For a Central Securities Depository (CSD) or Clearing House the technology upgrade or replacement options available today providing clearing and risk management, settlement, depository and registry management for an entire local language market, are very limited. Usually these systems require the CSD to adapt to the workflows and processes available with the system rather than the other way around. What these CSDs have been seeking, is a system that is:

• Workflow-based. Only a system fundamentally designed around workflow processes is likely to be able to be configured to particular market requirements and adapt quickly and responsively to changing trading environments.
• Rules engine-based. With that elusive goal of 100% straight through processing (STP), the system must be able to add or change rules ‘on the fly’, to cope with the wide and changing variety of, and exceptions to data formats regularly used by counterparties, including member brokers, custodians, data providers, etc. When authorized users can easily amend processing rules in real time at any level of trade granularity, the STP goal becomes much more achievable.
• Straight Through Exception Processing (‘STEP’) capabilities. Even with the ability to fine tune workflow processing and exception rules easily, trade breaks and exceptions are bound to occur. The system should be intelligent enough to figure out how to repair a trade automatically as well as apply the repair to any other affected trades.
• Technology independent. A well designed back office system will clearly separate the technology and business layers so that, as technology standards evolve, the technology can be replaced and modernized without touching or affecting the business processes and rules that have evolved uniquely for the CSD’s business model and regulatory environment.
• Scalable. Linear scalability which can be provided with ‘Grid’ based computing architectures must be available to meet unknown increases in future trading volumes.

Serisys found such a system, called Syn~Clear, that meets all these criteria. In Syn~Clear business logic is stored as data not code, and is configured in a modelling environment which practically eliminates coding and programming. Syn~Clear supports transaction capture, trade enrichment, novation, collateral management, settlement (DVP1, DVP2, DVP3), fails management, depository management, member firm billing, registry management, corporate actions, issuer support, ledger postings. For further details, click the link below: