Summit Systems today announced that it has been selected by BayernLB to provide a global system that will handle all instruments from trade entry through to settlement. The depth and breadth of Summit will allow BayernLB to replace over 16 existing systems used in various areas and locations of the Bank. Summit will enable BayernLB to centralise its operation in one global hub in Munich, with several hundred users accessing both directly and through Citrix from London, Hong Kong, Luxembourg, New York and Paris.
The driving force behind the system rationalisation project is the determination of BayernLB to adjust its business model in preparation for the bank’s new rating environment. "We are concentrating on the three crucial parameters - stabilising income, reducing capital commitment, and further cutting back on administrative expenses - in order to achieve our planned long-term rating of at least A+," comments Mr Dieter Burgmer, Member of the Board of BayernLB. "Our decision to pool all applications into one with Summit as the BayernLB core solution for investment banking, will help us achieve this goal. Replacing such a large number of systems will reduce costs in many areas by reducing system complexity and improving STP."
Summit will be implemented across multiple asset classes and will handle trades from trade entry through to settlement. It will eventually lead to the decommissioning of a number of in-house applications and trading systems. Summit will cover high volume fixed income, foreign exchange, money markets and OTC derivatives.
Raphael Bensimhon, Sales Director for Summit in Europe says, "BayernLB has been a customer of Summit for some-time but this is a huge contract addition and upgrade. Specifically the sale adds many more users, provides for BayernLB changing to a centralised real-time STP architecture and adds back-office functionality in a wide variety of instrument classes. We expect the Bank to benefit greatly from having one system for trade entry, risk management and operations."
Herve Baulme, CEO of Summit adds, "Over the past couple of years Summit has invested a significant amount of development resource to deliver our real-time architecture and add the innovative functionality demanded by today’s financial institutions. We now have the breadth and depth of coverage in addition to leading-edge technology that makes us well positioned to handle similar rationalisation projects."
BayernLB will take Version 3.6 of Summit. With 10 locations worldwide grouped in 4 regional regions and the replacement of 16 existing systems, the system is expected to be implemented over a 2 year period with an expected go-live around August 2006. Summit will be working alongside various consultancy firms who will handle the project management and implementation.