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Deutsche Telekom AG is lowering its costs with the vwd manager treasury

By switching to the vwd group market data solution, Deutsche Telekom AG saves significant costs in treasury with optimum data coverage.

Original situation

Deutsche Telekom AG, one of the leading telecommunications concerns worldwide, has for over five years used market data terminals from the vwd group in its treasury department, in particular in middle office and back office, for instance for financial controlling and for generating reportings. The switch to the vwd market manager was made after a thorough analysis of requirements with the objective of saving costs.

Due to persistent cost pressure for market data, further savings had to be made. A test was carried out on which market data treasury employees worked with and whether an expensive real-time connection was actually needed in comparison.

The result of the analysis was that for users in treasury, an intra-day snapshot data supply is fully adequate.

Solutions

This year Deutsche Telekom decided on switching to the vwd group in data feed supply as well. Tailor-made to its requirements and thus very cost efficient, since April 2015 Deutsche Telekom has via the vwd data manager treasury been receiving only the actually required data and in that way substituted real-time supply for intraday snapshot.

The data are inputted via a raw market data interface from the vwd group as files and flow directly into Reval‘s in-house treasury system where they are processed. With the introduction of this treasury system, a process of centralisation started in treasury to link up operations in Deutsche Telekom‘s subsidiaries with corporate group treasury. Core users are a group of about 20 users working at Deutsche Telekom‘s headquarters and, consequently, working very intensely and an additional 100 odd users in accounting and subsidiaries who also make use of this data in their work.

Deutsche Telekom‘s subsidiaries in eastern Europe had some special requirements for market data which were not needed by headquarters, in particular not needed for consolidated annual accounting (e.g. for currency conversion, fixings are taken from the relevant national banks). The vwd group was able to satisfy these requirements without any problem and now supplies the company several times a day with different data sets:

  • At 11 a.m. currency fixings from several national banks
  • 90% of the data comes around 3 p.m., mainly forex, money market and interest rate swap readings
  • After 7 p.m., the final delivery with Libor and Euribor rates including EONIA (euro overnight index average)

Conclusion

Deutsche Telekom is now a satisfied customer of the vwd group who saved considerable costs with the vwd data manager treasury.

Essential criteria for the decision in favour of the vwd group were:

  • 99% data coverage
  • Daily up-to-date and comprehensive fixing, interest rate and derivative data
  • Automatic data importation into the in-house treasury system
  • Tailor-made and thus cost-efficient selection of data packages
  • Data encryption with PGP
  • Good experiences with the vwd market manager market data terminal now in use for five years