A primary objective of custody services management information systems is the management of transaction risk. A sound custodian management information system produces information that is accurate, timely, consistent, complete, and relevant.
It allows a custodian both to measure operational performance to designated benchmarks while informing management about other essential matters, such as whether internal controls are working.
CIMS was built with these considerations in mind, covering all the core services provided by a custodian:
- Safekeeping and reporting of customers’ marketable securities and cash.
- Settlement of any purchases and sales of such securities (common stocks, GDR, stock splits, bonds) including handling of all fees (risk insurance fees, possession fees etc...) and commissions.
- Collection of information on and income from such assets (dividends in the case of equities and interest in the case of bonds)
In addition CIMS provides custodians with advanced features
Settlements of purchases and sales with all corresponding fees and commissions are loaded automatically from files from MCDR minimizing manual data entry errors.
- Margin trading
- Allows financing brokerage firms to finance their clients
- Automatic follow up on margin trading clients portfolios while determining the loan available to the client as well as the client's debt.
- Ability to calculate interest on margin trading clients
- Operation Controls
The importance of operational controls in the custody services area cannot be
overemphasized. Custody is a volume-driven, transaction-processing
business, and much of the risk associated with it is operational in nature.
For this reason, strong operational controls are essential to effectively manage
- Advanced Reporting and Recordkeeping
An important part of any custodian’s business strategy is to provide its
customers with recordkeeping and reporting services.
CIMS reports meets the customers’ specialized needs and as well as complying with all applicable recordkeeping and reporting laws and regulations. CIMS also provides activity and exception reports
that allow management to effectively identify and monitor the risks in its