Connected Trading Communities
PRODUCTS & SERVICES
SLAMS
Q: What other systems and applications does SLAMS interface with?
A: In order to cater for existing and future securities lending and borrowing business infrastructure and process flows as well as the need to integrate with multiple settlement and custodian systems and sophisticated exchange compliance regulations, Peresys has gradually enhanced its SLB product suite for the South African market. SLAMS is the core administration system, and is shipped together with integration modules or toolkits that interface with the applicable equities exchange, clearing and settlement systems. These interfaces consist of both front-end import/export options as well as fully automated event driven SLB SWIFT messaging. In addition, Peresys offers bespoke integration solutions catering for the need to update internal and external accounting, risk evaluation and front office trading systems.
Settlement and Custodian Systems Securities Lending desks who are registered as STRATE Business Partners and who use SLAMS are able to generate and communicate, via applicable rule based logic, loan and return messages to STRATE. These messages are communicated to STRATE for settlement via the SAFIRES Front End (SAFE). SLAMS also caters for the import of status intimations from SAFE in order to update trade settlement statuses within SLAMS.
As part of its ongoing development strategy, Peresys will be offering a solution that interfaces directly with the STRATE API.
SLAMS clients who use Standards Bank’s Custody Communication system are able to upload and report their securities lending trades to the Bank’s Custodial Services Division using this integration module.
For clients wishing to utilise a SWIFT messaging infrastructure, SLAMS offers loan and return SWIFT messaging based on multiple portfolio safe-custody accounts that participate in loans.
Exchange Solutions In order to conform to regulatory requirements, broker firms using SLAMS are able to update their securities borrowing transactions on the JSE’s Broker Dealing Administration System (BDA) via the use of the BDA Toolkit. The JSE’s Project Orion will see the replacement of the BDA with the Market Services Solution (MSS). In view of this, Peresys will offer an interface with this API as a replacement for the Toolkit. The BDA Analysis Solution offers clients a rule-based borrowing and collateral management workflow by identifying short positions that require cover and long positions that can be pledged as collateral. Loan and collateral return automation also forms part of this solution.
Front Office and Portfolio Management Systems SLAMS offers the ability to import Portfolio holdings from front office and portfolio management systems and export loan and reserve allocations on a scheduled basis to effect Sales Embargoes within these systems.
Other Interface Offerings Peresys has built customised integration solutions for numerous SLAMS clients. Examples of these are loan and collateral exports for risk evaluation systems, fees and interest accrual information for accounting systems and position data for reconciliation purposes.
Q: What Collateral Management functionality is available in SLAMS?
A: SLAMS can process cash and both listed and unlisted securities as collateral in order to manage loan exposure risk. The system provides for the calculation and processing of collateral on a per-deal or per-pool basis based on the indicator set for each counterparty. Margins are based on default percentages and can be overwritten at the point of processing. Exposure and variance calculations are available via Collateral Management screens and various user defined position reports. The Collateral Manager compares the value of existing collateral against the values of loans thus determining on demand or periodic top-up and return requirements taking into consideration various margins at play. These transactions can be automatically processed from these screens. Loan and collateral values are marked-to-market using the previous day’s closing prices. Alternatively, loans and collateral positions can be exported to spreadsheets that link to a live price feed.
Compliance functionality includes collateral value limits, a facility to maintain approved collateral instruments, and restrictions based on a percentage of equity market capiltalisation. SLAMS also has the ability to process foreign currency as collateral.
Interest on cash collateral can be calculated on both a due and payable basis by assigning Interest Codes to either Counterparties or individual cash collateral pools or deals. This allows lenders to calculate interest amounts due to individual borrowers and from banking institutions holding pooled cash. In contrast borrowers are able to determine interest amounts due to them for cash placed as collateral with various lenders.
