LUMINA OPERATIONS · 2019-02-27 · Corporate and Operational Events Lumina Operations has a series of specific screen to deal with operational corporate events, such as: • Term

LUMINA OPERATIONS

www.luminaamericas.com

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What is it?

What is it for?

Who should

it be used?

Why use it?

LUMINA OPERATIONS

Lumina Operations is a complete front to back solution for financial institutions. The main highlights are:

• Multi Entity.

• Multi Product.

• Covers the functionality for Trading, Settling and Accounting.

• Cash and custody account management with the ability of calculating the treasury.

• Margin and Guaranty calls management.

• Complete corporate events calculation and management for all products.

• Integrates a full and complete operational workflow.

• Validates trading limits and settlement limits online.

• Event explode for all operative processes in order to generate the accounting.

• Centralized management of transactions and settlement for all products.

• Configuration and control of trading limits.

• Complete transaction management with the ability to streamline all financial products into the same

operational workflow.

• Transaction confirmation.

• Settlement instructions processing.

• Execution and management of all corporate events for all financial products.

• Automatic settlement instructions send to external institutions.

• Cash and custody account management.

• Margin and Guaranty calls calculation and management.

• Event explode for the accounting generation.

• Traders and trading supporting areas.

• Transaction confirmation areas.

• Settlement areas.

• Client account executives.

• Accounting areas .

• Maximizes and enables the automation of business areas with high manual operation and limited by high

information volume.

• Builds a highly efficient STP environment by acting as a hub for the entire transactional and settlement

process.

• Designed to process multiple products in different markets for different entities.

• Consolidates the processing with the ability to segregate functions based on users’ responsibility.

• Lumina Operations’ highly configurable workflow can be adapted to the different processes run be different

entities.

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Product CoverageLumina Operations covers a vast variety of products including Capital Markets, Money Markets, Mutual Funds, Equities/Bonds Borrows

& Loans, FX, Derivatives and Latin-America local instruments.

All products are user configurable using the application’s functionality without having to develop new features. By doing so, the time

to market for including new products is drastically reduced.

Fixed Income

• Zero Coupon, fixed and floating rate bonds.

• Floating rate bonds with single reset, overnight reset and

curve based estimation.

• Partial and Total amortization.

• Inflation adjustment for nominals and coupons.

• Local valuation conventions (e.g. Bonos, BPAs, BREMs in

Mexico; Bonos CER in Argentina, etc.).

• All coupon interest conventions.

• Structured bond support with the ability to edit any coupon

attribute.

Equities

• Ordinary shares, ADRs and Indexes.

• Dividends, splits, subscriptions, exchanges, fusions and spin

offs management.

• ADRs conversions.

• Facilitation & ADR (including broker, sponsor and SEC com-

mission).

Mutual Fund Shares

• Single and range based.

• Multi currency.

Futures

• Index, FX, Bond and Equity Futures.

• Local conventions support like TIIE, DEUA in Mexico and Bad-

lar, NDF MAE in Argentina.

• Future-Packs.

• Cheapest to Deliver.

Options

• FX, Bond and Equity options.

FX

• FX Spot, FX Forward and NDFs for any currency combination.

OVERVIEW

Money Markets

• CD, Loans, call money.

Complex Derivatives

• Complex Derivatives and Structured Notes modelling and

pricing.

• Corporate/Operational event negotiation and settlement.

• Warrants, TRACS/ETF, REIT Real Estate Investment Trust, CKSs/

Trusts

Cash and P&L Adjustments

• Payments and receipts on any date in any currency.

• P&L adjustments for charges and commissions.

Multi-Product Collateral Deposits • Collateral deposits in securities or cash.

• For transactions or positions.

BUSINESS FUNCTIONALITY

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Bond Configuration screen

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Repurchase Agreements

• Standard repos with clients and counter parties.

• Collateralized Repos (Single and multiple).

• Equity and Bonds.

Securities Borrow and Lending

• Equity and Bond borrows and lending.

• Fixed rate and/or MTM.

Derivatives

• Index and Cross Currency Swaps, FRAs and OIS.

• Local convention support (e.g., Swaps de TIIE or UDI in Mexico) and

special structures with step-up amortizations

• Asset Forwards (Debt/Equity).

• Swap Trading Calculator (Pricing with interpolated or zero rate

curve with solver for Swap Market Rate, Spread Market Rate and

desired PnL).

• Several algorithmic available for coupons generation (including

BBG).

OTC Options

• Counter party private options.

• Per contract option exercise.

