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Account Management

Capabilities that support the creation, maintenance, and oversight of client accounts within the custody management system.

Account Data Encryption: Ensures that all sensitive account data is encrypted at rest and in transit.
Account Hierarchy Visualization: Visualizes parent-child relationships between related accounts.
Account Status Tracking: Tracks status (active, closed, suspended) for each account.
Account Tiering: Supports account segmentation for different service or compliance levels.
Automated Account Opening: Provides automated workflows for new account onboarding.
Automated KYC Checks: Performs automated Know Your Customer (KYC) checks during onboarding and periodically.
Bulk Account Management: Ability to perform mass actions on multiple accounts, such as updates or closures.
Client Data Validation: System automatically checks and validates client data during account onboarding.
Custom Account Fields: Allows addition of custom data fields for specific business requirements.
Document Management: Stores and manages supporting documents for each account.
Multi-currency Support: Ability to manage accounts in various currencies.
Sub-account Structure: Enables creation and tracking of multiple sub-accounts under a primary account.

Asset and Position Management

Features that manage, track, and report on all client assets and positions held within the custody environment.

Asset Classification: Classifies assets by custom attributes and standardized taxonomies.
Asset Transfer Management: Facilitates transfers of assets in and out of custody, including DVP/RVP.
Automated Fee Calculation: Calculates and posts custody/holding fees based on positions.
Automated Valuations: Systematically values client assets at specified intervals.
Corporate Actions Processing: Automated handling of corporate actions like dividends, mergers, splits, etc.
Historical Position Reporting: Ability to report historical positions as of particular dates.
Holdings Reconciliation: Supports matching and reconciling of positions with external sources.
Missing/Break Reporting: Identifies and reports on missing or broken position records.
Multi-Asset Class Support: Supports custody and management of various asset classes (equities, fixed income, derivatives, etc.).
Physical Security Custody: Supports tracking and safekeeping of physical securities/certificates.
Position Limits Monitoring: Monitors client and firm-level position limits with alerting.
Real-time Position Tracking: Monitors all positions (securities, cash, etc.) in real-time.

Client Interaction and Communication

Tools to facilitate effective communication and information delivery to custody clients.

Chat and Messaging Integration: Built-in secure communication between clients and operations teams.
Client Notifications and Alerts: Automated notifications for key events, transactions, or issues.
Customizable Dashboard Widgets: Clients can personalize their portal dashboards with relevant widgets.
Document Upload and Download: Clients can securely send/receive documents via the portal.
Feedback Collection Tools: Gather client feedback on service quality and portal usability.
Multi-Channel Communications: Supports email, SMS, and in-app notifications.
Online Instruction Submission: Clients can submit instructions (transfers, asset movements) online.
Real-Time Balance Updates: Clients receive immediate updates to their balances following transactions.
Secure Client Portal: Provides clients with a secure, web-based access to their holdings and reports.
Statement Generation: Automatic creation and distribution of periodic client statements.

Compliance and Regulatory

Ensures adherence to legal and regulatory requirements, including client data protections, transaction monitoring, and audit readiness.

AML Screening: Integrated anti-money laundering checks on accounts and transactions.
Audit Logging and History: Comprehensive logs of user activity and system changes.
Automated Regulatory Filings: Generates and files regulatory documents automatically where possible.
Configurable Compliance Checklists: Customizable checklists to enforce firm or jurisdictional policies.
Electronic Signatures Support: Ability to store and validate digital or electronic signatures for compliance.
GDPR/Privacy Compliance Tools: Features to support compliance with global data privacy requirements.
Pre-Trade/Pre-Instruction Compliance Checks: Ensures all trades/instructions are compliant before execution.
Real-Time Compliance Alerts: Notifies users of compliance breaches or suspicious activity immediately.
Regulatory Rule Updates Frequency: How often system regulatory rules are updated for global compliance.
Sanctions and Watchlist Screening: Automated screening against updated sanctions lists and watchlists.
Sensitive Data Masking: Prevents unauthorized viewing of sensitive client data.

Integration and Interoperability

Features that enable the system to integrate efficiently with other platforms (internal and external), including trading, banking, and regulatory systems.

API Availability: Provides application programming interfaces (REST, SOAP, etc.) for third-party integrations.
Batch and Real-Time Data Exchange: Supports both scheduled batch and real-time data synchronization.
Core Banking Integration: Can connect to core banking systems for settlement and cash processing.
Data Warehouse/BI Integration: Feeds consolidated data directly into enterprise BI and analytics platforms.
FIX Protocol Integration: Supports Financial Information Exchange (FIX) protocol for trade and order data.
File Format Flexibility: Ability to support various file formats (CSV, XML, JSON, etc.) for data exchange.
Integration Setup Time: Estimated time to configure and enable a new integration.
Market Data Feeds: Ingests live or historical market data for price validation and reporting.
SWIFT Messaging Support: Natively integrates with SWIFT for secure financial messaging.
Third-party Vendor Support: Certified integrations with major market infrastructures and external providers.

Reconciliation and Reporting

Features which enable daily, periodic, or ad-hoc reconciliation and comprehensive reporting for clients and regulators.

