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www.wallstreetsystems.com
Wallstreet BackOfficeGlobal, cross asset solutions forhigh performance STP workflow
Edition 1 PAGE 1 OF 12
Wallstreet BackOffice is a scalable, high volume engine thatsupports post trade processing for an extensive range of assetclasses. Wallstreet BackOffice centralizes and optimizes theglobal operations of your bank. It monitors activities across allasset classes, in turn providing transparency and interactiveservices to your clients. Wallstreet BackOffice enables youto deliver quality, best of breed and efficient service to otherdepartments and improves margins by driving down transactioncosts.
BUSINESS CHALLENGESBanks today face new challenges driven by soaring volumes due to algorithmic trading,
the growing prominence of ECNs and bank portals, insourcing and outsourcing of services
by clients, prime brokerage and overall increasing complexity of the business. This and the
rising demand for cross-product operational services has increased the requirement for the
effective integration of multiple systems and applications in the post trade environment to
ensure the seamless flow of data and transactions. Traditional broker services, voice trading
and associated customer contact is declining in contrast to the rise in demand for post trade
services. Cost competition is more of an imperative than ever before.
In an environment striving to maintain high straight through processing (STP) rates while
keeping operational costs low, managing transaction workflow and exceptions in the most
effective way, is key to achieving this.
At the same time, banks are under pressure to maintain control and minimize operational
risk. Efficiency and flexibility are essential. Back Office Operations require scalable, highvolume solutions that cater for a wide range of asset classes and will automate processes
wherever possible to keep up with increasing volumes while allowing a flexible approach to
cater for any specific requirements or customized processes.
FACT SHEET:EMPOWERING YOUR OPERATIONS
WITH AN INTEGRATED PLATFORM TO DRIVE DOWNSETTLEMENT COSTS AND BETTER MANAGE RISK
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PAGE 2 OF 12 Edition 1
FRONT-OFFICE SYSTEMS:Including
Reuters, Bloomberg, Murex, Summit,In-house systems
Trade ProcessingWallstreet BackOffices
compute engine to revalidatetrade components
Cash Flow ProcessingProcesses all tradecomponents generatedby source systems
STP
INTEGRATION
EXCEPTION
MANAGEMENT
WORKFLOWAND
ESCALATION
CONFIRMATION
ANDMATCHING
CASHMANAGEMENT
SETTLEMENT
AND CUSTODY
CASHRECONCILIATION
SUB-LEDGER
ACCOUNTING
CLIENTSERVICES
KEY
PERFORMANCEINDICATORS
(KPIs)
ACT
IVE
P
ASSIVE
KEY FEATURES
The Wallstreet BackOffice Settlement and Controls component is
a consolidated operations solution that provides the client with the
functionality to control and physically manage the trades or cash
flows generated from the front office system(s). It provides the ability
to function in a range of modes catering for any organization from
Corporate Treasuries to Tier One Banks.
It is complemented by a full static database where settlement
instructions, bank details, customer preferences and control parameters
are managed. The configuration modules allow clients to control the
rules for the management of static data, to review and amend profiles
of deal types and the profile for effecting payment.
The solution is based on a straight through processing model by
default and, as such, operations are concentrated on exception
processing and the management of settlement relating to exotic
products.
The Settlement and Controls component is central to the management
of operational risk on the system and runs in parallel with Wallstreets
Confirmation and Matching and Cash Reconciliation solutions.
The solution covers the following six key functional areas:
Integration Exception Management Workflow and Escalation Settlement and Custody G/L Accounting Key Performance Indicators
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Edition 1 PAGE 3 OF 12
INTEGRATION
Wallstreet BackOffice offers standard interfaces to popular industry platforms and a development
toolkit to interconnect with other applications.