Repo Administration screen

Rental Administration screen

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Bond transaction capture

Swaps Administration screen

Instrument Templates Configuration Besides the ample product coverage, the user is able to con-

figure instrument templates for frequently used products

complying with market standards. These templates contain

all required parameters and default values in order to be

able to identify the instrument as well as to valuate it.

These templates are directly used in the trade capture

screen, avoiding reentering all parameters manually.

This process speeds up the trade capture as well as

eliminating errors.

If required by the user, the default parameters can

be changed as part of the trade capture in order to

accommodate the instrument to special needs.

Trade Capture Lumina Operations provides specific screens with specific functionality in order to capture trades for each supported product. Every screen

shares the same operational criteria and usability scheme, but adding the support for special parameters depending on the product.

Lumina Operations uses specific screens for capturing trades for the different products. Each screen counts with specific functionality based on

the used product, but they all share the standard information to simplify the usage:• Instrument

• Party / Book

• Counterparty / Book / Client

Given the fact that each product has it’s own

trade capture screen, each screen was specifically

designed to capture the product’s specific informa-

tion.

In every case, the application has the ability to de-

fined default values and/or use instrument tem-

plates to pre-configure the trade capture process in

order to speed up process and avoid errors.

LO incorporates a number of controls and valida-

tions take place at Trade Capture level in line with

restrictions configured at contract portfolio level

(compliance).

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Corporate and Operational EventsLumina Operations has a series of specific screen to deal with operational

corporate events, such as:

• Term transactions renewal for cash products like CDs and loans, as well

as for collateralized products such as repos and rentals.

• Early maturity for term transactions.

• ADR conversions.

• Manual refix for floating rate products. The application automatically

refixes transactions on maturity, having the chance to change the

calculated values.

• Portfolio automatic funding.

• Options exercises (listed and OTC).

• Swap Unwinds.

• Forward Cancellations Delivery.

• Corporate Events Forecast.

Transaction Management

Lumina Operations provides a centralized blotter for transactions’ control to assist the different areas. This blotter allows the user to review and

complete any required transactional information such as commissions, taxes and/or margin calls.

Transaction Blotter

ADR conversion

Pre-Trading Workflow

Transactions captured in Lumina are eventually exposed to a Pre-Trading Workflow demanding validation, confirmation and approval before

transferring to Middle Office. However, deals under this workflow are available for Risk & PnL calculation conveniently.

Client’s Report

• Account Statement.

• Tax Records.

• Confirmation.

• Corporate Events.

• Vouchers.

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Taxes CalculationLumina Operations is able to determine value added taxes, withholding taxes as

well calculated taxes without retention, based on every country’s law and

complying with those regulations. Lumina incorporates a framework for Tax Profile

per Contract (accordingly with localization), distinguishing products and percent-

ages.

• TAX Statements Report for clients (annual report), in PDF, XLS or External

Interface.

• TAX Substantiation report with the information regarding withholding

taxes withheld in foreign countries (derivatives, money market, capitals)

• Taxes are all integrated to Account Statements and Accounting

Nevertheless, the application provides ways to review any calculated taxes and

change them as needed.

Transaction ConfirmationThe application allows for transactions

phone confirmations. To do so, the user will

access a specific screen which will let her/

him review the transaction’s

information before confirming it.

Multiple transactions confirmation is avail-

able through the add similar

transactions functionality, which searches

for same product and same counter party

transactions.

Broker and Client fees calculationFor transactions dealt with brokers, Lumina Operations

has the ability to calculate the broker fees for the product/

broker combination.

Besides this fee, Lumina Operations is able to calculate

client fees for each transaction.

All fees can be reviewed and changed if needed.

The application provides several reports to review all

commissions and fees as a whole.

Lumina Tax FrameworkAdditionally, Lumina allows users importing Non-Local

taxes calculated in others systems for those corporate

events recorded in LTO.

For products or clients requiring a

formal confirmation and/or legal

registration of the confirmation process,

Lumina

Operations will generate a proper confirma-

tion letter and/or ticket that can be printed

or sent via e-mail.

A generic format is available for emailing and

SWIFT messages. Additionally, the user can

build his own Confirmation Letters for Clients

based on available Datasets.

Confi

rmat

ion

edito

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Trading Limits Editor

Trading Limits

Lumina Operations is able to perform an online exposure validation when capturing trades. This validation can be configured just as an alarm raiser

or if needed, to prevent the trade from being captured. Any trades generating limit excesses can be monitored and approved in order to let them

continue with the operational workflow.

When using this functionality to control trading limits, several different exposure lines can be configured:

• Local FX limits

• Daily and monthly limits based on the amount of money operated.• Mark to Market limits

• For various products updated online when

capturing trades.

• NDF limits

• FX limits for non deliverable forwards based

on the potential exchange rate refix.

