LogicaCMG / FERNBACH-Software: The Regulatory Reporting Standard for Basel II

SAMBA from LogicaCMG is the standard application for fulfilling regulatory reporting requirements in Germany. With experience in over 700 banks, SAMBA’s level and range of functions is unique in Germany. Today, more than 40 banks already supply SAMBA using preprocessing systems from FERNBACH.
Both partners are now offering the regulatory reporting standard as a joint product.

SAMBAplus and SAMBAplusVV (pre-processing) provide an integrated solution for German regulatory reporting – from the delivery of the deals from the various supply systems to the creation of regulatory reports.

The introduction of the solution package results in a significant reduction in costs when implementing future regulatory reporting requirements since
· no adaptation or only minimal adaptation of the delivery systems and interfaces is required
· adaptation to changes in legislation are implemented quickly and inexpensively with the relevant releases
· the standard solution has a high degree of automation
· only a minimum of consulting is required

The package is integrated in full, technically and functionally, and covers the pillars 1, 2 and 3.
Dr. Hans-Joachim Deobald, Head of Regulatory Reporting Add-On Products, LogicaCMG explains:

"The requirements in the field of preprocessing for regulatory reporting are constantly increasing, not least as a consequence of the increasing number of delivery systems. With regard to Basel II, in particular, the customer sees himself faced with growing complexity. The objective was to provide our customers with a comprehensive solution for punctual and correct creation of the reports, including the fields of data delivery and processing.
LogicaCMG therefore relies on components which have been tried and tested in practice and on the almost ten years of experience of their partner for many years now, FERNBACH-Software."

Gerhard Lohmann, Product Manager for Regulatory Reporting at FERNBACH Software, adds: "Apart from the regulatory requirements and reporting, in addition, numerous internal monitoring functionalities for risk of default and market price risk are offered. The breadth and depth of the solution for all the German requirements along with the large customer base guarantees our customers a perspective of further development and maintenance of the products in the long term."

The Solution

Numerous deal data, static data and market data are required for generating the necessary reports in accordance with regulatory requirements. This information is processed on a joint data platform with central business rules.
"Uniform processes and standardised data ensure consistency of the results and inexpensive maintainability. Based on a joint database, in the first version, up to 44 different preprocessing functions are offered to ensure optimum delivery of your regulatory reports. The preprocessing based on the database allows evaluation of the data for internal reporting as well as transfer to third-party systems", says Nicolas Jost, Product Manager for regulatory reporting at LogicaCMG.

After working through the SAMBAplusVV functions, the delivery files required for SAMBAplus are created. This covers all regulatory reports supported by SAMBAplus.

The data is delivered specifically for a deal type and it is, therefore, only necessary to provide the data required for the deal type.

As soon as a delivery system has completed its accounting entries, the data can be transferred to the preprocessing database and saved there. Furthermore, the deal-related part of the preprocessing can already be carried out – this reduces the total throughput time.

The processing within the basic processes has been parallelised in order to make optimum use of the multiprocessor computer.
Besides the regulatory data required for each individual deal type, user-specific data is delivered and deposited. This can be used for internal analyses and, in addition, or as an alternative, it can be used when mapping to the SAMBAplus data.

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