Request for Proposals for a Comprehensive Reserves

Request for Proposals for a Comprehensive Reserves Management System

Release Date .............................. 5th March 2021

Question Closing Date .......... 26th March 2021

Close Date ................................... 2nd April 2021

Bank of Papua New Guinea RFP: CRMS 2

Final – Approved for Release

1 Summary

1.1 What this RFP is for

This RFP is to supply and implement a comprehensive reserves management system (CRMS)

to support BPNG’s management of PNG’s national foreign exchange reserves and other

foreign assets such as the anticipated Sovereign Wealth Fund.

1.2 What is Important to us

The most important factors for BPNG are:

1. Meeting our business requirements as set out in the schedule to this RFP

2. Track record of the vendor and product – we want an established system that is

already working as a CRMS or treasury management system at other institutions

3. Your ability to support this system for us, including adding asset classes and analytic

tools and other changing processes as our operations evolve.

We would strongly prefer to host the CRMS in our own data centres in PNG on equipment

we already own. We will consider an alternative platform or a cloud-based system but these

are not our preference.

1.3 About BPNG

The Bank of Papua New Guinea (BPNG) is the central bank of the Independent State of Papua

New Guinea (PNG). It is the legislated body responsible for the management of the country’s

foreign exchange reserves. The Bank manages the foreign exchange reserves in line with its

reserve management policy and may soon commence management of other portfolios such

as the sovereign wealth fund.



2 Request for Proposals

This RFP is structured as follows:

Section 1 – Summary

Section 2 – Request for Proposals sets out the context for this RFP, the process and

timeline expected and a glossary of terms used.

Section 3 – Background Information sets out the reason for this procurement and what

we hope to achieve. It also provides information about BPNG and the environment into

which we wish to implement.

Section 4 – Information to Include in Your Proposal provides a template for your

technical proposal.

Section 5 – Costs provides a template for your financial proposal.

Section 6 – Evaluation Approach describes how we intend to evaluate your proposals.

Section 7 – Terms and Conditions sets out the specific conditions applying to this RFP,

proposals to be received and any contract formed as a result.

Schedule – Requirements for a CRMS sets out our requirements for a comprehensive

reserves management system and invites you to state whether and how you can meet

them.

2.1 Context

This is an open RFP that is part of a single-stage procurement. It follows an analysis of BPNG’s

needs for a replacement CRMS. This RFP is published on BPNG’s website at:

https://www.bankpng.gov.pg/tender

2.2 Timeline

The following timeline is anticipated. BPNG reserves the right to vary this timeline as it deems

necessary to achieve its desired outcomes.

Release of RFP:................................................................................... 5th March 2021

Questions answered by BPNG: .......................................... 8th - 26th March 2021

Close of RFP (proposals to be received): ...................................... 2nd April 2021

Shortlist: .............................................................................................. 16th April 2021

Vendor presentations: ................................................................3rd – 7th May 2021

Reference Checks: ................................................................... 10th – 21st May 2021

Preferred supplier(s) notified ................................................................... June 2021



2.3 Registration

You can register to receive answers to questions as set out under Questions on this RFP

below. Register by emailing the contact with the subject line REGISTRATION.

Registration is optional and does not commit you to sending a proposal.

2.4 Contact

All contact about this RFP must be made through BPNG’s point of contact:

[email protected]

Email will be acknowledged as soon as reasonably possible and in any case within one PNG

business day. If email goes unacknowledged you may confirm its receipt by telephoning:

Stephen Nicholls on +64 21 167 9787.

It is NOT appropriate to approach other BPNG staff members or contractors about this RFP.

2.5 Questions on this RFP

BPNG will accept questions on this RFP until the Question Date set out in the timeline above.

Questions should be emailed to the contact above. We will endeavour to answer all questions

quickly. If, in BPNG’s opinion, a question or answer is applicable to all potential vendors, we

will remove any identifying information from the question and circulate it with its answer to

all parties who have registered as described above.

