Maintaining specialized system knowledge across several domains presented a significant challenge for this AAA-rated public sector lender – the largest provider of credit to local governments in its home market. The institution's core financial operations, including long-term funding, treasury and risk management, all depended on the optimal performance of its business-critical Murex platform.

The organization strived to find suitable Murex technical proficiency internally. This challenge was particularly difficult given their need for specialized capabilities spanning front-to-back office operations, including dedicated modules for collateral management and complex structured financial products.

This could potentially jeopardize continuity in both development and day-to-day operations, creating unnecessary risks in the lender's essential financial activities.

The Solution

To address these operational challenges, the institution partnered with SkySparc to implement a comprehensive managed services arrangement covering the full spectrum of its Murex platform operations. SkySparc deployed a multidisciplinary team with specialized capabilities in:

• Front office and risk management
• Back office and accounting
• Collateral management
• Limit management
• Technical architecture and interfaces
• End-of-day processes

SkySparc's award-winning OmniFi automation platform was leveraged to enhance testing processes and reduce upgrade implementation times. The arrangement included the formal appointment of a SkySparc team lead function, enabling coordinated delivery of services across all aspects of this mission-critical system.

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Implementation & Execution

How did the relationship evolve to meet the institution's growing needs? What began as a need for consulting services transformed into a fully integrated managed service arrangement, reflecting the growing trust built through consistent deliveries since 2019.

• Securing the day-to-day operations, including management of the end-of-day (EOD).
• Delivering several upgrade projects and patches.
• Implementing a methodology for frequent upgrades, running one version upgrade every year.
• Enhancing testing quality through intelligent automation with OmniFi.
• Optimizing the Datamart and the EOD process.
• Delivering new regulatory reporting requirements such as NII, SFTR, IRRBB, etc.
• Ensuring a smooth transition to the risk-free interest rates SOFR, EST, SONIA, etc.
• Building a new interface to the lending system, introducing new products like Triparty repos and implementing the stress testing module from Murex.
• Managing technical infrastructure upgrades.

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The Outcome

The results were transformative. By transitioning to SkySparc's managed service model, the lender eliminated a significant operational pain point - the responsibility for maintaining specialized Murex resources in-house. The institution now benefits from:

• Guaranteed access to Murex expertise with broad and deep technical proficiency in Murex.
• Predictable operational costs through a fixed-fee service arrangement.
• Enhanced platform efficiency through strategic automation.
• Inclusion of frequent version upgrade projects within the service scope, avoiding additional project costs.
• Improved security features and advanced functionality for stress testing and credit management.

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Quick Facts

• Client: AAA-rated public sector lender
• Challenge: Maintaining specialized Murex knowledge across front-to-back office operations
• Solution: Comprehensive managed services arrangement covering all aspects of Murex platform management
• Tools: OmniFi automation platform for testing and validation
• Results: Improved operational efficiency, reduced implementation timelines, and enhanced risk management capabilities