Back Office Products

C&K offers a complete clearance and settlement system or individual sub-systems that can be integrated into your existing back office system:

Trade Processing
Auto Cage
Auto Seg
Auto Dividends
DTCC Interactive ID
Report Archiving
Compliance
Data Queries
Purchases & Sales
Firm Trading
Stock Record
Margin
Money Fund Sweeps
Stock Borrow & Loan
Accounts Payable
Trade Processing
The system processes stocks, warrants, rights, corporate bonds, municipal bonds, government bonds, when-issue securities, options, ETF's, mutual funds, money market funds, currencies, etc...
Auto Cage
System sends and receives cleanup and setups to and from DTCC. It handles DVP, RVP, Fail-to-Receive, Fail-to-Deliver, Mark-to-Market and CNS.
Auto Seg
Projects tomorrows balances and related segregation requirements and transmits the latter to DTC. Projections include pending trades and money fund redemptions. The following reports are produced:
  • Daily Seg Requirements Report submitted to DTC
  • Daily Match of Seg Positions to DTCs Seg Positions Exception Report
Auto Dividends
This sub-system automatically processes all "dividends", ie. cash and stock dividends, bond interest (corporate, treasury, municipal, etc). A dividend announcement file is received into the system. On record date dividend takeoffs are produced. Manual adjustments may be made through screen entries, if neccessary. When dividend entries are "released" for payment on or after payable date, automatic entries are generated to customer and general ledger accounts, including withholding on foreign dividends, cash in lieu, etc.. Dividend receivables and payable are listed on request by issue.
Report Archiving
Reports are converted into PDF format on a daily basis. Reports are presented in a calendar format, broken down by date, department and user. It should be noted that a number of reports are not printed but simply archived from the print spooler to PDF for research and/or regulatory purposes, such as, the Daily Complete Stock Record Report. The PDFs are loaded to a server and copied to DVDs with at least one offsite. The daily PDFs are also saved weekly to DVD for redundancy.
Compliance
Compliance sub-system generates reports to meet the following regulations: 13F, 13G, 15C(3)(1), 15C(3)(3), Blue Sheet requests, FITS, Form-191, Form-81's, FRS, MLP's, OTS, TRACE and Capital Requirements.
Data Queries
Data query applications include the following: cash balance/account equity and status, activity history by account or security/account, T/D positions by account or security (marked to market), account name search, security search, statement inquiry, trade history inquiry, stock record inquiry, INTRADAY inquiry.
Purchases & Sales
Each day every street side trade which is pending settlement is grouped by blotter code and then summarized by cusip/symbol within buy/sell code. This information is accessible thru the on-line P&S blotters. The user can request any future settlement date as well as the current and prior business dates. Totals are available for each exchange, buys separated from sells. Within each exchange, a total is available for each security. At the next level, the user can view every trade which is part of the total quantity and money for the security. These balances will change with each days cancels and corrections. T-Contract exception report compares firms trade totals to SIAC totals and reports differences.
Firm Trading
This sub-system enables both the trader and management to monitor and control the positions carried. The trading system may be online if desired. In which case the trader can obtain his/her current positions, the cost thereof, enter current market price to obtain current P&L, etc..

Trader Daily Activity Report
This report is a trade date report which shows by trader, by security all trades executed by the trader. It also shows for both positions and balances; opening, net change and close, as well as certain other statistical data by security.

Trader Summary P&L
This report is a trade date report which shows positions, cost, market value, daily P&L, month-to-date P&L and year-to-date P&L. The totals by trader indicate exposure, profitability, etc.. In addition, trading limits and requirements may be setup for each trader.

Settlement Date Trader Daily Activity Report
This report is a settlement date report which shows by trader, by security all trades executed by the trader. It also shows for both positions and balances; opening, net change and close, as well as certain other statistical data by security.

Settlement Date Trader Summary P&L
This report is a settlement date report which shows positions, cost, market value, daily P&L, month-to-date P&L and year-to-date P&L. The totals by trader indicate exposure, profitability, etc.. In addition, trading limits and requirements may be setup for each trader.

Trader Monthly Activity Report
Shows by trader, by security, by date all activity in a particular issue with opening and closing positions/balances and monthly P&L.

Trader Accrued Interest Monthly Report
Accrues interest on all bond positions. Interest bought/sold, interest received and cost to carry can also be shown. This will enable management and the trader to determine interest carry P&L. The traders daily activity report has been modified for certain clients to show interest income and cost to carry daily and month-to-date.

Additional Features....