• Loans, Calls, etc. limits

• For any product combination

• Using or not trades’ collateral

• Net or absolute exposure

• Other Limites: DTM/Maximum Tenor, MTM ex ante

& ex post, Credit Potential Exposure, Minimum

Spread, Off Market Rate

Repo & Money Market Tools A number of tools are available for both sides of the business, as shown in the graph: Bank and Brokerage House. It gathers the business related to

repo trading considering both the commercial force as the treasury desk, monitoring and controlling all processed related to this activity.

Regulated Treasury RatesA number of matrix of repo rates are published

by the Treasury Desk accordingly with the different

segments (private banking, premium, etc) and regions in

the system . These matrices are all used by Promotion

Channels (sales) and Repo Automatic Investment. Regulated Rates are defined by instrument, investment ranges, durations, etc.

Limits can be defined for:

• Economic Groups.

• Clients/Counterparties.

• Books/Traders.

• Booking Groups/Portfolios.

They can be declared for the whole universe or just for particular cases.

It is possible to indicate the applicability in terms of products, percentages, issuers, currencies and specific deal details (Sign, collaterals, etc).

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OperationsRepo Trading under regulated treasury rates takes place under a given “market” time, in line with published rates, and customized for regions

and branches in case of being necessary. This LTO functionality holds a strong relationship with the Order Management module (LOMS)

where sales and promoters capture the daily repo operations on behalf of clients. This trading is later taken by the Treasury desk for approval

and execution. Additionally, the margin call and collateral module is also related with the repo trading due collateral assignment (See sepa-

rate M&C section).

BudgetLTO supports the definition of a daily budget for repo business

which summaries the clients’ repos maturing at system date. The

Treasury desk assumes those repos will be renewed with same

conditions (offset, instrument, etc). Total amount, maturities and

instruments are reported, including the associated WAP. Budgets

can be edited and modified. All clients’ trading is validated in

comparison with defined budget, forcing authorizations when

required. Net information helps the Treasury Desk to visualize the

instrument volume and the average rates (WAP) to be operated

against the Market in line with its own needs and the client’s de-

mands.

Repo Automatic InvestmentThe process of automatic repo investment is used to generate repo orders/trades automatically for a given number of clients with invest-

ment capabilities. Usually, those clients agree to invest the excess daily cash available in their accounts in short-term repos.

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Corporate EventsLumina Operations is capable of automatically process corporate events

for Equities, Bonds, Options and Futures. By doing so the application will

calculate the corporate events’ executions on behalf each definition and

present the user with the results in order to decide when and how to ap-

ply them. Lumina Operations is able to calculate the following corporate

events:

Equities• Cash dividends

• Equity dividends

• Splits• Exchanges

• Subscriptions

• Spin off

Bonds• Interest coupon

• Partial amortization coupon

• Bond maturity

• Bond repurchase

Options• Listed and OTC option exercises

• With and without delivery

Futures• Daily settlement

• Maturity with or without delivery

In the cases on Bonds and Futures, all corporate events are calculated on behave

of the instruments’ definition and structure. In the case of Equities, the user will

have to configure the corporate events once the company announces them.

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Besides the standard and simple corporate events, Lumina

Operations is able to deal with combined and multiple corporate

events.

Combined Corporate EventsEnables the configuration of several corporate events inside one

definition. The client will have to decide how much of his/her

position will he/she use for each participating corporate event. In

the case of not specifying anything at all, a default corporate event

will be executed.

Multiple Corporate EventsEnables the configuration of a series of corporate events executed

in order. Each corporate event will be executed using the previous

corporate event’s result as input.

Execution of Positional Corporate EventsLumina Operations will calculate and generate the corporate events

executions automatically as part of the end of day batch.

These executions are calculated on behalf the instrument balances

for client and own position accounts using the current application’s

calendars, instruments’ definition and corporate events’ definition.

The user will have the chance to review the calculated information in

the corporate events execution monitor and decide when and how to

apply those executions to the clients and own position accounts.

Execution of Operational EventsWhen dealing with events applicable to transactions instead of

positions and/or account balances, Lumina Operations provides a spe-

cific monitor. In this monitor the user will have the chance to decide how to execute, on a transaction basis, each event (E.g.: Option exercise

for OTC Options).

In case of Forwards or Swaps, the exexcution of theirs operational events

take place directly in their own monitor at transaction level.

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Margin CallsThe application can calculate and manage margin calls and guarantees for any tran-

saction that requires it. Through the configuration of this functionality, the application

can automatically calculate the margin calls and generate the requests to constitute or

disband collateral. This whole process is directly connected to the settlement process.

