CBS SCROOGE: Securities

"Securities" system is based on Scrooge contract system, its ideology and architecture. All internal accounting is performed by mechanisms provided by Scrooge contract system using contract templates that allow for flexible configuration of internal accounting for securities transactions.

Parameters of securities of different types are entered in special forms and that is rather convenient for users.

Note issue form:

Bond issue form:

Share issue form:

Deposit (saving) certificate issue form:

The system allows to store almost all particulars of securities specified in issue prospectus for further analysis. Main particulars are:

• interest repayment schedule (coupon periods);
• conditions of redemption;
• market value;
• ratings of issue
• and etc.

User can add, edit, delete and view parameters of issue of securities in separate application "Securities Issues":

The system maintains accounting and allows to manage issues with breakdown by types of securities or by issuers. All participants of stock market involved in process of securities issue and circulation are taken into account:

• securities brokers
• issuers
• depositories
• custodians
• registrars
• and etc.

The list of participants of this process depends on the type of securities. Special terminology is used for each type. For promissory note the list includes note holder, remittee, drawee, drawer and etc.

Main advantages of the system are:

1. Management of agreements for which payment date does not coincide with delivery date;
2. Performance of reappraisal on off-balance accounts for the period of time from payment to delivery;
3. Accounting with breakdown by portfolios and by individual securities of portfolio allows to determine the rate of return regardless of the order of entry and disposal of portfolio;
4. Separate accounting of parameters of purchase and disposal of securities such as: ACI, amounts of discount or premium, rate of return of transaction;
5. Generation of quarterly reports and non-periodical reports for sending to the State Securities and Stock Market Commission.

Management of securities in the system is based on operations and methods of accounting of operations. There are four main operations: purchase, sale, redemption and transfer of securities to another portfolio.

To facilitate analysis of securities of bank the system provides an additional tool in the form of bank's securities portfolio manager:

This application allows to manage purchase, redemption and sale contracts, view the list of securities in bank's portfolios and also move securities from one portfolio to another (this is also an accounting operation).

Also there are global parameters that influence internal accounting of securities in portfolio such as:

• Number of days from transaction date to settlement date for accounts of forward contracts;
• Minimum percent difference between fair value and book value which initiates accounting of reappraisal;
• and etc.

The system allows securities brokers to generate and send quarter and non-periodic reports to the State Securities and Stock Market Commission.

Our system has been successfully implemented in several banks.