City Index Group is one of the leading global providers of retail trading services, transacting in excess of 1.5 million trades per month for the group’s customers around the world. City Index trading platforms give access to thousands of global financial markets via contracts for differences (CFDs), margined foreign exchange (FX) and spread betting. The Group trades primarily under the City Index, Finspreads and FX Solutions brands.
City Index operates in a complex and fast moving, real-time environment. In October 2008, City Index recognised a need to improve the throughput of major development programmes to meet strategic goals for growth.
It was against this background that Energized Work was asked to conduct an assessment of the IT department including their interactions with the rest of the company. The goal was to provide the board with a clear understanding of the current operational situation and any technical challenges faced.
Energized Work conducted an in-depth assessment to understand how the organisation was working as a system. Looking end-to-end, from the customer to accounting, we learned about customer demand, technical capability, and the flow of work. Having presented our findings and options for improvement, the Chairman decided to invest in a feasibility study to explore some of the options in more detail.
The goal of the feasibility study was to create a representative trading system. This would enable City Index to explore different solutions to the issues they were facing and deliver greater insights as a result. To maximise return from the feasibility study the CEO of FX Solutions, a wholly owned subsidiary, joined us in London to provide strategic direction. The CTO of City Index relocated to EW Labs in London as the domain expert, enabling us to make quicker, more informed decisions. This meant we could utilise our technical environment, minimising infrastructure issues and ensuring swifter delivery.
The approach taken by Energized Work paid off. In 12 weeks Energized Work delivered a representative trading system that focused on developing solutions for a number of discrete business goals, including:
• A rigorous revenue accounting model to enable analysis of the discrete cash flows within the business at the point of trade.
• Core risk management to provide a clear understanding of exposure, position risk and quanto risk.
The trading system helped the City Index board clarify critical operational and accounting issues with their existing model. These issues were incorporated into 90-day improvement plan, which was successfully executed by City Index.
Meeting the challenge
Helping answer our client’s concerns and enabling greater visibility of their operations in action within a fast-moving environment.
Breaking with convention
Working collaboratively with our client on the spot, locating at EW Labs to remove barriers and accelerate progress.
Making the impossible, possible
Delivering a representative trading system demonstrating a rigorous, real-time operational model together with core risk management.
Delivering great business value
Energized Work’s reference trading platform brought clarity and priority to challenges identified by City Index management.
Reduced operating costs
Removed the need for application and operational support teams.