Clearing & Settlement System for Commodity and Stock Markets

Clearing And Settlement System (CSS/X) is an extensive adjustable solution for trading commodities, securities and financial derivatives. Implementation of CSS/X helps to increase market turnover and helps to achieve higher level of trading for various instruments (equities, debt and derivative instruments, commodities etc.).

CSS/X system has modern service-oriented design specific for CMA products that is based on the basis of highly efficient PIE integration bus.

CSS/X solution is designed to help clearing organizations to achieve full automation of business processes on different levels. The system has centralized architecture and incorporates advanced development framework that can be used to design data processing rules and interfaces with external systems.

CSS/X solution provides the following major functions:

  • Money and commodities settlement;    

  • Commodities contract settlements;

  • Securities purchase settlements;

  • Futures contracts settlement;

  • Options settlement;

  • Trade and money limits management;

  • Monetary funds deposit and withdrawal;

  • Online validation of financial and commodities/securities provision for trades;

  • Support of various financial instruments (currency, securities, letters of credit, etc.);

  • Provision to handle transactions, guaranteed settlements and supplying;

  • Interface with Trading systems, Settlement banks, Issuers and Depositories in online or batch mode;

  • Configurable clearing schedule.

CSS/X includes basic versions of client workplaces for:

  • Trade and Clearing participants;

  • System administrators for exchange trading, clearing and mutual settlements (including trade sessions schedule, margin parameters management).

  • “Delivery versus payment” principle
    • execution control for contract payment
    • execution control for contract deliveries
  • Systems can work with any commodity category and financial instruments (oil, diesel fuel, other oil products, building materials, securities, financial instruments);
  • Booking of orders and deals provision for clearing system (adjustable parameter, percent of the order and deal amount);
  • Order check on a real time basis;
  • Settlements per day T+n (adjustable parameter);
  • Reports to issuers regarding concluded contracts on the day of finalization;
  • Information to issuer regarding implemented contract settlements on the day of settlement and contract finalization.

The CSS/X system was developed in accordance with industry standards and international organizations recommendations:

  • IOSCO, BIS and World Bank recommendations and principles

  • SWIFT, SWIFTNet Standards

  • FIX, ISO15022, ISO20022, UNIFI-ready

  • XML, UML

  • Multi-level structure provides robustness and high efficiency.

  • Distribution of functions between the levels allows efficient distribution of operations burden and can avoid system downtime

    • The module solution allows for:

    • component functionality distribution

    • component reuse

  • easily expand the functionality

  • Approach oriented for function efficiency through:

    • STP (Straight-Through-Processing)

    • Processing logic adjustment without code modification

  • Monitoring of operational continuity and integrity on every system level.

Solution Benefits

Orders, deals and other electronic documents processing rules are presented in UML which results in the following benefits:

  • provides functional flexibility

  • simplifies system customization according to trade organization’s specifics

  • can modify system operation logic according to market needs and changes in regulatory requirements

  • simplifies system future enhancements

The system is running on an integration bus that is a part of PIE® (Processware Integration Environment) which:

  • provides interaction with other systems through electronic messaging.

  • allows building integrated hybrid solutions in conjunction with existing systems.

A full interface for connection of certified national information security system and data protection including those using international systems (Microsoft, RSA, Entrust, etc.).