Back Office Utilities (BOU) application is designed to handle real time automated reconciliation between any dealing system and any risk or operational deal capture system. The application handles all deal types and can automatically match FX and MM products and FX options including exotic options.
The BOU application can easily connect to any dealing system or back office system and has already an adaptor to dealing systems Reuters Dealing 3000 and EBS and to front to back office systems Reuters Kondor+, Microgen Musketeer, GFI Fenics.
Highlights:
Main functionalities:
- Analysis of dealing conversation
- Translation of dealing conversation to deal details
- Real time Deal detail matching
- Flexible Deal blotters (deals can be sorted by parameters and deals can be routed to different users)
- Mismatch reporting
- Audit trail
Main advantages:
- Real time Automated reconciliation
- Full conversation and matching detail storage
- Full audit trail of reconciliation process
- Access rights control - Granting user access to BOU application instead of access to sensitive dealing or deal capture systems
- Customized configuration of the desired matching criteria
- EOD checks (double cross examination of reconciliation completeness)
Main screens:
- All blotters are configurable – Which fields are to be presented and the order of those fields
- All dealing conversations
- All trades captured in risk or operation system (by relevant criteria)
- Un matched conversations (each conversation provides list of most likely to be matched trades, giving the exact mismatched fields data)
- Un matched trades
- Matched conversations
- Rejected matches
Many of the trading systems today have a real time interface to electronic dealing systems such as Reuters dealing 3000 or EBS.
While those interfaces are usually highly reliable, the Back office must carefully check the completeness and accuracy of each trade detail.
This reconciliation process is time consuming, requires a print out of the dealing conversation and storage of the documentation. The manual reconciliation has limited audit trail and is difficult to retrieve. The BOU application offers a fully automated process of comparing the deal information captured in the trading system (position management system and operational back office trade system) to the deal information in the trading execution system (Reuters dealing 3000 or EBS). The application is interfaced in real time to the dealing system and stores all the dealing conversations.The application also receives in real time each deal data captured in the back office system. The back office interface is configurable so only relevant trades for the reconciliation will be posted (by customer group, ctpy name, source, and so on).
The application intelligence assigns each conversation with one of the following status:
- Conversation which indicate a deal capture
- Conversation which might contain a deal detail
- Conversation which might indicate an internal deal (between the organization desks)
- Conversation which includes limit orders
- Conversation which includes option triggers and hit triggers
All conversations can be viewed from the application screen. The reconciliation and deal verification is done directly on the application. For each conversation indicating a matching supported deal type, the application will search for a match in the deals data received from the back office system. The match is based on the deal’s details. The match criteria can be configured to fit the Bank’s matching requirements. The application will list conversations that have a perfect match and for those that a perfect match was not found suggest one or more matching possibilities.The possible matching deals, will be presented in most probable match order. The un match data is comfortably presented to the user.
The user views the conversation and the deal details as they were captured in the back office system.
The user can confirm the match suggested by the application, reject the match, or create a new match.
The Bank can choose to have the perfect matched conversation automatically confirmed.
If an error was found in one of the deal details in the operating system it must be corrected at the core system. The BOU application will than receive the amended deal. BOU will again match it to the dealing conversation and give it a new status (if all required data was amended properly than the deal will be automatically matched).
(For conversations that may include deal types which are not supported for automatic matching yet, such as interest derivatives, the application will list the conversations giving the user the option to manually match them.)
The application offers conversation sorting functionality. The user can, for example, sort by date, deal type, deal status.
The deals can be assigned to the user’s check by user preference or role.
The application has a full audit trail. Any confirmed matching or rejection of matching is logged. The user can add a free text comment to each match being rejected or accepted.
The application can provide desired reports including statistical information.