Service Management KPI’s


Key Per·for·mance In·di·ca·tor   /kē  pərˈfôrməns ˈindiˌkātər/   (abbr.: KPI)

KPIs help to get insight in your business performance — “What gets measured, gets managed”. KPIs are also known as business metrics, performance metrics, business indicators, and performance ratios.

ITIL (Information Technology Infrastructure Library) is most acclaimed practice in todays business to manage service. In other words guidelines to Run-The-Bank (RTB) processes.

I will be discussing KPI’s used to mesuare Incident, Change and Problem management part here.

Avaliability

Workload

Customer Intemacy

Process Quality

  1. %Of critical incident
  2. %Of open and overdue changes
  3. %Of open and overdue incident
  4. %Of open and overdue problem
  5. %Of open and overdue service request
  6. %Of urgent changes
  7. Number of new changes classified as urgent
  8. Number of new incident classified as critical
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FIX protocol use for live streaming data, is that really you want it?


FIX protocol used for transactional messages (placing orders, modifying orders, cancelling orders, account queries, etc) but not for actually streaming live price data since the FIX message format is very verbose (i.e. there are a lot of required fields in each message that are not really relevant to market data).

An example:

A trade report binary message looks like:

trade ID – 4 bytes
price – 4 bytes
volume – 4 bytes
timestamp – 8 bytes
trade flags – 4 bytes

Total message size 24 bytes.

Imagine if you had to wrap each market data message in a FIX message you would need to include SenderCompID, TargetCompID, MsgType, BodyLength, Checksum, SequenceNum, BeginString, …

This would mean you would be sending a lot of “wrapper” information around each piece of relevant market data (probably much more wrapper information than actual data information).

If you are tracking thousands of stocks in real time then the network overhead of all of that wrapper information as well as the CPU cost of decoding those FIX messages would most likely cause you problems.

For that reason, real-time market data is usually sent on a separate TCP/UDP connection to your transactional FIX messages and usually in a bit-efficient binary format.

Treasury Business


Overview

The U.S. Treasury periodically needs to borrow money to finance the operation of the government. When the Treasury needs to borrow money it issues instruments called bills, notes or bonds, each of which are basically nothing more than an “I owe you.”

All Treasury instruments also have defined maturity ranges. In addition, each Treasury instrument has a certain denomination attached to it. For example, a Treasury bill, or “T-bill,” is a short-term instrument that’s worth $1,000 and matures within a year.

U.S. Treasury securities—such as bills, notes and bonds are debt obligations of the U.S. government. When you buy a U.S. Treasury security, you are lending money to the federal government for a specified period of time.

How it work

Treasury instruments are issued through an auction process. T-bills, which are short-term in nature, are mostly auctioned on Mondays. Four-week T-bills, meaning they mature in 4 weeks, are auctioned by the Treasury on Tuesdays. Treasury notes and bonds are auctioned as needed and pay face value at their maturity date. All T-notes and T-bonds pay a stated interest rate on a semi-annual basis. T-bills are sold at a discounted rate; with a typical $9,700 1-year T-bill paying about $10,000 at maturity.

The US Treasury Department periodically borrows money and issues IOUs in the form of bills, notes, or bonds (“Treasuries”). The differences are in their maturities and denominations:

Bill Note Bond
Maturity up to 1 year 1–10 years 10–30/40 years
Denomination $1,000 $1,000 $1,000
Minimum purchase $1,000 $1,000 $1,000

How to buy

All standard Treasury instruments are available for sale to the general public through the U.S. Treasury’s TreasuryDirect program. Treasury instruments sold through the TreasuryDirect program come with no fee or a low fee, depending on the instrument purchased. You can also purchase U.S. Treasury instruments through banks and brokers, though they’ll typically charge a commission fee. If you buy Treasury instruments through banks or brokerages, normally you also have to open an account.

Payment & Rewards

All Treasury instruments are negotiable, meaning they can be sold at any time at a price you negotiate for with a willing buyer. “Treasuries,” as Treasury instruments are usually called, can also be pledged as collateral for things such as loans. Treasury instruments purchased through the TreasuryDirect program, though, can’t be pledged as collateral in some cases. Treasury instruments are also considered the safest investment in the United States because they’re backed by the full faith and credit of the nation itself.

Market Risk


Definition

Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. Asset allocation and diversification can protect against market risk because different portions of the market tend to underperform at different times. also called systematic risk.

