Custody 2000 - custody and settlements software system

Post date: 07-Oct-2013 05:05:07

Custody 2000® is a complete custody and settlements software system specifically designed for securities custodians.

The product comprises several modules. Each module provides the custodian with functionality specific to an area of custody operations.

What makes Custody 2000® unique?

Custody 2000® is purely a custody system and as such, specifically addresses the needs of the custodian bank. It provides a single integrated solution that covers all aspects of custody making it a specialist product.

Each market is different. Custody 2000® is delivered in customised versions for each country. The functionality of each version is market specific and truly reflects the custody and settlement practices in that market.

Custody 2000® is a comprehensive product. It meets all the business needs of a custodian including settlements processing, S.W.I.F.T. messaging, corporate actions processing, client billing, management and regulatory reporting.

Custody 2000® is highly configurable allowing the sub-custodian to seamlessly integrate into the global custodian networks.

Custody 2000® has been developed with the latest technology and makes use of client/server architecture. An open architecture allows it to easily interface with existing host systems. The system handles very large trade volumes efficiently and scales up to support a large number of users. There are no lengthy end of day batches. A powerful Security Management System controls access to the software and all user activity is logged. Sectech Limited - developers of the Custody 2000 securites software system

The graphical user interface of Custody 2000® has been designed with ease of use in mind. In addition, its consistent look and feel throughout the system greatly reduces training time.

A unique Internet interface allows clients to view their positions and trade status via the Internet. The module also provides on-line reporting and trade capture. This is a great efficiency tool for the custodians and their clients.

Custody 2000® incorporates skills and hands-on experiences gained in numerous custody system projects with multi-national organisations in emerging as well as mature markets.

Custody 2000 comprises of the following modules:

CORE

MESSAGINGSectech Limited - developers of the Custody 2000 securites software system

CORPORATE ACTIONS

CERTIFICATE MANAGEMENT

BILLING

INTERNET INTERFACE

ADMINISTRATION

CORE is the main module of CUSTODY 2000®. CORE maintains all market specific data like security profiles, brokers, exchange rates and prices. It also maintains the client profiles and safekeeping accounts.

All settlement related processing takes place in CORE. Client instructions are tracked in CORE from initiation to settlement (and registration).

A complete audit trail is maintained for all user activity. CORE is central to all other modules as other modules derive their data from CORE. A comprehensive access security system ensures that access to each of the options is only given to users according to their roles in the organisation.

A sophisticated cash module within CORE, allows cash (as well securities) statements to be sent to clients via SWIFT/Fax/Email, cash transactions resulting from settlements and corporate events to be automatically passed to the local banking system, plus ad-hoc cash entries manually entered into Custody2000® for transmission into the banking system. Dual control is maintained at all times for security.

Additionally there are powerful query and reporting facilities built into the system.

The MESSAGING module receives client instructions in S.W.I.F.T. format. CORE module automatically converts client instructions (S.W.I.F.T. format) into a usable format after validating the contents of the messages. Messages are auto-repaired by CUSTODY 2000® where possible. Manual repair functions are also available to the users.

The module sends settlement confirmations and statements to clients via S.W.I.F.T. This module is highly configurable and messaging for each client can be scheduled. This module provides full support for a S.W.I.F.T. STP environment.

All S.W.I.F.T. messages generated by Custody2000® can also be sent in the form of a fax or encrypted email automatically.

Processing of CORPORATE ACTIONS has always been one of the most risky areas of the Custody business. Calculations of entitlements and communication with the clients have been the 2 major areas of concern for all organisations involved in processing of such market announcements.

The Corporate Actions module processes all types of corporate events relevant to the local market. The module processes both Equity and Debt instrument related corporate actions. The module supports automated event generation for bond interest and redemption, automated generation of entitlements for all events and events payment processing. The module sends event notification, entitlement notification, payments and pending corporate actions messages via S.W.I.F.T., fax or encrypted email to clients.

The event goes through a pre-defined life cycle and a quick glance gives the users all the relevant information regarding that event.

Processing rules are defined for each event in the system. The following types of events are available as standard event types:

Shareholders meeting

Cash Dividends

Stock Dividends

Optional Dividends

Rights

Bonus Issue

Conversions

Mergers

Proxy Voting

Stock Split

Redemption

Interest Payment

In physical markets, the CERTIFICATE MANAGEMENT SYSTEM (CMS) module of Custody 2000® records and keeps track of physical certificate movement to/from the vaults. Management controls have been built into the system to enforce separation of duties between the operations staff and those assigned to the vault.

Four transaction types are available:

VAULT IN - To record certificates coming into the vault.

TEMP OUT - to mark certificates temporarily out of registration (where re-registration is required after receipt of certificates).

TEMP RETURN - To record incoming certificates from registrars after registration.

VAULT OUT - To permanently remove certificates from the vault.

Maker/Checker functionality (dual control) ensures involvement of two people in each of the above-mentioned transaction types.

Powerful query options allow any certificates related data to be extracted for use by the vault staff / management. Query reports can also be used to assist in the vault count. A reconciliation report highlights differences between the positions in Core and the Certificate Management System.

Query options allow the users to view vault transactions or certificate data. For example users can list all certificates that are due from registrars.

The BILLING module calculates the fees due to the custodian bank. It maintains client fee structures for various types of services.

The fee schedules can be set up for any number of service types. Standard services include transaction settlement (by transaction type), safekeeping of securities (by location and product type), credit utilisation, amendments to instructions, message repair etc. Other user-defined services can be set-up. Fee schedules can be set up on a tiered or sliding scale basis.

Invoices generated from this module are highly detailed, incorporating total asset value, number of transactions, charge in local and billing currency (where the billing currency is not the same as the local currency), details of the existing tariff, and a sub account by sub account breakdown of all assets held, their individual instrument valuations, and individual transactions per sub account (where a single client relationship consists of more than one trading account)

Bills can be sent to clients via fax or encrypted email.