Comarch Custody

Comarch Custody is a modern back-office system for post-trade operations carried out by custodian banks. As a comprehensive custody software, Comarch Custody covers all functions required by custodians operating on domestic and foreign markets:

  • Settlement & clearing
  • Safekeeping
  • Asset servicing
  • Client & regulatory reporting
  • Automated data exchange
  • Billing & taxation

With Comarch Custody back-office system you will be able to run a back-office in a cost-effective way, providing retail and corporate clients with an A to Z service and effectively competing with other custodians on ever-changing capital markets.

Key business advantages

Connectivity standards

SWIFT and ISO 20022 messages for a fully automated data exchange with CSDs, CCPs and clients

Internal accounting engine

Multi-status chart of accounts with double entry rule, allowing for full tracking of assets under custody

Customizable data processing

Records and processing rules can be adapted to local regulations, operating models and your internal procedures

Hassle-free data access

Smooth extract of data on assets and operations with the use of database views, web-services or user-defined extracts

Flexible financial settlement modes

DVP or independent financial settlement (gross or net), with booking schemes and interfaces adjusted to local regulations and financial systems in use

Modern functions for securities settlement regime

Hold-release, netting, partial settlement, linking and settlement tolerance leading to less risky settlement processes thanks to securities back-office system

Wide range of data interfaces to bank systems

Core financial system, client database, e-custody, market data, AML, DWH, taxation and billing interfaces for an automated data exchange in the online or batch mode

Multi-entity approach

Option for global custodians with a network of branches to use the same system for processing operations on a local or global level

Modules

  1. 1. Static data management
  2. Clean static data is crucial for further processing and reporting of post-trade operations. The static data module stores data on:
    •    market participants (CSDs, custodians, brokers, issuers), 
    •    your clients and their accounts (custody accounts, cash accounts, CSD accounts, CCP accounts), 
    •    financial instruments and their market data (prices, FX rates, daily interest, haircuts, corporate actions)
    •    auxiliary data (countries, DTT rates, SSIs, client communication schemes)
    Most data can be imported from external sources. All static data is subject to the four-eyes rule prior to use in other operations
  3. 2. Settlement & clearing
  4. The settlement engine creates trade records based on data from client instructions, broker files or manual entries.  The validation process for each new trade includes static data check, forecasted positions in cash or securities, internal matching tolerance, settlement limits, sanctions, etc. Once a trade is validated, the preliminary or final settlement instructions are created and sent to a CSD in a proper format (SWIFT, ISO 20022 or proprietary).

