The securities trading module covers all functionalities from trade order entry and monitoring to settlement completion and control for the whole range of securities: equities, interest bearing securities, precious metals, warrants and options. Additionally it provides integrated securities trading, portfolio analysis and back office functions. Trades are processed from deal capture until settlement completion. Deals maybe for immediate or future settlement. The module maintains a full history that includes all costs associated with a deal (such as brokerage fees, taxes and stamp duties). Amounts are stored in three currencies (trade currency, account currency and balance sheet currency). For portfolio management purposes, the module can revalue trades in any client or fund reference currency. It has also the ability to define investment strategies per client in the module. The module then generates all the necessary documents for clients and trading partners including :
A wide range of sophisticated inquiry and reporting facilities is provided, together with a set of sub-modules that ensure full automation and integration of Back-office operations. These module include :
Back Office Functions
Inquiries Functions
Reporting
These functions cover the order or capture and processing of deals until settlement completion. When a deal has been entered, the system updates the securities positions, the cash positions and the historical transaction database. Deals may be reviewed at any time. The position inquiry will show the new balances and the transaction inquiry will include the deal. After a deal entry, the system offers two methods of deal cancellation. A deal may be deleted before it is released or reversed after it is released. The system permits the entry of complex deals involving up to 999 parties. Each part is represented by a separate transaction. Charges and proceeds are calculated and stored for each individual transaction. Multi-price deals are supported, the system allows for up to three different lots for each transaction of a deal. A full breakdown is stored for each transaction. Standard costs are automatically calculated by the system but may be overridden by the user. User defined costs may be entered manually. Up to ten costs may be associated with each transaction. The system will optionally post capital and accrued interest into separate accounts. For agency deals, the user normally enters the details of each transaction of a deal. The basic details of the deal remain the same for each transaction and need not to be re-entered. The system keeps track of the quantities for each transaction and ensures that these quantities balance to zero for the whole deal. For principal deals, a simplified rapid data entry screen is provided. This assumes that just two parties are involved in the deal (the bank and a counterpart). The user only needs to enter one set of details, the system generates the rest of the deal. Parameters determine how the entry of each deal type will be handled. Deals may be entered by the dealer, by the back office or through a double entry system in both departments. In addition, security procedures are defined at installation time according to individual user requirements. The basic deal data (deal type, counterpart, currencies, value dates, amounts and rates) are usually entered by the dealing room. Additional deal information such as payment instruction may be entered manually or by using the default payment instructions defined in the system. If a deal requires verification or the addition of further information, the back office may enter the necessary amendments. Subject to installation parameters, the system may request that the deal data be re-entered as a precautionary verification. In these circumstances, users will be alerted to any deviations from the original contract. Standard settlement instructions can be registered for counterparts or currency and processed as default values during deal input. The use of default payment instructions ensures accurate settlement instructions and increases efficiency by eliminating unnecessary manual input. Different financial institutions sometimes use different names for the same deal. RIBS4 allows users to continue using their familiar terms. For maximum flexibility, the deal types are defined in a RIBS4 table, which allows users to enter deals according to bank-specific terminology. Following list does not include all deal types that RIBS4 can process.
Inquiries / Back-office
Inquiries / Portfolio manager (middle-office)
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