2.6 Submission of Proposals

Two separate proposals are required: a technical proposal and a financial proposal, each to

be sent to a different address as set out below:

• The technical proposal should contain the answers to all the questions in this RFP,

including the schedule, except the Costs section. It should be sent to the contact for

this RFP advised above.

• The financial proposal should comprise your answers to the Costs section. We will

not open this proposal until after we have selected a shortlist. It should be sent to:

[email protected]

(Please note this is NOT the same email address as the one above.)

Proposals are to be provided in PDF format by email with a subject line of PROPOSAL. If a

proposal exceeds email size limits it should be split and sent in parts. Proposals must be

received by the deadline, which is 12 noon PNG time on the Closing Date set out above.

Proposals will be acknowledged by return email – if this does not happen, please confirm

receipt using the telephone contact above.

Printed proposals are not required and will not be accepted.



2.7 Terms Used in this RFP

The following terms are used in this RFP without further explanation:

Active

Directory

Microsoft authentication product built on Kerberos and LDAP

AML/CTF Anti-Money Laundering / Countering Terrorism Financing

API Application Programming Interface, used for inter-system communications

Bloomberg Bloomberg financial information and related services

BPNG Bank of Papua New Guinea – the central bank of PNG

BSS Banking Services System, BPNG’s core banking system

CRMS Comprehensive Reserves Management System, the subject of this RFP

CSV Comma-separated values (file format)

CVAR Conditional value at risk

FX Foreign exchange

ICT Information and communications technology

KATS Kina Automated Transfer System, the real time gross settlement system

(RTGS) connecting all commercial banks in PNG, operated by BPNG

KYC Know Your Customer

PFMI Principles for Financial Market Infrastructures, a set of prudential

standards

PDF Portable document format

PGK Kina, the domestic currency of PNG

PNG The Independent State of Papua New Guinea

RMA Relationship Management Application, part of SWIFT

RTGS Real Time Gross Settlement, domestic interbank

SLA Service level agreement

STP Straight-through processing between computer systems without manual

intervention

SWIFT SWIFT Alliance financial messaging and related services

TLS Transport layer security

VAR Value at risk



3 Background Information

3.1 About the Bank of Papua New Guinea

BPNG is Papua New Guinea’s central bank. BPNG’s headquarters is in Port Moresby, PNG’s

capital city. There is also a BPNG branch and currency distribution centre in the city of Lae.

BPNG’s objectives and functions are listed on its website at https://www.bankpng.gov.pg. This

RFP concerns BPNG’s role in the management of foreign exchange reserves on behalf of the

government and people of PNG.

3.2 Management of Papua New Guinea’s Foreign Reserves

BPNG manages PNG’s foreign exchange reserves in line with an established reserve

management policy that sets out acceptable risk parameters under which investments are

made. In addition to managing the reserves, BPNG is building the capacity to manage other

portfolios such as a sovereign wealth fund which will have separate investment guidelines.

Trading and portfolio activities are executed by Front, Middle and Back Office units within

the Bank. The Front Office initiates the deal entries and verifications, the Middle Office

provides the risk assessment and ensures compliance to policy and the Back Office specifies

settlement instructions and authorises payments.

As well as trading on its own behalf, BPNG uses the services of five external fund managers

to execute trades on its behalf. BPNG also uses the services of a global custody company for

its outsourced funds.

In-house trading in BPNG and risk and portfolio management across the total portfolio are

supported by a Comprehensive Reserve Management System (CRMS). The CRMS supports

Front, Middle and Back Office processes and allows the Bank to manage its entire reserve

management operations. The current CRMS is an old version of the OPICS suite from

Finastra. It has interfaces to and from various external systems including the Oracle General

Ledger, SWIFT, Bloomberg Request Builder and Meridian. This software is approaching the end of its life and the Bank wishes to take the opportunity to acquire a modern system that

better meets its evolving requirements for reserves management.

