AT A GLANCE
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Client Profile
Pension Plan
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AUM
$125bn
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Core Service
Implementation of derivatives in SimCorp One
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Key Outcome
One true single IBOR platform
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Existing Challenges
The case study outlines how Dimensional Community helped a medium-sized Pension Plan resolve significant operational challenges related to managing their derivatives book.
All derivative positions were held in a separate system following the initial SimCorp implementation. This multi-system approach caused daily integration issues, created an unsustainable barrier to effective system utilization, and severely impacted daily operations.
Key challenges included the lack of a combined positional IBOR (Investment Book of Record) and Total Portfolio View, which restricted the ability to deliver accurate and timely management and client reporting. The complex daily workflows often required manual intervention from both IT and business departments.
Solution in SimCorp One
Dimensional Community partnered with the client to implement their complete derivatives book, including Futures, Options, IRS, CDS, and TRS, into SimCorp, establishing an end-to-end automated process.
This involved implementing standard SimCorp trade process workflows for contract capture, execution, and instruction handling, alongside the automated creation of static data using preconfigured templates. Extensive work was also dedicated to sourcing and maintaining correct yield and volatility curves for theoretical valuations, enabling the operations team to match the derivatives book against the custodian.
This holistic approach resulted in a single-system combined positional IBOR, enabling a true and complete Total Portfolio View for accurate and on-time reporting. The transition replaced complex, error-prone manual processes with a fully automated operational workflow, reducing manual intervention to exception handling only, and achieved an estimated 15% reduction in labor costs.