Hexaware has around 100 professionals with deep and extensive domain knowledge in various business lines of Middle Office space. know more:- hexaware.com/middle-office-capabilities-3.htm

1. Services for
Middle Office
www.hexaware.com
Asset Management &
Capital Markets

2. © Hexaware Technologies Limited. All rights reserved. www.hexaware.com
Services for
Middle Office
Introduction
Hexaware offers a complete range of Asset Management Solutions for Global Financial Institutions, Fund Managers, Investment
Managers, Institutional Asset Managers, Mutual Fund Managers and Insurance Money Managers.
Hexaware has around 100 professionals with deep and extensive domain knowledge in various business lines of Middle Office
space. We deliver end-to-end solutions combining technology and a deep understanding of the business with expertise in Risk
Management, Compliance, Reconciliation, Position Management, and P&L Allocation.
Our solutions are precisely aligned to our clients‟ specific context and requirements to ensure an integrated experience presented
from a common front that addresses the business need. Our resources worked in leading Risk Management Products and
Reconciliation products such as Eagle, TLM. In addition, our dedicated Asset Management & Capital Markets team leverages
technical expertise from our technology teams covering JEE, Microsoft Dot Net, Mainframe and ERP.
Hexaware provide solutions in the following areas:
 Risk Management, Compliance Reconciliation, Position Management, and P&L Allocation.
Hexaware’s solution for Asset Management & Capital Markets Clients:

3. © Hexaware Technologies Limited. All rights reserved. www.hexaware.com
Services for
Middle Office
Middle Office Expertise
Hexaware has a strong domain & technical experts working with Global Investment Managers in Middle Office
Functions. The team brings rich experience in Middle office functions like Risk Management, P&L Calculation and
Position Management.
Need for Risk Management
Due to global market participation and regulatory changes, Risk Management plays vital role in managing the liquidity for Asset
Management Companies. Listed below are some of the emerging trends in the Risk Management.
 Increased market volatility – Are measures like VaR sufficient?
 Exposure to credit risk increased manifold for asset managers/hedge funds
 Increased focus on liquidity risk assessment and measurement
 High focus on counterparty risk
 Model development/ Model validation
 Scenario analysis and stress testing
 Business & Risk Decisions – Moving away from steady state
 Stress testing
 High focus on operational risk and compliance risk
 Compliance with UCITS III/IV
 Enterprise wide view of risk – risk attribution with performance attribution
 Increased focus on data management/ appropriate dashboards
Risk Management
Hexaware focused on providing tailored risk management and compliance solutions to asset management companies, capital
market participants, banks and financial institutions worldwide. Solutions imbibe best practices of the industry. We work with CROs,
CIOs AND CFOs, and their organizations to deliver innovative solutions in the areas of risk and compliance. Our resources include
practitioners/ industry leaders in credit risk, market risk, operational risk and structured finance with prior experience of working with
leading asset management companies, banks, financial institutions, consulting firms and risk analytic product companies. Many of
our people possess advanced degrees in risk, finance with many possessing certifications from GARP/PRIMIA/CFA and we have
strategic relationships with leading risk software and technology vendors
Our Solution
Risk Data
Infrastructure
Credit
/CounterpartyRisk
Models,
Scorecards,
EconomicCap
BaselIIFramework
CreditAnalytics,
RiskAdjusted
Framework
Marketrisk VAR UCITSIII/IV
RiskAdjusted
Return
Operational/compli
anceRisk
VAR
CausalModels
BaselApproaches,
AMA
KRI,Financial Crime
Liquidity Risk
EAR/VAR/
Stochastic
Modeling
InterestRate-
TradingBook,
InternalModels
Approach
Gap,Sensitivity,
NII,NIM,EAR etc
Risk
Aggregation
and Early
Warning

4. © Hexaware Technologies Limited. All rights reserved. www.hexaware.com
Services for
Middle Office
Operational Risk
Roll-out of leading 3rd party operational risk and GRC platforms
 Local and global roll-out strategies and best practices
 Conducting workshops for gathering solution
requirements
 Iterative solution configuration
 Pre-built solution extensions and migration of loss data
 Testing and training
ORM Consulting
 Define operational risk management frameworks,
policies and processes for financial institutions
 Design of control testing methodologies
 Gap analysis and business requirements specifications
 Vendor & technology selection for managing
operational risks
 Implementation of Basel II Advanced Measurement
Approach (AMA) for capital estimation
 Methodologies and implementation of Economic Capital
frameworks
Compliance
 Implementation of Anti-Money Laundering solutions
 Design and implementation of roadmaps for Basel II,
MiFID, Anti-Money Laundering and SOX compliance

