Transactions Settlement & Portfolio Accounting

Post-trade procedures are smoothly handled in RiskValue. The system’s operating design, with all functions processing within the same single database, provides the perfect platform for productivity and risk reduction in this complicated area. A complete secured and auditable environment allows monitoring of primary and derived historical information.

Main Features

Trades Management

  • Connect to Central Clearing Counterparties (CCPs), General Clearing Members (GCMs) or other trading platforms for real-time deal capturing
  • Capture block and allocated trades through direct links to trading venues, CCPs, GCMs, administrators
  • Support all asset classes as well as structured products and complex trading strategies
  • Trades notifications, import and validation
  • Trade confirmation and allocation to multiple accounts with user defined rules
  • Portfolios’ transactions netting
  • Exercise/Assign of contracts and generation of any underlying trades

Settlement operations

Throughout the broad range of instruments handled by the system, matching, confirmation, settlement and cash flows generation may be achieved without human involvement. Events such as exercise decisions, resets, corporate actions and calculated cash and physical settlement are supported. This generates a Straight-Through-Processing environment which implies that users must only focus on warnings messaging and exception handling.

  • Provide fully segregated and omnibus clearing models to your customers
  • Settlement calculation of each transaction across all asset classes, instruments and transaction types
  • Send and receive SWIFT messages for the complete settlement life-cycle
  • Settlement information integrated to investment accounting process

Fees and other expenses calculation

The system fully automates the calculation of transaction fees process by allowing to easily set-up multiple fees schemes charged by the clearing agents, trading agents and the exchanges for different instruments and underlying products. Each such scheme may be based on different currency, and may accommodate numerous features:

  • Design and execution transaction fees schemes (Exchange, Clearing, Broker) - Complex fees schemes (groups, strategies, exceptions, etc.) per instrument, market, currency, product type, etc.
  • Transaction fees schemes may depend on various factors such as trading volume, strategies, scales, transaction types etc.
  • Design and execution profit centre fees schemes (retrocessions)
  • Custody fees calculation

Portfolio accounting

  • Realized/Unrealized Gain and Loss calculation
  • Several methodologies for P&L calculation (FiFo, LiFo, unit cost, weighted average, specified matching, etc.)
  • Monitor analytically portfolios’ cash flows and cost analysis
  • Mark-to-Market/Model valuation based on theoretical pricing models (i.e. NPV for interest rate products and option pricing models)
  • Portfolio cash flow projections
  • Wide range of listed and OTC derivative instruments on various underlyings
  • Interfaces with data vendors for uploading daily and historical closing prices
  • Data integrity checks based on calendars and trading venues holidays
  • Amortized expenses or incomes using any type of cash flow schedule

Cash management

  • Comprehensive cash accounts maintenance (multiple cash accounts per customer, managed/brokerage/clearing account, sub-account, investment fund)
  • Automatic cash flows generation based on daily investment activity (inflows, outflows, realized PnL, daily settlement, corporate actions, fees and expenses, variation margin, payment vs delivery, etc.)
  • Cash balances per transaction and valeur date
  • On-line transactions and payments to banking systems
  • Cash transactions and balances reconciliation
  • Cash flow projections and cash balances
  • Automated Money Market and FX transactions generation

Comprehensive reconciliation

The reconciliation module has been developed to enable users to reconcile data within RiskValue® against other systems. Rapid and seamless interfaces with third parties (prime brokers, custodians, fund administrators) allow straightforward reconciliation for further accuracy. These fields include positions, valuation, profit & loss, fees, variation margin, collateral and cash balances with highlighting and update functionality.

Reporting to Trade Repositories (EMIR)

  • Post-trade reporting to authorized trade repositories
  • Auditable reporting transactions
  • Interfaces with all trade repositiories
  • Confirmations and work-flow reports