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  • Another win for Misys` OPICS solution at China Construction Bank

Another win for Misys` OPICS solution at China Construction Bank

Misys International Banking Systems (Misys) has won yet another order for its OPICS Treasury & Capital Markets solution in China, this time from China Construction Bank (CCB), which has its headquarters in Beijing, the financial capital and seat of government of the People`s Republic of China (PRC).

CCB is now a major player in the international capital markets, providing syndicated loans and financing for highways, telecommunications and other construction projects, as well as comprehensive banking and financial services for large and medium-sized corporate clients.

The bank has also expanded its retail banking business and offers an extensive portfolio of consumer banking products. These are delivered through CCB`s extensive branch network, which includes 38 regional hubs and 26 000 domestic branch offices in mainland China, together with international branches in Johannesburg, Hong Kong, Frankfurt and Singapore, plus representative offices in many other major financial centres.

In conjunction with the massive expansion of its business, CCB has made significant reforms to its treasury and credit management, financial control and accounting systems. The bank`s senior management felt that to support its increasingly complex treasury business, it required a single comprehensive treasury solution to replace the three separate systems currently in use. A new solution that could be integrated with the Reuters Kondor+ package in the front-office to consolidate the resulting data was regarded as essential to reduce the `bottleneck` between the bank`s front- and back-office.

OPICS has a proven track record as a global solution, having been licensed by over 140 financial institutions for use at more than 230 sites worldwide, including Bank of China, one of the PRC`s four State-owned banks, which selected OPICS as its global Treasury back office system. In view of the system`s proven track record, the bank considered OPICS as a possible replacement and following a rigorous assessment of other international banking packages on the market, CCB chose OPICS as its preferred solution, and signed the contract with Misys in December 2001.

OPICS is currently being implemented at the bank`s head office in Beijing, and will be integrated with the Reuters Kondor+ system in the front-office to achieve straight-through processing across the full range of treasury instruments traded in the front-office. The system will include applications to support Deposits & Loans, Fixed Income, Call & Notice, Foreign Exchange, Repurchase Agreements, OTC Options, FRA`s, Mortgage-backed Securities and Swaps transactions. Other components of CCB`s OPICS solution include the system`s multi-currency General Ledger, Confirmation Matching and Nostro Management, plus rate-feed handling and interfaces to the bank`s Bloomberg trading system, the SWIFT message network and CCB`s clearing network for its domestic branches` foreign currency payments.

Misys` OPICS solution was chosen on the basis of its comprehensive functionality and the support provided for an extensive range of treasury instruments. OPICS also offers pre-packaged interfaces to systems such as Reuters Kondor+ and Bloomberg, providing ease of integration between front- and back-office, and significant progress towards straight-through processing.

Other factors which influenced CCB`s choice of OPICS were the financial strength and integrity of Misys, and the company`s well-deserved reputation for the successful implementation of similar solutions at client sites such as Bank of China. Following the implementation of OPICS, planned for completion by the end of 2002, CCB will be able to continue the planned expansion of its treasury business, supported by an advanced, internationally-recognised solution offering straight-through processing between front- and back-office, all consolidated on a single platform.

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CCB

China Construction Bank, one of the PRC`s leading state-owned commercial banks, was originally founded in October 1954 against a background of implementing the country`s first five-year National Economic Plan, in which the bank played a critical role in managing the investment funds for 156 key construction projects.

In 1994, when this function was transferred to the then newly-established State Development Bank, China Construction Bank (CCB) began the transformation into the modern commercial bank it is today. By the end of 2000, CCB had total assets of 2.7 trillion RMB and was ranked 29th among the world`s top 1 000 banks. (Source: The Banker magazine, July 2001).

OPICS is an advanced Microsoft Windows NT-based Treasury & Capital markets solution, designed to operate in a client/server environment. It provides front- to back-office processing for a wide variety of transactions, included Foreign Exchange, Fixed Income, Repurchase Agreements, Deposits and Loans, Call & Notice Accounts, Equities and Precious Metals. The system also supports a comprehensive range of derivative instruments, such as Futures, Exchange-traded and OTC Options, FRAs, Swaps, Caps, Collars, Floors and Swap Options.

Misys International Banking Systems, a wholly-owned subsidiary of Misys plc, is one of the world`s foremost suppliers of solutions to the global banking and financial services industry, with annual sales of more than lb200 million. The company has an extensive network of international branches located in 29 countries around the world and employs over 1 500 staff. The Misys product range includes solutions for wholesale and retail banking, treasury and capital markets, trade finance, private banking and risk management.

Misys plc, a FTSE-250 company, is one of the world`s leading software products suppliers. Misys partners with its customers to deliver outstanding IT solutions to essential industries. The group develops and licenses products to the international banking and securities, US healthcare, and UK retail financial services sectors. For the six months ended 30 November 2001, Misys reported revenues of lb480 million and adjusted operating profits (before exceptional items), of lb54 million. Misys employs over 6 500 people.

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