Alleviate Challenges & Ensure Timely Financial Insights
End-of-day (EOD) is a process that transitions intraday processes to official processes after the publication of official prices at the close of business hours. It involves calculating simulation results like PnL, MtM, and inventory. EOD processes ensure system readiness for the next trading day and provides crucial financial information for traders, managers, and risk analysts to assess profitability, make informed trading decisions, evaluate traders, and report portfolio risk to stakeholders.
The top stakeholders of the End-of-Day (EOD) process include the front office and middle office, but they can also provide valuable insights to the back office accounting and compliance teams.
Common Challenges in EOD Process
One of the significant challenges in the End-of-Day (EOD) process is the persistent issue of delayed valuations. Delayed valuations usually have the following impacts on the business:
Affect Financial Assessment Timeliness.
Hinder decision-making for risk managers.
Increase operational time duration.
Stages of End-of-Day (EoD) Processes
Shifting right to an Event Driven EoD can be achieved through the following approaches
Vertical (Processes)
By running EOD specifically for trades with available prices, delays can be minimized, ensuring that not everything is delayed.
This allows for a more focused and efficient execution of EOD, considering the specific requirements and characteristics of different commodities and regions.
Horizontal (Domains)
Updating and modernizing the EOD system infrastructure to leverage advanced technologies and capabilities that enhance performance, reliability, and scalability.
Running simulation jobs simultaneously and in parallel, utilizing a grid system and distributing job processing across different engines. This approach ensures efficient utilization of resources, minimizes bottlenecks, and enables effective monitoring of job progress.
Key Metrics to Guide Progress: Transition and Maturity in the Stages of the EOD
By embracing the following approaches and metrics, organizations can effectively transition to an Event Driven End-of-Day (EoD) model :
PnL and exposure reconciliation
End-of-day performance analysis
Time taken for price availability
System availability trend
This shift brings several benefits, including enhanced efficiency, agility, and overall maturity of the EoD processes. The Event Driven EoD model allows organizations to proactively respond to market events, data availability, and trading activities, resulting in faster and more accurate EoD processes.
Accelerate the Transition to Event-Driven EOD Processes
In our experience the following approaches have been instrumental in driving accelerated progress towards event driven EOD processes and achieve desired business outcomes in a timely manner.
Data-Driven Approach
Our approach is to assess the effectiveness and suitability of the solution design criteria within the firm’s book structure, and helps in evaluating various factors.
- Analyze and understand deal volumes and provide insights into the system's capacity to handle high transaction volumes efficiently.
- Analyze and understand deal volumes and provide insights into the system's capacity to handle high transaction volumes efficiently.
- Examine the complexity of the financial instruments, contracts, or trades managed by the system as complex deals may require advanced functionality and robust processing capabilities to accurately handle the associated calculations and workflows.
- Examine the different stages and activities involved in the lifecycle of trades or contracts, from initiation to maturity or termination to understand the specific events and their impact on the system.
Domain-Driven Approach
Our approach focuses on performing functional analysis of processes based on commodity and market domains, and has the following characteristics
- Examine the specific characteristics, requirements, and dynamics of different commodity markets to understand the unique challenges and intricacies associated with each commodity and market domain.
- Assess the key processes involved , including pricing, risk management, trading, scheduling, and settlement to evaluate the specific functionalities and capabilities required to effectively support and optimize these processes within the organization.
- Provide valuable insights and recommendations to enhance operational efficiency, mitigate risks, and capitalize on opportunities within these specialized areas.
Seamless End-of-Day Operations with Value Creed
Value Creed offers a comprehensive suite of services to address the unique needs of businesses in the EOD domain. Our expertise allows us to excel in reengineering EOD processes, optimizing them for enhanced efficiency and performance that fits for your business needs. Partner today and benefit from Value Creed’s deep industry knowledge, innovative solutions, and risk management capabilities with Endur, empowering your business to overcome EOD challenges through automation and drive sustainable growth.
Ready to Get Started?
Let Us Know