SMF 3.0 Share Margin Financing System


What is SMF 3.0?

What are the common features that people seek in a share margin financing solution?

What are the modules in SMF 3.0?

Structure and relation of all modules in SMF 3.0 & Interfacing with other systems

What is the architecture and technology behind SMF 3.0? The technology and Programming Language used in SMF 3.0

Benefits of the chosen architecture

What about infrastructure set up of SMF 3.0?

Crucial feature: Central Application Security (CAS)

List of Reports in SMF 3.0

What are the system requirements?

Conclusion

What is SMF 3.0? 

SMF 3.0 is a specialized software that calculates margin financing granted to clients and monitors each client’s financial position based on share prices, ratio and collateral level.

What are the common features that people seek in a share margin financing solution?

The Share margin financing business is exciting, fast-paced and calculation-intensive. Data Integrity and online up-to-date of the data is a necessity to ensure proper functioning of the system. Due to the high volume and rapid, by-the-minute change of data, any system developed to cater for this business must fulfill the minimum requirements as listed below:

Requirements of share margin financing solution

Fulfilled in SMF 3.0

Maintain collateral at a safety level

P

Tracking of different types of collateral P
Alert when collateral value falls below the margin financing granted P
Able to play with "what-if" scenarios P
Automatic calculation of Available Trading Limit P
Alert of Margin Call accounts P
Alert of Non-Performing Loan accounts P
Alert of Force-selling accounts P
Interface with other system within the organization to prevent duplication of work P
Interface with other system outside of the organization for optimum functioning of the system P
Database used must be of industry-standard, secure and reliable P
Zero System downtime P
Multiple level of security access control P
Easy maintenance and support P
System utilizes the latest industry-standard technology P


What are the modules in SMF 3.0? 

SMF 3.0 consists of specific code modules that fulfils the most common requirements of the share margin financing business. The list of core modules is outlined in the table below together with a description of their functionalities:

Modules Description of functionalities Impact
Collateral Maintenance Keeps track of all collateral pledge by clients Central to the function of SMF
Client Status and Forecast Enquiry Able to forecast the status of any client based on the current information gathered Essential in safeguarding unnecessary losses
Contracts Maintenance Keeps track of contracts generated by sale and purchase of shares transactions committed by clients Central to the function of SMF
Corporate Action, Corporate Bonus and Corporate Rights Handles rights issue or bonus issue Essential to cater for any corporate exercises
Client and Broker Account Settlement Handles many different ways of settling accounts by broker or client Essential for managing share margin financing accounts
Auto Processing (Day End Summary Balance Processing) Automatically process through all clients’ accounts to obtain the latest status. Results: generate ATL, update client status, margin call, update collateral for all clients, outstanding loans due from all clients etc.

Provides auto-billing and auto-settlement of accounts

Central to the function of SMF
NPL (Non-Performing Loan) Processing Automatically process through all clients’ accounts to provide list of accounts that fall under the Non-Performing Loan category Essential for review and managing of share margin financing accounts
Client and Broker Bill Processing Provides both manual billing and month end crystallization of bills for both client and broker Essential part of managing share margin financing accounts
Central Application Security (CAS) Provides 5 level of security feature

*This module will be explained in detail below

Crucial in maintaining the confidentiality and integrity of data
Buy and Sell Contracts Data Feed From Broker’s System All buy and sell contracts are automatically imported into SMF Essential due to the high number of the contracts generated daily
Available Trading Limit Data Export to Broker’s System Available Trading Limit for all clients are automatically exported to the brokers Essential due to the high number of clients’ accounts. Without this automatic feature, clients will not be able to trade
Stock Quote Data Feed All necessary information relating to all shares are automatically imported into SMF Essential due to the high number of shares traded
GL Journal Export Auto-generate GL Journal files to be exported out to financial systems Eliminate duplication of work for accounting purposes
Check Pending Clearance - Reconciliation Provides for reconciliation of checks received from client or broker Crucial in keeping track of all payments received
Reporting Provides over 80 types of reporting

*Some of the more important reports will be listed below

Crucial for checking and monitoring purposes


Structure and relation of all modules in SMF 3.0

This structure diagram, which is found in the Home Page in SMF 3.0 depicts the relation of the primary modules in SMF 3.0. 