INTERFACES TO ALL MAJORCLEARANCE & SETTLEMENT SYSTEMSWallstreet BackOffice provides interfaces to all major clearance and settlement systems for both
cash and securities movements. These interfaces - standard APIs to the directly-connected settlementand clearance systems - provide full control over the status and success or rejection of payments and
clearance activities. They can be time-controlled, initiating alerts and tracers within certain minimum
or maximum time spans allowed for responses to a settlement/clearance activity. Examples of major
interfaces include:
SWIFT
CLS
Euroclear
Clearstream
Trax
STANDARD APPLICATION PROGRAMMING INTERFACE (API)The system also offers an array of standard APIs that provide interfaces to the corporate general
ledger (such as SAP, Peoplesoft etc.), other banking and trading systems including Reuters and
Bloomberg, spreadsheets, statistical databases etc. These interfaces can be real time, batch intraday
or end-of-day, weekly or monthly, depending on the frequency requirement of the client. Wallstreet
BackOffice also provides data to client-sites for risk management, operations controls, customer
profitability calculations and credit statistics.
Interface Configuration andParameterization
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PAGE 4 OF 12 Edition 1
EXCEPTION MANAGEMENT
The Wallstreet BackOffice Exception Management solution offers non-stop operational management
and control from a central control panel which summarizes the current status of all trades being
processed. Post trade activities across all asset classes can be monitored in real time at a summary
level and examined at detail level from the same view. Workflow exceptions can be easily identified
and dealt with efficiently. Straight through processing is at the core of the Wallstreet BackOffice with
exception handling being rules based and user configured to comply with client policies.
STP MODELWallstreet BackOffice follows a straight through processing (STP) model and, as such, post trade
operations are concentrated on exception processing and the management of settlement relating to
exotic products.
Trades are entered into Wallstreet FX (front office) by the dealers or arrive into the system via
electronic dealing systems. If all the required static data is in place, the deal will be confirmed,
matched, settled, accounted for, reported and interfaced to other systems without any user
intervention. Wallstreet BackOffice is highly parameterized to allow for specific flows at a product,
currency or customer level and provides dynamic rule and rule based exception handling configured
to client policies.
SETTLEMENT QUEUE MONITORThe Settlement Queue Monitor is the central control panel for the management of the back office.
The screen summarizes the current state of all deals in the back office by status and from here all
exceptions or outstanding actions to be completed can be monitored to ensure that all due settlements
have been processed and acknowledged.
The monitor allows various levels of drill down to view or process deals according to specific rules.
Input Control: This shows all deals that requireprocessing action by the back office regardless of
value date. There are various input control statuses
like verification required, repair required, additional
review required, pending approval required, special
handling required or retrieval of funds required. Theinput queues also keep track of all deals approved or
modified during the day.
Settlement Request or Value Date view:This showswhat status the deal has reached from a settlement
point of view, for example if the deal has been
approved, if it is ready for payment, if it has been
paid, acknowledged or rejected. The same panel
monitors the internal settlements and any expected
receipts.
While this single screen is typically the focal point for most exception-based back office processing,
the system has a layered product called the back office watchdog that monitors all actions that
present a potential operational risk such as non payment of deals, loss of communications, non-exercised options etc. This process continually monitors the back office queues and alerts potential
problems directly to the screen or broadcasts them to various pre-defined groups.
Settlement Queue Monitor:Central Exception-based Processing
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Edition 1 PAGE 5 OF 12
WORKFLOW AND ESCALATION
The Wallstreet BackOffice Workflow and Escalation component is a fully integrated lifecycle
management solution. It supplies the tools necessary to define transaction workflow, increase
operational efficiency, optimize resources and reduce operational risk. This easy to use solution gives
the ability to configure workflow, exception queues, alerts and escalation rules allowing the user to
manage their business more effectively.
OPERATIONS CONTROL MONITOR (OCM)The Operations Control Monitor (OCM) contains robust workflow functionality to allow the client to
define the transaction lifecycle and workflow definition of all products throughout multiple locations.
