Solution ¨
that speed up
and simplify
your work
CTS PRODUCT SUITE
Things can be done simply. Doing things
automatically is cheaper than doing them
manually! Let’s join forces to lower your
operation costs for treasury department.
Tomáš Gavlas
​Chief Executive Officer
Il luneda al Leon Cavallo by Roberto Taddeo
Support your
business with the
unique CTS trading
platform!
Up to
60%
Success doesn’t have
to come at a high price.
By implementing our
solution you’ll save up
to 60% on OPEX in
comparison with
global suppliers.
CTS PRODUCT SUITE
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Many ideas,
one system
A unique and
comprehensive
modular system
for trading on
the capital markets
We’ve designed software that covers all the tasks related to trading on capital
markets, all the while retaining basic values such as simplicity of administration
and servicing, the fast implementation of changes, and above all flexibility
in development.
CTS supports the business process from the collection of orders at branches/retail
web, through carrying them out on local and foreign markets using partner brokers,
via the process of settlement, custody, portfolio management, fund administration
and distribution, accounting, all the way to regulatory reporting.
CTS is a unique all-in-one solution. Its simple parameterisation adapts to various
methods of use, without it being necessary to install a different solution for each
sphere. It simplifies and cuts the cost of the IT architecture and infrastructure
and speeds up the implementation process. In addition, it speeds up work with
the system itself thanks to its user-friendly interface that renders it unnecessary
to switch between different applications.
“Our OPEX fell by 63%
against the original solution,
and this allowed us to
increase the comfort of
services to SLSP clients since
we were able to invest more
in new functionalities
and products.”
CTS PRODUCT SUITE
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S LOV E N S K Á S P O ŘI T E L N A
(ERSTE BANK MEMBER)
CTS Broker — Front office
Do business effectively on global markets
CTS Broker — Back office
What’s important is concealed within
CTS has an on-line interface to markets using the XETRA trading system (we support
Simple servicing, a high level of process automation, task scheduling and a wide
direct and indirect access). Trading on other global markets is carried out with the
range of parameterisation – these are the main attributes thanks to which CTS
aid of partners via a standard FIX interface. CTS allows both you and your clients to
can be proudly ranked among market leaders.
access markets. We have devoted maximum care to each interface, because every
CTS deals with transaction settlement in local as well as international securities
second counts in our business.
depositories and custodians. Communication with clients and custodians using
Retail Brokerage
the SWIFT protocol is taken for granted.
Different kinds of fees and commissions can be applied to the services provided
Working in conjunction with bank branch employees we’ve prepared a simple,
(transaction fees, position fees, CA, etc.). Virtually anything can be set up and
highly intuitive web interface. Along with leading graphic designers we’ve developed
changed ad-hoc in our fee module.
a transactional portal which enables your clients to trade independently.
• Branches – the system includes a web application that allows branch users
to enter trading orders, settlement instructions to the Central Securities
Depository, generate client statements, etc.
The system allows all the operations referred to above to be billed according
• Internet – the system includes a web application that allows clients to enter
trader orders, display market data or current portfolio value.
and international standards.
to the accounting method of your choice, including automatic corrections during
reconciliation. The accounting methodology is in accordance with both Czech
• Smartphone – includes a smartphone application that offers clients similar
functions to a web application, but adapted to the limitations of a smartphone.
Market
Institutional Brokerage
Phone
We work closely with the largest banking securities traders in the Czech Republic
and Slovakia.
Branch
• DMA – the system allows a DMA service to be provided for markets with
a direct connection such as Xetra.
Custodian Registry
Bank
Data Feed Provider
Regulator
Front Office
Back office
Portfolio mng.
Order validation
Order filling on markets
Market making
IPO management
Trade confirmations
Position keeping
P/L reporting
OTC settlement
Contractual settlement
Settl. confirmations
Automatic EoD proc.
Static data mng.
Reconciliation
Reporting
Bank/fund portfolios
Interest accruals
IAS methodology
Mark to market
Historical portfolio
reconstruction
OTC products
Custody
Accounting
• FX Products
• IR Products
• Options
Settlement instructions
Corporate Actions
Safekeeping billing
Account scheme
definition
Interface to CBS
Web
• Care Orders – the system contains a functionality that supports dealers
process care orders such as VWAP, TWAP, Participate, etc. via a user interface
that is uniform for all markets.
