Investment management

Having sophisticated risk management tools embedded within the buy-side solution reduces total cost of ownership significantly. The portfolio management dashboard is fully integrated with risk and compliance capabilities, eliminating the need for reconciliation and allowing teams across the business to make more risk-informed decisions.

Stress testing is available to simulate the impact of macroeconomic scenarios on portfolios, funds and clients, for Solvency II reporting purposes.

MX.3 supports historical, parametric and Monte Carlo VAR. It allows the user to calculate all ex-ante risk on a given portfolio or set of portfolios, including VAR, tracking error, expected shortfall, diversification benefit, back-testing and distribution statistics. This allows the portfolio manager to make sure that anticipated risk is in line with their mandate.

Stress testing is available to simulate the impact of macroeconomic scenarios on portfolios, funds and clients, as well as capital requirement calculations and Solvency II reporting.

MX.3 provides a complete set of tools for the valuation of liabilities, with a flexible curve framework for liability discounting as well as assets and liabilities matching. To control overall funding ratio outcomes and interest rates, as well as credit and market risk, MX.3 can fully manage a customized liability profile.

MX.3 helps streamline the compliance process and communication between the compliance officer and the portfolio manager.

It is designed to provide key insights to the portfolio manager, including what-if creation and intuitive centralized tracking and monitoring for the compliance officer to understand the source of breaches and follow their closure.

The compliance workbench, designed to cope with multiple regulatory frameworks, is flexible and extensible to answer the needs of your mandates easily and efficiently.

MX.3 provides a comprehensive end-to-end margining process for cleared and uncleared OTC derivatives, repos and securities lending. Comprehensive support for ISDA SIMM is available, covering sensitivities generation, exposure calculation, collateral management and settlement.

MX.3 provides buy-side institutions with broad asset class coverage, from equities and bonds across all regional and global markets through alternative investments and OTC derivatives. This ensures clients have access to a fully managed range of investable assets and permits them to react quickly to the changing demands of investors. For many, this rich coverage allows for the identification of new sources of revenue in a low volatility market with low or negative yields.

MX.3 streamlines order management with advanced pricing and risk analytics for simple or pre-allocated orders across a variety of funds and portfolios.

It provides a seamless workflow between portfolio managers, traders, compliance officers and middle-office staff giving portfolio managers a real-time view into portfolio risk and exposures, and trading activity.

Following market best practices, it improves the straight through processing rate by connecting with brokers and execution platforms for the smooth management of the execution process.

MX.3 helps streamline the compliance process and communication between the compliance officer and the portfolio manager.

It is designed to provide key insights to the portfolio manager, including what-if creation and intuitive centralized tracking and monitoring for the compliance officer to understand the source of breaches and follow their closure.

The compliance workbench, designed to cope with multiple regulatory frameworks, is flexible and extensible to answer the needs of your mandates easily and efficiently.

MX.3 provides buy-side institutions with broad asset class coverage, from equities and bonds across all regional and global markets through alternative investments and OTC derivatives. This ensures clients have access to a fully managed range of investable assets and permits them to react quickly to the changing demands of investors. For many, this rich coverage allows for the identification of new sources of revenue in a low volatility market with low or negative yields.

As a back-office user, the processing work is reduced to the minimum with a high degree of automation from matching to clearing and settlement.

Right after an execution is done, the process is automated with platforms such as DTCC CTM and Markitwire or the SWIFT matching solution. Exceptions are handled manually from a dashboard with a bird’s eye view. The custodian is then automatically notified through SWIFT.

Powerful KPI reporting for operational risk control and regulatory indicators is provided, as well as statistics on time-to-match, time-to-clear.