3.3 Volume Information

The following numbers represent our monthly deal numbers including those we execute in-

house and those performed on our behalf by external fund managers. We expect our new

system to be able to cope with a substantial increase on these volumes.

Transaction Type In-house External Fund Managers

Fixed Income and T-Bills 30 100

Foreign Exchange 200 150

Futures - 300

Short Term Money Market 10 50



3.4 ICT Environment in the Bank of Papua New Guinea

3.4.1 BPNG Platforms

BPNG systems are hosted primarily in the Bakani Data Centre in BPNG’s head office building

in downtown Port Moresby. There are disaster recovery hosts in a commercial facility

elsewhere in Port Moresby. BPNG is moving to build its own disaster recovery data centre

to replace its use of the commercial backup facility.

Most critical BPNG systems are hosted using:

• IBM Power servers running AIX 7.2+

• Oracle Exadata production and DR with Oracle 12g and DataGuard protection

BPNG also runs systems using:

• Red Hat Enterprise Linux

• VMware 6.5

• IBM Storage V7000 Gen2 for non-database storage

All the above are located in BPNG’s own data centres, i.e. not in cloud hosts.

BPNG would prefer to run the new CRMS on a platform it already uses.

3.4.2 BPNG Existing Systems

The following BPNG systems are potentially relevant to the CRMS:

• Bloomberg for market information and trading

• CSD (central securities depository) for holding, trading and custody of domestic

debt securities, from the Quantum suite by Intellect Design Arena.

• SWIFT Alliance Gateway for payment instructions, confirmation and statements

• SWIFT Sanctions and Name Screening tools

• Kina Automated Transfer System (KATS) – this is PNG’s RTGS which is operated by

BPNG, and is used for PGK settlements from the CRMS. KATS is an implementation

of the Montran ATS. Currently payments submitted to KATS by MT-style messages

(ISO15022); this will be replaced by the use of ISO20022 messages.

• Banking Services System (BSS) is BPNG’s core banking system for domestic

currency, used primarily to provide banking services to the government of PNG. It is

a highly customised version of Montran’s GPS software. BSS is used within BPNG

and by its government customers.

• Oracle Financials General Ledger module. This runs all BPNG accounting functions

including reporting on the valuation of portfolios.



4 Information to Include in Your Proposal

Please use the headings in this section for your technical proposal.

4.1 Checklist to Answer This RFP

BPNG has some specific points that are essential to us in procuring a new CRMS. These points

represent qualifying criteria for bidders on this RFP. We wish to be clear about them to avoid

wasting time on both sides.

Therefore, we ask that you complete the following check list and supply it as the front page

of your technical proposal. If you cannot tick ‘yes’ to all items in this list, we will not evaluate

any proposal you might send.

1. Are you proposing an established treasury or reserves

management system that is operational in financial institutions?

YES •

2. Are you experienced in providing support to your system

remotely?

YES •

3. Does your product provide interfaces to Bloomberg, Oracle and

SWIFT?

YES •

4. Can your system interface using SWIFT MT (ISO15022) message

types and MX (ISO20022) message types?

YES •

5. Can you implement this into our environment by June 2022?

YES •



4.2 Summary of Proposal

Outline what you are offering us in a few paragraphs.

In addition, please provide:

a) A statement that your proposal constitutes an offer to supply and that the offer has

a validity of at least 90 days.

b) A confirmation of your willingness to enter into a contract and any special

conditions you would require on this contract.

c) A confirmation that, if awarded the contract, you will accept responsibility for

successful integration and interoperability of all proposed products, including

interfaces to external systems.

4.2.1 Other Customers

Please provide a brief list of other customers for whom you have provided similar services.

They should be as similar as possible to BPNG, especially if they are central banks and/or

responsible for investing government reserves or sovereign wealth funds. We will not contact

them at this stage, but if your proposal is short-listed we will ask you for relevant references,

so we can ask them about their experiences working with you and visit or consult them.

