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Our client wanted its Nostro/Depot account population and controls validated in preparation for the implementation of a new account management system.
The new system would meet the business needs of everyone who needed to understand the Nostro/Depot account population, including:
Account set-up and management (Network Management, Reference Data)
Account control (Reconciliations, Client Assets, Documentation, Ownership)
Account users (Settlements, Asset Servicing, Collateral/Cash Management, etc)
The process followed was to:
1. Understand the context for interpreting account data and controls
(a) The client products and services provided by each entity
(b) How these products and services are delivered (systems, controls, operational departments)
2. Source the account data from the sources identified through understanding the context
(Nostro/Depot account providers, Reconciliations, systems, documentation records, etc)
3. Identify gaps or inconsistencies in the Nostro and Depot account population used or the controls
used to manage them
The deliverables were:
A summary of the client products and services provided by each entity and the application Operational processes, owners, systems and controls
Details of population and control gaps, with proposals for addressing them
The post-trade infrastructure needed to deliver the client products and services was complicated. Having a consultant who understood how these fitted together and could work at the detailed level needed meant that this could be done quickly and accurately, with minimal impact to the client's staff.
Outcome and Business Benefit
The project was completed successfully with the firm able to ensure that the issues identified could be addressed prior to the implementation of the new system.