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www.wallstreetsystems.com

Wallstreet BackOfficeGlobal, cross asset solutions forhigh performance STP workflow

Edition 1 PAGE 1 OF 12

Wallstreet BackOffice is a scalable, high volume engine thatsupports post trade processing for an extensive range of assetclasses. Wallstreet BackOffice centralizes and optimizes theglobal operations of your bank. It monitors activities across allasset classes, in turn providing transparency and interactiveservices to your clients. Wallstreet BackOffice enables youto deliver quality, best of breed and efficient service to otherdepartments and improves margins by driving down transactioncosts.

BUSINESS CHALLENGESBanks today face new challenges driven by soaring volumes due to algorithmic trading,

the growing prominence of ECNs and bank portals, insourcing and outsourcing of services

by clients, prime brokerage and overall increasing complexity of the business. This and the

rising demand for cross-product operational services has increased the requirement for the

effective integration of multiple systems and applications in the post trade environment to

ensure the seamless flow of data and transactions. Traditional broker services, voice trading

and associated customer contact is declining in contrast to the rise in demand for post trade

services. Cost competition is more of an imperative than ever before.

In an environment striving to maintain high straight through processing (STP) rates while

keeping operational costs low, managing transaction workflow and exceptions in the most

effective way, is key to achieving this.

At the same time, banks are under pressure to maintain control and minimize operational

risk. Efficiency and flexibility are essential. Back Office Operations require scalable, highvolume solutions that cater for a wide range of asset classes and will automate processes

wherever possible to keep up with increasing volumes while allowing a flexible approach to

cater for any specific requirements or customized processes.

FACT SHEET:EMPOWERING YOUR OPERATIONS

WITH AN INTEGRATED PLATFORM TO DRIVE DOWNSETTLEMENT COSTS AND BETTER MANAGE RISK


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PAGE 2 OF 12 Edition 1

FRONT-OFFICE SYSTEMS:Including

Reuters, Bloomberg, Murex, Summit,In-house systems

Trade ProcessingWallstreet BackOffices

compute engine to revalidatetrade components

Cash Flow ProcessingProcesses all tradecomponents generatedby source systems

STP

INTEGRATION

EXCEPTION

MANAGEMENT

WORKFLOWAND

ESCALATION

CONFIRMATION

ANDMATCHING

CASHMANAGEMENT

SETTLEMENT

AND CUSTODY

CASHRECONCILIATION

SUB-LEDGER

ACCOUNTING

CLIENTSERVICES

KEY

PERFORMANCEINDICATORS

(KPIs)

ACT

IVE

P

ASSIVE

KEY FEATURES

The Wallstreet BackOffice Settlement and Controls component is

a consolidated operations solution that provides the client with the

functionality to control and physically manage the trades or cash

flows generated from the front office system(s). It provides the ability

to function in a range of modes catering for any organization from

Corporate Treasuries to Tier One Banks.

It is complemented by a full static database where settlement

instructions, bank details, customer preferences and control parameters

are managed. The configuration modules allow clients to control the

rules for the management of static data, to review and amend profiles

of deal types and the profile for effecting payment.

The solution is based on a straight through processing model by

default and, as such, operations are concentrated on exception

processing and the management of settlement relating to exotic

products.

The Settlement and Controls component is central to the management

of operational risk on the system and runs in parallel with Wallstreets

Confirmation and Matching and Cash Reconciliation solutions.

The solution covers the following six key functional areas:

Integration Exception Management Workflow and Escalation Settlement and Custody G/L Accounting Key Performance Indicators


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INTEGRATION

Wallstreet BackOffice offers standard interfaces to popular industry platforms and a development

toolkit to interconnect with other applications.

INTERFACES TO ALL MAJORCLEARANCE & SETTLEMENT SYSTEMSWallstreet BackOffice provides interfaces to all major clearance and settlement systems for both

cash and securities movements. These interfaces - standard APIs to the directly-connected settlementand clearance systems - provide full control over the status and success or rejection of payments and

clearance activities. They can be time-controlled, initiating alerts and tracers within certain minimum

or maximum time spans allowed for responses to a settlement/clearance activity. Examples of major

interfaces include:

SWIFT

CLS

Euroclear

Clearstream

Trax

STANDARD APPLICATION PROGRAMMING INTERFACE (API)The system also offers an array of standard APIs that provide interfaces to the corporate general

ledger (such as SAP, Peoplesoft etc.), other banking and trading systems including Reuters and

Bloomberg, spreadsheets, statistical databases etc. These interfaces can be real time, batch intraday

or end-of-day, weekly or monthly, depending on the frequency requirement of the client. Wallstreet

BackOffice also provides data to client-sites for risk management, operations controls, customer

profitability calculations and credit statistics.

