Pro Active Risk Control and Straight Through Processing
XMS Forex&MM automatically attributes a risk level to each exception for better follow-up and resolution (priority escalation). A dynamic dashboard shows an overall view of the exceptions, differently splitted in various possible groups according to : risks levels, age ranges, valuation ranges, ... All exception information is available from the dashboard (drilldown functionality).
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’s levels
Fine-tuning alerts’ definition drastically reduces the need to process manual actions (inquiries, reports’ edition).
In the same logic, XMS Forex&MM interacts wih other applications. Under pre-defined condition(s), actions are triggered to give the hand to implied systems (in the workflow). In other words, the transactional chain is properly driven and so, operational fluidity is significantly enhanced.
- connection to front, middle and back office systems (general ledger)
- 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
XMS Forex&MM reduces the number of manual interventions to the bare minimum, realising highest possible STP rates. The advantage can be directly measured in terms of risk control and operational efficiency.
Continuous improvement of Operational Efficiency
The amount of accurate statistical data significantly improves STP rates and operational performances. The statistics relating to matches or outstanding data (expressed in numbers, percentages or values) are useful to assess the quality of :
- matching parameters
- data received from the parties (correspondents, agents, counterparts, brokers, custodians, managing third parties, etc.)
Transactional chain management
A transaction can be controled at each stage of its life cycle, from the front to the back office ; and any exception can be detected as soon as it appears (e.g. pre-settlement), and actively monitored to ensure quick and efficient resolution. In case of one or another is not a CLS member, XMS Forex&MM ensures complete transaction management : from front office ‘feeding’ to payment final step (including creation and validation of SWIFT payment messages).
Exceptions Detection and Management
Thanks to STP capicities (see XMS STP), XMS Forex&MM 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)
Integration of all standard and non-standard message formats
SWIFT, FIX, “dealing” systems formats, flat files (CSV, …), EXCEL, XML, …=> confirmations from non-SWIFT broker network are handled and reconciled as well.
Fully SWIFT compliant
- Integration of incoming messages
- Generation and validation of outgoing messages
- Use of a “SWIFT Solutions Partner” labeled interface
XMS Forex &MM handles absolutely any MT SWIFT :
- MT300’s range : Forex confirmations
- MT320-30-50 : Money Market confirmations
- MT305, MT340-41, MT360-61-62 : derivatives messages
- MT396 : CLS status advice
XMS Generic achieves unsurpassed matching rates of the market
- 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 counterpart, specific rule for specific transactions’ type ; etc.
- Data enhancement in case of poor or incomplete data, differently referenced information, ... in order to create comparable data (make the matching possible!)
- Possibility to add new fields (e.g. internal references, conversion factors, etc.) 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
Historically, the trade confirmations’ reconciliation has depended mainly on heavy amount of manual input. This is obviously costly and moreover, it also represents a risk of lots of errors. As financial institutions have now to deal with shortening settlement cycles, the automated reconciliation (matching) of confirmations has become a key step to ensure quick and right execution. To reach this STP level, XMS Forex&MM is designed to help financial institutions driving down cost and operational risk, while facing changing industry and client demands.
XMS Forex&MM reduces the number of manual interventions to a bare minimum :
- real time reconciliation
- users are alerted on outstanding confirmations as soon as they appear
Powerfull matching capabilities – through user-defined matching rules – streamline operations’ processing and improve pre-settlement risk management. Exception management functionalities ensure a streamlined post-matching stage to get risk under control through quick and efficient resolution framework. Fully flexible, XMS Forex&MM provides multi sources matching :
- two-way (bank and thirdparty)
- three-way (2 parties and a broker)
- four-way (2 parties, a broker and the CLS bank)
Thanks to its technological features and unique design, XMS Forex&MM is quick and easy to integrate into existing hardware and software environments. Providing comprehensive functionality and full flexiblity, XMS Forex&MM is entirely integrated with the XMS solutions range to deliver end-to-end transaction processing on a single platform.