Breaking Down Barriers: Building a Scalable OTC Derivatives Solution from the Ground Up

Background

A service provider had long been known for its “white glove” premium service and seamless onboarding experience. But when a recent acquisition introduced new front-to-back capabilities, including modern OMS and IBOR, things began to unravel. The firm had promised clients advanced OTC derivatives functionality, but under the hood, their infrastructure told a different story.

Legacy system constraints, incompatible design frameworks, and misaligned data models were creating significant friction, right as major client go-lives loomed on the calendar.

The Challenge

Post-acquisition, the combined architecture exposed fundamental gaps:

• • Position- vs. transaction-based workflows clashed

  • Security identifiers were inconsistent

  • Differing support models for multi-leg OTC instruments

  • And no clear roadmap to onboard new clients at scale

The clock was ticking, expectations were rising, and the risk of failed delivery was real. The firm needed more than a workaround; they needed a future-ready solution.

Could Meradia help the firm rise to meet client expectations, bridging deep architectural gaps, aligning systems, and scaling a new OTC lifecycle solution, without the client delaying the timeline or exposing itself to operational risk?

Meradia’s Approach

Meradia was brought in to stabilize the situation and chart a path forward, bridging strategy with execution through a phased, front-to-back engagement that aligned systems, simplified complexity, and enabled confident delivery.

Meradia divided the engagement into four key phases:

Phase One: Tactical and Strategic Roadmap

Meradia’s team developed a tailored roadmap to align onboarding timelines with realistic delivery goals, prioritizing scalability, mitigating risk, and setting the foundation for cross-functional alignment. This phase shifted the mindset from “patch and react” to a structure plan that established clarity and direction across technology, operations, and business teams.

Phase Two: Proof of Concept Validation

Several POCs were stood up to test different solution designs, ranging from OMS manipulation and middle-office simulation to external manager emulation. This enabled Meradia to pressure-test assumptions, expose risks early, and guide the client toward a data-driven solution selection.

Phase Three: Operating Model Alignment

Using insights from Phase Two, Meradia redefined the target operating model to resolve cross-system conflicts. We addressed critical gaps in derivatives lifecycle management, ensuring alignment from trade capture to reconciliation and reporting.

Phase Four: Implementation & Go-Live Readiness

Meradia led full implementation, translating requirements into functional design, managing development iterations, and overseeing testing. Our collaborative approach ensured seamless integration, thorough validation, and successful go-lives, on time and on target.

Results / The Outcome

Meradia partnered with the service provider as both a strategic advisor and hands-on implementation lead, guiding the client through a phased, front-to-back transformation that de-risked each milestone and delivered tangible results. Together, Meradia and our Client developed and executed a scalable OTC derivatives operating model that not only met the immediate demands of three high-profile client go-lives, but also resolved deep-rooted architectural gaps across OMS, IBOR, and middle-office workflows.

The Client didn’t just fulfill its promise to expand OTC capabilities; it exceeded expectations. With a modernized infrastructure, aligned systems, and streamlined processes, the asset manager can now onboard clients with greater speed, accuracy, and control. Today, they are operating from a position of strength, backed by clean data, scalable architecture, and a trusted consulting partner prepared to guide their continued evolution.

“In my 25+ years in the industry, [The Meradia leads for this project] are two of only three consultants I’ve ever considered part of my team. They think strategically, work independently, and consistently deliver. They raise the bar.” – Head of Derivatives