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Client Portal and Communication

Interfaces and services to facilitate efficient communication and self-service for clients.

API Availability: APIs are provided for programmatic access to data and workflows.
Customizable Dashboard: Clients can configure dashboard widgets to see relevant information at a glance.
Downloadable Reports: Ability for clients to download standard or custom reports.
Multi-Language Support: Portal is available in multiple languages.
Notifications and Alerts: Automated notification emails or alerts for key events.
Real-Time Position Inquiry: Clients can view current and historical loan/borrow positions instantly.
Response Time: Average query or report delivery time via the portal.
Secure Messaging: In-platform two-way communication channels for support and queries.
Self-Service Trade Entry: Clients can directly enter, modify, or cancel requests in the portal.
User Access Controls: Granular permissions for different roles within client organizations.

Collateral Management

Functions related to accepting, monitoring, valuing, and substituting collateral for securities lending.

Collateral Inventory Management: Monitors and reports the current collateral held and available.
Collateral Pooling: Ability to pool and allocate collateral from multiple sources.
Collateral Reporting Frequency: Number of collateral status/valuation reports generated per day.
Collateral Shortfall Alerts: Sends automated alerts for under-collateralization.
Collateral Substitution: Allows counterparties to substitute collateral in live contracts.
Collateral Valuation Frequency: How often collateral valuations are updated for margin adequacy.
Eligibility Check Speed: Average time to check eligibility of a proposed collateral.
Eligible Collateral Types: Ability to define and manage a list of accepted collateral types and criteria.
Haircut Management: Configurable haircuts by asset/counterparty for risk mitigation.
Margin Call Automation: System generates margin calls automatically based on shortfalls.
Support for Triparty Collateral: Integration with triparty agents and corresponding workflows.

Compliance and Regulatory

Ensuring the product supports compliance with relevant regulations, audit requirements, and internal controls.

Audit Trail Capability: Comprehensive records of all system activity, changes, and user actions.
Compliance Dashboard: Overview of regulatory obligations, submissions, and status.
Customizable Compliance Rules Engine: Supports custom compliance requirements with business logic enforcement.
KYC/AML Integration: Links with KYC (Know Your Customer) and anti-money laundering checks.
Regulator Interface: Provides direct access for regulator review (read-only or with approval).
Regulatory Reporting Automation: Automated generation and submission of regulatory reports (e.g., SFTR, Dodd-Frank).
Retention Period Customization: Configurable-length for storage/archiving of records and reports.
Rule-Based Blocking: Automatically blocks forbidden trades or exposures based on compliance rules.
Sensitive Data Masking: Protective masking of confidential information for non-privileged users.
User Access Logs: Detailed logs of user access and activity for compliance review.

Corporate Actions Processing

Capabilities for handling corporate actions on loaned securities, including dividends, splits, rights issues, and more.

Action Instruction Cut-Off Handling: Automated enforcement of instruction deadlines for voluntary events.
Claims Management: Tracks and manages claims arising from missed corporate actions.
Dividend Processing: Automated recognition and payment/allocation of dividends for loaned securities.
Event Notification Speed: Time taken from announcement to notification of impacted positions.
Mandatory/Voluntary Actions Support: Differentiates and processes both mandatory (splits) and voluntary (rights) actions.
Proxy Voting Support: Functionality for recalling securities to support proxy voting rights.
Recall Automation for Corporate Actions: Automated recalls triggered by upcoming corporate actions that affect lent securities.
Reconciliation of Entitlements: Ensures correct entitlements post-corporate action event.
Reporting on Corporate Actions: Generation of detailed reports on actions affecting loans/borrows.
Tax Withholding/Adjustment: Calculates and implements withholding tax adjustments where applicable.

Fee and Revenue Management

Features for calculation, invoicing, allocation, and analysis of lending fees, rebates, and revenue.

Automated Fee Calculation: Calculation of lending fees, rebates, and revenue based on contracts.
Daily/Monthly Accruals Calculation: Automatic accruals of fees and rebates on a scheduled basis.
Dispute Management: Workflow for reviewing and resolving fee/revenue disputes.
Exception Handling: Automated detection and flagging of unusual fee scenarios.
Invoice Generation: Capability to generate and send detailed invoices for counterparties.
Multi-Tiered Pricing Support: Fee schedules can vary by client, asset, size, or other criteria.
Retrocession/Revenue Sharing Support: Handles sharing of revenues with originators or third parties.
Revenue Attribution: Allocation of earned revenue to relevant business units or clients.
Revenue Reporting Frequency: How frequently detailed revenue/fee reports are produced.
Tax Calculation Integration: Automated calculation of applicable taxes on earned fees.

Integration and Interoperability

Capabilities to integrate with internal/external systems, trading platforms, market utilities, and regulatory reporting channels.

