The Aladdin-Systems company offers a solution for investment and depositary departments of banks.
This solution is based on the ALADSYS.SQL™ financial
document flow kernel, the ALADSYS.DEPO™,
ALADSYS.Securities™ products, and some other products.
This solution can be integrated with the existing automated banking system (ABS)- Bank General Ledger.
Usually, the standard modules of depositary recording and
trade operations recording that come within integrated ABS
do not have sufficiently developed tools for working in the
securities markets, nor do they have all the necessary reports.
A bank can use a full complex solution or some separate parts
from the set that we offer.
Currently, the ALADSYS.SQL™ kernel is used
as a platform for performing the bank securities internal
accounting and for planning and business optimization, as
well as some other tasks.
The ALADSYS.Securities™ software product
is designed for the back-office recording of the operations
with the securities held by the bank in accordance with the
Statement ¹32 by Federal Financial Markets
Service (FFMS) requirements. In ALADSYS.Securities™
the recording is done using the two Cards of accounts – one
for Cash flow and one for Securities flow.
The Accounting of Operations with Securities in Bank module,
for which the settings can be made using the visual tools
for business-logic and postings settings, is used for analytical
recording in the credit organization’s card of accounts –
in accordance with the Statement ¹205-P by the Bank of Russia
and other legislation. The recording is done by the balance-sheet
accounts (Chapter A), by the accounts of the Chapter G “Forward
trades” and of the Chapter B “Trust management accounts”.
The rules of sequence number generation for individual security-holder
accounts may be set in accordance with the internal rules
of the bank. The product supports a number of accounting operations
that are specific for banks – such as chamging quotation level,
trading session results, reserves against devaluation and
unexpected losses settings. We have experience in the export
of postings (aggregately or operation by operation) into ABS
(General Ledger) of various suppliers, as well as into in-house
bank automation systems.
The product supports the division of portfolios into the following
parts: investment portfolio, trade portfolio, and direct control
portfolio. One can use different rules for the write-off of
the assets in a portfolio and for the forming of the financial
result (LIFO, FIFO). It is possible to strictly monitor the
amounts of cash and securities by each exchange (for clients
using internet tranding) or to conduct aggregate control of
funds in the credit part of clients’ accounts.
The product supports operations with stocks, bonds, promissory
notes, derivatives and other financial instruments. The client
orders and their execution are recorded. The system supports
organized exchange transactions and over-the-counter transactions,
as well as transactions done via the external broker. It supports
transactions of buying, selling, barter trade, REPO and reverse
REPO. The import methods allow the import of transactions
from the MICEX, MSE, SPCEX exchange listings , as well as
the import of transactions of RTS and the Stock Exchange “St-Peterburg”
from the Electronic Document Center system
For over-the-counter transactions the system can trace the
process of the conclusion and settlement of the contract,
with the possibility of partial payments and deliveries and
with the recording of the liabilities in the accounts of the
Chapter G “Forward transactions” of the credit organization’s
card of accounts.
The systems supports stock conversions, stock splits and consolidations,
income payment in the form of securities, dividend disbursement,
redemption of securities and coupon payments with various
payment schemes, and others.
The system supports operations with securities denominated
in foreign currency and their revaluation using market quotes
(marking to market), as well as the creation of reserves against
The system can calculate the service commissions and expense
reimbursements on the basis of the price-lists – both separately
for each transaction (on-line), and in aggregation for a period;
it can also allocate expenses by investor and by transaction.
The system can produce the reports on actual and planned cash
flow and securities flow, as well as on the proprietary and
client current portfolio balances with the estimation of their
The system supports aggregated reporting in accordance with
the Statement ¹33 by the Federal Securities Market Commission,
with the possibility of input into the FFMS electronic questionnaire.
The Tax Accounting, Tax Agent and Tax Reporting modules can
also be quite useful.
A special module allows the bank to render services of giving
marginal account loans to its clients. The system allows to
trace the coefficients of the margin levels after the operation
and to perform automatic generation of credit or repo operations
on the basis of the trade session results. The creation of
margin calls and the compulsory closing of positions are automated.
The system can be integrated with various e-trade software
(Quick, NetInvestor) and trade terminals (RTS-Plaza) – both
on-line (i.e. update after each trade and rate changing) and
off-line: import of transactions (Alfa-Direct) and export
The ALADSYS.DEPO™ software product is designed
for depositary recording in credit organizations in accordance
with the rules of the Bank of Russia (the Instruction ¹44
and the Statement ¹711) and the requirements of the FFMS.
This product has passed a regulation compliance testing in
the PARTAD; it received a certificate
¹ Ä.003 and was recommended for the use in bank depositaries.
The ALADSYS.DEPO™ version for bank depositaries
includes not only the reports required by FFMS (Statement
¹33) and PARTAD journals, but also the additional module Depositary
reporting in accordance with the requirements of the Bank
of Russia, which produces the reports in accordance with the
Instruction ¹44 and the Statement ¹711, including the electronic
format (Bank of Russia's KLIKO software). The system can make
postings into the standard accounting card of accounts (Chapter
D of the card of accounts) with a subsequent import into the
Business Day of the bank.
For the banks that have the license of a specialized depositary
the system can be supplemented by the ALADSYS.SDEPO™
product, which includes the control recording for mutual
funds and non-governmental pension funds modules, and
also the module for keeping the register of unit-holders for
a mutual fund. The ALADSYS.SDEPO™ product
makes it possible for a bank to enter the fast growing market
of servicing unit investment funds and non-governmental pension
funds; it allows to meet all the requirements of the regulators
(i.e. FFMS and the Labor Ministry Inspection of Non-Governmental
Pension Funds) with minimal workload on the bank’s employees.
banks with especially strict requirements for security and
information protection may like to acquire the module Extended
Security Tools, which was developed in compliance with the
requirements set by the Vneshtorgbank Security Department
and has passed the testing in the Sberbank of Russia.
The development of additional
functions with the use of the ALADSYS.SQL™ tools can be done by the bank’s
programmers, as well as by supplier company.
(Unit Investment) Fund (PIF) – is the instrument
of collective investment in Russia that allows investors
to combine their savings and invest them under the management
of a professional management company. Functionally, unit
investment funds in Russia are similar to mutual funds in
the USA, but their legal status and regulation are somewhat
different. One of the important differences is that the
US mutual funds are forced by law to make distributions
(they have to distribute at least 90% of their realized
capital gains and dividend income each year), whereas the
Russian PIFs don’t have to make any distributions. The “shares”
of PIFs are called units, and the investors are referred
to as unit-holders
(the Professional Association of Registrars, Transfer Agents
and Depositories ) is a self-regulatory organization
established in 1994 and composed mainly of registrars, depositories
and clearing organizations.
Document Center system (TsED) is the system of
electronic confirmation of trades that are concluded by
the market participants (also called Market side electronic
trade confirmation). In the system the contracts are signed
by digital signature.
Federal Financial Markets Service (FFMS) is the
federal executive body that controls and supervises activity
in the financial markets, including the activity of exchanges,
and issues the relevant regulations. It also regulates the
investment of pension savings.
Securities Market Commission is the federal executive
body that supervised the activity in the financial market
and issued the relevant regulation before the creation of
the Federal Financial Markets Service (FFMS), which is now
responsible for these functions.