Each custodian market is different and so Custody
2000® is specifically customised for each country. The functionality of
each version is market specific and truly reflects the
custody and settlement practices in that market. Custody
2000® 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.
The system is highly configurable, allowing a regional
global custodian or sub-custodian to seamlessly integrate
into the global custodian networks.
Custody 2000® makes full use of a client/server design. 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 and Control System regulates access to the
software and all user activity is logged. 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. The
solution comprises of the following modules:
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 it. 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.
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; and Interest Payments.
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; and, 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.
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.
The above details represent just a few highlights of
Custody2000®. Many more features are available. This
solution is a highly flexible system, and many existing clients have received bespoke enhancements to cater for
their unique requirements over the years.
If you would like to receive more information on
Custody2000® in Asia, please call Simon Collier at Sondent's
Hong Kong office: +852 8120 5325.
.