4.3 Company Information

Please provide the following information about your company:

• Company name and contact details

• Company ownership and size

• A brief history of the company

• A list of locations from which the company operates

• An indication of the range of products and services and markets served

• A list of staff proposed to deliver the offering in your proposal with their names and

roles including nominated backup people for key positions

4.3.1 Subcontractors

If you propose to use subcontractors to deliver some of the services you propose, please

provide an explanation of the roles and responsibilities of each party. Provide the company

information set out above for each subcontractor.

4.4 Functionality

Use the Schedule as a response template for answering how you will meet our requirements

in your technical proposal.

4.4.1 Additional Information

Please provide any further information that you believe to be relevant. This might include

opportunities to better streamline our processes, manage risk or other items we might find

useful.



4.4.2 Related Services

Please set out any related services or products you can offer that you believe may assist us,

possibly beyond the scope of this RFP, especially where this differentiates your offering from

others. Can you see an opportunity for us to better achieve our objectives?

4.5 Implementation Services

BPNG would like to understand how you intend to implement your system into our

environment. Please describe this using the headings below.

4.5.1 Timeline

Please be aware that our timeline requires implementation to be complete by June 2022.

Sooner is better.

What timeline do you propose for implementation of the system? Please provide milestones

and note the requirements on BPNG and its contractors that are needed to achieve these

milestones.

4.5.2 Project Management

Identify a single point of contact within your organisation who will lead the project and provide

details of their credentials. Please provide details and credentials for other project members

and describe their role on the project.

Outline how you will manage the project including:

• Methodology

• Roles and responsibilities

• Risk and issue management

• Project communications

4.5.3 Migration Services

Explain how you will support the migration of securities and counterparties from OPICS to

your CRMS. What other assistance will you need from its supplier and from BPNG?

4.5.4 Knowledge Transfer and Training

We see sufficient training and a high degree of knowledge transfer to BPNG and external

stakeholders as a critical success factor for this implementation. Please explain in detail how

you will go about this.

Please include a training plan showing, for each system element to be supplied, and for the

project overall, all proposed training modules, the recommended number and (if applicable)

prior knowledge of people to be trained in each institution, the duration of each training

module and the number of times each module is proposed to be delivered. The plan should

specify any prerequisites for each training module. It should cover all aspect of the system

being implemented.

In particular, we would expect to see specific training modules for:

1. Management level personnel

2. Supervisory and operational staff

3. Audit staff



4. Technical training for systems development and testing staff

5. Technical training for systems operations and maintenance staff

6. Training in the creation of reports, and in the use of a report writer as applicable

7. Any other relevant training for users.

4.6 Documentation

Please provide a list of documentation for the system that you propose to deliver. At

minimum, we would expect documents aimed at:

• System users, both ordinary and administrative, i.e. user manuals

• ICT technical staff

• External stakeholders

• Documents to support testing including UAT scripts

We also expect a database description so we can extract data into a business intelligence (BI)

tool. Please confirm that you will supply this.

4.7 Ongoing Support

Explain how you propose to support BPNG to manage and maintain the system. Include:

• post launch support and maintenance

• software security patches, updates and upgrades

• consulting services to assist with adoption of global best practice

• custom changes for BPNG (such as interfaces) if we request them

• custom reporting as our requirements evolve

• any other areas you expect to deliver support.

What options do you offer for ongoing support after the warranty period (see Section 5.1

below) and thereafter? Please provide a sample SLA.

Do you provide a 24*7 email and telephone support?

4.8 Escrow

BPNG requires that the source code and supporting technical documentation be held in

escrow against the eventuality that your company becomes unable to support the system at

some future point. The code will remain in escrow and not be accessed unless this happens.

Please indicate your acceptance of this point.



