Snapshot of the Module

The instruments supported

Figure 2-1 Process Flow

Fixed interest bonds with quantity (staggered), bullet, or series type redemptions, and user-defined coupon schedules supporting different interest methods for accrual and liquidation.
Flexible interest bonds with quantity, bullet, or series type redemptions, and user defined coupons with synchronous or asynchronous rate revision schedules supporting different interest methods for accrual and liquidation.
Discounted instruments (Treasury Bills, Zero Coupon Bonds and Commercial Papers)
Equities
Rights
Warrants

Corporate Actions processing supported

Bonds:

Collection and disbursement of coupons for long and short holdings collected/ disbursed, by batch, from safekeeping location of holding for each portfolio.
Redemption: processed, by batch, as an auto sell-type deal. The types of redemption supported are:
Bullet (at premium or face value)
Quantity (percent of original face value) at a user-defined redemption price for each intermediate redemption
Series (with user defined series and redemption date and price)
Warrant events are processed as appropriate auto buy or sell deals between the portfolio and the SK location of the holding.

Equities:

Cash Dividend (as rate per face value, or value per unit) collected and disbursed, by batch, from the safe keeping location of the holding, for each portfolio.
Stock Dividend (Bonus) with user-defined resultant security processed, by batch, as a buy deal from the location of holding of the parent security, for each portfolio.
Partial or full cash conversion, at user-defined encashment price, collected by batchfrom the safe keeping location of the holding, for each portfolio.
Rights events are processed as appropriate auto buy or sell deals between the portfolio and the SK location of the holding.

Rights and Warrants:

Tear -off from the parent security at a user-specified ratio.
Exercise giving a user-defined resultant security at a user-defined ratio and exercise price.
Automatic expiry on the date specified.

Portfolio features supported:

Bank Portfolio

Costing basis: Deal Matching, LIFO, FIFO, and Weighted Average Costing.
Independent accrual option at flexible frequencies.
Flexible accrual options for forward profit or loss.
Revaluation using MTM or LOCOM for Settled or Total positions.
Option to restrict the portfolio from taking a short position.
Flexible, user-defined accounting entries and advices for each event.
Facility to specify, upfront, the GLs to which accounting entries for a portfolio product would be posted. You can change the default to suit a specific portfolio maintained under a product.

Issuer Portfolio

Costing basis is always WAC and the portfolio is always short in the issued security.
Independent accrual option at flexible frequencies.
Flexible accrual options for forward profit or loss.
Revaluation using MTM or LOCOM for Settled or Total positions.
Option to restrict the portfolio from taking a short position.
Flexible, user-defined accounting entries and advices for each event.
Facility to specify, upfront, the GLs to which accounting entries for a portfolio product would be posted. You can change the default to suit a specific portfolio maintained under a product.

Customer Portfolio

Can attach pre-defined charge components (built with different charge bases, such as the coupon liquidation amount, stock to cash liquidation amount, etc.) to a customer portfolio.
Specify the notices to be generated for the various corporate actions due on a security in the portfolio

Deal Product Types

The following deal types are supported:

Buy and sell deals of type bank-to-customer, bank-to-bank, and customer-to-customer
Rights and warrants ‘exercise’ type deals for bank and customer portfolios
Lodge and withdraw type deals for customer portfolios
Block and Release Block type deals for bank and customer portfolios
Transfer from one SK location to another

Activities Supported through Deal Online are:

Purchase and sale of securities between bank and customer portfolios, bank and standalone customers, bank and bank, and customer and customer.
Spot and forward deals can be processed using user-specified market details, rates, trade, and settlement dates bought or sold interest, and deal currency. Most likely values are available as defaults for aiding faster inputs.
Money settlement, on auto or manual basis, according to pre-defined settlement instructions.
Deal level messaging based on the parties specified.
Customer portfolio deals, with accompany withdraw/lodge options, to capture deals by customer portfolio outside bank’s custodial interest.
Standalone Withdraw/Lodge for customer to handle customer deals struck independently from holdings managed by the bank.
Repo by bank portfolio/Reverse Repo by the bank to the customer with portfolio (auto-blocking in portfolio of securities and with tracking of the market value of the blocked securities vis-à-vis the contract amount outstanding).
Block Release Block.
Transfer across Safe Keeping Locations.
Facility to change the format of the security.

2.1 Snapshot of the Module