Exceptions Detection and Management

Thanks to STP abilities, XMS Securities turns out to be a powerfull eXception Management System. As soon as they appear, exceptions (outstandings) are identified and automatically directed to ad hoc user(s) for rapid and efficient resolution. For either a single exception or a group of exceptions, a case is created. User-defined rule(s) streamline the investigation path, the resolution flow. The exception(s) case includes :

• related exceptions and correspondences (in & out ; internal & external)
• note book : any comment (based on templates), any other relevant information (text and/or image insertion), user can add up as many notes as needed
• full or semi automated follow-ups based on pre-defined templates, and pre-defined scheduling
• dynamic and multi way dashboard grouping exceptions by : number of notes, number of follow-ups, valuation ranges, risk levels, ages range, ... and by any combination of these
• single point of access for all exceptions details (among others : original message)

Automatic resolution

• Detection of securities holdings discrepancies due to unsettled transactions (among true holdings discrepancies)
• Identification of securities holdings discrepancies due to wrong imputation (wrong account ; same quantity)
• …

Through these resolution examples, XMS Securities enables users to set up priorities and, eventhought the problem needs to be solved, it is not an Exception Case in terms of risk.

Process Automation (see XMS STP)

XMS Securities continuously monitors the activity and proactively alerts users in charge of operations needing attention and/or intervention before they become a serious issue.

User-defined alerts :

• highlight a large series of elements linked to the performance of the system as well as breaks in transactional chain
• provide a unique control on the system in respect of priorities and risk levels

Fine-tuning alerts’ definition reduces the need of manual interventions (inquiries, reports’ edition).

Also, XMS Securities operates with implied systems (in the workflow). Under pre-defined condition(s), actions are triggered to give the hand to other applications. In other words, XMS Securities drives the transactional chain and thus enhances operational fluidity.

• connection to front, middle and back office systems
• starting or exiting a programme
• sending e-mails
• writing/reading in databases, repositories, ...
• connection to financial messaging systems
• connection to SWIFT interfaces
• generation and validation of SWIFT messages
• ...

The advantage can be directly measured in terms of risk control and operational efficiency.

Advantages

Integration of all standard and non-standard message formats

SWIFT, FIX, SIC/EUROSIC, SECOM, CODA, flat files (CSV, …), EXCEL, XML, EUCLID (Euroclear), …

Fully SWIFT compliant

• Integration of incoming messages
• Generation and validation of outgoing messages
• Use of a “SWIFT Solutions Partner” labeled interface

XMS Securities handles all settlement and statement message types :

• MT540-3 : settlement instructions
• MT544-7 : settlement confirmations
• MT535-37 : securities statements
• MT575 : statement of combined activity
• MT502 : orders of purchase of sale
• MT509 : order status
• MT515 : client confirmation of purchase of sale
• ...

XMS Securities : maximum matching rates of the industry

User-defined & flexible matching rules ensure that a maximum of transactions are processed straight through, enhancing STP rates and allowing the focus on exception management.

• User-defined matching rules (GUI)
• Unlimited matching sets (set of reconciliation rules)
• Unlimited reconciliation rules (within a matching set)
• Flexible rules : any field can be used as criterion in rules’definition
• Flexible rules : matching with tolerance (aggregation functions), for example to avoid rounding mistakes, etc.
• Restrictions (filters) on matching set and/or on rule. For example : specific set for specific custodian ; specific rule for specific transactions’ type ; etc.
• Data enhancement in case of weak or incomplete data, differently referenced information, ... in order to create comparable data (to boost automatic matching rate)
• Possibility to add new fields (e.g. internal references) and to edit specific field(s)
• One-to-one, one-to-many and many-to-many matching keys
• Multiple match : transaction(s) grouped in multiple ways as ‘offered matches’
• Multi sources matching
• Automatic conversion factors (for example : matching between Gold in once and Gold in kilos)
• Automatic conversion in case of differently referenced data (value codes, counterparts’ id, ISIN code <=> Common code, ...) via aliasing or pseudo-references

Straight Through Processing and Pro Active Risk Control

Powerfull matching logic and fine-tuning matching rules lead to an impressive number of transactions which are processed straight through. Consequently, STP rates are increased and exception management is enhanced. XMS Securities automatically attributes a risk level to each exception for better follow-up and resolution (priority escalation). Any exception is detected as soon as appearing (e.g. pre-settlement), and is actively monitored to ensure quick and efficient resolution. A dynamic dashboard shows an overall view of the exceptions, differently splitted in various possible groups according to : risk levels, age ranges, valuation ranges, ... All exception information is available from the dashboard (drill-down functionality).

XMS Securities reduces the number of manual interventions to the bare minimum, realising highest possible STP rates.