The system will process all types of transactions throughout their lifecycle from automatic generation of
confirmations, confirmation matching, netting (both bilateral and multilateral), payments, reconciliation,
etc. The system allows the client to define how these will process through the system and will include
tools to configure alerts, escalation rules (both manual and automated) and a workflow monitor to
control operations from a consolidated view.
The Workflow Monitor provides a graphical representation of the transaction lifecycle and givesaccess to all underlying back-office processing functionality.
The Operations Monitorscreen allows the client to group several cities/entities to control, monitorand process their consolidated operations.
Workflow Monitor: Graphical Representation of Back Of fice Transaction Lifecycle
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PAGE 6 OF 12 Edition 1
TheInput Control Queue Allocationallows the client to define rules that will overwritestraight-through processing and re-route transactions to a new destination queue that may
require dual control or special processing.
The system also includes Work Allocationrules functionality that allows the routing of work toa particular user or user group. Work allocation rules can be defined by input control queues
to access, currencies, products, cash value etc.
Alerts against particular processes can be easily configured within the transaction workflow.
TheAlert Setup screen will allow the user to define the rules that will trigger these alerts.
Automatic Escalation rules can be easily defined and users can also escalate a particulartransaction manually. The system may send a broadcast message or escalation e-mail and
can also be configured to move transactions from one queue to another for special or urgent
processing.
Alert Setup: Internal and External Alerts of Issues or Bottlenecks
Automatic Escalation: Rule definition
Workflow Configuration: Rules-based Queue Allocation
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Edition 1 PAGE 7 OF 12
SETTLEMENT AND CUSTODY
The Wallstreet BackOffice Settlement and Custody solution offers extensive functionality to handle high
and low value payments, receipt management, current accounts, netting, custody and stock records
and commercial payments.
The core settlement functionality is driven by a combination of the configuration profile and static
data. The settlement instruction database is central to this functionality. The system allows for
instructions to be managed at a city/legal entity/product category/product/currency level for
each counterparty. Settlement instructions may be managed manually on the system or loaded
automatically.
PAYMENTS
Wallstreet BackOffice is real-time by design and payments are issued when they have reached theirrelease time provided that there are no settlement restrictions. However, payments may be grouped
together if required. The system allows for the management of a series of critical times for the
processing of settlements including user-defined payment release times and bank cut-off times.
Wallstreet BackOffice generates SWIFT compliant payment orders as default. The system can also
generate EDI formatted messages and links into many proprietary banking systems that are used for
payment clearing by Corporate Treasuries. The system allows for the encryption and authentication
of payment traffic and supports the generation of covered payments and split release of covered
payments.
When payments have been transmitted, Wallstreet will expect an acknowledgement from the
payment network (SWIFT) indicating that the payment message has been accepted or rejected based
on message format. If accepted, the deal is recorded as acknowledged or otherwise as rejected.
RECEIPT MANAGEMENTWhile much of the operational control in the settlement solution is based around the management
and execution of the payments, the system also manages the processing of receipts for both a cash
management and settlement risk point of view. The system can accept MT910 (advice of Credit)
or MT950 statements in real-time to update the status of the receipts filed in the system. Wallstreet
BackOffice also has the functionality to identify receipts that have not been acknowledged and thus
get the correct visibility of available funds. Receipts may be manually acknowledged if required. The
component manages both external and internal (settling over current account) receipts. Receipts can
be manually or automatically included as candidates for netting. The system can generate avisos
(MT210) on a nostro basis to advise expected receipts.
NETTING & SPLITTINGThe system has full settlement netting capability for
both bi-lateral and multi-lateral netting. It supports both
automatic netting (for regular netting counterparties)
and adhoc netting. Transactions are netted at a
location, value date and counterparty level. Netting
can be done on a net, gross, currency pair basis
or by cherry picking the deals. The system suggests
netting by listing all netting candidates. The user can
then decide if all transactions should be netted or if
certain transactions should be excluded from netting.
Wallstreet BackOffice also allows for the splitting of acash flow relating to a deal into individual components
for the same or different counterparties. The component
deals, once processed by a user, follow the normal
processing rules in the back office.
