach included accommodating LCPs changing requirements as the programme progressed, running 2-week development cycles that brought more frequent delivery of the working software and closer collaboration between LCP and Digiterre.

• Introducing a ‘straight through’ data processing approach to LCP. A new interface was designed and built for the front-office to enter data securely and for the data to be warehoused securely. Subsequently, operations are able to reconcile the data and report from it. The data system, in turn, produces trade instructions to LCP’s administrator and custodian.

• Bringing together the LCP front office, middle office and back office, enabling them to have a unified approach to data management, having previously worked in a less connected way from one another. The Agile approach encouraged these different departments to interact and to engage with one another to improve business processes and outputs.

‘Working with Digiterre felt like a true partnership to achieve our goals. We built something that was material and relevant to our business. I’m impressed’.

Luca Albertini, CEO, Leadenhall Capital Partners