SWIFT
• Market Making – the system contains a functionality that makes it possible
to perform the role of market maker or investment certificate specialist.
Mark to market
Interest accruals
• FIX Order Gateway – a FIX gateway allows for the reception of orders from
international trading platforms such as Bloomberg (EMSX or EMSxNET) and ULLink.
Fund depository
Valuation check
Investment limits check
NAV and fees recalc.
Pre-trade validation
• Algo Trading – the system contains the functionality of algorithmic trading
in the area of care order treatment (VWAP, TWAP, etc.)
CTS PRODUCT SUITE
Partner Broker
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CTS Custody
Be a global player
CTS Funds
Create the potential for growth
Free your clients of worries regarding the settlement and administration of
Use CTS to administer investment management companies and collective investment
securities. With CTS you cover all the requisite tasks, beginning with the settlement
funds. With modifications the system can be used to manage pension funds.
of instructions received, via position keeping, to managing corporate actions for
securities in a portfolio. All of this supported by a wide range of SWIFT messages.
With CTS you settle received instructions in local depositories and foreign custodians.
Communication with clients and also with custodians is realised via the SWIFT protocol.
Settlement can be confirmed by automatically sent email, SWIFT message or even
The management of investors
includes the following:
• the reception of buy orders in the form of a sum invested, and sell orders by the
number of shares
fax, according to the client’s preference.
• simple or chain orders (fund switch), regular investments
Depending on the particular depository, transaction settlement can be implemented
• the creation and validation of orders on the basis of payments received
as an STP process. The system offers automated tasks (within the framework
• payment management during buy-back
of position keeping) such as market position valuation, the despatch of balance
and transaction statements to clients, and reconciliation with records from
depositories or custodians. The fund portfolio management agenda,
i.e. the investment of resources deposited
by investors in assets with a structure
defined by statute, includes the following:
CTS supports the following types
of corporate actions and tasks:
• transactions with securities, derivatives, real estate and other
assets defined in the statute
• transaction settlements
• collection of revenues (dividends, coupons, redemptions),
including reinvestment revenues
• cash flow monitoring taking into account the inflow/outflow
of investments to/from investors
• support for corporate actions with multiple options,
including the registration of options which particular clients have picked
• daily market portfolio valuation
• fees, balances due, compensation, FX conversions
• statutory and internal audits of investment limits and structure
• mergers or splits in different ratios
• calculation of management and depository fee
• withholding tax refunds
• calculation of net asset value per unit
• notifications – General Meetings, etc.
• booking of transactions undertaken on financial markets, realised
and unrealised P/L and other relevant changes in a fund portfolio
• a calendar for monitoring deadlines and events
CTS PRODUCT SUITE
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CTS Fund Depository
A problem discovered quickly
is only half a problem
CTS OTC products
Be prepared for expansion
Accurate data
for the right
decision
This product offers systemic support for the depository of collective investment fund
The valuation, settlement and clearing of various OTC products is covered fully
and pension insurance funds. It controls the valuation of funds and the composition
by CTS. Over the course of its existence an OTC product undergoes various states
of a fund’s assets.
and events, i.e. premium payment, maturity, termination of a contract, etc.
Selected events can be generated in bulk. Accounting of all events in OTC
The system supports
the functionalities below:
contracts and their valuation or interest accrual is posted to the general ledger.
Support for the grouping of OTC products into structures that allow for the netting
of settlement payments. Support for SWIFT messages type MT2XX and MT3XX
• records of all a fund’s assets, including any changes in time (transactions),
is taken for granted.
• market revaluation of a fund’s assets in order to verify whether
this reflects fair value,
• calculation and verification of fees collected and net asset value (NAV),
• monitoring of the limits and structure of a fund’s assets in accordance
with the law and the fund statute,
• Validation prior to closing a deal.
Portfolio
Management
CTS Own
Portfolios
Only investment decision is up to you
This product allows for the management of own portfolios, including the monitoring
OTC Options
Foreign
eXchange (FX)
Interest rate (IR)
FX Options
FX Spot
Forward Rate Agreement (FRA)
Interest options
FX Forward (incl.