One of six risks defined by the Federal Reserve.

The risk of an increase or decrease in the market value/price of a financial instrument.

Market values for debt instruments are affected by actual and anticipated changes in prevailing interest rates.

Market values for all financial instruments, except direct obligations of the U. S. Treasury, are affected by either actual or perceived changes in credit quality.’ market risk’ includes reinvestment risk – that is, the risk that all or part of the principal may be received when interest rates are lower than when the security was originally purchased.

In that case, the principal must be reinvested at a lower rate than that originally received. Sometimes called market value risk.

Also see interest rate risk and price risk.

Background

From January 1st, 1998, internationally-active banks in G-10 countries had to maintain regulatory capital to cover market risk.

This is the risk to an institution’s financial condition resulting from adverse movements in the level or volatility of market prices of interest rate instruments, equities, commodities and currencies. Market risk is usually measured as the potential gain/loss in a position/portfolio that is associated with a price movement of a given probability over a specified time horizon. This is typically known as value-at-risk (VAR). An institution with a 10-day VAR of $100 million at 99% confidence will suffer a loss in excess of $100 million in one fortnightly period out of 20, and then only if it is unable to take any action to mitigate its loss.

Many banks calculate one-day VAR numbers which are then compared with actual daily profits and losses. It is much easier for them to scale up these numbers by the square root of 10 to meet the 10-day holding period laid down by the Basle Committee than to start afresh. But scaling up daily numbers to reflect a longer unwind period is fine for linear products such as forwards and swaps but not good enough for options and products with embedded options. Extrapolating daily VAR numbers does not capture the gamma or curvature risk of such products. The best way of capturing this curvature is to use longer holding periods which explains why the Basle Committee opted for a 10-day holding period. But the Committee wanted to limit industry burden in complying with its pronouncements and thus decided that banks could scale up their one-day numbers for a limited period. These banks are however asked to assess the option risk in their portfolios by applying Monte Carlo simulation and/or stress testing.

din ek sitam, ek sitam raat karo ho


din ek sitam, ek sitam raat karo ho
wo doast ho dushman ko bhi tum maat karo ho

ham khaaq-nashiiN, tum suKhan-aaraa-e-sar-e-baam
paas aa ke milo, duur se kyaa baat karo ho

hamko jo milaa hai, wo tumhiiN se tau milaa hai
ham aur bhulaa deiN tumheiN, kyaa baat karo ho !

daaman pe ko’ii chhiiNt, na Khanjar pe ko’ii daag
tum qatl karo ho ke karamaat karo ho

bakne bhi do Ajiz ko, jo bole hai so bake hai
deewaana hai, deewaane se kyaa baat karo ho

SQL Optimization techniques


  • Limit the number of column returned in query
  • Create a primary key on the table
  • Create a Index on the column in the where clause
  • Limit the numer of rows by TOP
  • When working with the Join have an Index on the column used in join
  • If you are using multiple column in where or order by create compound index and pay attention to the order of the index
  • When you are trying to get Unique values use ORDER BY instead of DISTINCT

SWIFT (Society for Worldwide Interbank Financial Telecommunication)


SWIFT provides a centralized store-and-forward mechanism, with some transaction management. For bank A to send a message to bank B with a copy or authorization with institution C, it formats the message according to standard, and securely sends it to SWIFT. SWIFT guarantees its secure and reliable delivery to B after the appropriate action by C. SWIFT guarantees are based primarily on high redundancy of hardware, software, and people.

During 2007 and 2008, the entire SWIFT Network migrated its infrastructure to a new protocol called SWIFT Phase 2. The main difference between Phase 2 and the former arrangement is that Phase 2 requires banks connecting to the network to use a Relationship Management Application (RMA)instead of the former Bilateral key exchange (BKE) system. According to SWIFT’s public information database on the subject, RMA software should eventually prove more secure and easier to keep up-to-date; however, converting to the RMA system also meant that thousands of banks around the world had to update their international payments systems in order to comply with the new standards. RMA completely replaced BKE since January 1, 2009.