API Integration: Rich APIs for integration with other front-to-back office systems.
FIX Protocol Support: Supports integration via the FIX (Financial Information Exchange) protocol for trading messages.
Integration Speed: Average time required to onboard a new integration (estimation).
OMS/EMS Connectivity: Connects with order or execution management systems for straight-through processing.
Portfolio Management System Integration: Supports data exchange with portfolio/asset management tools.
Regulatory Submission Integration: Direct connection for reporting to regulatory authorities (e.g., SFTR, EMIR).
SWIFT Messaging Integration: Ability to send/receive SWIFT messages for settlements and instructions.
Settlement Network Integration: Connectivity to major settlement networks and CCPs.
Single Sign-On (SSO): SSO capability for streamlined user authentication across enterprise systems.
Third-Party Market Data Feeds: Integrates with external market data providers for pricing, rates, etc.

Reporting and Analytics

Tools for operational, regulatory, risk, and management reporting with built-in analytics on lending activity.

Ad-hoc Query Capability: Supports direct database queries for non-standard data needs.
Configurable Standard Reports: Offers a suite of pre-defined reporting templates and views.
Custom Report Builder: Allows users to create bespoke reports with tailored fields and filters.
Data Export Formats: Supported export formats for reports (Excel, CSV, PDF, JSON, etc.).
Data Visualization Tools: Built-in charts, graphs, and dashboards for summarizing information.
Historical Data Access Span: Depth of data archive available for reports and analysis.
Real-Time Trade Analytics: Dashboard of live statistics (e.g., volumes, rates, counterparties).
Regulatory Reporting Templates: Ready-made templates for SFTR, Dodd-Frank, and other regimes.
Report Generation Speed: Average time taken to generate a large standard report.
Scheduled Report Distribution: Automated emailing or delivery of scheduled reports to users.

Risk Management and Limits

Tools to recognize, measure, monitor, and control risks within the securities lending lifecycle.

Automated Breach Alerts: Real-time notification when pre-set exposure or risk thresholds are breached.
Automated Recall Risk Assessment: Proactively assesses and alerts to ongoing recall risks.
Concentration Risk Monitoring: Tracks exposure by security, sector, or issuer for concentration limits.
Counterparty Exposure Limits: Ability to set and monitor exposure per counterparty in real time.
Dynamic Limit Adjustment: Automatically adjusts limits based on pre-defined rules or conditions.
Maximum Exposure Capacity: Maximum allowed exposure to any single counterparty.
Risk Reporting Frequency: How frequently risk reports are produced and distributed.
Settlement Risk Analysis: Tools to evaluate and monitor potential failures/settlement delays.
Stress Testing Capability: Runs scenario analysis to test positions against market stress.
Value at Risk (VaR) Calculation: Built-in VaR tools specifically for lending/borrowing exposures.

Security, Reliability, and Support

Critical characteristics for secure, continuous operation and support of sensitive financial operations.

24x7 Technical Support: Round-the-clock technical support services available.
Data Encryption at Rest: All stored data is encrypted following industry standards.
Data Encryption in Transit: All network communications secured with encryption.
Disaster Recovery Capability: Comprehensive disaster recovery and business continuity processes.
Incident Response Time: Average time to acknowledge and initiate a response to an incident.
Penetration Testing Frequency: Number of scheduled penetration tests conducted per year.
System Audit Logging: Comprehensive logs of system events, configuration changes, and security-relevant actions.
Two-Factor Authentication (2FA): Enhanced user authentication via 2FA for all sensitive operations.
Uptime SLA: Guaranteed service uptime as per service-level agreement.
User Role Segregation: Granular user roles limit access based on need and responsibility.

Settlement and Reconciliation

Operational capabilities ensuring trades and associated payments are settled accurately and timely.

Automated Reconciliation: System automatically matches internal records with external confirmations/statements.
Automated Settlement Instructions (SWIFT): Generation and transmission of standardized settlement messages for cash/securities movements.
Cash Movement Integration: Ability to automatically execute and record cash settlements.
Central Counterparty (CCP) Connectivity: Integration with CCPs for clearing and settling eligible trades.
Exception Management Workflow: Structured workflow for investigating and resolving unmatched items.
Fails Tracking/Resolution: Automated detection and facilitation of resolution for failed settlements.
Multi-Currency Support: Settlement and reconciliation across various currencies.
Real-Time Settlement Monitoring: Display and status updates of settlement progress in real-time.
Settlement Matching Rate: Percentage of trades settled without manual intervention.
Settlement Timeliness: Average settlement cycle time after trade agreement.

Trade Execution and Management

Features that enable or streamline the process of executing and managing securities lending and borrowing transactions.

Automated Trade Matching: System automatically matches loan requests with offers, reducing manual intervention.
Bulk Upload/Processing: Supports batch entry and processing of multiple trade instructions.
Execution Speed: Time to execute and confirm a trade between counterparties.
Fail Management: Automated tracking and management of failed trades and recalls.
Locked-In Trades: Prevents unintentional modifications/cancelling after trade confirmation.
Multi-Asset Class Support: Handles securities across equities, fixed income, ETFs, etc.
Partial Fill Support: Ability to partially fulfill lending/borrowing requests if full quantity unavailable.
Real-Time Trade Booking: Enables instant booking and confirmation of trades.
Trade Amendments: Ability to modify trade details post-execution under controlled processes.
Trade Capacity: Total number of trades that can be handled per day.
Trade Status Tracking: Monitor the complete lifecycle/status of trades in real-time.

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