MAINTAIN BOND

PORTFOLIO
WITH A TMS
STATEMENT
OF WORKS (SOW)
Executive Summary

The fixed income securities project objective is to reduce the operational

risk around processing and maintaining corporate and guaranteed bond
structures. Currently there isn’t an automated solution for capturing
fixed income securities and managing the trade throughout the entire
lifecycle. The current process relies on manually capturing trade details
on spread sheets with no integration to run advance analytics and risk
management valuations. Furthermore, bond positions, coupon pay-
ments, accruals and MTM valuations are manually booked within the cor-
the management of the
porate EPR software. The main deliverable is to procure a state-of-the-art
treasury management Solutions (TMS) to streamline the management of
the entitie(s) Bond portfolio, introducing key controls, auditability and
governance and remove the reliance on Microsoft desktop applications.
This will enhance the entitie(s) straight through processing (STP) capa-
bility and reduce the risk of human error when processing treasury debt
instruments.
 TABLE OF CONTENTS

1. INTRODUCTION 5
1.1.1. Purpose of the document 5
1.1.2. Scope of the document 5
1.1.3. Target readership 5
1.1.4. Out of Scope 5
1.1.5. Proposal 6
1.1.6. Working Assumptions 7
1.1.7. System environment and dependencies 7
1.1.8. Project Risks 8

APPENDICES 8
Appendix A Quality Criteria Description 8
Appendix B High Level Function descriptions 8
Appendix C High Level Data Structure and descriptions 8
1. INTRODUCTION
1.1.1. Purpose of the document
The purpose of the SOW is to:
• Define the project scope
• Highlight any assumptions made when highlighting the project scope
• Estimate the number of man days required to implement the desired
solution based on current information
• Document known risks which may cause a material delay

1.1.2. SCOPE OF THE DOCUMENT

The following transaction types are in scope for this project:

• Transaction type = ‘BOND’
o Corporate Bond (Issuer, buy, sell)
o Guarantee Bond (Issuer, buy, sell)
o Government Bond (buy, sell)

1.1.3. TARGET READERSHIP

The payment processing solution will impact the following business units:

• Front Office
• Operations
• Finance

1.1.4. OUT OF SCOPE

• Foreign Exchange
• Money Markets
• Revolving credit facilities (RCF)
• Any other non-fixed income financial instruments
1.1.5. PROPOSAL

Phase 1
Project Task
Functional Design & Configuration
Reference data setup
Workflow Design
User Groups & Profiles
Security Setup
Modules
- Fixed Income Deal Modelling
- Market rate import
- Valuation
- Risk Reporting
- Accounting
- Chart of Accounts Setup
- Rules engine definition
- Ledger Interface Design
- Payment Interface Design
Project Management & Other
- Project Management
- Training & Documentation
Testing
- Functional Testing
- UAT Testing
1.1.6. WORKING ASSUMPTIONS

• Project assumes Integration to 1 ERP instance

• Project allows for the development of 5 risk reports.
• Project allows for the development of 1 payment integration for both
interest and principal
• Client will provide dedicated SME resource to participate on the
implementation
• Training will take place on an adhoc basis throughout the
implementation

1.1.7. SYSTEM ENVIRONMENT AND DEPENDENCIES

• Need complete list of in scope counterparties and credit ratings
• Standard Settlement Instructions (SSI’s) – Both for ‘Our’ (Nostro) and
‘Their’ (Vostro)
• Deal approval matching rules
• Settlement approval matching rules
• Business units to provide accurate users credentials in terms of their
role profiles related to deal and settlement approval

1.1.7. SYSTEM ENVIRONMENT AND DEPENDENCIES

• A detailed requirements gathering workshops will be required to pro
vide accurate estimates
• Need to know the number of outstanding bond positions to determine
how much system configuration will be required as part of the deal
migration/ take on process
• Ideally, should have already identified a preferred TMS vendor for the
project to commence by the end of Q4 ’24.
1.1.8. Price

Fees *
Fees 539,360 SAR
VAT (15%) 107,872 SAR
Total Lorem
647,232Lorem ipsum
SARipsum
Prices are negotiable. Lorem ipsum
Lorem ipsum
MAINTAIN BOND
PORTFOLIO
WITH A TMS