End-of-Day Reporting in Endur: Maximizing Business Visibility & Process Control for Effective Risk Management

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

Implementing reconciliation processes between Endur Simulation results and the final reporting layer at different levels, such as portfolio or business unit levels, to ensure accuracy and consistency.

End-of-day performance analysis

Conducting regular analysis of EoD performance, comparing baselines with monthly trends, to gain insights into various business circumstances and develop effective strategies for improvement.

Time taken for price availability

Monitoring and tracking the time taken for price availability, aiming to minimize delays and optimize the overall EoD process.

System availability trend

Tracking and analyzing trends in system availability, including SLA misses, system delays, and data quality issues, to identify areas of improvement and maintain a high level of system performance.

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.

Domain-Driven Approach

Our approach focuses on performing functional analysis of processes based on commodity and market domains, and has the following characteristics 

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.

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