SOLUTIONS FOR CUSTODIANS
The company Aladdin-Systems offers various solutions for custodians;
these solutions are based on the financial systems kernel ALADSYS.SQL™
and the depositary system ALADSYS.DEPO™.
The software complex ALADSYS.DEPO™ allows implementing in the organization a document
processing system with separation of duties between various staff categories;
automatic generation of invoices on the basis of pricelists; bookkeeping for accounts
receivable as well as accounts payable to depositaries-correspondents and registrars.
ALADSYS.DEPO™ is used by custodian companies, financial investment companies and banks
for depositary bookkeeping in accordance with the FFMS requirements (Instruction #36)
and for the depositary bookkeeping in credit organizations in accordance with the requirements
of the Central Bank of Russia (Instructions 44 and 711). It contains the full information on
the securities balances, movements, locations (i.e. active accounts), and the stages
the transfer-of-title process.
ALADSYS.DEPO™ is developed in the "client-server" architecture on the basis of the universal
financial document-flow kernel ALADSYS.SQL™, which allows the fast customization of the system
for the specific needs of each particular customer, as well as rapid development of new
functionality and new modules. The system permits configuring user access rights for the access
to different clients (depending on their categories) and different documents (depending
on their type, current status, folder, and the client to which the document is related).
The software complex has successfully passed the examination by the PARTAD and has been awarded
the Certificate #D.003 for the use by bank and non-bank custodians.
For the independent custodians (i.e. those that do not have any other business in addition
to custody services) we suggest the combination of ALADSYS.DEPO™ and some of the following
"The FFMS Reporting Module", which consists of regulatory reports in accordance with the Instruction #33,
including the possibility of the download into FFMS electronic questionnaire;
"The Invoicing Module", which generates invoices and invoice-facturas for transactions, safe-keeping,
and expenses reimbursement; the payment documents are generated on the basis of pre-set pricelists;
"The Quotes Import Module", which allows the upload of quotes from RTS, MICEX, SPCEX,
the stock exchange "St-Petersburg", and other trade venues;
"The High-Volume Transactions Module", which facilitates the processing of large volumes
of transactions in closed safe-keeping (i.e. safe-keeping of numbered securities); it contains
the cost saving tools for processing transactions with large amounts of numbered securities;
"The Certificates Bookkeeping Module" for the bookkeeping of securities with certificates
in geographically distributed storage facilities
"The Custody Module for Promissory Notes";
"The Module for Settlement with Counterparties in Custody Services", which allows to trace
the accounts receivable for the debt of the counterparties for the custody services;
"Automatic Reconciliation Module" for the reconciliations with depositaries-correspondents and registrars;
"Payment Agent Module"
For the custody departments of broker-dealer companies we may suggest the integrated solution
ALADSYS.Securities™/ ALADSYS.DEPO™, which combines the back-office and depositary bookkeeping
in a single system. This solution makes it possible to create a single environment and organize
the on-line interaction between the back-office and the custody systems - including the automatic
generation of depositary instructions on the basis of trade data, sending to the custody
the depositary instructions that are created in the back-office for off-exchange deals
and securities transfers, with execution tracking and automatic recording of the corresponding
result in the back-office bookkeeping sytem. Also, we have accumulated considerable experience
in creating the links with a number of back-office systems of other vendors.
The custody departments in banks also need the module "Depositary Reporting in Accordance with
the Bank of Russia Requirements", which provides the reports in accordance with the Instructions 44 and 711,
including their electronic versions.
Banks and companies with strict requirements on security and information protection
may need the module "Extended security tools", which was developed in accordance with the requirements
of security departments of a number of large banks. The kernel ALADSYS.SQL, which includes the extended
security tools, has successfully passed an attestation.
The system has successfully passed the complex examination on the compliance with data protection
requirements in the cause of the survey of the Depositary Company NIKoil for the insurance at the Lloyd's.
For special depositaries the system may be supplemented by the product ALADSYS.SDEPO™, which includes
modules for the control bookkeeping for mutual funds and non-government pension funds,
as well as the module of mutual fund registers keeping.
For the custodians that work with foreign clients we have the module "Reporting in English".
For the organization of electronic document exchange between different systems based on ALADSYS.SQL™
or between ALADSYS.SQL™-based and external systems, one may use both the simple import-export
solution and the message exchange solution based on the ALADSYS.Message™ system.
On the basis of ALADSYS.Message™ system we have developed a two-way exchange of SWIFT-like messages
with the Depositary Clearing Company (DCC); this exchange is in fact integrated into
the depositary system DCC-client. The link with NDC has also been developed.
The ALADSYS.web-interface-based depositary-client system is currently being tested.
We have just implemented the exchange of messages of the SWIFT standard ISO 15002,
which allows the integration into the international settlement systems.
For settlement depositaries and for custodians with special functions further enhancements
may be implemented with the use of ALADSYS.SQL™ either by the vendor company or by
the developers from the client's staff.
The system is implemented in a number of custodians, among which there are custodians from
the TOP 30 ranking by the market value of assets in safekeeping.