Interface Configuration andParameterization


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EXCEPTION MANAGEMENT

The Wallstreet BackOffice Exception Management solution offers non-stop operational management

and control from a central control panel which summarizes the current status of all trades being

processed. Post trade activities across all asset classes can be monitored in real time at a summary

level and examined at detail level from the same view. Workflow exceptions can be easily identified

and dealt with efficiently. Straight through processing is at the core of the Wallstreet BackOffice with

exception handling being rules based and user configured to comply with client policies.

STP MODELWallstreet BackOffice follows a straight through processing (STP) model and, as such, post trade

operations are concentrated on exception processing and the management of settlement relating to

exotic products.

Trades are entered into Wallstreet FX (front office) by the dealers or arrive into the system via

electronic dealing systems. If all the required static data is in place, the deal will be confirmed,

matched, settled, accounted for, reported and interfaced to other systems without any user

intervention. Wallstreet BackOffice is highly parameterized to allow for specific flows at a product,

currency or customer level and provides dynamic rule and rule based exception handling configured

to client policies.

SETTLEMENT QUEUE MONITORThe Settlement Queue Monitor is the central control panel for the management of the back office.

The screen summarizes the current state of all deals in the back office by status and from here all

exceptions or outstanding actions to be completed can be monitored to ensure that all due settlements

have been processed and acknowledged.

The monitor allows various levels of drill down to view or process deals according to specific rules.

Input Control: This shows all deals that requireprocessing action by the back office regardless of

value date. There are various input control statuses

like verification required, repair required, additional

review required, pending approval required, special

handling required or retrieval of funds required. Theinput queues also keep track of all deals approved or

modified during the day.

Settlement Request or Value Date view:This showswhat status the deal has reached from a settlement

point of view, for example if the deal has been

approved, if it is ready for payment, if it has been

paid, acknowledged or rejected. The same panel

monitors the internal settlements and any expected

receipts.

While this single screen is typically the focal point for most exception-based back office processing,

the system has a layered product called the back office watchdog that monitors all actions that

present a potential operational risk such as non payment of deals, loss of communications, non-exercised options etc. This process continually monitors the back office queues and alerts potential

problems directly to the screen or broadcasts them to various pre-defined groups.

Settlement Queue Monitor:Central Exception-based Processing


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WORKFLOW AND ESCALATION

The Wallstreet BackOffice Workflow and Escalation component is a fully integrated lifecycle

management solution. It supplies the tools necessary to define transaction workflow, increase

operational efficiency, optimize resources and reduce operational risk. This easy to use solution gives

the ability to configure workflow, exception queues, alerts and escalation rules allowing the user to

manage their business more effectively.

OPERATIONS CONTROL MONITOR (OCM)The Operations Control Monitor (OCM) contains robust workflow functionality to allow the client to

define the transaction lifecycle and workflow definition of all products throughout multiple locations.

The system will process all types of transactions throughout their lifecycle from automatic generation of

confirmations, confirmation matching, netting (both bilateral and multilateral), payments, reconciliation,

etc. The system allows the client to define how these will process through the system and will include

tools to configure alerts, escalation rules (both manual and automated) and a workflow monitor to

control operations from a consolidated view.

The Workflow Monitor provides a graphical representation of the transaction lifecycle and givesaccess to all underlying back-office processing functionality.

The Operations Monitorscreen allows the client to group several cities/entities to control, monitorand process their consolidated operations.

Workflow Monitor: Graphical Representation of Back Of fice Transaction Lifecycle


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TheInput Control Queue Allocationallows the client to define rules that will overwritestraight-through processing and re-route transactions to a new destination queue that may

require dual control or special processing.

The system also includes Work Allocationrules functionality that allows the routing of work toa particular user or user group. Work allocation rules can be defined by input control queues

to access, currencies, products, cash value etc.

Alerts against particular processes can be easily configured within the transaction workflow.

TheAlert Setup screen will allow the user to define the rules that will trigger these alerts.

Automatic Escalation rules can be easily defined and users can also escalate a particulartransaction manually. The system may send a broadcast message or escalation e-mail and

can also be configured to move transactions from one queue to another for special or urgent

processing.

Alert Setup: Internal and External Alerts of Issues or Bottlenecks

Automatic Escalation: Rule definition

Workflow Configuration: Rules-based Queue Allocation


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SETTLEMENT AND CUSTODY

The Wallstreet BackOffice Settlement and Custody solution offers extensive functionality to handle high

and low value payments, receipt management, current accounts, netting, custody and stock records

and commercial payments.

The core settlement functionality is driven by a combination of the configuration profile and static

data. The settlement instruction database is central to this functionality. The system allows for

instructions to be managed at a city/legal entity/product category/product/currency level for

each counterparty. Settlement instructions may be managed manually on the system or loaded

automatically.

