Key Stakeholders: Fund Accounting and Global

Business Challenge: The bank had operations which included fund accounting and Global Custody functions. Each was serviced by a separate legacy mainframe system. Each of the legacy systems was relatively inflexible and required significant manual intervention in daily processing that created risk and added overhead cost. There was also significant data redundancy across systems. The bank was looking for a consolidated database and an application suite that supported both its fund and custody operations.

Solution: The GoldenSource Enterprise implementation supports custody processing for the full Corporate Action lifecycle across fixed income and equity events, both voluntary and mandatory. Processing is now fully automated such that manual intervention is needed only for exception management. Reconciliation with sub-custodians is supported via SWIFT. Transaction data is accepted from SWIFT and then processed straight through automatically. The robust fund accounting solution is used for fund valuation incorporating gain/loss calculation, income accruals and amortization and accretion. Extracts from GoldenSource Datamodel feed the bank subledger. Vendor feeds from Reuters, Telekurs and IDSI provide market data.

Benefits: The Bank has been able to retire legacy systems as a result of this implementation, reducing operational costs and improving processing efficiencies. The scaleable data processing infrastructure implemented fully supports the Bank's global 24/7 trading, settlement and risk / compliance monitoring.