Deutsche Bundesbank has gone live with a system for managing its foreign currency reserves. Germany's central bank has implemented Finance Kit 5.0, a real-time straight-through-processing treasury, cash, risk and asset management system from Trema, a Stockholm-based software firm.
The bank-as do all 12 national central banks in the euro system-already uses Finance Kit for the management of reserves on behalf of the European Central Bank (ECB). It is now extending its use of the product to include its own foreign currency reserves.
Deutsche Bundesbank operates as part of the European System of Central Banks (ESCB), which is composed of the European Central Bank (ECB) and the national central banks of the 15 member states of the EU.
Deutsche Bundesbank uses Trema's pre-configured central bank industry product, sharing a broad common configuration with the ECB and the Bank of Greece, both of which are already live with the solution.
The Bundesbank has installed front and middle office functionality, and is now working on the back office, which includes Settlement Hub, Trema's new system for managing, formatting and routing settlement messages via S.W.I.F.T. Once this stage is complete, Deutsche Bundesbank will enjoy the benefits of true straight-through processing.
The middle office is taking advantage of Finance Kit's real-time limit monitoring capabilities, along with improved tools for accessing and analyzing information.
The front office now has much more timely information to work with and can use a full set of decision support tools for analyzing both its positions and benchmarks. Deutsche Bundesbank is preparing to finalize the back office implementation and begin using Settlement HUB.