Nostro-position

Module assignment
This Module is intended for maintaining the money position in Nostro accounts (the bank’s nostro-position), Nostro accounts/ Inter Branch Settlements (the subsidiary nostro-positionа), administering the nostro-position of the bank, subsidiary and instant liquidity of the bank, as well as for predicting external movement of funds.


The Module key peculiarities
Key peculiarities of the Module are:

• Centralized real-time data processing (including data of regional subdivisions), completeness of transactions accounted in the nostro-position and powerful means of settlements, data consolidation on the movement of funds, balances in accounts, etc ;
• A wide range of external interacted systems , computerizing accounting means in the nostro-position required in the processing stage and within the required periods due to the integration with other modules;- a complete set of user means for controlling the money position and forecast factors in respect of the bank’s movement of funds and resources, manual turning amounts to the position, adjusting all values required, administering the position and liquidity;
• Flexible opportunities to relocate the parameters of accounting funds in the nostro-position, predict external movements and control the bank’s resources due to employing the Transactions Generator functional (EHI).

Centralized Data Processing
For accounting means in all operations in Nostro accounts and administer instant liquidity of the bank a unified centralized software-hardware platform is used along with unified nostro-position bases (position lines, MB, overnight, forecast factors), as well as instructions from external systems in respect of transactions, payments, postings, clients and accounts and this makes it possible to procure:

• Completeness and integrity of data required to maintain nostro-positions and predicting;
• Accounting of future and acknowledged movements , client balances, computation of all data required (predicted factors, state of resources, etc.) in the real-time mode;
• Storing nostro-position data (position lines, MB, overnight, forecast factors ) in the information space common for the movements and account balances with an opportunity to build links and obtain amount details;
• Multi-user operation with nostro-position factors, on-line control and administering the resources of the bank and subsidiaries by officers of the central office.

Interaction with External Systems and Computerization of Accounting Means in the Nostro-position
The Nostro-position module due to its integration with the Settlement System Module is procuring the interaction (receipt/execution and processing of messages with completing accounting means in the Nostro-position) with the bank’s external systems in respect of Money Market and Foreign Exchange transactions, securities. The instructions in respect of mobilizing/placing interbank transaction funds , account MB ,instructions on purchase/sale of foreign currency in respect of forex transactions , banknote transactions come from front-office systems in the form of Universal Internal Format messages. By means of a flexible and powerful functional of Settlement System Module operated to receive/sort out messages for such Universal Internal Format data are accounted in the Nostro-position module and reciprocal receipts are generated и in the form of messages to the external systems. Data processing from such external systems makes it possible to automatically account future movements of funds in Nostro accounts as early as on the stage of making transactions and processing thereof at back offices, which allows to make decisions on extra (insufficient) resources of the bank (long before performing payments and carrying out accounting postings).
All future of acknowledged external movements of funds in Nostro accounts are payments or transfers in Nostro accounts in the Settlement System Module and they are automatically recorded in the Nostro-position. The main task of the integrating the Settlement System Module and Nostro-position Module is accounting computerizing in the position in respect of the currency and definite route (i. е. Nostro account) of debiting and crediting executed in the Settlement System Module , within an earliest period with the view to exercise effective control over the money position and liquidity.


Position Maintaining in Respect of Position and Route, Predicting Movement of Funds
The accounting of funds in the Nostro-position is carried out by means of the position lines containing the following major data on the movement: the flag of debiting/crediting, accounting type (in respect of currency/route), value date, currency, amount, route (i. е. Nostro account), along which operations are passing, classifier.
The functional has available flexible built-in opportunity to classify the following operations:

• Payments by clients;
• Payments by subsidiaries;
• Loro payments;
• Payments under Interbank Loans transactions
• Payments under conversion transactions;
• Payments under banking transaction;
• Payments under transactions with precious metals;
• Payments under transactions with securities;
• Payments under transactions with notes;
• Other payments.

The Module makes it possible for udders to administer the currency position by means of options, i. е. The position in all Nostro accounts in a certain currency at a preset date:

• To obtain current information on the incoming and predicted outgoing currency balance (both with account of amounts put on certain routes and with account of previous positioning amounts );
• To control movement of funds in Nostro accounts qualified by classifiers (both with account of amounts put on certain routes and with account of previous positioning amounts ) with the possibility to detail data on each movement (position line > payment, entry or order), including the view of the history of the processing and historical values of the line details;- carry out turning to the currency position (line input, including by a template), relocate position lines, accounted in the currency position;
• View the data on the incoming and predicted outgoing balance qualified by all routes in such currency.

The position maintaining along the route (in a definite nostro account) as at a preset date makes it possible to:

• Obtain current information on the incoming and predicted outgoing currency balance (both with account of amounts put on certain routes and with account of previous positioning amounts );
• Obtain current information on the incoming and predicted outgoing along the route proceeding from the data on the acknowledged nostro account debiting and crediting;
• control movement of funds in the nostro account qualified by classifiers with the possibility to detail data on each movement (position line > payment, entry or order), including the view of the history of the processing and historical values of the line details;
• Complete turning amounts to the position along the route (line input, including by a template), relocate line positions accounted in the route position;
• input/update/delete MB along the route for a period, overnight at a definite date;
• while comparing the outgoing balance of the position along the route as at the next morning and the outgoing balance in the nostro account perform closing the position along the route while preserving the outgoing balance to be used as an incoming balance.

The Nostro-position Module has available a powerful prediction mechanism which can be relocated for any requirements , for example:

• forecast of the movement of funds, where as it is being executed on the base of the currency position, preliminary data on transactions, client balances, accounts of subsidiaries forecast factors of the bank’s liquidity and resources are computed;
• data on the state of resources allowing to obtain the report on the resources of a subsidiary

Relocation of Parameters
The system of relocation of the Module parameters provides the following possibilities:

• the delimitation of access of users to options, types of the position lines, templates of the position lines , to maintaining the currency or route position, to a possibility to update own or all position lines;
• the relocation of types of lines indicating in what way the line is accounted in the nostro-position;
• the relocation of classifiers, specifying the location of the position line in the balances when operating broken down by classifiers, as well as the list of recorded details when viewing the list of lines by a classifier;
• the parameterization of accounting rules of documents of the Settlement System Module and orders in respect of transactions;
• (the direct debiting and future crediting) in the nostro-position employing the functional of the Transactions Generator Module (EHI);
• The relocation of parameters operated to receive/sort out Universal Internal Format messages to be recorded in the nostro-position;
• The relocation of templates of reciprocal receipts for various stages of the processing of the position lines obtained from external systems;
• the parameterization of the rules of searching debits and credits already accounted in the position with the view to avoid double accounting;
• The relocation of forecast factors and screens with the indication of parameters of updating possibility, characteristics of displaying and detailing;
• the parameterization of the rules of computing the forecast factors employing the functional of the Transactions Generator Module (EHI).