Context of use of Cube Platform
An authorized External Asset Manager managing the portfolios of private customers deposited with custodian banks

Company functions involved
Front Office, Back Office

Back Office Functions

  • Receive the portfolio data from various depositary banks, the reference and market data from various data provider (Bloomberg, Reuters, Telekurs, others).
  • Manage or create all type of transactions
  • Reconcile the transactions and the positions of all portfolios
  • View or modify any dictionary data (instruments, portfolios, counterparties, contacts, asset classes)
  • Import MiFID Target Market (ETM) security data via csv / xls files

Middle Office Functions

  • Calculate commissions
  • Calculate performances
  • Verify compliance with respect to investment policies, MIFID and FINMA regulations and limits (supports MiFID single-name and portfolio approach)
  • Create and manage Model Portfolios ( changes due to Asset Allocation committee decision are all logged)
  • Verify correctness of Model Portfolio allocation vs. investment policies, MIFID parameters, tactical asset allocation, etc
  • Set up and manage FIX technical connections

Front Office functions

  • Monitor on RT basis all the portfolio values (quantities, PL, exposure)
  • Rebalance single or bulk portfolios from the Model Portfolio allocation
  • Generate orders and transmit them to the custodian banks, by email or FIX protocol (currently supported: 4.2, 4.4)
  • Monitor the status of the order book

CRM functions

  • Profile prospect clients: KYC, AML, PEP, etc
  • Create and manage Risk Profile questionnaires
  • Calculate the client Risk Scoring
  • Create and calculate client risk profiles according to MiFID and FINMA
  • Assign Portfolio Management line based on Risk Profile scoring
  • Manage client exceptions to Portfolio Management line

*Note: functions as shown above are typical of larger or more structured organizations. However, the User / Role /Restrictions matrix enables the creation of any number of roles based on e.g. internal or regulatory directives, company size, “chinese wall” requirements, etc.