SWIFT also offer a secure person-to-person messaging service, SWIFTNet Mail, which went live on 16 May 2007.[7] SWIFT clients can configure their existing email infrastructure to pass email messages through the highly secure and reliable SWIFTNet network instead of the open Internet. SWIFTNet Mail is intended for the secure transfer of sensitive business documents, such as invoices, contracts and signatories, and is designed to replace existing telex and courier services, as well as the transmission of security-sensitive data over the open Internet. Eight financial institutions, including HSBC, FirstRand Bank, Clearstream, DnB NOR, Nedbank, Standard Bank of South Africa and Bear Stearns, as well as SWIFT piloted the service.[8]

Open source java based library for SWIFT
http://www.prowidesoftware.com/en/wife-documentation.html

SWIFT community is interesting site to keep you updated with latest
https://www.swiftcommunity.net/

Interest Rate Swap


What Is Interest Rate Swap?

Interest rate swaps are an agreement on the payment of cash flow in terms of a fixed interest rate as opposed to the floating and ever changing interest rate. This is a positive agreement between two parties, which are known as the counterparties. Interest rate swap helps the counterparties avoid the flux in interest rates which can be varied and undesirably liquid, and depends basically on the ever changing position of the market and currency value.

To put it in very simple terms, interest rate swap is basically exchanging one set of defined cash flows between two parties, for another set of liquid interest based cash flows. This system allows both counterparties to maintain a stable stream of cash flow, and to save much in case of changing interest rates, which tend to go up more often than not. Thus, expenses are reduced for both companies on every transaction made for a fixed period of time, to which both the counterparties have agreed in the terms and legal contracts.

Example

Interest rate swap is a derivative which provides a company protection from the ever fluctuating interest rates in the market. Thus your company will benefit from a long term contract without having to factor in market uncertainties which are often caused by the flux in interest rates. A stable rate of payment and debt provides a stable and strong financial background for future transactions and long term planning. Acquiring business transaction deals at a lower interest rate also helps reduce costs and transactional expenses in both the long term as well as short term scenarios.

The uncertainty of future cash flows is also eliminated with the help of a set rate of interest. Also, your company will be hedged from the interest rate exposure. Establishing an interest rate swap will also benefit your company in its global expansion as it helps you seal international deals globally by bringing in a common factor. As both the companies involved get to benefit from this scenario, you can expect better future relations with your international clients and business partners.

What Are The Different Types Of Interest Rate Swaps?

Interest rate swaps can be employed in all scenarios, those involving same currency transactions as well as those involving transactions among different currencies. Interest rate swaps can also be fixed for floating or floating for floating interest rates. Thus, the following permutations can combinations are noted:
– Fixed for floating rate swap for the same currency
– Fixed for floating rate swap for different currencies
– Fixed for fixed interest rate swaps for different currencies
– Floating for floating interest rate swaps for same currency
– Floating for floating interest rate swaps for different currencies

How And For What Can These Interest Rate Swaps Be Used?

Interest rate swaps are employed mainly in order to hedge one’s company against exchange interest rate controls and market fluctuations. Many new and interesting uses have been found where interest rate swaps are being utilized to make transactions more beneficial for both parties. These include some legal and barely legal applications. For example, hedge funds and investors use speculation and invest in swaps in order to reap the benefits of changing interest rates by liquidating after or inter term dealings.

Securities lending


Securities loans / lending  used to cover short-selling activities. In this case, when short sellers make a trade, they are obligated to deliver the stock sold to the buyer and must therefore borrow the security from another party. To mitigate the risk of the loan, the borrower gives the lender cash collateral that is generally higher than the market value of the securities.  The borrowed security and related collateral are then returned to their respective owners once the short seller buys back the stock in the open market, thus unwinding the loan.In addition to the exchange of collateral, a fee called a rebate rate is assessed for each securities loan. The cost is expressed as an interest rate paid on the value of the cash collateral based on a  funding rate like LIBOR.

Other factors that influence rebate rates are the duration and re-pricing frequency of the loan.  Open loans are marked-to-market daily to allow rates to move as the funding rate moves, or as the supply and demand of the security changes.

Term loans rates are fixed at the beginning of the loan and are established for a set period
of time.   Rebate rates may be positive or negative, indicating which participant is responsible for paying interest on the cash collateral outstanding.

Trade flow
Lender → Custodian → Prime Broker → Borrower
(Shares)
Borrower → Rime Broker → Custodian → Lender
(Shares / Collateral / Rebate)
Rebate (+ ve) paid to borrower
Rebate (- ve) paid to lender

Custodian → A financial institution that has the legal responsibility for a customer’s securities. This implies management as well as safekeeping.