    Constant monitoring of trade status at the CSD allows for a prompt reaction in case of matching problems, as well as regular notifications for the end client. Trade settlement triggers automatic securities and/or cash position updates and the creation of settlement confirmation for the client. Each operation can be edited, enriched or reversed.
  5. 3. Corporate actions processing
  6. Our system covers a wide range of mandatory and voluntary distribution and reorganization events. Processing of corporate actions starts with a creation of a general event record based on a notification received from a CSD or other sources. Further processing can be automatic or manual for all or selected accounts. Tax agent functions allow for calculation of net payments on the record-date or ex-date basis with regard to DTT rates applicable for a particular income and client. Communication schemes create flexible rules for client notifications. Beneficial owners disclosure for omnibus accounts and proxy voting complement the full-fledged CA processing engine.
  7. 4. Safekeeping
  8. Multi-status internal chart of accounts with a double-entry rule and flexible accounting schemes enable precise asset segregation and further processing based on a trading or settled position.  Intra-position asset status changes on the custodian or CSD level can be shown on the main or auxiliary chart of accounts. Fully integrated posting engine lets you track the history of all position changes. Position data can be presented in various layouts on system screens, reports and extracts. Automatic reconciliation with CSDs or sub-custodians decrease the operational risk, especially in case of multi-listed securities held at more than one safekeeping places.
  9. 5. Data exchange
  10. A modern custody system must allow for an automated and effective processing of high volumes. It can only be achieved if the exchange of data with all relevant systems is carried out automatically. Data flows include not only client instruction processing and CSD/CCP connectivity, but also a set of interfaces to the bank’s general ledger system, e-custody portal, BI tools, market data source or central client database. Depending on the third-party system technology and functions, data exchange can be delivered as a fully automated, bi-directional online interface (web-services, JMS or MQ queues, direct database link) or as a batch mode file interface.
  11. 6. Reporting
  12. An integrated reporting engine allows for an automatic creation of numerous reports for clients, authorities or internal bodies. Reports can be created in your client’s language, as PDF or MS Office compatible files, or else: in a specific format required by the recipient institution or its system. All reports can be scheduled for an automated creation or generated ad-hoc. A copy of each report is stored in the system and can be retrieved for auditing purposes. If there’s a need for an ad-hoc report, business users can pair data on operations, positions and billings with the one on clients and instruments to create a dashboard panel or an extract for further processing.
  13. 7. Billing
  14. Highly customizable fee tables make it possible to setup almost every combination of rules for the calculation of settlement and safekeeping fees. Each fee table can be linked to a group of clients, so you can setup a separate fee table for each of your client segments. Out-of-pocket fee function allows you to capture a one-time fee related to extraordinary services provided by a custodian bank or an intermediary institution (e.g. broker fees or CSD fees). Periodical fee calculation, with a computation review and acceptance functions results in an automatic creation of posting records and/or invoices.
  15. 8. Security
  16. Custody service is a matter of trust, reliability and security. Therefore we always integrate our custody system with a central user depository (AD, LDAP etc.) for user authentication and authorization. User rights can limit access to particular screens or functions. Four-eyes rule in static data, daily settlements and reporting combined with audit functions create an indisputable audit trail for all user actions. Secured communication, data base encryption and internal security audits let us deliver a bullet-proof custodian back-office system for the safety of your operations and your clients’ assets.

Static data management

Clean static data is crucial for further processing and reporting of post-trade operations. The static data module stores data on:
•    market participants (CSDs, custodians, brokers, issuers), 
•    your clients and their accounts (custody accounts, cash accounts, CSD accounts, CCP accounts), 
•    financial instruments and their market data (prices, FX rates, daily interest, haircuts, corporate actions)
•    auxiliary data (countries, DTT rates, SSIs, client communication schemes)
Most data can be imported from external sources. All static data is subject to the four-eyes rule prior to use in other operations

Settlement & clearing

The settlement engine creates trade records based on data from client instructions, broker files or manual entries.  The validation process for each new trade includes static data check, forecasted positions in cash or securities, internal matching tolerance, settlement limits, sanctions, etc. Once a trade is validated, the preliminary or final settlement instructions are created and sent to a CSD in a proper format (SWIFT, ISO 20022 or proprietary).

Constant monitoring of trade status at the CSD allows for a prompt reaction in case of matching problems, as well as regular notifications for the end client. Trade settlement triggers automatic securities and/or cash position updates and the creation of settlement confirmation for the client. Each operation can be edited, enriched or reversed.

Corporate actions processing

Our system covers a wide range of mandatory and voluntary distribution and reorganization events. Processing of corporate actions starts with a creation of a general event record based on a notification received from a CSD or other sources. Further processing can be automatic or manual for all or selected accounts. Tax agent functions allow for calculation of net payments on the record-date or ex-date basis with regard to DTT rates applicable for a particular income and client. Communication schemes create flexible rules for client notifications. Beneficial owners disclosure for omnibus accounts and proxy voting complement the full-fledged CA processing engine.