Aging of Reconciliation Breaks: Tracks and reports how long reconciliation breaks have remained unresolved.
Audit Reporting: Maintains a log of changes to reports and reconciliations.
Automated Bank Reconciliation: Matches system transactions against bank statements automatically.
Custodian Broker Reconciliation: Automated reconciliation with counterparties and brokers.
Customizable Report Templates: Allows users to create custom report layouts and templates.
Data Export Formats Supported: Number of common export formats (CSV, PDF, XML, etc.) available.
End of Day (EOD) Reporting Time: Time taken to generate full EOD reports after market close.
Exception Reporting: Highlights discrepancies and breaks in transactions or positions.
Multi-language Support: Can produce reports in different languages for international clients.
Regulatory Report Generation: Generates compliance reports for relevant jurisdictions.
Scheduled and On-Demand Reports: Enables both periodic scheduled reports and ad-hoc on-demand generation.
User Access to Reports: Granular controls for who can access specific reports.

Scalability and Performance

System capabilities that ensure optimal performance and ability to handle increasing volumes of transactions and clients efficiently.

Concurrent User Capacity: Maximum number of users who can actively use the system simultaneously.
Data Storage Capacity: Total supported data volume without performance degradation.
Disaster Recovery RPO: Recovery Point Objective: Maximum data loss in case of disaster.
Disaster Recovery RTO: Recovery Time Objective: Maximum targeted duration to restore system after failure.
Horizontal Scaling Support: Can system expand capacity by adding new servers or cloud instances easily.
Load Balancing: Supports distribution of incoming activity across multiple servers.
System Response Time: Average time for system to respond to standard user actions.
Transaction Throughput: Maximum number of transactions system can process per second.
Uptime Guarantee: Guaranteed percentage of system availability.

Security and Access Control

Measures designed to protect sensitive data, systems, and ensure only authorized access.

Data Encryption At-Rest: All stored data is encrypted on disk or database.
Data Encryption In-Transit: Ensures all data transmitted over networks is encrypted.
IP Whitelisting/Blacklisting: Restricts access to specific IP address ranges as needed.
Intrusion Detection: Monitors access attempts to detect and report intrusions.
Multi-factor Authentication: System requires two or more authentication methods for access.
Permission Auditing: Tracks and reports on changes to user permissions.
Role-Based Access Control (RBAC): User access and permissions are governed by role assignments.
Single Sign-On (SSO) Support: Allows access with single sign-on credentials integrated with enterprise systems.
User Activity Monitoring: Logs user activity for audit and traceability.
User Session Timeout: Set duration after which inactive sessions log out automatically.

Support, Maintenance, and Vendor Services

Services supporting system stability, upgrades, and user training, provided by the technology vendor.

24/7 Technical Support: Access to technical support staff at all times.
Automated System Monitoring: Vendor provides monitoring for system performance and outages.
Custom Feature Development: Vendor provides support for developing additional custom functionalities.
Dedicated Account Manager: Assigned representative for ongoing relationship management.
Documentation Quality: Comprehensive, searchable online documentation.
Issue Resolution Time: Average time to resolve reported issues or bugs.
Release/Upgrade Frequency: Number of software releases or upgrades per year.
Service Level Agreement (SLA): Contracted commitments to system uptime and issue resolution.
User Community and Forums: Access to community forums and user groups.
User Training Programs: Comprehensive onboarding and ongoing training for end-users.

Transaction Processing

Core processing capabilities for booking, approving, and settling financial transactions within the custody framework.

Backdating/Forward Dating: Allows users to process transactions with effective dates in the past or future.
Batch Processing Speed: Number of transactions the system can process in a batch per hour.
Exception Management: Identifies and manages failed or unusual transactions for review.
Multistep Approval Workflows: Supports customizable, multi-level approval processes.
Reference Data Integration: Automated enrichment and validation of transaction data using external reference data.
Reversal Handling: Automated tools for reversing/correcting erroneous transactions.
Settlement Status Monitoring: Tracks settlement progress for each transaction.
Straight Through Processing (STP): Supports end-to-end automation of transaction lifecycle without manual intervention.
Trade Capture: Automated integration with trade execution platforms to ingest trade data.
Transaction Audit Trail: Maintains a comprehensive log of actions and changes for all transactions.
Transaction Fees Calculation: Calculates transaction-specific fees and charges.
Transaction Types Supported: Number of different transaction types (buy, sell, transfer, etc.) supported.

User Experience and Usability

Attributes focused on ease of use, system navigability, and reducing learning curve for users.

Accessibility Compliance: Meets standards for accessibility (e.g., WCAG compliance).
Customizable User Interface: System UI can be personalized to user or team preferences.
Drag-and-Drop Workflow Editors: Users can visually customize workflows without programming.
Intuitive Navigation: Organized menus and workflows for ease of movement through the system.
Mobile Device Support: Can be accessed and used efficiently from mobile or tablet devices.
Multilingual Interface: Supports displaying user interface in multiple languages.
Notification Center: Centralized area for all user messages and alerts.
Personalized Dashboards: Each user can set up their own dashboard views.
Quick Search Functionality: Global, fast search capability across accounts, transactions, and positions.
Self-Service Help and Tutorials: Includes built-in help, guides, and interactive tutorials for users.

Custody Management Systems features explained

for Operations