Scenario
A Well-known London-based Wealth manager with 4Bn AUM required a Malta subsidiary institution to expand their band across Europe. The subsidiary was created to provide discretionary and custody solutions to the fairly new Malta financial industry and gather startup and medium sized businesses.
The company was to run similarly to the London HQ in regard to business and technology.
Problem
In regard to technology, the business is a startup. The London HQ already used a cost effective and functional middle and back office software solution and the conclusion was for the Malta office to use the same system via a different installation. The system provided the tools to book orders and trades, but no flexibility to allow the small Malta office to run similarly to the large London office.
The order management system deployed with the back office system was basic in terms of allowing bookings to the system manually, but no market functionality, no central trading desk solution, no authorisation procedure and no valid client fee calculation methodology.
The reporting system did not provide white labelling for clients, no settlement date reporting to show unsettled items and no future reporting potential
The back-office system had basic connectivity to SWIFT whereas you can confirm settlement of trades sent to counterparties, but no free of payment, reconciliation, or bank payments solutions.
Dashro Solutions
Dashro had already solved the above problems with the London HQ, and therefore was required to provide the same technological results again via Dashro software solutions.
Dashro built the Mini-OMS system to solve the OMS problem. Our Mini-OMS provided flexibility in business workflow whereas the one system where all orders fed into, was monitored by the trading desk for new orders, sent to market view EMSX, FIX, SWIFT and various web portals and confirmed within the system in order to be processed to the back office system.
Relationship managers entered orders into the system. Once the orders were authorised by their counterparts and managers, the trading desk would see the new order and assign it for ordering. Different users and departments had different views of the system e.g. The fixed income desk could only see fixed income orders.
On completion of the orders the client had the option of receiving a stylised mail to show their order details and confirmation of completion and the middle office team then checked fees (broker fees, market fees, commissions) were correctly calculated by the system in order to push through the resulting numbers to the back office system.
Dashro developed a SQL Server Reporting Services (SSRS) solution for London and Malta clients. We redeveloped the client statement and produced over 50 different client reports e.g. tax reports, client and portfolio statements, cash payment receipts, incoming funds reports, FX reports and many others.
Dashro created a payments software solution called FLOW in order to send payment instructions to the bank, and to receive confirmation of payments via SWIFT. The system is a full payment workflow solution which shows the users every step of where their payment is, as well as a full AML and sanctions check via the CreditSafe API solution.
The system allows the relationship managers to book a type of payment (3rd party, internal transfer, own transfer). The relationship managers can drag, drop documents and emails to be attached to the payment. The system also checks whether the portfolio has enough funds to allow the payment to be made, and gives a warning if not.
On booking the payment, a fee payment is automatically generated depending on the fee schedule added to the FLOW system for the client. The fee scheduling is extremely flexible whereas it allows tiered or banded payments, fees calculated within AUM ranges, minimum fees and settlement destination fee types.
The system then goes through a series of compliance checks to confirm if fund are available, the payment is within given thresholds and sends a mail to the compliance team to confirm the payment. We later provided a system matrix whereas the payments checks were done against the matrix to see if it could be automatically authorised, rejected or sent to compliance for approval. The compliance team simply had to return a reply to the email with a “Yes” or “No” to respond back and the system automatically reads the response and acts accordingly.
The status of the system changes depending on the above checks, so once the payment has been set to ready, the back office team can then send the payment to the appropriate bank for processing. The London HQ were processing up to 100 payments per day.
The FLOW system also provided solutions for the London and Malta office like reconciliations, Free of Payments, cash management, fee scheduling as well as reading and allowing all SWIFT type instructions within the system and acting accordingly e.g. incoming funds would post the amount into a suspense account to be processed if the funds were not recognised.
Dashro Solutions provided a vast amount of straight-through processing solutions to both businesses. If your business requires solutions like the above, please do not hesitate to get in touch with us at info@dashrosolutions.com