INTRODUCTION:

The client, a leading German bank, needed to perform an MX.3 release upgrade from v.3.1.35 to v3.1.44 to modernize the application system and to allow the implementation of the MX.3 Collateral Management and IBOR transition modules.

In a tremendous shift impacting all financial markets, Interbank Offered Rates (IBORs) are expected to cease by 31 December 2021 and be replaced by Risk-Free Rates (RFRs). MX.3 is the central financial application in the bank, and it is vital for the system to be ready to support this transition.

In parallel, the license for the legacy Collateral Management system is approaching expiry. A strategic decision was taken to migrate the Collateral Management into MX.3, helping the client achieve its goal of a centralized platform and system consolidation.

Within 11 months building on its Murex Change Factory expertise successfully migrated the 3.1.44 release into production on time and in budget.

Today, Capco’s footprint at the bank is an ongoing success and we continue to support the bank in its new initiatives as part of our Murex Factory Approach. We combine functional and technical knowledge which helps our clients make regular changes and adjustments in the Murex system to reduce large development and testing costs.  

WHY NOW? 

• The client was using Murex 3.1.35, but needed to respond to new market initiatives (e.g., migration of collateral management to MX.3), numerous workarounds were in place.
• The decision was taken to upgrade to Murex 3.1.44 in three phases enabling the implementation of new functionalities thereafter, e.g. new Collateral Management module and IBOR transition module.
• Due to many interdependencies with other bank initiatives, a tough timeline was set with around 11 months from September 2020 to July 2021.
• The legacy collateral management software was running out of maintenance and the license renewal would have required a new contract.
• With IBOR regulation effective starting from 31 December 2021, the MX.3 application needed to be ready to support the transition on time.

HOW WE DID IT:

• The project started in September 2020 and went live in July 2021 as planned on time and budget.
• Migration in three phases of testing depth was introduced in a staged test approach to prioritize finding high-impact defects and ensure a risk-based regression testing.
• Functional and technical optimization was achieved across front and back office, risk control, finance & accounting and IT.  
• Test & defect management: Centralized defect management, execution, communication and reporting of test activities.
• Reconciliation activities: P&L reconciliation was run in each phase and all breaks detected were analysed to establish root causes, with the results centrally and regularly communicated within the project team. 
• A sequential approach based on the following three phases was used – optimization, preparation, validation, followed by the migration of 3.1.44 into production.

WHAT WE DELIVERED: 

• MX.3 upgrade enabled the client to take advantage of new opportunities, meeting the deadline for new regulations while benefiting from increased efficiencies and reduced operational costs.
• The client’s goal to continue with MX.3 as the bank’s central application, consolidate its usage and remove legacy software will generate further cost reductions in the future.
• In addition, the bank will benefit from the new collateral management and IBOR transition modules.
• Capco’ expertise allowed for a successful migration to the new version 3.1.44 on time for the planned go-live date in July 2021.
• Ongoing support from Capco, a highly trusted Murex Alliance Partner.