Making operations more efficient

Process automation is at the heart of the SynSettlements' engine and therefore a goal of a Syn implementation is to radically reduce the human involvement needed in processing a given transaction. This in itself will facilitate high STP rates. However, further reduction in operational costs requires an automated approach to dealing with the exceptions, that arise from trades, which cannot be automatically processed. Syn's unique approach to exception routing and handling ensures the correct and rapid repair of transactions to keep operational activities as efficient as possible.

Business rules users can understand

An organisation can enhance the existing best practice templates by means of business rules in a natural, easy to use language. Details of processes to be automated are captured as graphical charts that can be understood by operational staff. These advances ensure that business knowledge is preserved over time in a self-documenting manner and end-users can be involved with the definition and on-going change and maintenance of the system.

SynSettlements business functionality

SynSettlements is product and business neutral, supporting the widest range of operational activities within a financial institution.

Product Types

Fixed income
Eurobonds
Sovereign debt (e.g. UK Gilts, BTANs, U.S. Treasuries)
Corporate bonds
Zero-coupon bonds
Floating rate notes (including mismatches)
Emerging markets
Convertibles
Equities
International
Multi-exchange listed
ADRs/GDRs
Warrants
Currencies
Money markets
FX (Spot and Forward)
CDs
Commercial paper
Treasury bills and notes
Loans and deposits
Derivatives
Futures
Options
Swaps

Transaction types

Principal (including riskless back-to-back)
Agency (including agency cross)
Repos (including open, term, buy/sell-back)
Borrow/lends
FX
Loan/deposits
Custody transactions
Journal transactions
Depot/nostro transfers
Book transfers
Take-ons

Trade capture and validation

Incoming message parsing
Full trade amend/cancel logic
Reference data checking (e.g. instruments, parties, currencies, markets etc.)
Date checks
Value checks (including charge or interest recalculations)
Complex multi-field validations (in user-defined rules)

Trade enrichment

Rule-based enrichments defined by users
Date calculations (e.g. multiple market value date)
Value calculations (e.g. accrued interest, fees and charges, net consideration)
SSI calculations using best-match algorithms
Configured parameters including product types, market, currencies, transaction types, legal entity, and counterparty etc.
Rule-based exceptions
Exception driven throughout

Confirmations

Real-time confirmation generation
Multiple confirms/contract notes by:
Interested parties
Addresses
Languages
Templates
User-defined data generated in an XML stream
Support for SWIFT, telex/fax, e-mail and printing
Full ACK/NACK processing

Trade matching and allocations

Trade reporting messages automatically generated e.g. TRAX
ACK/NACK response tracking
MATCH status response
Automatic allocation processing e.g. OASYS

Position management

Real-time
Securities and cash
Owner versus location (e.g. book, client, depot, nostro)
Custody positions (including statements)
Trade-dated and value-dated i.e. current and projected positions
Forward ladders
Actual settled positions (for reconciliation)
Backdated positions as at any date and time
Open items
Multiple concurrent aggregation structures
User-defined sub-positions (e.g. repo, reverse repo, borrowed, lent, collateral

Profit and loss

Real-time
Realised and unrealised
Mark to market
19 different profit calculations
Trade and value dated
AVCO (clean, dirty etc)
FIFO
LIFO
HIFO
Matched
Amortisation and accretion
Linear
Simple and compound yield
Normalised unit discount

Settlement instructions and matching

Real-time calculation and generation of settlement instructions
Multiple instructions from one transaction
Full DVP and FOP instructions for securities and cash
Transfer instructions for securities and cash
Automatic instruction splitting (e.g. for U.S. Treasuries)
Instructions to:
SWIFT
Crest
Euroclear
Full ACK/NACK processing including exception generation
Timeliness monitoring for settlement match i.e. for depot deadlines
Appended returned match status with code translations

Settlement

Automatic and manual settlement
Settlement splitting and netting
Partial and full settlement capture
Settlement validation
Upon receipt logic
Fail trade exception processing
Write-off processing

Ledger Postings

Full multi-entity accounts posting from
Transactions
Settlements
Mark to market
Accruals
Accretion/amortisation
Real-time or batch generation
Balanced debit/credit journals or events
Multiple parallel ledgers each with differing base currencies and calendars
Flexible period open/close for back-dated adjustments and reworks

Corporate Actions

Generic structure
Entitlement capture
Proprietary & client positions
Repos & fails processing
Claims processing