The Central Bank of Trinidad and Tobago Selects SimCorp Dimension to Support Front to Back Office Investment Management

31 January 2018

SimCorp, a leading provider of investment management solutions and services to the global financial services industry, today announces that the Central Bank of Trinidad and Tobago has signed a partnership agreement with SimCorp North America. The Central Bank of Trinidad and Tobago will implement SimCorp Dimension to manage the investment operation of the country’s US$8.4 billion foreign exchange reserves.

The Central Bank of Trinidad and Tobago has continually sought to evolve its operations throughout the decades, in order to meet global best practice. The implementation of SimCorp Dimension will further this endeavour, serving the central bank with a highly standardized solution for its foreign exchange reserve operations. SimCorp’s automated investment solution will deliver full front to back office support in one integrated system.

Operating amidst increasing market complexity, the central bank will benefit from SimCorp Dimension’s scalable solution with mimimal need for customization. Straight Through Processing (STP) and exception based workflows will provide the front, middle and back offices with transparent and streamlined management of the country’s foreign exchange reserves.

Advanced front office functionality features a significant part of the central bank’s operational overhaul. It will enable the efficient management of cash transactions and the processing of SWIFT formatted cash transfers. Trade entry optimization and pre/post trade compliance will form other important  functions, for instance enabling the front office with automatic alerts on threshold breaches. With its centralized Investment Book of Record (IBOR), SimCorp Dimension will serve the central bank with a single source of accurate and timely data for performance measurement, risk assessment and portfolio manangement, providing a unified view across asset classes.

As part of the agreement, SimCorp will deliver the following functionality to the Central Bank of Trinidad and Tobago:

  • IBOR to support investment decision making, improved risk management and stakeholder reporting
  • Processing and optimization of trade entry
  • Transparent pre/post trade compliance
  • Cash forecasting
  • Reconciliation and exception management
  • Event management and drill down
  • Full instrument coverage for the entire investment lifecycle
  • Straight through processing (STP) across workflows including; trade management, transaction workflow monitoring, processing of settlement instructions and reconciliation matching
  • Portfolio management, including the ability to define and differentiate portfolios by objectives, e.g. liquidity and investment portfolios
  • Comprehensive chart of accounts in both reporting and base currency (the United States Dollar)
  • SWIFT settlement processing
  • Complete and fully traceable audit trail for all reporting requirements

The Central Bank of Trinidad and Tobago said: “We are pleased to partner with SimCorp. A critical criteria for our rigorous evaluation and decision process was to partner with a firm that offered a standardized solution with little need for customization to support our entire investment lifecycle. SimCorp Dimension stood out in our evaluation for the level of automation provided for Straight Through Processing across the front, middle and back offices.”

James Corrigan, Executive Vice President and Managing Director, SimCorp North America commented: “It is a privilege to welcome the Central Bank of Trinidad and Tobago into our established community. The partnership underlines SimCorp’s ability to deliver a best-in-class solution to central banks around the globe. This, together with our consolidated approach to investment management, more than meets the needs of banking institutions, empowering them with greater control and agility, to compete on a global scale.”

SimCorp provides integrated, best-in-class investment management solutions to the world’s leading asset managers, fund managers, asset servicers, pension and insurance funds, wealth managers and sovereign wealth funds. Whether deployed on premise or as an ASP solution, its core system, SimCorp Dimension, supports the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests more than 20% of its annual revenue in R&D, helping clients develop their business and stay ahead of ever-changing industry demands. Listed on NASDAQ Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific. 

The Central Bank of Trinidad and Tobago was established via an Act of Parliament (Act 23 of 1964) on December 12, 1964. The Bank’s purpose is to promote monetary, credit and exchange policies necessary to foster monetary and financial stability and public confidence and that would be favourable to the economy of Trinidad and Tobago. Some of the main responsibilities of the Bank include managing the country’s foreign exchange reserves, protecting the external value of the currency and acting as banker for the Government of Trinidad and Tobago. 

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