5 Costs

This section should be used as a template for your financial proposal. Please complete this

and send it separately from your technical proposal as directed in Section 2.6 above.

5.1 Warranty Period

BPNG requires a minimum warranty period of 12 months from go-live. During this period,

we require you to deliver support and software updates at no cost to us.

Please confirm your acceptance of this point.

5.2 Requirements for BPNG

You are asked in your technical proposal to include sample architectures and lists of suitable

hardware and system software, bearing in mind our expected volumes and resilience

requirements. After contract signature, BPNG’s ICT Department will agree with the

successful proposer the final specification of all items and an installation timetable to match

the agreed project plan. The successful proposer will be required to provide contractual

assurances that the agreed total configuration (hardware, networking and software) will

support the system in processing expected workloads for at least three years after

acceptance.

Please indicate your acceptance of this point.

Beside hardware and system software, what other resources and support will BPNG need to

provide for the implementation?



5.3 Cost Breakdown

Please use the table below to provide a cost breakdown in USD. The categories are:

• software licensing and/or service charges

• implementation costs i.e. your time in implementing the system

• training costs

• data migration from our existing system

• ongoing support costs payable to you

• any third party costs you believe we will need in addition to the hardware and system

software needed to run the system. Please provide an explanation of these.

USD One-off Year 1 (warranty)

Year 2 Year 3 Year 4 Year 5

Software licensing

Implementation costs

Training costs

Data migration

Support costs

Third party costs

TOTAL

Document any assumptions that you make for pricing purposes.

BPNG will not pay over and above this quote.



6 Evaluation Approach

BPNG will form an evaluation panel to score each technical proposal against the requirements

in the schedule to this RFP. The panel will also assess other aspects of each proposal including

the implementation plans and ongoing support. On the basis of this evaluation the panel will

select a shortlist.

The financial proposals will not be provided to the panel. Financial proposals will not be

opened until the shortlist is established.

Shortlisted vendors will be invited to provide further information, a presentation to BPNG and may be asked to assist in providing contact with customer reference sites. Bidders that

are not shortlisted will be notified. BPNG intends to select a preferred supplier for the CRMS

based on these investigations and on consultations with existing customers.

BPNG will advise the preferred supplier or suppliers and open contract negotiations with

them.

6.1 Evaluation criteria

Proposals will be assessed on the basis of:

• Functional Requirements

− Ability to meet the requirements set out in the Schedule

− Ability to integrate with existing BPNG systems

− Ability to run in the current BPNG ICT environment

• Vendor Capability

− BPNG’s confidence that the system can be implemented within our timeframe

− BPNG’s confidence that you can support the system on an ongoing basis

− Track record in delivering similar systems in environments like BPNG’s

− Capability to customise the system to meet evolving needs

− Understanding of the context into which the CRMS will be implemented

− Project management approach

− Risk management approach

• Cost of solution and supporting components, one-off and ongoing

Assessment of the above will take account of evidence of past performance and capability,

however the quality and suitability of the proposal for BPNG will be paramount.



7 Terms and Conditions

7.1 Acceptance of Proposal

BPNG intends to select a supplier following receipt of proposals as set out above. However,

BPNG:

• may accept the whole or part of a proposal

• will not necessarily accept the lowest priced proposals or any proposal

• reserves the right to negotiate with any potential supplier or to seek clarification of

the contents of a proposal from any potential supplier

• reserves the right to obtain products and services from any party, whether that

party has submitted a proposal or not

• reserves the right to stop or vary the Request for Proposal process, or request

further proposals, at any time.

Nothing in this document, or in any proposal, or both, shall be construed to create any binding

contract (express or implied) between BPNG and any potential supplier.

BPNG intends to rely on your proposal and any other information you provide, e.g. in

correspondence, presentations and negotiations. In submitting a proposal, you warrant that

all information you provide to us:

• is true, accurate and complete, and not misleading in any material respect

• does not contain Intellectual Property that will breach a third party’s rights.

