City Software
Financial Market Solutions

Nostro Movements for Settlements



Overview

Settlements and Payments departments need to be able to keep a close watch on NOSTRO cash flows. Methods within MIDAS provide limited information, which further needs to be manipulated and interpreted to be of practical use. The Automated Real-Time Nostro Positions Reporting system provides additional features and flexibility for the responsible areas to quickly see the important information in a clear and concise format.

The system extracts details of nostro movements from the CitySoft Real-time Cash flow file for nostros defined within the Midas system. These can then be displayed either on the screen, printed or downloaded to EXCEL for easier number crunching by the end user.

A facility is also available to add manual entries to show in the report or displays. These manual entries are only used in the Cash Flow reporting and will not change any Midas files.

The opening balance of any day for any NOSTRO can be input to show the net effect of movements for that day.

Should it prove necessary, the amount on the particular movement can be overridden to reflect the actual amount of cash to be paid or received.

The initial cash flow reporting file is automatically set-up in the Midas Close of Business processing and new transactions input to Midas are monitored during the day and immediately reflected in these files. Information is taken directly from the Midas database to avoid duplication of user input.

Benefits

  • Minimal user input

  • No re-verification of data since this is done when the deals were originally entered and there is no duplication of data.

  • Timesavings by allowing quicker analysis of Nostro positions, which are particularly important during, busy trading period times.

  • Download to EXCEL for easier number crunching.

USER COMMENT

"LEE DUXBURY - SENIOR MANAGER, LANDESBANK HESSEN THUERINGEN"

The Automated Real-Time Nostro Positions System replaced an antiquated, error prone spreadsheet system used by the Back-Office to analyze the Nostro cash balances in multiple accounts. The system provides a real-time reporting of cash positions that are affected by events from either trading or lending activities and is flexible enough to allow non-MIDAS inputs (such as accounts payable transactions). Installation is simple and has no affect on the MIDAS files or programs. Interfacing with a front office deal input system such as the CitySoft SADIM system is easily facilitated. We have been very pleased with the efficiency of the system and the reduction of induced errors in previous manual methods used. The reports also document the reconciliation of positions at the end of day with the trading area. Financial justification of the purchase of the system lay in the costs saved in overdraft or compensation fees brought about by either untimely or incorrect Nostro balances in the previous manual system. For a small to medium sized institution, not wishing the expense or complexity of larger systems, this provides an ideal solution to Nostro balance tracking.

Screenshots
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