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VOLCS (Valuable OTC Products and Liquidity Control System) provides three functions which are not available in an existing enterprise system- due date management for structured bonds and OTC derivatives, cash management and foreign exchange management. Each function can be used independently.

Due date management for structured bonds and OTC derivatives

Structured bonds and OTC derivatives have been receiving more attention due to their high yields and flexibility to be arranged products. Financial institutions need to swiftly respond to new products, while they carry a major operational burden to manage due date by checking each qualification of optional conditions, adjusting holidays of different markets and executing detailed calculations. VOLCS can quickly respond to new products and reduce financial institutions’ operational burden.

Cash management

The importance of cash management has been increasing due to the shorten settlement cycle, Bank of Japan’s policy change, diversification and globalization of corporate activities as well as changes of settlement system and regulations. There are various challenges for financial institutions to upgrade their cash management process, including collection of scattered data, depersonalization of money reception/payment predetermination information, and risk of manual operation. VOLCS centrally manages scattered data, ensuring swift and accurate cash settlement.

Foreign exchange management

Foreign currency series securities with foreign exchange transactions can be profitable both for investors and broker dealers. These transactions present challenges such as management of various currencies, collection of scattered data, depersonalization of predetermination information, and risk of manual operation. In addition, there is a wide range of products and management styles, which vary depending on broker dealers, demanding financial institutions to flexibly adjust accordingly. VOLCS can respond to each broker dealer’s framework, decreasing the operational burden of foreign exchange transactions.

Key Features

Due date management

1) Reduce operational burden and risk by automating and visualizing complex operations

  • Automates holiday adjustment for coupon fixing date and settlement date as well as condition date for Knock-in. (Optional function: Automated collection of foreign holiday information)
  • Automatically calculates digital coupons and redemption of exchangeable bonds with conditional contracts.
  • Visualizes daily volume and status update by showing the number of resets and conditions on a dashboard.

2) Maximize profit-earning opportunities with operating procedure and data management regardless of types and volume of products

  • Can handle structured bonds, interest rate swaps, equity swaps, options and loans.
  • Can respond to product additions and increased trade volume by leveling operation volume.
  • Can manage data by standardizing various products with a versatile input screen. VOLCS’ users can maximize profit-earning opportunities by saving the time and cost for specific system updates.

3) Can be used with cash management function

  • Combined with cash management function of VOLCS, redemption and interest money which have large impacts on cash will be reflected to cash management function of VOLCS automatically. VOLCS users can obtain cash information more swiftly and accurately.

Cash Management

1) Reduce operational risk and increase operational efficiency by standardizing operation

  • Can standardize operations by applying its framework to a series of cash management operations including manual operations and operations unique to each firm.
  • Manages the status of approvals and reconciliation and can avoid settlement accidents by blocking procedures without appropriate transactions.
  • Can increase operational efficiency by automatically reconciling withdrawal details and balance data.
  • Visualizes daily volume and status update by daily volume and status update by showing settlement details and the number of unapproved transactions on a dashboard.

2) Upgrade cash management

  • Can execute cash stress simulation by providing short-and mid-term cash management information.
  • Can reduce settlement risk by liquidity management.
  • Can centrally manage all currencies. VOLCS also can temporally reflect undetermined cash transfer as data to cash management.

3) Encourage STP with flexible connection interface

  • Can collect scattered cash management data by connecting all interfaces such as existing intranet systems, file upload and input screen.
  • Can connect to various formats of systems in many ways, eliminating cost and time to update a system specific to a particular interface. VOCLS also can adjust to interface of external settlement agencies such as EB, net banking and SWIFT.

Foreign exchange management

1) Reduce operational burden by automatic data collection

  • Can collect scattered cash management data by connecting all interfaces such as existing intranet systems, file upload and input screen.

2) Expand operations with flexible settings

  • Handles spot, forward and swap trading of foreign exchange. VOLCS also can manage exchange transaction between foreign currencies besides Japanese yen.
  • Selects management items among various products denominated in foreign currencies and deposits base on each firm’s business model. VOLCS can flexibly respond to product additions and change of business model as it groups exchange balance according to each firm’s management system.