Banking Merger – Trading System Conversion

The complexities of conversion projects stem from the myriad of approaches that can be taken to convert an existing set of data from a source to a target platform.  Data can be moved in Big Bang fashion or in several waves / conversion events, to name just two approaches.  Monticello Consulting’s experience with conversion projects has shown that with sound planning and a tested approach, the inherent complexities of conversions can be streamlined and their associated risks brought under control.

In 2009 and 2010, subsequent to the merger of two large financial institutions, Monticello Consulting was called upon to manage the conversion of two of the merged institutions’ complex trading platforms.  All surviving legal entities from the merger needed to be converted to the target platform and redundant systems were to be decommissioned.  The datasets to be converted included high-volume exchange traded securities along with complex over-the-counter derivatives, with oversight coming from key Federal regulatory agencies.  The conversion required migrating all trade data from the legacy trading system to the target/strategic platform with 100 percent accuracy in regards to trading positions, valuations, and trade details.  Monticello Consulting assisted in the planning and implementation of this conversion while running the testing governance efforts.  As part of our conversion approach methodology, Monticello managed structured front-to-back testing.  Several mock conversions were conducted with systems from numerous departments including front office, middle office, settlements, confirmations, collateral, regulatory reporting, and finance.  Our consultants assisted in the weekend production conversion and prepared business users for operating on the single target platform.  

Monticello Consulting helped this major broker-dealer continue to be a high-performance financial institution by creating a scalable platform for future growth, all while not adversely impacting the broker-dealer’s client experience.  For more information on this conversion, see Client Testimonial.