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Overview

Structured Products Database System

July 25, 2024
2 min read

Problem

  • No integrated mapping between trades and product characteristics
    Client-level transaction internal records (that of Liquidity Project) contained structured product trades (with only amounts and product identifier), but this file did not include product attributes such as underlying, issuer, maturity, or observation schedule.

  • No centralized database for OTC structured products
    Each structured products distributing platform generated separate CSV file with all the trades closed. With dozens of trades per platform, portfolio managers lacked a unified view of maturities, observation dates, issuers, underlying exposures.

As a result, the team lacked a single source of truth for structured notes, could not track upcoming maturities or callable events, could not analyze exposure by underlying or client, and struggled to reflect pending structured settlements in liquidity calculations.


Solution

1. Multi-platform data extraction and consolidation

Collected structured product datasets exported from all the distributing platforms

Standardized and merged exports into a unified master dataset including:

  • ISIN
  • Issuer
  • Underlying
  • Transaction date
  • Value date
  • Observation date(s)
  • Maturity
  • Nominal / trade amount

2. Merge with client-level transaction database

Through ISIN matching, merged platform product data with internal client-level transaction records (Link al database), producing an enriched dataset linking each trade with full product characteristics (underlying, maturity, observation schedule, issuer, etc.).


Key Libraries

Excel processing

  • openpyxl — reading and modifying Excel files (.xlsx), managing workbooks, worksheets, cells, and saving.

File handling & environment

  • os — path management, checking file existence, and dynamic directory construction.

  • getpass — retrieving the local username to generate user-dependent paths.


Results

  • Full visibility on OTC structured products across platforms and clients.
  • Proactive management of maturities, observation dates, and callable events, enabling timely coordination of product rollovers.
  • Exposure analytics by underlying, issuer, and client

Limitations

  • Automatic alerts for upcoming observation/maturity events
  • user friendly dashboards for PMs
  • In the long run, Excel-based datasets would be insufficient, requiring a transition to a relational database (e.g., SQL-based systems or Microsoft Access).