The strategy definition will be used for the administration, generation and processing of

margin calls and collaterals.

Strategies - General Information

• Configurable per entity and customized by Client.

• Eligible collateral asssets.

• In any of the application’s currencies and product.

• Variable calculation periodicity.

• Online criteria changes for enabling and disabling features.

• Three calculation mechanisms:• Transactional: calculated per transaction (For Swaps, Net MTM for Legs +

Collaterals).

• Products/Position: calculated for a specific position for a specific product

(E.g.: Repos) for every Client (Net Agreement). Market is not considered

here.

• Client/Position: oriented to Exchanges, where double margin call can be

applied (Against Clients and Market).

Applicability

• Calculation parameters

• Closing prices’ and exchange rates’ sources

Maintenance

• Minimums for margin calls generations.

• Amount multiples for generated margin calls.

• Ability to capture margin calls manually (From Exchanges).

• Administration of received and delivered collaterals.

Rebates

• Calculation and generation of Rebate Payments and Receipts with both fixing and

floating rates

• Ability to define Single or Periodic payments

• Accounting registry

Position & Product and Position & Client

• Markets taken into account.

• Instrument types to consider.

• Transactions’ direction to include.

The configuration is made on an entity level in order to establish the standard behavior

of this functionality for all entity’s clients. Nevertheless, Lumina Operations enables the

override of this configuration on a client basis if necessary. The margin call calculation will

be executed on a daily basis in the end of day batch of the Lumina Suite. In this process all

margin calls will be generated in order to be fulfilled on the next business day. LTO

incorporates the ability to control the current client balance when using collaterals, as

well as the applicability of the collateral (Eligible).

Supported Products

It is possible collateralized and manage margin calls for most of the products into the system

including Repos, Rentals, Money Markets, Swaps, FX/Fx Fwd, Options and Futures . It is also

possible to set up a rebate rate to receive/pay for exposed collaterals.

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Settlement Monitor

Settlement InstructionsThe application is able to retrieve default settlement instructions from the

legal entities as well as from the clients in order to pre-match the instruc-

tions to be used in all payments and receipts. Authorized users will then

have the chance to modify this information as needed during the settle-

ment process.

This automatic pre-match process relies heavily on the configuration of

standard settlement instructions for legal entities and clients. These stan-

dard settlement instruction can be configured for cash and custody ac-

counts as well for any combination of asset type and product.

Settlement Instruction Editor

Settlement SupportSettlement Movements monitoring

Lumina Operations calculates all settlement events for cash and instruments for all supported products.

The cash flows for derivative products such as Swaps, FRAs and NDFs, which depend on external rates and indexes to be fixed, will be calculated

once this information is available in the application’s reference data.

There’s one centralized monitor that enables the user to check and review the whole settlement process for any product.

Note that Fees associated to transactions generate also settlement instructions that follow the same flow described in this section., includ-

ing fees for generic settlement movements.

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Settlement WorkflowLumina Operations uses a standard settlement workflow for all supported products. This workflow ensures that the whole settlement process gets

executed, performing each required step/activity needed in any back office area of any financial institution.

Each workflow’s activity represents a tasks to be executed by a user. Each activity will have a processing state as well as user registry in order to

be able to audit the settlement process. Besides this real time log, a history of all state changes and performing user will be registered in the

application’s log in order to be able to review the entire history.

The different activities are:

• Pending: process beginning.

• Account Completion: the settlement instructions are empty or partially set.

• Confirmation: counter party confirmation of the settlement instructions and settlement information.

• Approval Level 1 & 2: control stage before being able to release the settlement movements.

• Release: once the settlement movements were approved, they can be released to external clearing agents. In the case of having interfaces to

send this information to the external clearing agents, this activity will trigger this interface.

• Settlement: reconciliation of the settlement movements with the information provided by external sources such as settlement acknowledges

and/or debit/credit movements in the accounts.

Beside all these workflow activities, there’s an extra one to deal with fails in the settlement process. This activity is used to mark partial or total fails

in the settlement process, fails that will be then used in the accounting process as well.

Settlement Workflow Configuration

Lumina Operations allows the configuration of different settlement workflow profiles for the own portfolio as well as for clients. These profiles

define which activities have to be executed in the back office process. Doing so, the settlement process can be customized to meet the back office

requirements. The parameters are:

• Product Type: any of the supported products by

Lumina Operations.

• Payments/Receipts: on behalf the movement’s direc-

tion.

Each profile has the ability to be configured to use an

automatic or manual workflow:

• Automatic: all activities are executed automatically

in the application’s batch once the settlement date

was reached.

• Manual: the selected activities will be executed

manually by a user.

