1. Securities User Guide
  2. Overview of Securities

2 Overview of Securities

The Securities module of Oracle Banking Treasury Management is a comprehensive, automated, and flexible back-office deal processing, and security life-cycle processing system. With this module, you can capture details of the security deals entered at your front office, process deals, and track the life cycle events of holdings in your own, or your customer's portfolios.

The module is comprehensive in its ability to process different types of securities (fixed and flexible interest bonds, bonds with staggered and bullet redemptions, series type bonds, equities, warrants, rights, and discounted instruments) and portfolios (bank type, customer type, and issuer type). It is comprehensive in its ability to capture a host of relevant information for a variety of deal types (buy/sell; spot/forward; block; lodge/withdraw; repo/reverse repo; safekeeping location transfers, etc.).

The Securities module automates the entire processing-cycle of holdings in a portfolio (asset, liability, profit and loss bookings, accrual processing, and revaluation), and the processing of corporate actions (coupons, dividends, bonus, rights, warrants, and redemptions) defined for an instrument. The module automatically generates the SWIFT, Telex, and mail messages specified for the ‘events’ linked to deals or portfolios. It helps you automatically track your positions and holdings across various safekeeping locations, and automatically track, online, your exposure to a customer at the deal level for total or pre-settlement risks. At the end of the day, you can also track your exposure to selected issuers and safekeeping locations.

Defining ‘Products’, in Oracle Banking Treasury Management., helps you streamline your operations based on the various types or categories of business segments you operate in. For example, if you are an issuer of securities, you can define the different types of issuer portfolios as products. If you offer customer portfolio maintenance schemes, you can define each type of scheme as a product. Similarly, if you maintain short term zero-coupon bonds, you can define it as a product. You can, likewise, define different deal types into products.

The Securities module gives you the flexibility to define, upfront, components (such as interest, charge, and tax), restrictions (such as branch, currency, customer, security, and portfolio), preferences, and events and accounting entries into ‘Classes’. When defining a product, you merely need to associate it with the different classes that you have built. You can change the attributes of classes, on association with a product, to suit specific security, portfolio, or deal.

The module also offers you the flexibility to define portfolios based on your requirements. If you are an issuer of securities, you can maintain issuer portfolios for the coupon and discounted instruments you issue. On these instruments, you can automatically track coupon events, accruals, and redemption until maturity. You can define your trading and investment portfolios, and choose the costing method (LIFO, FIFO, WAC, etc.), the interest and discount/premium accrual frequencies, and the revaluation method that you would like to adopt. If you offer customer portfolio management facilities, you can define customer portfolios, and track all life cycle events from inception to maturity. You can levy charges on a variety of bases, at deal or portfolio level, for your services.

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