The Back Office service has various layers and may be implemented in phases. A challenging aspect of this solution is the necessity to discover everything impacted by the change and to realize what constraints exist. Identifying which modules can be changed or modified, which ones cannot, what data can be shared, what data must remain on premises, etc. is essential.
At a high level, the processes that should be analyzed are:
- Internal Report Generation - Compliance, Risk, FinOp, Management
- Settlement (DTCC, CDS, Indeval, CREST, etc.) - Interface with CCV (real-time API), Fails Monitoring, Stock Loan, End of Day Reconciliation
Back Office Implementation Options:
- Back-Office As A Service (BOaaS): RSI offers this solution as the simplest “plug & play” type of service. RSI provides a service that is accessible via a Web API. The solution remains secured and confidential. In this set up, the customer provides INPUT to RSI and receives OUTPUT back. All the work is being done on the RSI side. This is a very flexible solution, and the easiest to implement. However, in order for this solution to work, the customer will have to allow the data to leave its premises in order to be processed by RSI. Final customer identification does not need to be provided as RSI usually use Alias for the various accounts. Mapping between Aliases and End customers is only known by the customer
- Back-Office Solution on Premises (BOoP): This solution is comparable to the solution implemented for and used by Lek Securities Corp. to run its global operations. All processes are running locally on SQL Servers. Customer data remains local and the computations happen on premises. To implement this solution, a RSI technician will require access to their hardware, on the customer network. This is still a feasible Back Office option which can be implemented fairly quickly but will required some customization in order to have the processes adapt to the internal environment.
- Back-Office Solution local environment (Custom BO): This solution is far the most integrated solution of all as RSI will customize the solution to match the customer’s infrastructure. For example, we understand the current back office might run on Oracle and our solution will have to run locally on the customer’s server. This will require a deep involvement of IT staff.
Back Office Summary