Settlement Profile Configuration

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Excess Authorization Monitor

Confirmation of settlement

Settlement Confirmation and ApprovalAs part of the workflow process, settlement move-

ments need to be confirmed with the counter parties

as well as approved (up to two levels) before being

released.

The settlement workflow can be configured in Lumina

Operations in order to customize it’s behavior depend-

ing on the type of client. Some client may demand no

workflow at all, while other may require all activities or

some.

Settlement Limits MonitoringCredit or settlement exposure areas need to monitor the settlement exposure with counter parties throughout the settlement process.

Therefore Lumina Operation counts with a settlement exposure limit control. Each payment or receipt will update the settlement limit

online. In the case of incurring in excesses, the application will raise an alarm that has to be validated in order to be able to advance with

the process.

The authorization monitor displays all the information regarding excesses in a centralized way in order to decide wether or not to authorize

the excesses. The entire approval activity will be logged in the audit trails of the application in order to be able to review any changes made.

All settlement limit status can be reviewed not only from this monitor, but from other monitors in Lumina Operations.

Settlement Policies and Mechanisms ManagementLumina Operations automatically completes all information related to the settlement policy (DVP or FOP) and the settlement mechanism

(e.g.: SWIFT, SPEI, INDEVAL, etc.). All this information is initially defaulted to the configuration associated with the transaction’s product and

settlement information. Nevertheless, the user is able to modify this information afterwards by editing the settlement instructions of the

settlement movements.

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Generic

Settlement

Movement’s

Editor

Net & Split Editor

Manual Settlement CaptureThe application has the ability to process manual settlement movements not

originated from transactions in order to be able to process the entire back office’s

process within the same infrastructure (e.g.: commissions, expenses, market fees,

adjustments, etc.). The users can define a series of templates for these

movements, specifying default values, the applicable workflow activities as well

as the need for authorization in levels 1 and 2.

Settlement Movements Nets & SplitsLumina Operations offers the functionality for splitting and netting settlement

movements when needed.

Netting is the process by which several payments/receipts are gather together

in only one. This process simplifies the settlement process and exposure.

Splitting is the process by which one settlement movement gets opened in

several ones. Splits are used usually to settle to many different settlement

instructions as well as for partial fails.

All resulting settlement movements from splits and nets are treated in the same

way as simple or normal settlement movements. All workflow activities will apply

as configured as well as all controls. These settlement movements will also have

settlement instructions, confirmations and approvals before being released.

Net Strategies can be defined by Asset, Direction, Custody Contract, Own or Third Party Contract.

Additionally, a number of methods for consolidation of DVP Settlement are provided in Lumina.

Fails ManagementLumina Operations is able to manage fails throughout the settlement process. The user is able to mark settlement movements as failed as a whole or partially depending on the situation. Partial fails are managed through the use

of splits. Once a settlement movement was marked as failed, the user is able to follow up it’s situation. The fail information will flow to the accounting

process.

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Own and Client Account’s Editor

Accounts AdministrationThe accounts administration module was designed as a neuralgic point in the entire Lumina Operations process. This module enables the con-

figuration of accounts to be used as settlement instructions as well as to monitor balances and movements. Besides this, the entire reconcilia-

tion process can be run in this module. All this

functionality is available for nostro accounts

as well as client accounts.

Accounts configurationBy using the configuration screen for ac-

counts, the user can create, modify or delete

cash and custody accounts. This accounts can

be own account as well as client accounts.

Account balances monitorsLumina Operations provides a series of monitors to review the account

balances for custody and cash accounts. By drilling down through the

balances, one can access the detail monitor to review all movements.

These movements are classified as pending, settled or failed.

All movements monitors are able to display the real balance of the account as per settled movements

as well as using the theoretical view, which allows the user to select a series of unsettled movements

and calculate the impact to the ending balance.

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Sub account Portfolio ManagementLumina Operations has the ability to manage sub account portfolios as a virtual segregation of balances originating from different

processes and/or reasons. In this way, every account has the chance to manager several portfolio balances as well as a consolidated

balance. These sub account portfolios are being used normally for different nature balances such as Normal availability, Received collateral,

Paid collateral, Received rentals, Paid rentals, etc..

Movements MotivesMovement motives are the concepts to be used for each debit and credit movement

issued in an account. Every concept should define its applicability towards debit and

credits.

Sub Account Portfolio ProfilesBy configuring these profiles, the user defines

different criteria for segregating the balances of

accounts. These profiles will then be applied to the

accounts.

For each configured portfolio a series of motives

should be made available. These motives will be

the only ones allowed for movements inside the

portfolio. By doing so, the application will reinforce

the correct usage of motives to impact each

portfolio’s balance.