  • Ability to use FIFO, LIFO, average cost or market price in calculating P&L.
  • Calculation of realized and unrealized P&L; automatic posting of P&L to General Ledger.
  • Ability to use related trade date prices on settlement date P&L.
  • List of open FIFO and/or LIFO positions by trade date and/or settlement date.
  • LIFO projection reports; automatic adjustment of trade date month end P&L on settlement date month end for as of trades etc..
  • All trading accounts are processed by the Margin system daily.
  • We also have a government and municipal bond trading system with calculation of original issue discount (OID), interest on C.A.T.S, etc..
  • In the bond trading system either basis price or a dollar price may be entered.
  • The bond trading system calculates yield to maturity or yield to call.
Stock Record
The stock record sub-system provides online query capability as well as report generation. The following reports are produced by this sub-system::
  • Daily Stock Record Activity Report
  • Daily Break List; includes Illogicals and Memo Exceptions
  • Daily Complete Stock Record Report
  • Stock Record Listing by Account on Request
  • Stock Record Listing by Security on Request

There are numerous daily exception reports produced by the system. These reports can be quickly reviewed online by supervisory personnel to determine if there are any problems that require their attention. The exception reports produced are as follows:

  • Stock Record Breaks Report
  • Stock Record vs. Open Items File
  • Stock Record vs. Firm Positions File
  • Stock Record vs. SIAC/CNS Positions
  • Stock Record vs. DTC Positions (Free, Bank Loan, Transfer, etc.)
  • DTC Seg Positions vs. Auto Seg Positions Transmitted
  • Street Settlement Date Cash Balances vs. Open Items File
  • Customer Settlement Date Cash Balances vs. Open Items File
  • Settlement Date Cash Balances vs. Firm Positions File
  • Firm Position File Trade Date to Settlement Share and Money Reconcilation
  • Daily Verification of Customer Statement Data
    • Opening Cash Balance & Activity = Current Cash Balances
    • Opening Stock Record Positions & Activity = Current Stock Record Positions
Margin
This sub-system provides the margin department with the neccessary information to monitor and control the firms cash and margin accounts.

Exception Reports
Separate reports are produced for potential and actual Regulation T calls with aging, technical shorts with aging, all unsecured or partially secured accounts, house and NYSE calls, accounts under 35% equity, accounts with debit balances $100,000 or higher, etc..

SMA Monthly Statements
This is a listing by account of all the special miscellaneous account entries made that month.

Segregation
The segregation sub-system calculates daily segregation requirements for each account and locks up or releases stock automatically. It then compares the quantities required to be segregated to those segregation satisfying locations to determine any over or under segregation condition. Over and under segregation reports are produced. Flat segregation report is produced for securities having delivery positions.

Margin Interest
Both margin debit and credit interest can be calculated. Rates can be changed up to 8 times in one month. Entries are automatically created and processed with Truth and Lending information.
Money Fund Sweeps
This sub-system automatically moves (SWEEPS) money balances into or out of a money market fund for those customers who have so elected. If customer has a credit balance over a set amount and there are no net purchases which will settle within the next two business days, the balance will be transferred to a money market fund. If an account goes into debit balance or a net purchase will settle within the next two business days, money is transferred from the money market fund to the account that requires the funds.
Stock Borrow & Loan
This sub-system was designed for firms who not only borrow and lend for themselves but who also act as finders. The stock loan package runs independent of the brokerage system, but all stock loan entries will post into the back office stock record and general ledger making it impossible for the stock loan department to be out of balance with the cage operation. The cage system will also generate availability reports for use by the stock loan department. Another added feature of the system is the ability to use another finder on either the lending or borrowing side. The stock loan system will then recognize the finder for stock loan billing purposes. and will setup an open borrow or loan with the actual broker involved in the cage system.

On a daily basis, you can enter new loans, partial or full returns, mark-to-market, rate changes (both sides) and actual lender or borrower changes. After these transactions are entered, the system generates open loan reports by lender, by borrower, and by security cusip. A daily activity report is generated to control movements by lender and borrower. Each day the brokers bank rate is entered, and with this information the system determines the profitability of lending house stock versus obtaining the same funds via a bank loan. There is also a daily spread report which shows the profit in loans where you lend the security to someone at a higher rate than you borrow it. Both of the reports referred to above generate monthly profit summaries. At month end, statements are produced for charges and rebates. They show the chronological path of each loan. Each line item shows the quantity, price, extended money, transaction code, rate, number of days and amount either billed or rebated.

Totals are printed for each invoice and a summary of all bills is generated. P&L reports are produced which reflect how much revenue is produced versus how much was rebated for each loan. This is also done for each lender versus borrower to show which brokers are most profitable to deal with. Average daily balance reports are also available by broker for each side. Automatic entries can be made at month end to the appropriate payable and receivable accounts.
Accounts Payable
This sub-system is fully integrated into the back office system. Payables are entered with the related expense allocation. Pre-determined expense allocations may be setup. Automatic entries are created and posted to the appropriate general ledger accounts. Entries are made with the date they are paid. Various reports are produced from the open accounts payable file or the accounts payable history file. For instance, open balances by vendor, open balances by date to be paid, payments made to a particular vendor, etc.. On payment date, checks are automatically produced with the vendors name & address and invoice number(s) and automatic entries made to the appropriate general ledger accounts. Users of this sub-system also have online query capability.
DTCC Interactive ID
Trades are submitted to DTCC throughout the day. These trades are pre-determined by the accounts initial setup of DTCC ID number, agent bank number and interested party number.