Nostro Management

ABOUT CALYPSO NOSTRO MANAGEMENT

The nostro management capability allows the treasury and payment departments to understand current and future cash requirements, thereby minimizing costs and maximizing profits by reducing payment defaults:

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Account maintenance for an Agent with a Processing Organization

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Standard Settlement Instructions maintenance

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Account Statement maintenance and generation

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Review and authorization of cash requirements (using the Inventory Position report), and capture of appropriate funding trades

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Automated generation of cash movements (principal exchanges, interest, management fees, upfront fees, termination fees, collateral, etc.)

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Payment default monitoring

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Automated cash sweeping between accounts

Overview

The notro management capability is based on SETTLE accounts. A SETTLE account is associated with the agent that settles the trades of a processing organization.

Inventory positions are calculated by the Inventory engine based on transfers of cash and securities into SETTLE accounts. They can be monitored through the Inventory Position report which computes funding requirements over a user-defined period.

Account statement events are generated by the scheduled task ACCOUNT_STATEMENT based on inventory positions, and account statement configurations. The Message engine subscribes to account statements events and generates account statement messages based on statement message configurations.

Account interest trades (interest bearing trades) are generated by the ACCOUNT_INTEREST scheduled task based on inventory positions and interest bearing rules.

Account billing events are generated by the scheduled task ACCOUNT_BILLING based on inventory positions and account billing configurations. The Billing engine subscribes to account billing events to generate account management fees (billing trades) based on billing grids and fee billing rules.

Billing trades and interest bearing trades are generated on the funding book of the processing organization.

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