7.2 Contact

All contact is to be through the nominated contact point in this RFP. Approaching other

BPNG staff or contractors may cause a proposal not to be evaluated.

7.3 Confidentiality

If your proposal is marked COMMERCIAL IN CONFIDENCE, BPNG will keep the proposal

confidential to its staff and any contractors involved in this project.

7.4 Contract

Successful proposers will be expected to enter into a contract with BPNG. The supplier will

be taken to agree or comply with all conditions of all parts of this document unless specified

otherwise, giving reasons. Suppliers are responsible for taking all necessary steps to inform

themselves of BPNG’s requirements, terms and conditions in regard to proposing a solution

for this project. The proposal will form a schedule to this contract.

7.5 Costs of Responding

BPNG is not liable for any costs you may incur in responding to this document.



7.6 Applicable Law and Jurisdiction

The laws of PNG shall govern this RFP. Each Respondent agrees to submit to the exclusive

jurisdiction of the PNG courts in respect of any dispute concerning the RFP or the RFP

process.

Any contract arising from acceptance of a proposal made in response to this RFP will be

governed by the laws of PNG and subject to the exclusive jurisdiction of the PNG courts.



Schedule: Requirements for a CRMS

Use this section as a template for describing whether and how your solution can meet our

requirements.

Please repeat each numbered requirement in your response and mark it COMPLY/PARTIAL

COMPLY/NON-COMPLY, then provide a detailed explanation of how your proposal meets

our requirement so we can evaluate your level of compliance. If you cannot comply, please

explain any steps you will take to achieve compliance.

A General Requirements

A.1 The CRMS must be a real-time system. This includes position-keeping, monitoring and

revaluing portfolios.

A.2 The CRMS must possess straight-through processing capabilities to automate the flow

of deals into, through and out of the system.

A.3 The CRMS must be multi-currency.

A.4 The CRMS must manage multiple portfolios with different benchmarks and investment

mandates.

A.5 The CRMS must offer a fully automated process to update static data from Bloomberg

including details of new security issues.

A.6 The CRMS must be user-friendly in that the options available to each user should be

clear and easy to understand.

A.7 All screens, reports and messages in the CRMS must be in the English language.

A.8 The CRMS must generate alerts and notifications to its users.

A.9 The CRMS should provide the option of automatically emailing alerts.



B Instruments and Trading

B.1 The CRMS must correctly handle all asset classes and product types invested in by our

Front Office and external fund managers, whether in PGK or foreign currency. Asset

classes currently used include but are not limited to:

- Government and commercial bonds and bills

- Fiduciary deposits

- Short term money market instruments

- Inflation-linked bonds - Mortgage-backed securities

- Asset-backed securities

- FX spot deals

- FX forwards

- FX swaps

- Gold and other commodities.

B.2 In addition to the above, the CRMS should support:

- Put and call options on the above

- Financial and commodity futures

- Interest rate swaps

- Equities

- Hedging options on all instruments.

Provide a list of any other instruments your system handles.

B.3 The CRMS should be extensible to handle further asset classes. Please explain how

these are added.

B.4 The CRMS must offer an automated mechanism for trades made by external funds

managers on behalf of BPNG to be reflected in BPNG’s balance sheet immediately

when advised by SWIFT or Bloomberg.

B.5 The CRMS must deal correctly with transactions made in different time zones and

accept incoming notifications outside of PNG business hours.

B.6 The CRMS must accept deal tickets generated by Bloomberg when trades are made

through Bloomberg.

B.7 The CRMS must provide a facility for the entry of deal tickets once executed if not

dealt through Bloomberg.



B.8 The CRMS should accept deal tickets from counterparties via Bloomberg or SWIFT

and compare them with in-house tickets, highlighting any differences or unmatched

tickets.

B.9 The CRMS must automate the entry of trade confirmations available from external

sources.

