As discussed in my previous post about the treasury management function, we are now opening this service to a public tender and invite respondents to submit proposals for consideration by the core team.
In order to be considered, your proposal will need to address the following criteria:
(a) Demonstrable treasury management experience.
(b) High degree of knowledge of the avalanche ecosystem.
(c) Ability to rapidly respond to varied market conditions.
(d) Ability to make investment decisions according to Pangolin’s risk reward ratios, noting that there is a low appetite for risk in the investment portfolio mix.
(e) Ability to coordinate and collaborate with other avalanche ecosystem participants.
(f) Highly secure system.
(g) Supply of tools/portal for live access to treasury performance.
(h) Treasury Management proposals should respond to the following requirements (please indicate with “Yes/No/Qualified” and some detail of how your services will comply with each relevant requirement:
(i) Stablecoin/Fiat Management
A. Interactive daily cash position worksheet with drill-down capability to the individual transaction level.
B. Live reporting of all positions.
C. Varied time horizons available for forecasting.
D. Reporting on variances between actual and forecast balances.
E. An interface with Pangolin’s general ledger.
(ii) Debt Management
A. Can the system track investments in different currencies and dual currencies?
B. Can the system provide daily unrealized profit/loss and investment?
C. Can the system rank investments in order of maturity?
D. Can the system generate portfolio returns for any time frame selected?
E. Can the system provide a listing of cash flows for any selected time frame?
F. Does the system provide journal entry reports on a cash and/or accrual basis showing security description, maturity, transaction type and date, unamortised premium/discount, accrued interest receivable, investment revenue and gain/loss on investment?
G. Can investment data previously entered be edited with the original data maintained as part of the audit trail?
H. Can the system maintain multiple portfolios? If so, how many?
I. Does the system interface to real-time pricing sources? If so, which ones? Does it mark-to-market automatically?
(iii) Risk Management
A. Does the system support interest rate sensitivity and gap analysis?
B. Does the system provide value-at-risk (VAR) analysis? If so, what form of VAR is supported (historical analysis, variance/covariance, Monte Carlo)?
C. Can interest rate scenario analysis be maintained with mark-to-market updates?
D. Does this system support graphical displays and outputs?
E. Can the system aggregate counterparty exposures?
F. Can the system calculate hedge equivalents?
G. Does the system provide duration and modified duration analysis?
H. Can the system perform optimisation anlysis? Are the foregoing analeptics limited to predefined instruments, or can user-defined instruments be analysed with the module’s risk management tools?
I. Can the system be programmed to provide a warning or alert when the gap between a hedge and its underlying exposure exceeds predefined tolerance?
A. Can user access be restricted within the system? If so, upon what criteria are the restrictions based?
B. What is the process of trade authorisation and approval?
C. What security measures are taken to safeguard access to the funds transfer module and to protect transmission of funds transfer instructions?
D. Can a system administrator manage log-in and password changes and additions, authorisation levels and other security maintenance without assistance from the vendor? If yes, please explain.
E. Can the user directly access the database to make changes?
F. Can the system detect inappropriate access and issue an alert? If, how? Will the system react to repeated access attempts with an incorrect password? If so, how?
G. Can screens and menus be customized for individual users or workstations?
H. Describe the audit trail tied to specific transactions and the audit trail associated with use activity in the system.
I. What disaster recovery/back-up capability comes standard with the system?
(i) Competitive management fees. These need to be fully detailed as providers will be prohibited from charging any fees not described in full.
The tender will be live for 7 days with a tender deadline of 17:00 UTC on 3rd December 2021. The Pangolin team will consider the proposals and make a determination regarding the providers by 10th December 2021 .
(j) All responses will be evaluated in the following areas:
(i) Completeness of solution
(ii) Expertise and experience
(iii) Demonstrated customer service quality and support
(iv) Previous relevant experience
(v) Vendor strength and stability
(vi) Account management
(vii) Reporting capabilities
(viii) Financial considerations
(k) The tender will be subject to the following conditions:
(i) Any response received after the deadline will not be considered.
(ii) Pangolin Core Team will evaluate the responses based on multiple criteria and will select the best overall solution to fit its needs. The Core team is not obligated to select the lowest price bidder or any bidder at all.
(iii) The Core Team reserves the rights to select multiple bidders to provide the treasury management services. Bidders should assume that they will be working alongside other treasury management service providers.
(iv) Contract term will be 12 months, with extensions of further 12 months’ periods at the discretion of the Pangolin Core team.
(v) Bidders will be expected to comply with Pangolin’s standard contractor services agreement, contractor policies and non-disclosure agreements which will be supplied to the successful bidders once down-select has occurred.
(vi) Proposals can be rejected for any reason or no reason at the absolute discretion of the Pangolin Core team.
(vii) Decisions by the Core Team are final – no further negotiations will be undertaken with unsuccessful bidders.
(viii) This tender is issued solely for information and planning purposes and does not commit the Pangolin Core team to contract for any service, supply, or subscription whatsoever. Bidders will not be reimbursed for any information, proposal, legal or administrative costs incurred as a result of participation in response to the tender. All costs associated with response will solely reside at the responding party’s expense.