Motive ApplicabilityFor each supported product as well as for each way these products can be traded, a motive will have to be configured in order to deduce

the way the resulting movements will be injected into the sub account portfolios.

By doing so, each time a debit or credit movement gets generated, the application will have the correct information in order to deduce

the sub account portfolio to use.

Using this sub account information, the credit or debit movement will impact the sub account portfolio’s balance as well as the

consolidated balance of the entire account.

When dealing with manual settlement

movements not created by transactions, the

sub account portfolio information will be

configured in the movement’s template.

Once a movement gets generated, the

template will determine the correct sub

account portfolio to use.

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Treasury ManagementThe treasury management maps the custody of clients’ cash and/or instruments

to the own accounts acting. These own accounts will contain the entire custody

of client and will serve as the main repository to use when settling with external

counter parties.

Besides this information and by means of the funnels, Lumina Operations will be

able to calculate and process the treasury process.Functionality:

• Consolidates the clients’ custody.

• Allows the custody of instruments from any

country for clients.

• Defines the standard sub account profile to use

for client accounts.

• Limits the various settlement mechanisms avail-

able to client accounts.

The configuration of the account funnels is central to client account ad-

ministration and to the treasury process. By using the account funnels,

the application is able to group and consolidate the custody of cash and

instrument of client to the external accounts held by the legal entities.

Treasury ProcessThe treasury process is the one by which the back office guaranties that the consolidated balances of client accounts are totally and correctly

mirrored.

Executing the treasury process, the user will be able to mirror the settlement process done with clients with the supporting external accounts and

reconcile the settlement process in both worlds (Internal and external).

The main functionality covered is:

• Net settlement for cash and instruments

• Supports FOP and DVP.

• Many to many relation between internal and

external settlement movements.

• Automatic generation of special cases like client

instructed transfers.

The treasury process radically reduces the amount of work

the back office has to perform, speeding up the entire

settlement process and reducing errors.

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Accounts’ reconciliation with external sourcesWhen available, external electronic information can be fed into the Lumina Operations reconciliation process for account. This process reads

movements provided by external sources and, using pre-defined rules, matches those movements with the account movements. All

movements that were matched are directly set as settled, while the rest can be reviewed manually and matched manually.

The reconciliation of account movements gets propagated across the application to the settlement process, ensuring the consistency of the

entire information and workflow.

There are several ways to reconcile the

movements based on the rules already developed. Nevertheless, new rules

can be integrated in the functionality

without much effort.

By doing so, the application can be

customized to meet any client’s re-

quirements very quickly.


Other Accounts Module Functionality Account StatementLumina produces an Account Statement (custody) for every contract using different formats (PDF, DB, proprietary interface for customization,

etc.). It is possible to indicate frequency, period, format and means (email for instance). Statements can be visualized before generation. It

includes different sections:

• Summary

• Money Markets

• Capital Markets

• Derivatives

• Movements

• Pending Settlment

• Porfolio Return (Net YTM, Weighted YTM)

• Taxes

• Corporate Events

• Spot Position and Collaterals

Statement information is also available in

different formats to be integrated into

proprietary systems or middleware.

Other Functionalities• Account’s funds blocking

Portfolio Performance

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Cash Management - Clients’ Clusters LTO allows the definition of clusters of clients in order to control the cash existence in a consolidated way to monitor and resolve liquidity issues. Addi-

tionally, cash can be moved automatically between legal entities in the system for any clustered client with the purpose of

covering short positions.

Custody FeesFor Custody business, LTO calculates custody fees based on the average asset position in the month.

AccountingLumina’s accounting engine is a multi-entity and multi-currency state of the art module that generates the accounting for the entire Lumina’s operation

based on operational events. The module is rule based and user configurable. This rules are directly attached to the different business events (e.g.: trade

capture, settlement, coupon payment, fees, taxes, etc..)

that get captured in real time in the application.

All rules can be managed by using Lumina Operation’s or

through the use of specially formatted MS Excel™ spread-

sheets that can be imported into Lumina Operations.

The highlights of this module are:

• Multiple accounting schema support (Local, US GAAP,

etc.)

• Linkable to multiple accounting systems

• Multi-Entity and Multi-Currency

• Dynamic and flexible rules definition

The entire accounting information generated inside

Lumina Operations gets exported to the Accounting

Systems currently in use by our clients.

The whole information can be reviewed within Lumina

Operations before or after being sent to the external

system.

By doing so, Lumina Operations enables a complete

control and review process of the accounting informa-

tion from within the solution.