B.10 The CRMS must allow for tracking of deals through the system and identify deals that

are held up awaiting processing.

B.11 The CRMS should provide a mechanism for synthetic benchmarks to be constructed

and used for comparison.



C Reporting and Dashboards

C.1 The CRMS must provide dashboards for various user groups within BPNG, filtered by

portfolio, product, sector, currency, ratings, regions, etc. as appropriate.

C.2 The CRMS must produce standard portfolio, risk, compliance, cashflow, performance

and accounting reports.

C.3 The CRMS must offer comparison of portfolio performance to benchmarks.

C.4 The CRMS must have the ability to generate and view reports online before printing

or downloading to external applications.

C.5 The CRMS must be able to export reports in Excel, PDF, CSV, etc. format.

C.6 The CRMS must be capable of producing historical reports.

C.7 The CRMS should have the ability for a user to define a report for immediate

production, and to save the definition for later production.

C.8 Reports should be produced automatically on a regular cycle.

C.9 The CRMS should have archives for storage of reports and data.

C.10 Reports should be able to be emailed automatically on production or on approval.

C.11 The system should be able to email out password protected rolled up reporting into

which the reader can drill down.



D Risk Management

D.1 The CRMS must offer a full analysis and presentation of foreign exchange risk by

portfolio.

D.2 The CRMS must use the appropriate currency benchmark for measurement of foreign

exchange risk.

D.3 The CRMS must offer a full analysis and presentation of credit risk by portfolio.

D.4 The CRMS must provide a ceiling of allowable credit to capture credit risk by issuer,

country, liquidity etc.

D.5 The CRMS must offer a full analysis and presentation of interest rate risk by portfolio.

D.6 The CRMS must reflect the modified duration benchmark for measurement of interest

rate risk.

D.7 The CRMS should offer portfolio optimisation capabilities.

D.8 The CRMS must perform VAR, CVAR, standard deviation and scenario analysis

including stress testing against benchmarks for each portfolio.

D.9 The CRMS must offer a full analysis and presentation of operations risk by portfolio,

including but not limited to trader risk and counterparty risk.

D.10 Provide a list, with examples, of any other aspects of risk analysed and presented by

the CRMS.



E Compliance

E.1 The CRMS must alert Middle Office and Management Staff immediately of any non-

compliance or breaches.

E.2 The CRMS must maintain a list of allowable counterparties by portfolio and prevent

deals being entered that do not comply with the list

E.3 The CRMS must capture investment parameters for pre-trade and post-trade

compliance checks, which may vary from portfolio to portfolio.

E.4 The CRMS must measure compliance against an investment management agreement

(IMA) for deals by external fund managers.

E.5 The CRMS must measure compliance against reserve management policy guidelines

(RMP) for in-house deals.

E.6 The CRMS must provide regular auditable compliance reporting.

F KYC

F.1 The CRMS must provide a standardised approach for KYC.

F.2 The CRMS must be able to store KYC documentation by counterparty.

F.3 The CRMS must be able to store KYC documentation by deal.

F.4 The CRMS must automate the production of tax and other documentation for KYC.

F.5 The CRMS must provide automated checking using SWIFT Sanctions and Name

screening tools.

F.6 The CRMS must provide a way to maintain AML/CTF guidelines.



G Controls

G.1 The system must have the concept of separate entry and verification steps for deals

and payments.

G.2 Role-based security must be applied and ensure that only certain users can verify and

reverse deals, add settlement instructions or authorise payments.

G.3 The CRMS must provide maintenance screens for the manual updating of static data

including but not limited to:

- Counterparty information - Product types

- New Issues

- Currencies

- Country

- Calendar Maintenance

- Market Rates

- Yield Information

- Trader Information

- Settlement data

- Accounting and reconciliation information

- Custodian relevant information

- Clearing house information

- All BPNG customer information.

All manual updating of static data must require a 6 eyes check with appropriate role-

based security.

