Exotic derivatives operating model review
Our investment bank client wanted to review the business processes, organizational model, location strategy and technology supporting its exotic derivatives business. The goal was to improve control, while increasing the scalability and agility of the business. Our objective was to develop a roadmap with costs that would drive investments into this business.
We deployed four senior consultants — three in London and one in NY, each with in-depth derivatives experience — for a three-month review. Our team developed clear measures of success for the target state, and reviewed weaknesses of the current state. Using these data points, the Mosaic team facilitated a number of working sessions to design the target state business processes. We then overlaid this with organizational design details before crafting a multiyear technology roadmap that successfully delivered benefits over a three-year time frame.
In this engagement, we thought it was critical to have a team well versed in the exotic- derivatives business. Our team quickly established credibility with stakeholders, enabling us to advocate for dramatic changes to the existing operating model. At the end of the engagement, the head of the client’s business wrote: “It was a pleasure working with you on this review. I feel you have managed to get the best out of all of us in the process of defining our target state. Now it is up to us to deliver!”