Bundesbank goes live with new FX reserves system

The Bundesbank - Germany’s central bank - has gone live with a new electronic system for managing foreign currency reserves that should improve risk management.

Front and middle office systems are now in place, claimed Trema, a Frankfurt-based software supplier. Trema's team is now working on the back office system. “The [Bundesbank’s] front office now has much more timely information to work with and can use the full set of decision support tools in Finance Kit for analysing both its positions and benchmarks,” said Trema, adding that the middle office is now using the system for real-time limit monitoring.

Trema’s Finance Kit 5.0 is designed to provide straight-through-processing – achieved through the automation of all processes from trade inception to post-trade and settlement – for all the Bundesbank’s currency deals. It also generates real-time value-at-risk numbers, position analysis and information on credit exposures