12 Mar JUMP Club U’ March 2021
The JUMP Team would like to thank those who participated in JUMP Club U’ on March 5, 2021, which took place online, to ensure optimal health and safety conditions for our customers and teams. During this first session of 2021, we were able to demonstrate how the JUMP solution can accompany you in the areas of Compliance and Global Exposure Management.
Compliance within JUMP solution
JUMP Compliance is a flexible, high-performance solution allowing users to automate the control of pre- and post-trade management operations. Thanks to the intuitive rule engine, JUMP Compliance allows you to:
- Automate the control of portfolio/ portfolio group constraints
- Archive all outdated constraints
- Benefit from a library of configurable regulatory and contractual constraints
- Check constraints on-demand or by batch and generate dedicated reporting
- Configure the type of alert that exceeding a rule will generate
An introduction to JUMP Compliance
JUMP Compliance, with its ratio control engine, allow you to set all types of controls: regulatory, statutory, customer, prospectus, best internal practice, data quality, and consistency.
The following features allow JUMP’s ratio control engine to meet the compliance needs of investment managers:
- Real-time controls or Back-Testing
- Blocks and alerts to limit breaches
- Integrated libraries of pre-configured controls
- Reporting & management dashboards
- Configuring the addition of new rules through drag and drop
- Comprehensive traceability of controls
JUMP’s ratio control engine
JUMP provides its users with a robust Compliance rule designer that meets the central “business” challenges of Middle and Back Office managers, namely: adapting settings to business users, reducing the time-to-market of new Compliance rules, and securing management processes.
JUMP’s Compliance rule designer simplifies, secures, and accelerates the configuration process. Business teams can increase their reactivity and agility when faced with the implementation of new management rules, for complete coverage of the investment management value chain and all lines of business.
An extensive yet expandable module
The JUMP Compliance module can be supplemented with features from the JUMP software suite to provide a high-performance investment management experience. Some of these features include:
- Simulation/rebalancing engine
- Performance analysis
- Market risk monitoring
- Cash monitoring
- Order transmission
The packages and templates available in JUMP Compliance
JUMP Compliance offers pre-configured rule packages and templates to best meet the needs of JUMP users. Here are some examples:
- UCITS IV package
- FIA package
- CSSF Lux package
- MMF package
- MIFID package
- Circular 15/3package
- Investment ratio template
- Exposure template
- Exposure by line template
- Exposure by asset information template
- Track record template
- Exposure by asset group template
- Check ratio template
- Number of lines template
- Exposure with attribute template
- Investment category template
- Data check template
- Attribute variation template
With JUMP Compliance, you can secure processes by minimizing risk and maintain regular and ongoing controls of your activity.
Manage your Global Exposure with JUMP Technology
The notion of the commitment calculation approach
JUMP allows investment managers to calculate a notion of commitment and Global Exposure for all instruments. This notion of Global Exposure and its value is introduced by Article R. 214-30 Paragraph 1 of the French Monetary and Financial Code: the Global Exposure of UCITS funds or AIFs to derivative instruments should not exceed the net asset value of its portfolio.
This results in 2 methods for measuring Global Exposure:
- The commitment calculation approach (used by JUMP): calculates the commitment brought about by financial futures and looks for ways to offset them through other portfolio components
- The Value at Risk (VaR) method
Global Exposure within JUMP
JUMP offers a Global Exposure calculation template based on the commitment calculation approach. This Global Equity Risk has been implemented in the current version of JUMP and concerns the following features:
- Portfolio allocation (chart)
- Compliance functions
- Inventory (line by line using line information)
In order to diversify and further develop the calculation of Global Exposure, JUMP has extended the commitment calculation approach and interest rate and exchange rate calculation for the following derivative products:
- Interest Rate Futures / Bond Futures / Plain Vanilla Interest Rate Options / Plain Vanilla Bond Options
- FX forwards / FX futures
JUMP has implemented a dedicated screen that explains each step of the Global Exposure calculation within the clearing system, allowing users to understand which netting arrangements from financial futures are considered for the calculation. Thanks to this screen, it is possible to study asset priority for those assets coming into the clearing, any potential double entry, and the instruments that will leave the clearing system.
New JUMP Global Exposure screen
This new screen allows users to view the tree structure organization of financial futures and customize the way their commitment calculation approach is carried out. Thanks to the filters on this screen, you can isolate groups of securities for clearer transparency of Global Exposure (filters for hedging instruments, liquid assets) and view the step-by-step details of the commitment calculation, particularly at the underlying level, portfolio sensitivity, concordance factors, etc. All calculation details that can be viewed in this screen allow asset managers to guarantee the accuracy of the Global Exposure calculation. Additionally, it is possible to continually view forward offsets, distribute the assets according to different criteria, and filter these assets. All data within this screen is continuously checked for accuracy and consistency.
New allocation methods available
In order to measure Global Exposure according to different calculation models, JUMP allows asset managers to apply new allocation methods when calculating Global Exposure.
- Gross commitment (UCITS)
- Global Exposure (UCITS)
- Gross commitment (AIFM)
- Global Exposure (AIFM)
- Hedging (coverage)
- Hedging (NAV)