The system automates the processes of banking and non-banking securities traders, from acceptance of an instruction, via settlement of completed transactions and clearing, to position keeping.
The system allows a wide range of client instructions to be implemented automatically and manually by means of an integrated interface for access to markets using communication standards such as FIX, SWIFT etc. Direct access to markets is possible, for instance to markets using Xetra (CEESEG FIX, ETS/EnBS) or by means of partner brokers via an international trading platform such as Bloomberg (EMSX, EMSxNET) or via a direct FIX connection.
The system allows for trading instructions to be accepted via many distribution channels:
- Branches – the system includes a web application that allows branch users to enter trading instructions, instructions for the services of a securities depository, to generate a client statement, etc.
- Internet – the system includes a web application that allows clients to enter trading instructions via the internet and display
- market data or current portfolio value.
- Smart Phone – the system includes a smartphone application that offers clients similar functions as a web application, but adapted to the restrictions of a smartphone.
Clients can be informed by e-mail of transactions conducted.
The system supports the following functions:
- DMA – the system permits a DMA service to be provided for markets with a direct connection such as Xetra.
- Care Orders – the system contains functionalities that allow for the manual implementation of care orders such as VWAP, TWAP, Participate, etc. by means of a user interface that is uniform for all markets.
- Market Making – the system contains functionalities that make it possible to perform the function of market maker or investment certificate specialists.
- FIX Order Gateway – a gateway for the acceptance of trading instructions by means of the FIX protocol. The gateway allows for the acceptance of instructions from international trading platforms such as Bloomberg (EMSX or EMSxNET) and ULLink.
- Algo Trading – the system contains functionalities of algorithmic trading in the sphere of support for the implementation of care orders (VWAP, TWAP, etc.).
The system complies with MiFID and automatically evaluates controls of instructions based on ESMA standards.
Transaction and other regulatory reporting to the Czech National Bank is available in CTS for the needs of capital market supervision.
The system provides for the settlement of completed transactions in local registers such as the Central Securities Depository and in the case of international custodians. Communication with clients and custodians is supported by means of the SWIFT protocol.
Monitoring the position of securities requires other tasks that are automated in the system: market position valuation, the despatch of statements to clients, the implementation of corporate actions of securities (dividends, coupons, maturity, split-offs, etc.), and portfolio management. Communication with clients and international custodians is supported by means of the SWIFT protocol or using e-mail.
The system supports the realisation of commissions for services provided in various structures and situations:
- fees for instructions (acceptance, expiration)
- for a transaction
- for settlement (cleared and cancelled)
- a safekeeping fee (for end-of-term value and the average value of the portfolio)
- for corporate actions
The system allows for all the operations outlined above to be accounted for in accordance with the accounting methodology set up, including automatic corrections during reconciliation. The accounting methodology is in accordance with Czech and international accounting standards.
Selected situation resolved
- after a transaction is carried out, confirmation by e-mail/swift needs to be sent automatically to selected investors
documents sent by e-mail to investors must be protected by a password in the archive
- online distribution and centralisation of information for investors to all communication channels (web, branch)
- generation of the payment of coupons and the maturity of securities on the basis of static data
- automated end-of-day processing, including the configuration of the dependency of individual tasks of this process
- automated reconciliation of transactions and instructions with partner brokers
- direct access provided
- the needs of a market maker are supported by the possibilities of quotation controllers (defines temporary conduct in the light of market conduct or according to other markets/sources)
- support for due-care instructions (VWAP, participation in the volume on the market, basket)
- after an investor’s instruction has been received the cash balance must be validated in a bank account which is not intended for securities trading only
- static and market data received automatically from partner brokers
- a partner broker provides me with an online FIX interface to foreign markets, using which I can send investors’ instructions to foreign markets without intervention
- I can calculate registry fees for holding securities accounts and transfer them to clients
- if I hold client accounts (nominee approach) at a central depositary, I can provide automated replies to queries and other legal requirements of state or other authorised bodies (inheritance, execution, liens, etc.).