Migrating IBOR from State Street to Clearwater

THE Situation

An independent investment firm with offices in the U.S. and Europe was considering switching its Investment Book of Records (IBOR) from State Street to Clearwater Analytics. This is typically a difficult and lengthy process that must be handled extremely carefully due to the critical nature of the data and the number of feeds that are involved. In addition, the project was on a strict timeline because firm wanted to handle the cutover at year end to facilitate easier bookkeeping.

The Continuus Approach

Using Markit EDM, the firm ran Clearwater as a “shadow” IBOR while it remained on State Street and validated Clearwater’s data against the existing system. We pulled one data feed at a time into Markit EDM from both State Street and Clearwater then used Markit’s data matching and validation capabilities to ensure that positions and cash flows matched between the two systems. When there was a mismatch, business units could easily trace the source of the data, validate the correct information, and manage the exception to ensure that the data would be handled correctly in the future. This process also allowed the business units to become comfortable with the Clearwater platform before cutting over to the new system.

The Result

Thanks to the data mastering and exceptions capabilities of Markit EDM, we facilitated the transition from State Street to Clearwater in approximately six months and handled the cutover on time, at year-end. In addition, the IBOR switch offered the opportunity for the firm to introduce an exceptions management process, which improved the quality and validity of their data. Because the business had become comfortable with the Clearwater system during the transition phase, the cutover did not disrupt the business at all. In fact, new processes were developed as the firm transitioned which increased overall efficiency and confidence in the firm’s data.