Netting Management:Selecting Trades for Netting
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PAGE 8 OF 12 Edition 1
CUSTODY AND STOCK RECORDSWallstreet BackOffice provides the ability to see projected settling securities trades, which includes
all possible fails, pair off candidates and open payable and receivable. The system comprises both
a Stock Record and a Depository Position Monitory for views of positions, as well as interfacing with
SWIFT for confirmations and delivery instructions.
Settlement Messages:Delivery instructions for securities trades will normally get produced as soon as
the trade is approved. However, it is possible to schedule the creation of the messages at a specifictime or a specific day for a particular Custodian/ Currency/ Product/ Payment Method.
Managing Cash: Wallstreet BackOffice has two main screens for managing cash, the DepositorySummary and the Depository Activity Monitor. The Depository Summary screen displays the overall
activity for all depositories within a particular city (a city is generally used to represent a physical
back office processing centre.) This function tracks projected and actual cash settlements as they
occur at the depository. The Depository Activity Monitor provides a more detailed view of cash
positions within a single depository.
Managing Position Balances: The Depository Position Monitor shows all of the activity within agiven depository for a particular day, on an issue-by-issue basis. The screen shows one line for each
security and then provides drill down capability on fails as well as cleared items. The Stock Record
is a centralized database that displays the position and location of securities. The back office Stock
Record allows the user to view end-of-day snapshots of trading activity on a security-by-security
basis.
COMMERCIAL PAYMENTSWallstreet BackOffice provides comprehensive payments processing that allows the user to make
payments and register receipts to/from external third parties (e.g. the payment of brokerage fees,
margin calls) as well as effect internal cash movements (Nostro Transfers).
Commercial Payments can be settled and accounted for, and the resulting cash flows can be seen in
numerous inquiry screens throughout the back office in real-time. The system files cash flows derived
from the above type transactions in the Wallstreet BackOffice processing queues as normal and the
same processing rules are applied to allow execution of the payment orders.
Commercial Payments can be entered manually via the Commercial Payments input screen or can be
automatically entered via the Commercial Payments API. The automatic use of Nostro Transfers may
be utilized as part of the Cash Management Functionality where Cash Pooling and Zero Balance
account arrangements can be facilitated.
Third Party Paymentsare used to register actual payments (or receipts). Processing occurs over acurrent account (out of or into which the funds move) and a customer (the payee). Details of the
cashflows are picked up from the standard settlement instructions or can be typed in manually at deal
input time. Third Party Payments can be configured to generate an MT202 message if required.
Nostro Transfers allow for the movement of cash between Nostro Accounts (within the same ordifferent legal entities), and can be used as part of the Cash Management solution to effect Cash
Pooling and Target/Zero Balancing Cash Movements. The system can be configured to generate an
MT200 message if required.
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Edition 1 PAGE 9 OF 12
G/L ACCOUNTING
The Wallstreet BackOffice contains robust and flexible
accounting functionality. It can serve as a banks official
general ledger, support regulatory-based practices such as
FAS 133 or IAS 29, and export main account and sub-ledger
account balances to an outside ERP system such as SAP or
PeopleSoft.
Typically, the system will act as a sub-ledger to a larger bank-
wide general ledger. Interfaces can be built between the
Wallstreet sub-ledger and external general ledger systems to
provide the necessary accounting information.
All accounting postings are event-driven. A transaction can
have one or more events associated with it. Examples of
events are:
Start date or maturity date for a loan or deposit
Interim interest payment dates on floating or fixed rate
instruments with multiple payment periods
Trade and value date for an FX transaction
P/L recognition (via accruals or mark-to-market)
The events used to account for a transaction are user
configurable.
Accounting Rules:Account Posting Tables contain theaccounting rules that drive the account postings within
the system. The posting table is the mechanism by which
accounting events are linked to accounts. Posting tables are
linked to one or more products. Within the posting table set
up it is possible to define profit and loss accounts, be they
mark to market, accruals, premium, or amortization accounts.
