Mizrahi Tefahot Bank implements Misys Summit FT

Source: Misys Banking Systems

Misys Banking Systems today announces that Mizrahi Tefahot Bank, the largest mortgage bank in Israel, has selected Misys Summit FT to manage its interest rate position keeping and risk management.

The bank is keen to grow its share of the emerging Israeli interest rate derivatives market and become a primary dealer in bonds on the new MTS Israel (MTS-ISV), the official electronic interdealer market for Israeli government bonds. It was looking for an integrated treasury and capital markets solution that would support it to achieve this goal and found it in Misys Summit FT.

The bank needed to replace an existing system that was limiting its ambitions, in particular it was unable to offer the advanced functionality required for inflation products and building zero curves on a basis of TELBOR and ILS bonds prices. Mizrahi Tefahot Bank selected Misys Summit FT following in-depth demonstrations, workshops and an RFI process.

Misys Summit FT will give the bank full coverage of interest rate including related inflation products and Israeli Government Bonds (Galil, Gilon and Shahar). This will enable the bank to reshape dynamically its portfolio by changing the fixed/float mix, and thus providing better management of its currency risk and rates exposure.

Shlomi Friedman, Accounting, IT & Operation Manager at Mizrahi Tefahot Bank, comments, "For a modern bank wishing to participate in Israel's rapidly growing ILS and CPI rates marketplace, it is essential to have a software solution in place that both delivers high-speed, real-time workflow and can also handle virtually any type of deal structure including exotic hybrids. With Misys Summit FT, Mizrahi Tefahot Bank is now in a prime position to be an efficient primary dealer in domestic government bonds."

Misys Summit FT will ensure full straight-through processing (STP) front to back, from a real-time interface to Bloomberg's electronic trading system or MTS-ISV, as well as all interrelated needs for managing short selling, including: repos, futures and swaptions. The system encompasses integrated deal capture, through to managing risk exposure and hedging, collateral, settlement and accounting.

Raphael Bensimhon, Sales Director, Treasury and Capital Markets, Misys Banking Systems says, "We are delighted to increase our customer base in this important market. The Israeli market is growing in sophistication and we are ready to support the leading banks in the interest rate and MTS primary and secondary markets."

"The Misys team offered excellent knowledge of the Israeli marketplace, and has provided superb consultancy and advice to ensure this critical system delivers what we need," concludes Shlomi Friedman.

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