PAYMENTS

Wallstreet BackOffice is real-time by design and payments are issued when they have reached theirrelease time provided that there are no settlement restrictions. However, payments may be grouped

together if required. The system allows for the management of a series of critical times for the

processing of settlements including user-defined payment release times and bank cut-off times.

Wallstreet BackOffice generates SWIFT compliant payment orders as default. The system can also

generate EDI formatted messages and links into many proprietary banking systems that are used for

payment clearing by Corporate Treasuries. The system allows for the encryption and authentication

of payment traffic and supports the generation of covered payments and split release of covered

payments.

When payments have been transmitted, Wallstreet will expect an acknowledgement from the

payment network (SWIFT) indicating that the payment message has been accepted or rejected based

on message format. If accepted, the deal is recorded as acknowledged or otherwise as rejected.

RECEIPT MANAGEMENTWhile much of the operational control in the settlement solution is based around the management

and execution of the payments, the system also manages the processing of receipts for both a cash

management and settlement risk point of view. The system can accept MT910 (advice of Credit)

or MT950 statements in real-time to update the status of the receipts filed in the system. Wallstreet

BackOffice also has the functionality to identify receipts that have not been acknowledged and thus

get the correct visibility of available funds. Receipts may be manually acknowledged if required. The

component manages both external and internal (settling over current account) receipts. Receipts can

be manually or automatically included as candidates for netting. The system can generate avisos

(MT210) on a nostro basis to advise expected receipts.

NETTING & SPLITTINGThe system has full settlement netting capability for

both bi-lateral and multi-lateral netting. It supports both

automatic netting (for regular netting counterparties)

and adhoc netting. Transactions are netted at a

location, value date and counterparty level. Netting

can be done on a net, gross, currency pair basis

or by cherry picking the deals. The system suggests

netting by listing all netting candidates. The user can

then decide if all transactions should be netted or if

certain transactions should be excluded from netting.

Wallstreet BackOffice also allows for the splitting of acash flow relating to a deal into individual components

for the same or different counterparties. The component

deals, once processed by a user, follow the normal

processing rules in the back office.

Netting Management:Selecting Trades for Netting


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CUSTODY AND STOCK RECORDSWallstreet BackOffice provides the ability to see projected settling securities trades, which includes

all possible fails, pair off candidates and open payable and receivable. The system comprises both

a Stock Record and a Depository Position Monitory for views of positions, as well as interfacing with

SWIFT for confirmations and delivery instructions.

Settlement Messages:Delivery instructions for securities trades will normally get produced as soon as

the trade is approved. However, it is possible to schedule the creation of the messages at a specifictime or a specific day for a particular Custodian/ Currency/ Product/ Payment Method.

Managing Cash: Wallstreet BackOffice has two main screens for managing cash, the DepositorySummary and the Depository Activity Monitor. The Depository Summary screen displays the overall

activity for all depositories within a particular city (a city is generally used to represent a physical

back office processing centre.) This function tracks projected and actual cash settlements as they

occur at the depository. The Depository Activity Monitor provides a more detailed view of cash

positions within a single depository.

Managing Position Balances: The Depository Position Monitor shows all of the activity within agiven depository for a particular day, on an issue-by-issue basis. The screen shows one line for each

security and then provides drill down capability on fails as well as cleared items. The Stock Record

is a centralized database that displays the position and location of securities. The back office Stock

Record allows the user to view end-of-day snapshots of trading activity on a security-by-security

basis.

COMMERCIAL PAYMENTSWallstreet BackOffice provides comprehensive payments processing that allows the user to make

payments and register receipts to/from external third parties (e.g. the payment of brokerage fees,

margin calls) as well as effect internal cash movements (Nostro Transfers).

Commercial Payments can be settled and accounted for, and the resulting cash flows can be seen in

numerous inquiry screens throughout the back office in real-time. The system files cash flows derived

from the above type transactions in the Wallstreet BackOffice processing queues as normal and the

same processing rules are applied to allow execution of the payment orders.

Commercial Payments can be entered manually via the Commercial Payments input screen or can be

automatically entered via the Commercial Payments API. The automatic use of Nostro Transfers may

be utilized as part of the Cash Management Functionality where Cash Pooling and Zero Balance

account arrangements can be facilitated.

Third Party Paymentsare used to register actual payments (or receipts). Processing occurs over acurrent account (out of or into which the funds move) and a customer (the payee). Details of the

cashflows are picked up from the standard settlement instructions or can be typed in manually at deal

input time. Third Party Payments can be configured to generate an MT202 message if required.

Nostro Transfers allow for the movement of cash between Nostro Accounts (within the same ordifferent legal entities), and can be used as part of the Cash Management solution to effect Cash

Pooling and Target/Zero Balancing Cash Movements. The system can be configured to generate an

MT200 message if required.