G.4 The CRMS must provide audit trails with drill down facility to reveal granular details of

each activity or transaction in the system.



H Cash Management

H.1 The CRMS must provide real-time balances for all nostros.

H.2 The CRMS must provide a forward projection of balances for all nostros.

H.3 The CRMS should provide a way to enter or import external transactions that will

affect nostro balances.

H.4 The CRMS must provide deal entry module for FX transactions by Back Office (i.e.

payments).

H.5 The CRMS must provide deal entry for general ledger transactions by Back Office (i.e.

receipts).

I Settlements

I.1 The CRMS must generate RTGS payments for all domestic settlements, to be held for

approval by the Back Office.

I.2 The CRMS must generate all applicable SWIFT messages for all foreign currency

settlements, to be held for approval by the Back Office.

I.3 The CRMS must monitor and generate payments for the fees due to external fund

managers and custodians.

I.4 The CRMS must link the deal ticket to each settlement for inspection when approving

payments.

J Accounting and Reconciliation

J.1 The CRMS must contain a chart of accounts that is able to be defined and altered by

an administrative user.

J.2 The CRMS must provide daily accounting entries in domestic currency to track

changes in value of portfolios.

J.3 The CRMS must provide accounting entries for fees paid to external parties such as

fund managers and custodians.

J.4 The CRMS must provide accounting entries for profit and loss on all asset classes .

J.5 The CRMS must perform accounting for Treasury Bills and Bonds (daily amortization).



K Interfaces and Feeds

K.1 The CRMS must interface with Bloomberg for deal tickets and static data.

K.2 The CRMS must be capable of interfacing with our General Ledger to send it

accounting entries.

K.3 The CRMS must be capable of interfacing with our RTGS for PGK settlements.

K.4 The CRMS must interface to our SWIFT Alliance Gateway and be capable of

generating and receiving SWIFT messages in both the MTxxx format (ISO15022) and

the MX (ISO20022) format.

K.5 The CRMS should be able to interface with Swift RMA for establishing relationships

with counterparties.

K.6 The CRMS must be able to import benchmark indices from benchmark suppliers

automatically.

K.7 The CRMS must be capable of interfacing with SWIFT Sanctions and Name screening

tools in real time.

K.8 The CRMS should be capable of generating outgoing email messages through our

Microsoft Exchange server.



L Security Requirements

L.1 The CRMS must offer a well-defined and robust role-based access control system

incorporating the principle of least privilege.

L.2 The CRMS must log all access including physical device identification, user

identification and the time of each access in order to provide a clear audit trail for

review in case of accidental or deliberate violation of security controls.

L.3 Workstations logged into the CRMS must be logged off automatically if idle for more

than a specified but variable period that can depend on the class of user.

L.4 The CRMS must offer appropriate authentication mechanisms for its users. This must

include a mechanism to control password complexity for passwords selected by the

user.

L.5 The CRMS must enforce encryption of data in transit between its various

components, on system interfaces, to workstations and, where relevant, over the

Internet. The expected cryptographic level is TLS1.2.

L.6 The CRMS must integrate with Active Directory for the management of access and

authorisation.

L.7 The CRMS must have the option for tokens or certificates for authentication apart

from Active Directory.

M Non-Functional Requirements

M.1 Provide a list of platforms and database management systems the CRMS is

implemented on.

M.2 The CRMS must be capable of resilient operation using a live copy in the primary

location and a warm standby in a backup location. Provide a sample architecture

diagram and hardware and software configuration for the CRMS, preferably consistent

with BPNG’s existing platforms, with model numbers and sizing, that will meet the

transaction volumes. What are the implications of increasing these volumes?. Assume

the presence of SWIFT, RTGS and Bloomberg in each location.

M.3 The CRMS should enable read-only access to its database, including by supplying a data

dictionary, for external analysis by a BI tool.

M.4 What APIs does the CRMS offer for interfacing with external systems?