What is the architecture and technology behind SMF 3.0?  

After fulfilling the requirements for share margin financing business, the next important question to address is the architecture and technology behind SMF 3.0.

Our design philosophy is to choose an Object-based approach. The result of this object-based approach is N-Tier Distributed Network Architecture Development Framework. The means of communication between objects and between client and server is through TCP/IP.

The technology and Programming Language used in SMF 3.0

SMF 3.0 is entirely developed using Microsoft’s technology for the following reasons:-

SMF 3.0 is developed with several Microsoft development tools:


Benefits of the chosen architecture
 


What about infrastructure set up of SMF 3.0?
 



Crucial feature: Central Application Security (CAS)
 

Security is an important factor to safeguard the sensitivity of the financial data in SMF. Recognising this fact, SMF 3.0 is developed with a sophisticated 5 level security feature. This feature is explained below:

Level Feature Functionality
1st Menu access security Menu access permission controlled at users group level.
2nd Functional security Even if the users are allowed to access the menu, you can limit the users to certain function within the menu.

E.g. Users maybe allowed to access the collateral menu but may not be allowed to create new collateral pledge.

3rd Data Manipulation security Data manipulation means adding a record, deleting a record or editing a record. Even if users are allowed to execute certain function within the menu, this feature can limit the users to certain data manipulation.

E.g. Users may be allowed to create new collateral pledge but may not be allowed to delete collateral pledge.

4th Authentication security This security option calls for the verification of the data being entered by another user with higher authority. This feature uses the Digital Signature System (DSS) to encrypt passwords before its being sent down the wire so that the authentication can be verified and accepted at the server.
5th Database access security With multiple company databases set up in the system, you can limit certain users group to access only specific company databases.


List of Reports in SMF 3.0
 

There are over 80 reports in SMF 3.0. Listed below are some of the key reports:

This report is the most useful report in SMF 3.0. It provides the overall status of all clients’ accounts.

For all clients’ accounts that have reached the margin call status but did not settle within the time period given, these accounts will be listed out in this force selling report.

This report lists out all the accounts that fall under the category of Non-Performing Loan.

This report serves as a warning to highlight those accounts that require attention. The accounts listed in this report have reached the position where the outstanding loan has exceeded the approved margin of finance ratio.

This report highlights problem accounts that require close watch and attention. The accounts listed in this report have reached the position where the outstanding loan has exceeded the approved credit limit.


What are the system requirements?

  Requirement Recommended
Hardware - Database Server
Processor Pentium III 1.0GHz (single or dual processor) Pentium III 1.0GHz or better (single or dual processor)
Memory 1GB 1GB or more RAM
Hard Disk 18GB SCSI Hard Disk x 2 18GB SCSI Hard Disk x 2 (RAID hot-swappable hard disk system is preferred)
Hardware - Transaction Server
Processor Pentium III 1.0GHz (single or dual processor) Pentium III 1.0GHz or better (single or dual processor)
Memory 512MB RAM 512 MB or more RAM
Hard Disk 10GB x 2 (IDE mirrored) 10GB x 2 (IDE mirrored)
Hardware - Client Workstation
Processor Pentium III 750MHz Pentium III 750MHz or better
Memory 128MB RAM 256 MB RAM or more
Hard Disk 10GB or more 10GB or more
 
Software - Database Server
Applicable Operating System Windows NT Server 4.0, Windows 2000 Server or Windows 2000 Advanced Server
Software - Transaction Server
Applicable Operating System Windows NT Server 4.0 with Options Pack or Windows 2000 Server
Software - Client Workstation
Applicable Operating System Windows 98/ME, Windows NT Workstation 4.0, Windows 2000 Professional or Windows XP Professional


Conclusion: The complete solution for share margin financing!

If you would like to know more about SMF 3.0 or have any inquiries, please e-mail to us at smf3@quantumgen.com

 

Back to Top


Copyright © 2006 Quantum Generations Sdn. Bhd. All rights reserved.
Email:sales@quatumgen.com


Privacy Policy & Copyright