Profit & Loss:The system comes with a versatile tool to viewP/L. This spreadsheet tool allows the user to create various
P/L views simply by specifying accounts within a spreadsheet.For example, it is possible to set up a spreadsheet for accruals
that will allow the dealer/ financial controller to view the total
accrual P/L across all currencies and for all products.
Account Posting Tables: Rules-driven Account Postings
Trial Balance
Debit/Credit Detail
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PAGE 10 OF 12 Edition 1
KEY PERFORMANCE INDICATORS(KPIS)
STATISTICSWallstreet BackOffice is supported by a comprehensive statistics database that records:
the number of payments on a daily, month to date and year to date basis
a currency equivalent amount of these payments any associated fails
the number and type of operations at both a city level and a user level
Payment and Failure amount are expressed using a Statistic Base Currency. Todays data is real-time
and gets updated every time a payment is acknowledged or rejected. Monthly and yearly statistics
are updated every night during Close of Area processing.
END TO END STP ANALYSISWallstreet BackOffice provides comprehensive straight through processing analysis tool covering all
stages of the trade lifecycle. Data relating to non STP actions from external systems can be integrated
via standard API and drill down to trade and audit trails is supported for in depth analysis. Further
features include a historical database.
The STP Analysis Monitorallows the user to view their STP rates for a particular city at every processin the transaction lifecycle as well as the overall STP rate for selected dates.
The user can drill down into any of the value dates on the STP analysis and this will break down
each of the processes by the appropriate STP and non-STP percentages for each particular process.
The enquiry will also detail the number of trades that are non-STP and will allow the user to drill down
and see the trades that make up that number.
Functionality includes the ability to generate a graph based on the STP analysis.
STP Analysis Monitor: STP Analysis through all stages of the trade lifecycle
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Edition 1 PAGE 11 OF 12
STP Analysis over a specified date range
The bar chart button at the top of the STP Analysis screen will allow the user to breakdown and
analyse the output based on different criteria. These include counterparty, currency, product, nostro,
user, customer type and customer location.
The system will allow both the graph and the chart to be copied and pasted into a third partyapplication such as a word processor or spreadsheet.
STP Analysis by Counterparty
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CONTACT US
North America HQ+1 212 809 7200
Email [email protected]
Europe HQ+44 (0) 20 3170 3000
Website www.wallstreetsystems.com
Asia HQ+65 6232 2365
Wall Street Systems EmpoweringTreasury, Trading and Settlement
Edition 1 PAGE 12 OF 12
2007 Wall Street Systems Delaware, Inc. All rights reserved.
BUSINESSCHALLENGE
WALLSTREET BACKOFFICESOLUTION
HIGH TRADE VOLUME ANDCROSS PRODUCT SUPPORT
Wallstreet BackOffice is a scalable, high
volume engine that supports post trade
processing for an extensive range of asset
classes.
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SEAMLESS INTEGRATION
The Wallstreet BackOffice provides you with
a consolidated operations solution that ensures
the seamless flow of data and transactions.
Wallstreet BackOffice offers standard
interfaces to popular industry platforms and adevelopment toolkit to interconnect with other
applications.
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OPERATIONAL COSTREDUCTION
Straight through processing and client-defined
workflow management are at the core of the
Wallstreet BackOffice Settlement and Controls
solution. Wherever possible processes are
automated to keep up with high volumes, to
increase operational efficiency and reduce the
cost associated with settling deals.
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GREATER OPERATIONALRISK CONTROL ANDTRANSPARENCY
Wallstreet BackOffice provides you with an
integrated platform and the functionality to
control and physically manage trades or cash
flows in a real-time environment. Wallstreet
BackOffice allows you to centralize and
optimize your global operations and monitor
activity across locations. Rules-based exception
management, comprehensive statistics and
analysis tools offer you operational control and
transparency across all asset classes.
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