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G/L ACCOUNTING

The Wallstreet BackOffice contains robust and flexible

accounting functionality. It can serve as a banks official

general ledger, support regulatory-based practices such as

FAS 133 or IAS 29, and export main account and sub-ledger

account balances to an outside ERP system such as SAP or

PeopleSoft.

Typically, the system will act as a sub-ledger to a larger bank-

wide general ledger. Interfaces can be built between the

Wallstreet sub-ledger and external general ledger systems to

provide the necessary accounting information.

All accounting postings are event-driven. A transaction can

have one or more events associated with it. Examples of

events are:

Start date or maturity date for a loan or deposit

Interim interest payment dates on floating or fixed rate

instruments with multiple payment periods

Trade and value date for an FX transaction

P/L recognition (via accruals or mark-to-market)

The events used to account for a transaction are user

configurable.

Accounting Rules:Account Posting Tables contain theaccounting rules that drive the account postings within

the system. The posting table is the mechanism by which

accounting events are linked to accounts. Posting tables are

linked to one or more products. Within the posting table set

up it is possible to define profit and loss accounts, be they

mark to market, accruals, premium, or amortization accounts.

Profit & Loss:The system comes with a versatile tool to viewP/L. This spreadsheet tool allows the user to create various

P/L views simply by specifying accounts within a spreadsheet.For example, it is possible to set up a spreadsheet for accruals

that will allow the dealer/ financial controller to view the total

accrual P/L across all currencies and for all products.

Account Posting Tables: Rules-driven Account Postings

Trial Balance

Debit/Credit Detail


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KEY PERFORMANCE INDICATORS(KPIS)

STATISTICSWallstreet BackOffice is supported by a comprehensive statistics database that records:

the number of payments on a daily, month to date and year to date basis

a currency equivalent amount of these payments any associated fails

the number and type of operations at both a city level and a user level

Payment and Failure amount are expressed using a Statistic Base Currency. Todays data is real-time

and gets updated every time a payment is acknowledged or rejected. Monthly and yearly statistics

are updated every night during Close of Area processing.

END TO END STP ANALYSISWallstreet BackOffice provides comprehensive straight through processing analysis tool covering all

stages of the trade lifecycle. Data relating to non STP actions from external systems can be integrated

via standard API and drill down to trade and audit trails is supported for in depth analysis. Further

features include a historical database.

The STP Analysis Monitorallows the user to view their STP rates for a particular city at every processin the transaction lifecycle as well as the overall STP rate for selected dates.

The user can drill down into any of the value dates on the STP analysis and this will break down

each of the processes by the appropriate STP and non-STP percentages for each particular process.

The enquiry will also detail the number of trades that are non-STP and will allow the user to drill down

and see the trades that make up that number.

Functionality includes the ability to generate a graph based on the STP analysis.

STP Analysis Monitor: STP Analysis through all stages of the trade lifecycle


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STP Analysis over a specified date range

The bar chart button at the top of the STP Analysis screen will allow the user to breakdown and

analyse the output based on different criteria. These include counterparty, currency, product, nostro,

user, customer type and customer location.

The system will allow both the graph and the chart to be copied and pasted into a third partyapplication such as a word processor or spreadsheet.

STP Analysis by Counterparty


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CONTACT US

North America HQ+1 212 809 7200

Email [email protected]

Europe HQ+44 (0) 20 3170 3000

Website www.wallstreetsystems.com

Asia HQ+65 6232 2365

Wall Street Systems EmpoweringTreasury, Trading and Settlement


2007 Wall Street Systems Delaware, Inc. All rights reserved.

BUSINESSCHALLENGE

WALLSTREET BACKOFFICESOLUTION

HIGH TRADE VOLUME ANDCROSS PRODUCT SUPPORT

Wallstreet BackOffice is a scalable, high

volume engine that supports post trade

processing for an extensive range of asset

classes.

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SEAMLESS INTEGRATION

The Wallstreet BackOffice provides you with

a consolidated operations solution that ensures

the seamless flow of data and transactions.

Wallstreet BackOffice offers standard

interfaces to popular industry platforms and adevelopment toolkit to interconnect with other

applications.

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OPERATIONAL COSTREDUCTION

Straight through processing and client-defined

workflow management are at the core of the

Wallstreet BackOffice Settlement and Controls

solution. Wherever possible processes are

automated to keep up with high volumes, to

increase operational efficiency and reduce the

cost associated with settling deals.

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GREATER OPERATIONALRISK CONTROL ANDTRANSPARENCY

Wallstreet BackOffice provides you with an

integrated platform and the functionality to

control and physically manage trades or cash

flows in a real-time environment. Wallstreet

BackOffice allows you to centralize and

optimize your global operations and monitor

activity across locations. Rules-based exception

management, comprehensive statistics and

analysis tools offer you operational control and

transparency across all asset classes.

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drived settlement cost

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