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ENVIRONMENT CONFIGURATION

Lumina Treasury provides flexibility in the configuration of the environment necessary to support the business. To setup all the system ele-

ments capture screens are grouped by area:

• Business environment: defines the booking and business structures for consolidation.

• User environment: defines user roles, access and permissions to the different system elements.

Business environment configurationThe business environment configuration includes the entire basic information needed to execute all daily tasks. This information is critical

for all day to day processes and provides a controlled environment. The basic and most relevant areas of configuration are:

• Client and roles configuration.

• Products & Instruments (fixed income, equities, futures and options, etc.).

• Own and client accounts.

• Standard Settlement Instructions.

• Taxes.

• Accounts related information (depositaries, account types, etc.).

• Settlement reference data (clearing agents, settlement mechanisms, etc.).

• Limit’s structure.

• Currencies and Calendars.

User EnvironmentThe security schema of the Lumina Suite is based upon users and roles. Users are assigned to roles they fulfill and roles are the ones with

the permissions to access and execute tasks.

The security structure works in two different levels, allowing administrators to give access to users based on roles and gaining access

to functions, as well as based on data (e.g.: entities, portfolios, curves, etc.). This segregation in security types enables a more thorough

control over the functionality and the data available to users.

In conjunction to the configuration and in order to provide accurate and complete information, a series of audit reports are available to

users. These reports expose not only the security configuration, but also the access to the application, changes performed by users to

business objects, etc.. All audit entries are recorded online.

Batch Reporting ModuleThis module enables the user to configure a set of reports with its own parameters for execution at a certain time of the day.

The system then will automatically generate the reports and store them in a predefined shared place or e-mail them to a given account.

Bonds and Person Editor

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Integration EasinessThere is a standard API to interface in information into Lumina:

• Transactions

• Instruments

• Clients

• Portfolios

• Market Prices and Coupons (Structured & Non Structured)

The interface can be scheduled in time, works on top of an internal/

external code matching process and is able to generate e-mails upon

completion to notify any errors. This interface can be easily modified

to comply to any sort of transport technology needed.

Processes• Report Batch Execution.

• Customized Scheduled Tasks.

• Monitoreo de Procesos.

• Maker & Checker for complex strutures

(contracts, settlement instructions, account, etc),

including Dual Control and e-mailing.

• End of Day Batch Processes for Areas (Front,

middle, back, and accounting) with padlocks and controls.

• Tasks’ Preconditions for controlling dependencies.

• Report Asynchrony Execution with alarm notification.

Closing and Scheduled Task Flexibility:• Standard Task Inventory.

• Dynamic Task per Legal Entity.

• Ability for Task Cancellations.

• Import/Export Task among environment.

UsabilityLumina Operations includes a series of tools thought to easy the usage of the application.

• All internal spreadsheet like screens can be exported to MS Excel™ in native format, printed in MS Excel™ format, all screen have the

ability to perform general searches.

• The whole information can be sorted by columns and searched by columns,

• Columns order can be modified and even hide columns. This modified views can be saved on a user level or even make them public

for other users use.

• All reports are equipped with a side bar on the left for the filtering criteria. Reports can be generated as normal spreadsheets or pivot

tables.

• All reports are MS Excel™ exportable without loosing the native format.

• All monitors and grids incorporates abilit for automatic configurable refreshing.

Scheduled task editor

TECHNICAL ASPECTS

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All reports can be exported to MS Excel™ including format and the design

TECHNICAL ASPECTS

Reports present specific filters on a collapsible left panel and are

provided both in listed format or in drill-down layouts that let

the user navigate them

Portfolio Inventory Business Level Report

Report Portfolio Inventory Business Level exported to Excel™

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• Users can customize pivot table reports and save them for future use. All these designs can be shared across users by publishing them.

• Since these reports are pivot tables, the user can change the fields being displayed, change the grouping criteria on a row level or

column level. All columns and rows can be filtered or sorted as necessary.

TECHNICAL ASPECTS

DataSets• Lumina provides a feature denominated DataSets as a parameterized mechanism for extracting date from the DB in order to construct

interfaces, reports or plain data. By using DataSets it is possible to build sophisticated processes for extracting or converting information

from Lumina with the following advantages:

• No extra cost to build interfaces inside Lumina,

• Lack of vendor dependency to new interfaces o data conversions,

• No need for upgrading system version,

• Users can design their own reports and incorporate them to the system,

Data ConversionData Conversion feature in Lumina

provides the ability to import and

export to MS Excel all the information

related to different business entities

in the system (accounts, contracts,

instruments, books, market data, etc.).

DC are particularly useful for initial

uploading and setup of the application

as well as for migrating info between

different environments and

pre-built test cases.

