Request for Information (RFI)
“Treasury System for Front Office and Middle Office (FOMO)”
DEPARTMENT OF INFORMATION SYSTEM MANAGEMENT
BANK INDONESIA
I. Disclaimer
This is a Request for Information (RFI) announcement only. This announcement does not constitute a Request for Proposals (RFP), or an indication that Bank Indonesia, the Central Bank of the Republic of Indonesia, will definitely contract for any of the items and/or services discussed in this notice. Bank Indonesia will not be responsible for any cost incurred by respondents in furnishing this information. RFI results will be used for internal planning purposes only. No specific feedback to respondents is planned and no submissions will be returned.
II. Background
Bank Indonesia, whose one of its roles to manage foreign exchange reserves, is seeking information on Treasury / Portfolio Management Systems for Front Office and Middle Office functions to support foreign exchange reserves portfolio management. Specifically, they are expected to overcome the problems and limitations within the existing system, and to fulfill requirements as described within the following section.
III. Specific Information of Interest
Respondents are invited to present their product(s) which provide systems that can support business needs in the Front Office and Middle Office function. Business requirements are as follows:
|
No |
Functions |
Description |
|
1 |
Portfolio Management
|
Analyze the structure of the portfolio (i.e. market value, yield, duration, spread duration) by comparing the portfolio to its benchmark/index using information from both internal sources (i.e. Portfolio Position) and external sources (i.e. Market data, Issuer and Security Information, Benchmark, Third Party Position Data from Custody). |
|
2 |
Security Coverage
|
Cover most actively traded asset class in international markets such as fixed income, money market products, equity, commodity, currency and interest rate derivatives. |
|
3 |
Portfolio and Trade Simulation |
Provide a portfolio simulation based on trading ideas and calculate its impact to the portfolio and its benchmark (i.e. expected yield, duration, currency composition, market value, portfolio risk and return). |
|
4 |
Scenario / Stress Test Analysis |
Analyze the impact of certain market scenarios (i.e. yield, currencies, credit spread) to the portfolio and its benchmark. |
|
5 |
Securities Valuation |
Retrieve portfolio and benchmark pricing data from many global pricing sources and make a pricing hierarchy among the pricing data. |
|
6 |
Portfolio relative value analytics |
Analyze the relative value (rich and cheap) of a security for all asset classes in the portfolio. |
|
7 |
Portfolio Optimization |
Provide portfolio simulation based on certain objectives and constraints. |
|
8 |
Central Investment Platform (CIP) |
CIP is a database that gather all information of all asset classes that come from internal and external data include real time data from trading system. |
|
9 |
Order management & trade authorization |
· Manage all order instructions based on investment decision.
· Facilitate trade authorization |
|
10 |
Pre-trade compliance warning |
Check the trade against compliance rules before trade execution. |
|
11 |
Cash Management |
Provide:
· Reconciliation menu.
· Cash balance position and projection in daily basis.
· Cash simulation function. |
|
12 |
Performance Measurement and Attribution |
· Provide portfolio return calculation (absolute and relative to benchmark)
· Attribute the return into several factors (i.e. interest rate, credit risk and currency exposure management) |
|
13 |
Risk Monitoring |
· Provide Tracking Error (TE) calculation of the portfolio both ex-ante and ex-post.
· Attribute those TE into currency, yield, duration, sector etc.
· Calculate counterparty, issuer and country exposure. |
|
14 |
Compliance Monitoring |
Provide both ex-ante and ex-post compliance monitoring that is easily customized. |
The detail description of the functions will be specified in Term of Reference (ToR) Document. Respondents are also expected to answer RFI question list and perform simulations of their product(s) using dummy data. ToR, RFI question list and dummy data will be given after Respondents sign the Non-Disclosure Agreement (NDA). Systems are expected to have a minimum of 4 (four) functions listed above.
IV. Instructions
1. Eligible respondents must or willing to have a local business partner in Indonesia.
2. Each Company’s appointed personnel who are going to take part in this RFI process are required to submit a signed Non-Disclosure Agreement (NDA).
3. Respondents are also required to submit a power of attorney letter.
4. Signed NDA are expected to be received by Thursday, June 7th 2012. Any response after this date will also be considered but may not be included in presentation stage.
5. Responses to the RFI question list are expected to be received by Thursday, June 28th 2012. Any response after this date will also be considered but may not be included in presentation stage.
6. NDA form can be requested and the signed NDA should be mailed or delivered to this address:
Monetary Application Development and Maintenance Division
Attn: Head of FOMO Profiling Committee
Information System Management Department (DPSI)
4th Floor, Tipikal Building , Bank Indonesia
Jl. MH Thamrin No. 2 Jakarta Pusat 10350
Or scanned in PDF format and emailed to: yoyok@bi.go.id, mutiara_p@bi.go.id and THI_jajang@bi.go.id (NDA original form should be submitted at presentation stage)
7. Technical questions in regard to this RFI may be sent to the email addresses mentioned in point 6.
PROFILING TEAM