Time Option)
Interest Rate Swap (IRS)
Swaps
FX Swap
Cross-currency Interest Rate Swap (CIRS)
of historical valuations, calculation of realised and unrealised profit/loss using
various methods (i.e. FIFO, WA, etc.), and accounting to the general ledger. Support
is provided for operations such as amortisation, valorisation, maturity, mark to
Secured Deposits
market etc.
Loan & Depo
Interest at Maturity (IAM)
CTS PRODUCT SUITE
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CTS Portfolio Management
Accurate data for the right decision
Portfolio performance and risk analysis
CTS Portfolio Management contains functionalities that support the analysis of
portfolio performance and risk using different methods, including the graphic
presentation of outputs, which allows assets to be allocated to individual portfolios
The functionalities support investment decisions on the buying and selling of assets.
using defined strategies.
The analytical models listed below help reduce risk or increase the return on the
portfolio.
Portfolio analysis functionalities can be used directly by end clients using a web
interface or a private banker or advisor during client consultation. The functionalities
•
Benchmarking – a benchmark or model portfolio can be compiled and allocated
for managing asset allocation in client portfolios can be used within the framework of
to each portfolio, with which it can be compared in all analyses. The system
private banking or asset management services.
allows the comparison of, for instance, the composition of assets according to
type, currency, region or sector, including a graphic presentation or historical
development of market value.
Market
Partner Broker
Data Feed Provider
Regulator
•
Modern portfolio theory – using a statistical model the portfolio performance
and risk are estimated on the basis of individual asset performance and risk. The
Tablet
Branch
Portfolio mng.
Front office
Back office
Yield&Risk analysis
• Benchmarking
• Modern portf. theory
• Attribution analysis
• What-If analysis
Asset allocation mng.
Order validation
Order filling on markets
Market making
IQ orders/ Algo (VWAP)
IPO management
Trade confirmations
Position keeping
P/L reporting
Market Prices
Contractual settlement
Settl. confirmations
Automatic EoD procedures
Static data management
Reporting
Web
value at risk can be specified for a given period and level of probability. When
making comparisons with the benchmark, the excess return of a portfolio against
the market (Alpha) or the volatility of a portfolio compared to the market as
a whole (Beta) or the yield per unit of risk (Sharpe ratio) can be specified. This type
of analysis allows for an understanding of the portfolio risk and a comparison with
the market.
•
Attribution analysis – this distinguishes the profit or loss caused by the difference
in the composition of assets within the given investment strategy both on the level
of asset category (type of security, currency, state or sector) and on the level of
the selection of individual instruments in a given category. This type of analysis
is used to assess how successful an investment strategy was and where it has its
strong and weak points, and it can be used to evaluate the investment decisions of
a private banker managing a portfolio.
•
What-if analysis – this models different market-development scenarios using
changes to the market value of any given asset category (type of security,
currency, state or sector) and assesses the impact on the market value of
a portfolio. The results can be compared with the impact on the market value of
a defined investment strategy or benchmark. This type of analysis isolates the
weak points in the composition of a portfolio that appear during price shocks on
the market.
CTS PRODUCT SUITE
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CTS Fund Depository
A problem discovered quickly
is only half a problem
CTS OTC products
Be prepared for expansion
Assets allocation management
and pension insurance funds. It controls the valuation of funds and the composition
The valuation, settlement and clearing of various OTC products is covered fully
of a fund’s assets.
The functionalities allow for the mass management of the allocation of assets of
and events, i.e. premium payment, maturity, termination of a contract, etc.
This product offers systemic support for the depository of collective investment fund
by CTS. Over the course of its existence an OTC product undergoes various states
individual portfolios according to the strategy the portfolio takes part of. The strategy
is represented by a virtual model portfolio using which the strategy manager can
The
system supports
define the current distribution of individual assets in any given strategy.
the functionalities below:
Selected events can be generated in bulk. Accounting of all events in OTC
contracts and their valuation or interest accrual is posted to the general ledger.