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TECHNICAL ASPECTS

Validation Chains – Pre-Trade Checks

Lumina incorporates validation chains to events related to orders and transactions, which determine the behavior of catch

reporting error, exception or warning.

Pre-Trade Checks – Orders

Pre-Trade Checks – Transactions

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TECHNICAL ASPECTS

View administration in spreadsheet like viewsViews can be customized inside Lumina Operations for any spreadsheet like view. The customizing includes reordering columns and

hiding them, customizing the view to the user’s need.

Once the customizing is done, the user can save this new lay-out.

In this way, the user can customize the same monitor with different information based on his/her needs and depending on the tasks

he/she wants to perform.

Many views can exist on the same spreadsheet like view within Lumina and for the same user. All these views are private to the user who

created them, but having the possibility to publish them and make them available to other users.

The customizing of views also include options like defining a view a the default view and auto re sizing columns.

Data WarehouseLumina Operations incorporates a warehouse which acts as a general repository for storing and flattening information from the system

to be consumed by external interfaces. Entities can consume that information based on a simplified view of the Lumina data model,

where main system components are stored. The module also allows the use of a historic paralell database as well as clean-up processes

and permanent consolidation.

Webservices Lumina incorporates Webservices for business components integration. The API allows both the exchange of business information as

well as the Lumina platform use cases execution. In addition, the framework allows an easy mechanism to extend new webservices.

Among other uses, it simplifies the integration with financial institution web portal as a mechanism to publish/receive order and report

balances and pre-trade checks, for both OTC and Quoted instruments.

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TECHNICAL ASPECTS

RTAThis module enables the automatic execution of use cases (Or test cases) for the main functionalities of the system, by using specific MS

Excel spreadsheets with the use case configuration. It simulates the use of the system by running daily activities. Outputs (Report, text files,

and queries) are validated and compared against a number of expected baseline results (Including performance). RTA is used intensively

in Regression Test processes.

Process Monitor• Centralized and real time monitoring of processes in execution.

• Dynamic administration of execution threads.

• Task distribution in different nodes.

• Distribuir tareas entre diferentes nodos.

• Multiples schemas for associating task to processes.

Model Bank Lumina Model Bank is a pilot installation of Lumina suite configured to cover all the common functionality provided by all possible product

installations Lumina. This configuration can be taken as a basis for the following activities:

• Preliminary Projects / Requirements Analysis.

• Early Installation (initial) in Client.

• Development and Unit Testing.

• Regression Testing.

• Pre-Sales / Demonstrations.

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OUR COMPANY

Lumina Americas is a regional consulting and technology service company based in Latin America with offices in Argentina, Mexico and a representation in Spain.With more than 14 years of experience developing solutions for the Financial Services

Industry in Latin America, we develop mission critical software solutions to help our clients

build and support their high-performance businesses.

Lumina was formed as a spin-off of regional application development team of JPMorgan

Chase Bank (April 2001)

More than 100 professionals with extensive technical and financial experience

Strong team-work and collaboration culture with more than 10 years working together

Owned and existing solutions for serving the financial market

Software Components and Frameworks

Advance CMM practices

Combination of resources for the whole life-cycle of software projects

Top 40 Argentinean Companies in quality of labor environment

“Proven experience developing, implementing and supporting

mission critical financial systems”

Application Development – Customized Projects

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OFICINASBuenos Aires:

Av. Pueyrredón 2446, 7ºpiso

C1119ACU - Buenos Aires, Argentina

Tel:. +54 (11) 4131-8500

Fax: +54 (11) 4131-8539

México:

Sierra Candela 111, of 412 (11000)

Col Lomas de Chapultepec, CDMX.

Tel: +52 (55) 5985-0559/7453

e-mail: [email protected]

Representación Comercial en España

Tel.: +34 618191694

e-mail: [email protected]

Visit our website: http://www.luminaamericas.com

Sales, Implementation and Integration

System Integrations

Technology Consulting

CLIENTES

• JPMorgan Chase

• Credit Suisse

• HSBC

• UBS

• Deutsche Bank

• Banco Voii

• Intercam Casa de Bolsa

• Barclays

• Actinver

• Grupo Financiero Intercam

• Grupo Financiero Ixe-

Banorte

• BTG Pactual

• Akaan Casa de Bolsa

• Grupo Financiero Multiva

• Grupo Financiero BanRegio

• Altor Casa de Bolsa

• Kuspit Casa de Bolsa

• Banco Base

• BHD León

• Bursamétrica

• Sura

Documents

LUMINA OPERATIONS · 2019-02-27 · Corporate and Operational Events Lumina Operations has a series of specific screen to deal with operational corporate events, such as: • Term