Safekeeping

Multi-status internal chart of accounts with a double-entry rule and flexible accounting schemes enable precise asset segregation and further processing based on a trading or settled position.  Intra-position asset status changes on the custodian or CSD level can be shown on the main or auxiliary chart of accounts. Fully integrated posting engine lets you track the history of all position changes. Position data can be presented in various layouts on system screens, reports and extracts. Automatic reconciliation with CSDs or sub-custodians decrease the operational risk, especially in case of multi-listed securities held at more than one safekeeping places.

Data exchange

A modern custody system must allow for an automated and effective processing of high volumes. It can only be achieved if the exchange of data with all relevant systems is carried out automatically. Data flows include not only client instruction processing and CSD/CCP connectivity, but also a set of interfaces to the bank’s general ledger system, e-custody portal, BI tools, market data source or central client database. Depending on the third-party system technology and functions, data exchange can be delivered as a fully automated, bi-directional online interface (web-services, JMS or MQ queues, direct database link) or as a batch mode file interface.

Reporting

An integrated reporting engine allows for an automatic creation of numerous reports for clients, authorities or internal bodies. Reports can be created in your client’s language, as PDF or MS Office compatible files, or else: in a specific format required by the recipient institution or its system. All reports can be scheduled for an automated creation or generated ad-hoc. A copy of each report is stored in the system and can be retrieved for auditing purposes. If there’s a need for an ad-hoc report, business users can pair data on operations, positions and billings with the one on clients and instruments to create a dashboard panel or an extract for further processing.

Billing

Highly customizable fee tables make it possible to setup almost every combination of rules for the calculation of settlement and safekeeping fees. Each fee table can be linked to a group of clients, so you can setup a separate fee table for each of your client segments. Out-of-pocket fee function allows you to capture a one-time fee related to extraordinary services provided by a custodian bank or an intermediary institution (e.g. broker fees or CSD fees). Periodical fee calculation, with a computation review and acceptance functions results in an automatic creation of posting records and/or invoices.

Security

Custody service is a matter of trust, reliability and security. Therefore we always integrate our custody system with a central user depository (AD, LDAP etc.) for user authentication and authorization. User rights can limit access to particular screens or functions. Four-eyes rule in static data, daily settlements and reporting combined with audit functions create an indisputable audit trail for all user actions. Secured communication, data base encryption and internal security audits let us deliver a bullet-proof custodian back-office system for the safety of your operations and your clients’ assets.

Features & functions

  • Stock exchange transactions, OTC trades and securities financing operations on domestic and foreign markets
  • Segregated and omnibus accounts at CSD or custodian level including account operator model and beneficial owners disclosure – so you can chose the optimum model with respect to regulations, costs and client needs
  • Support for equities, bonds, T-bills, commercial papers, fund units, rights and exchange traded derivatives
  • Multi-market, multi-currency and multi-language approach to let you service domestic and international clients and instruments
  • Broad range of corporate actions, with automated notifications and instruction processing, accounting and tax calculations with regards to DTT rates, client classification and income type
  • SWIFT, ISO 20022 and proprietary data exchange formats in STP mode
  • Client, internal and regulatory reporting, with wide range of statements and reports available as printouts, files or data warehouse feeds and a report management tool to let you schedule report creation
  • Invoicing process with negotiable fee tables, flexible fee calculation engine, invoice management and automatic bank and intermediary fee collection
  • Analytical dashboard to see operation and position statistics, monitor system work, manage STP exceptions and react on situations that require some extra attention
  • Web interface allowing users to access the system via web-browsers and minimizing the maintenance problems
  • Single sign-on support with advanced security standards, user profiles, four eyes rule and audit trails to secure business data and track user actions
  • Customization of reference data, trade processing workflows, interfaces and reporting coming by default to suit your specific requirements

Comarch Custody is a system that follows market standards and cater to your clients in the best way possible. A wide array of functions to choose from will suit your needs regardless of your operating model, scale of operations, legal framework and IT environment. And if by any chance you feel that some areas of your custody software are not covered or need customization, do not hesitate to tell us. We’re always ready to adjust our  custody system to match your requirements perfectly.

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