CrossCheck - Capital Liquidity

CrossCheck's Capital Liquidity modules enable stockbrokers to actively manage risk and capital liquidity requirements to comply with ASX Market Rules S1A and ACH Clearing Rule S1 (previously Business Rule 1A).

CrossCheck has a range of capabilities and features which can be implemented immediately. Additional risk methods and reports can easily be incorporated on request.

CrossCheck is easy to use and requires minimal maintenance. The system can be installed on your network or hosted with secure access by Prime Factor.

Key Benefits
- Minimisation of risk capital requirement
- Active capital liquidity management. CrossCheck highlights the areas of your business or specific transactions which are generating high levels of risk.
- Adaptability for changing business activities and trading systems. If your business activities change we can add new methods. If you change trading systems, you don't need to scrap your capital liquidity system. We simply change the data load programs
- Enterprise-wide view of risks. CrossCheck shows trading and risk for all instruments - agency and principal -trading in one set of reports.
- Increased Productivity. Calculating risk requirements each day is done in minutes not hours. Producing the monthly ASX Return takes minutes and is automatically balanced.
- Infrastructure for other management information reporting. Add on credit reporting, commission calculation and performance reporting.

Key Features
- Automatic data extraction and loading
- A range of risk calculation methods which can be extended as needed
- Integration of data from all source systems
- Analytical views of the results with exception highlighting and "drill down"
- Automatic generation of the relevant ASX Return when required
- A secure database of all calculations for accountability and trend analysis
- Adaptable to multi-office organizations

Other solution features
- Risk weighting of client accounts
- Grouping of client accounts for Rule 1A purposes
- Offsetting client holdings against unsettled transactions
- Offsetting cash against unsettled transactions
- Trading in foreign currencies
- Multiple "runs" per day for comparison of actuals and loading of "what if" scenarios
- Complete history of transactions and calculations available for online analysis
- User friendly reporting for checking ratios, risk amounts and underlying transactions
- Automatic export of results to ASX Returns software.

Risk Methods Implemented
The following risk methods have been implemented for equities, warrants and options. Additional risk methods and reports can easily be incorporated on request.

Counterparty Risk:
- Non-margined
- Free delivery
- Forward Delivery
- Securities Lending and Borrowing
- Margined Counterparty Risk
- OTC Derivatives and Warrants executes as Principal

Position Risk:
- Standard Method
- Equities Basic

Large Exposure:
- Counterparty Risk
- Issuer Equities

 

More Information?
Contact Prime Factor for more information.