Used by more than 250 institutions across the globe, the MX.3 settlement solution manages the complete life cycle of settlements, from automated release to settlement status reconciliation. This ensures high STP rates while controlling operational risk through dedicated dashboards, across all business lines and asset types, leveraging:

• Automatic assignment of standing settlement instructions (SSI)

• Multiple payment methods (e.g., gross, net, CLS, DVP, FOP, PVP, pre-delivery) and channels (e.g., SWIFT, over account, RTGS)

• Full support of the transition from SWIFT MT to SWIFT MX (i.e., ISO 20022), compliant with cross-border payments guidelines and local real-time gross settlement systems (e.g., TARGET2, CHAPS, FEDWIRE)

• Real-time view of nostro cash and security accounts for intraday settlement and next day projections for accurate funding and security inventory monitoring, with interfaces to reconciliations tools

MX.3 is tailored to manage asset class specifics, from securities settlement for securities finance to cash payment for the high-volume FX business, harnessing CLS services, from automated eligibility, submission and matching to settlement.

MX.3 enables the management of corporate actions, from sourcing to settlement across various asset classes—equities, fixed income and securities finance:

• Voluntary, mandatory and “mandatory with choice” events management for securities, listed and OTC derivatives

• Full life cycle management, including notification, simulation of elections, reconciliation, settlement and accounting

• Corporate actions journal management and automatic propagation to positions, trades and static data

• Automated allocation to internal books through configurable rules

• Withholding tax and reclaim management

MX.3 provides a comprehensive end-to-end margining process for cleared and uncleared OTC derivatives, repos and securities lending. Comprehensive support for ISDA SIMM is available, covering sensitivities generation, exposure calculation, collateral management and settlement.

Regulations have had a dramatic impact across all business processes within capital markets. Operations are no exception.

MX.3 has helped numerous financial institutions across the globe to be compliant on time, while unleashing new business opportunities. Facing a quickly evolving regulatory environment, MX.3 enables clients to stay ahead, across various processes:

• Collateral management, with uncleared margin rules

• Transaction Regulatory Reporting, with the coming major rules review (e.g., EMIR refit, CFTC rewrite)

• LIBOR transition

• SWIFT transition to ISO 20022 format

MX.3 empowers institutions with a single repository for trades, orders, positions and reference data, based on a few core foundations:

• MX.3 features a multi-source, multi-entity, connected global repository supporting our clients’ current and future operating models; it seamlessly supports back-to-back trades, risk allocation, and inter-entity structures.

• MX.3 enjoys the widest instrument coverage in the industry, from flow to complex products.

• Positions are natively represented to serve different business processes.

• High-throughput integration capabilities for trade execution and positions are supported.

MX.3 features a rich set of data-driven business objects to support smooth trade processing, static data set-up and to ease maintenance:

• Counterparties: core data as well as settlement instructions and confirmation instructions.

• Agreements: Master agreements including key provisions used across the platform (e.g., close-out netting), collateral agreements (CSA, GMRA, etc.), netting agreements.

• Holiday calendars: with connectivity to market utilities such as Swaps Monitor.

• Security instruments: across both equities and bonds, with out-of-the-box connectivity to Bloomberg to collect ISIN data.

All business objects come with standard data management functionalities (e.g., lineage, extension capabilities, audit, four-eyes validation) and can be synchronized with external repositories.

Based on a modern technology stack, the solution supports several deployment models, such as cloud—Amazon Web Service and Microsoft Azure—on-premises or with managed service in SaaS. It leverages a pay-as-you-go model and infrastructure elasticity. Infrastructure provisioning linked to intraday corrections is optimized because of a surgical recomputation based on what is impacted by changes. It minimizes the time infrastructure is used for recomputation and enables cost savings with a pay-as-you-go model.

To serve large and complex computations, MX.3 provides a proprietary grid or can be integrated with the IBM Symphony grid, and supports both CPU and GPU engines.

Regardless of whether MX.3 is used as an end-to-end enterprise solution or a building block, its integration capabilities enable straightforward integration into an existing system landscape.

MX.3 is an open and modular, cloud-friendly platform built on a services-oriented architecture.

MX.3 offers a rich public REST API framework. Select business processes are exposed through REST APIs enabling clients to build custom applications, which can be delivered through new channels.

They are available on the Murex Development Portal and come with full API documentation.

MX.3 integrates natively with observability technology delivering metrics using the OpenTelemetry standard.