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Operational Risk
The Basel Committee on Banking Supervision has defined operational
risk as "the risk of direct or indirect loss resulting from
inadequate or failed internal processes, people and systems, or
from external events". As well as eventual implementation of
a capital charge in respect of operational risk, banks will be required
to meet guidance issued as 'Operational Risk Sound Practices' and
a number of additional standards which demonstrate effective risk
management controls.
The following Trace Financial products can assist in your bank's
mitigation and control of operational risk:
CAMS (Corporate
Actions Management System) is the generic and unparalleled answer
to the corporate action problem. It has been specifically designed
with risk reduction as one of its key drivers.
CLOVERLEAF
Finance provides generic integration capability that can, for example,
assist data collection for measurement and reporting purposes, as
well as eliminate the need for data re-keying, always a risk area.
Corporate Actions
The Global Securities Industry has never solved the inefficiencies
and costs emanating from the Corporate Actions Department. Regardless
of whether a fund manager, broker or custodian, firms have regarded
corporate actions as a source of risk and cost, due to the low level
of automation, inherent management problems and inadequate communications
flows between the parties in the processing chain.
CAMS has been developed to resolve the business
problems of all types of financial service providers coping with
corporate actions and involved with any form corporate finance transaction
in the primary market. CAMS integrates internal and external systems
and using workflow provides the tools for managing and bringing
control to the business. It will route the correct information to
its intended destination and be an important tool in the reduction
of operational risk and enforcing compliance.
Audit
The Cloverleaf Audit trail is a browser-based tool that is designed
to generically encapsulate the transactional processing performed
by the Cloverleaf message broker. An example of the types of behaviour
that can be encapsulated in the audit trail is as follows: -
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The settlement system
sends a trade message to Cloverleaf. Cloverleaf generates multiple
messages that are delivered to various external gateways such
as ETC, CREST and SWIFT. The Cloverleaf audit trail enables
the user to see when Cloverleaf received the message from the
settlement system and how successful Cloverleaf was delivering
it to the external gateways. For example, the message may have
successfully been delivered to ETC but failed delivery to SWIFT
because there were mandatory data elements missing in the source
message. |
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The settlement system
sends Cloverleaf many messages. Cloverleaf coalesces the messages
and generates a single message when the last message is received.
Cloverleaf sends the single message to one or multiple destinations. |
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Cloverleaf sends messages
to a destination such as SWIFT. The destination system responds
with messages such as confirmations that need to be matched
or reconciled with the original outgoing message. |
The Cloverleaf Audit Trail enables the above interactions and associated
problems such as validation errors, delivery failure and negative
acknowledgements to be encapsulated in a front-end browser-based
GUI.
The Cloverleaf audit trail has the following key capabilities:
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Displays
events that have occurred on messages processed by Cloverleaf. |
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Facilitates
the ability to reconcile incoming messages with outgoing messages.
It can also perform matching on a configurable set of fields. |
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Enables
users to define meaning to message events. For example if a
message fails delivery then it is an exception. |
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Browser
based so it is easily accessible. |
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Can
easily be tailored to encapsulate the business information required
in any scenario. |
more about Cloverleaf
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more about TLC Manager
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ETC / ETD
Electronic Trade Confirmation (ETC) is currently undergoing a period
of change with developing alliances between existing vendors and
the emergence of the new service offerings.
Trace have been involved in the provision of ETC solutions for
several years and are following the market developments closely:
Trafic provides interfacing capability with OASYS including value
added processing to facilitate the matching process. This will be
enhanced to encompass the new product offerings as details become
available.
CLOVERLEAF has been deployed as part of a bespoke ETC application
development and has been used by many clients to provide connectivity
to ETC services. CLOVERLEAF can be configured to interface with
new services such as OMGEO.
Trace are members of the OMGEO Vendor Partner Programme and as such
maintains state of the art connectivity technology to existing and
future OMGEO developments. Trace's TLCM and extension of Cloverleaf
using its template approach has been used in mission critical application
development by clients such as UBS, ING Investment Management and
Cantor Fitzgerald. Trace has enabled these clients to take advantage
of Trace's level of expertise in ETC/ETD, Integration and Interfacing,
FX Matching, netting and SWIFT, to highlight a few.
more about Cloverleaf
Finance >>
more about TLC Manager
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Products