.
Hexaware Service Offerings in Middle office functions
Market Risk
 Model validation and refinements – Independent
validation of methodology, analytics and implementation
of market risk models
 VaR analytics – Development of framework,
implementation and process outsourcing
 Risk dashboards and reporting – Custom and pre-built
reports to integrate different instrument and product
types across different platforms
 Internal audit services – Analytical support to internal
audit groups, spreadsheet evaluation & validation
 Stress testing – Conduct independent stress testing of
market risk models.
 Counterparty risk and collateral management –
Implementation of counterparty risk systems including
simulation engines, netting and collateral rules
 Data aggregation and cleansing – Linking multiple data
sources and providing frameworks for the identification
of most recent and accurate values
Credit Risk
 Management for leading 3rd party credit risk
management software or bespoke systems
 Commercial rating systems - Design and
implementation of Basel II risk rating scorecards and
PD models, including data and system requirements
 Consumer credit scoring – Modeling & analytics
regarding consumer campaign management &
behavioral scorecards
 Basel II implementation – Pillar 1, Foundation IRB and
Advanced IRB (Internal Rating-Based) approaches for
Minimum Regulatory Capital, PD, LGD and EAD
calculations
 Data quality and testing – Pre-built data quality rules for
cleaning portfolio, counterparty and financial spread
data
 Commercial real estate reporting – Combination of pre-
built and customized reports for financial institutions for
segmenting and understanding direct and indirect
commercial and residential real estate exposures
 Model validation and refinements – Independent
validation of methodology, analytics and implementation
of credit models
 Internal audit services - Analytical support to internal
audit groups and spreadsheet evaluation
 Stress testing – Stress testing of internal rating systems
based on transition matrices & customized scenarios
 Benchmarking of internal rating systems - Using market
data for loan pricing & market credit default swap
Why Hexaware?
 Deep understanding of strategic and tactical challenges
confronted by financial institutions in risk management
functions and processes. Our consulting methodologies
enable clients to perform a quick analysis of existing
state, understand their target state and create a roadmap
for implementation.
 Wide range of experience in implementing risk
management solutions from multiple software vendors.
Our vendor selection methodology enables clients to
score software vendors and arrive at an objective
decision during the selection process. With a holistic view
of the risk domain, independent of the solutions available
in the market, we help clients choose the right solutions
meeting their current as well as future business needs.
 Leverages domain, functional and technical consultants
to provide end-to-end implementation of risk
management systems for credit, market or operational
risk. Our consultants have the right blend of business and
technology expertise. Partnered with leading risk
management software vendors and has a dedicated lab
for training consultants.

5. © Hexaware Technologies Limited. All rights reserved. www.hexaware.com
Services for
Middle Office
Reconciliation Capabilities
Hexaware resources have worked in reconciliation space and
have expertise in working with Leading Reconciliation products
like TLM and Eagle. Hexaware has developed an in-house
reconciliation product to track and trace business data across
two systems called “Verzoenen”.
By virtue of our experience in working with Leading Asset
Management companies in the Reconciliation space, Hexaware
has gained strong Domain Knowledge in Reconciliation and has
handled Position, Cash, Transaction and General Ledger
Reconciliation. Some of the focused areas in the reconciliation
process are:
Trade Instructions and Confirmations of
 Investment Manager Vs. Broker
 Reconciliation of Investment Manager System Vs.
Custody System
 Nostro Reconciliation
 GL Reconciliation
 Ledger / Sub Ledger Reconciliation
 Settlements Reconciliation
 Payments Reconciliation
.
Success Stories - Risk Management
 A Top 2 Global Bank: Implementation of Basel II Capital
Adequacy framework
 A Top 10 Global Bank: infrastructure advisory assignment for
BASEL II implementation providing roadmap for Pillar I and
ICAAP processes. This included gap analysis and client
preparedness assessment. A roadmap was advised
 A Top 10 US Bank: Risk strategy and consulting engagement
for developing a revised methodology for ALLL (Allowance for
loan and lease losses). It provided the bank with a robust,
accurate and efficient allocation mechanism aimed at
preventing sudden capital shocks. This approach aligned
with the economic capital calculations and included macro-
economic adjustments
 A Top 10 US Bank: Counterparty credit risk analysis
infrastructure with graphical user interface and key exposure
monitoring variables using SAS Tools
.
Success Stories - Reconciliation
 Client is a leading provider of “investment tools” globally
for investment banks, hedge funds, asset managers,
regulators, rating agencies & insurance companies.
 Loading data Files (Portfolios, Holdings, Security
master, transactions) into the tool
 Reconcile Market Values of Portfolios
 Reconcile Transactions
 Calculate P& L for the Portfolio
 US-based, Global Asset Management Firm: Support the
migration of Data from Smart stream SSR to Smart stream
TLM
 A Top 20 Global Asset Manager: Support and Maintenance
of Smart Stream SSR Application
 A Leading Mutual Life Insurance Company in US:
Implementation and Reconciliation of Derivative Trades from
Legacy System to Murex Application during Migration
.

6. © Hexaware Technologies Limited. All rights reserved. www.hexaware.com
Services for
Middle Office
About Hexaware
Hexaware is a leading global provider of IT and BPO services. The company has achieved leadership position in domains
such as Banking, Financial Services, Insurance, Transportation, Logistics and HR-IT solutions. Hexaware focuses on
delivering business results leveraging technology solutions and specializes in Business Intelligence & Analytics, Enterprise
Applications, Independent Testing and Legacy Modernization. Hexaware has been providing business technology solutions for
over 18 years and offers world class service delivery, technology leadership and skilled human capital.
NA Headquarters
1095 Cranbury South River Road
Suite 10, Jamesburg, NJ 08831
Main: 609-409-6950
Fax: 609-409-6910
India Headquarters
152, Sector – 3
Millennium Business Park
„A‟ Block, TTC Industrial Area
Mahape, Navi Mumbai – 400 710
Tel.: +91-22-67919595
Fax: +91-22-67919500
EU Headquarters
4th Floor, Cornwall House
55-57 High Street, Slough
Berkshire SL1 1DZ, UK
Tele: +44 (0)1753 217160
Fax: +44 (0)1753 217161
APAC Headquarters
180 Cecil Street,
#09-03, Bangkok Bank Building,
Singapore 069546
Tel.: +65-63253020
For all Hexaware office locations, visit: http://www.hexaware.com/worldwide.htm
corporatemarketing@hexaware.com
Safe Harbor
Certain statements on this brochure concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause
actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to,
risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost
advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client
concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in tele-
communication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in
which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies
outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.