Derivatives Re-Engineering/System Conversion

Summary:

  • Transition of over 700 derivatives from Misys Summit platform

  • Accrual and MTM accounting transferred to Princeton PAM for Securities system

  • Valuations transferred to Bloomberg (OIS valuations)

  • Included contractual derivatives as well as insured derivatives

  • Agile project management methodology utilized

  • Chosen as leader of Functional Team for Controller's Group

Challenges:

  • Many parallel process streams spanning multiple departments

    • Valuations sourced from two different departments (Asset Management and Insurance Valuation Group)

    • Derivative cash settlements and reconciliation within the Asset Management division

    • Separate accounting teams for mark to market and accrual components

  • Several phases implemented over a one and a half year period

  • Trades housed in multiple systems in new model, necessitating ongoing reconciliations to ensure data and population consistency

Key Contributions to Project:

  • Leveraged in-depth knowledge of both the PAM and Summit systems

  • Mapping of all key fields between Summit and PAM and assisting IT staff with development of automated transfer tool

  • Developed and trained staff on repeatable methodologies for quickly assessing variances between the two systems and documenting their resolution

  • Prepared ongiong progress report summaries and tracking to project plan for presentation to Steering Committee

  • Updated Sarbanes Oxley documentation and developed new controls utilizing the COSO 2013 framework

Results:

  • Successful move to production environment in 1Q 2014
  • Minimal accounting transition impact (<$100k) due to thorough parallel testing
  • Pre-Implementation review by Internal Audit completed with no material deficiencies noted