Index Calculation and Management Solutions

Business issues addressed

In managing the processes around index design and management, our clients encounter some common issues such as :

  1. Today, most organizations have heterogeneous existing data landscape with many of the data sources being legacy databases, flat files, and Excel files emanating from different internal systems. Maintenance and Handling of data consistently is a daunting task which keeps growing day after day with more data being added. Additional resources are expended and errors are maximized.
  2. Extra time and resources are spent to support an existing process which lacks a common index workflow automation tool that enables the design, test, run, document and presentation of workflows visually and also helps schedule an automated workflow execution easily.
  3. Lastly, Researchers lack common R&D environment necessary for collaborative development and data analysis for index management. Also, there is no centralized version control for index management algorithms, workflows and supporting artefacts.

Index Management Solution

An introduction of a state-of-the-art, full life cycle, electronic index management solution is a unique innovation of Oceanwonders.  This prized art of novelty supports common management and R&D processes on multiple index families with controlled workflows and flexible environment geared towards  solving data manipulation problems and improving accuracy of research.

Through this solution, R&D analysts benefit from a streamlined process of index research and development in the areas of exchanges, wealth management and financial research companies.

Index Management Solution provides:

  • Cooperative instruments for index research and prototyping
  • Collective approach to data source management
  • Application of different versions of methodologies to different versions of index baskets and underlying data.  This makes it supportive towards multi-temporal analysis.
  • Back-testing tools running on historical data with different levels of aggregation
  • Well organized setting of index methodologies into visual, manageable, self-documented entities ensuring single-version-of-the-truth source
  • Enabling the execution of routine operations index maintenance jobs and generation of baskets and weightings for the calculation engine.

 

The Solution

The following six elements are components of the solution:

1. Index workflow scheduling and execution control environment

2. Common data layer

3. Index R&D development environment

4. Index workflow maintenance environment

5. Calculation engine and distribution infrastructure

6. Version control

Index types supported out of the box:


By security class or scope:

    • Global indices
    • Regional indices (regional definition by geography, exchange, or  level of development)
    • Sector indices (sectoral definition by industry, security type)


By eligibility criteria involved:

    • Screening by fundamentals, return, volatility
    • Aggregated rankings
    • Restrictions by country, sector, security type

 

By weighting methodology:

  • Price weighted, equally weighted
  • Market capitalization (total, float-adjusted) weighted
  • Weighted by supplementary factors such as maximum weight (capping) restrictions or certain attributes
  • Leveraged and inverse indices
  • Weighted return indices
  • Dividend indices
  • Risk control, excess return, currency, currency hedged, domestic currency return, and the special opening quotation calculations.

The creation of the whole index implementation in a single live document with elaborate text, code and results in the form of figures, tables, text, etc is allowed by the system. Through this approach, documenting algorithms and methods used together with analytical expressions and code elimination are made easier, thereby eliminating the need for separate documentation storage and management.

Through the provision of a single platform for design, prototype, test and document index calculation and analysis, collaboration of the capabilities of groups of experts is enhanced and synergy is created towards efficiency and effectiveness.

Contact us for more information and demo.