Support for the grouping of OTC products into structures that allow for the netting
If the strategy manager decides on a change in the model portfolio, he changes the
•allocation
records of
a fund’s
assets,
including
any
changes
in time (transactions),
of all
assets
in the
portfolio
and the
system
automatically
generates buy
of settlement payments. Support for SWIFT messages type MT2XX and MT3XX
is taken for granted.
•ormarket
revaluation
of a fund’s
assets
order
tostrategy
verify whether
sell orders
for individual
portfolios
ofin
the
given
so that the same asset
this
reflects
fair
value,
weighting is achieved as in the model portfolio. It is possible to configure whether
•instructions
calculationare
and
of fees
collected and
net asset value
(NAV),
toverification
be generated
independently
for portfolios
or a mass
order is to be
•generated
monitoring
limits and
structure ofthe
a fund’s
assets
in accordance
forof
allthe
portfolios.
Subsequently,
assets
purchased
using a mass order
with the law and the fund statute,
can be transferred to individual portfolios in the strategy.
• Validation prior to closing a deal.
If a new portfolio is created in which only cash is deposited and this portfolio is
included in a particular strategy, the system can automatically generate orders to buy
so that the allocation of assets corresponds to the given model portfolio.
CTS
Portfolio Management
The orders generated may automatically be sent outside the system to a partner
Only
up the
toFIXyou
securities investment
broker or directly to thedecision
market using, for is
instance,
or SWIFT
protocol.
This product allows for the management of own portfolios, including the monitoring
OTC Options
Foreign
eXchange (FX)
Interest rate (IR)
FX Options
FX Spot
Forward Rate Agreement (FRA)
Interest options
FX Forward (incl.
Time Option)
Interest Rate Swap (IRS)
Swaps
FX Swap
Cross-currency Interest Rate Swap (CIRS)
of historical valuations, calculation of realised and unrealised profit/loss using
various methods (i.e. FIFO, WA, etc.), and accounting to the general ledger. Support
is provided for operations such as amortisation, valorisation, maturity, mark to
Secured Deposits
market etc.
Loan & Depo
Interest at Maturity (IAM)
CCTTSS PPRROODDUUCCTT SSUUI ITTEE
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1 51
Chicago by Monika Thorpe
In speed lies
strength.
The perfect
architecture of our
solution will speed
up and simplify
your work.
CTS PRODUCT SUITE
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Only he who is
unwilling to settle
for average can be
successful.
Our clients are leaders
in investment banking
within the CEE region.
Market Regulation
The system complies with MiFID and can automatically validate incoming trade
orders in accordance with ESMA standards.
Performance for your growth
The CTS system is constructed on a modern, three-tier architecture based on
Microsoft technology (.NET Framework, MS SQL server and Windows Server).
The system’s architecture has been designed with an emphasis on performance.
The separation of database services and the replication of databases for reporting
and selected non-critical batch tasks allows these often time consuming tasks to be
carried out without hindering the system performance. The possibility of connecting
several application services for the distribution of the system’s computational
outputs is the cornerstone for scaling out the hardware when the business grows.
The optional storage of static data in caches improves the performance of the client
application and reduces network utilization. The user-friendly interface has been
created with maximum consideration for ergonomics, adaptability, and the use
of practical elements (filters, arrangements, exports, contextual assistance, etc.)
Support and maintenance
We place great store by partnership with our clients. With CTS you receive topclass service support and product development. We are prepared to guarantee
not only a strict SLA and performance criteria, but we follow the market in order to
offer innovative product changes. We are prepared to adapt to your requirements
regarding release management. With us you won’t have to wait a long time in order
to implement the required changes.
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The company’s main pillar is the product CTS, which completely covers the needs
of particular departments, i.e. front office, back office, accounting, custody, asset
management, etc. The unique value of CTS resides in its joint product approach.
All solutions use an identical modular platform and the simple parameterisation
of the system means it can be adapted to meet specific client requirements.
At present CTS can be connected to the stock exchanges of Central and Eastern
Europe within the CEE Stock Exchanges Group. It also contains an interface to the
Slovak stock exchange. We can communicate with foreign partners using SWIFT
or FIX protocol.
CTS TRADE IT a.s. · European Business Center
Dukelských hrdinů 34 · 170 00 Prague 7 · Czech Republic
Email: [email protected]
CTS PRODUCT SUITE
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www.cts-tradeit.com
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