1.    New TSB Screen (Team Size- 8)

According to Compliance requirements State Street, applications need to disable Enhanced Custody users from booking new lending activity (Non Cash Collateral) .They would require a new Trader Browse screen. TSB was designed to be a clone of the TSL screen (booking loans).

2. BASEL III- 5K Limit (Team size 40)

Financial Institutions need to determine whether their counterparty credit risk expected positive exposures (EPEs) using both current market data and stressed inputs. The default risk capital charge will be the higher of the portfolio-level default risk capital charge using current market data and the portfolio-level default risk capital charge using stressed inputs. Counterparty Entity  Netting sets with more than 5,000 trades or netting sets containing one or more trades involving illiquid collateral or hard to replace OTC derivatives will be subject to higher capital charges through the application of longer margin periods of risk. Basel III has proposed a supervisory rule that established limits on the number of new trades that may be opened for each individual netting set, specific to a counter party. The rule requires banking organizations to set a threshold of 5000 trade limit. In the event where the threshold is exceeded at any point during the quarter, there will be a holding period of 20 days instead of 5 days for calculating the reserves for the impacted netting sets for the entirety of the subsequent quarter. The change in the holding period has significantly increased the cost of lending.

3. ETF TPC Third party Payment Instructions (Swift Message Type 540 for LOAN– LOANR, MT542 LOAN). Currently the internal TPC instructions are being processed manually with the help of Microsoft applications. Throughout the day for multiple batches of instruction, delivery data, users are expected to extract ETF TPC instructions from SLE2, and then load the same into Micro apps in order to book the lending activity into SMAC. This process generates Trade ID’s that need to be authorized manually. As of now both TPC and SSC, instructions need to be authorized manually. Going forward TPC side of the instructions need to be processed automatically as LOAN and LOANR. Lack of automation has caused delays in the processing of share movements resulting in delayed settlement of client sells and SF loan activity.SLE2 will match the TPC settlement instructions using the Matching algorithm. LOAN and LOAN Return transactions are like borrow and borrow return transactions.

4. Fund accounting of investment vehicles and liquidity cash management (Equity, Derivatives and Fixed income assets)

The Securities Finance Financial Accounting group (FAD) is responsible for performing Cash Management, Earnings Accruals and Distributions, and Counterparty Billing functions. Today these are accomplished using multiple core applications such as DML, LMS, and ERPS, along with numerous spreadsheets and micro apps. New regulatory requirements for Money Market Reform and Volcker Rule will require new investment vehicle structures and processing. FAD has three basic investment vehicles –Commingled, VCP, Floating rate NAV. Securities Finance will require strategic solution that will achieve the following:

•       Integrate all Financial Accounting and Cash Management processes into a single platform .

•       Create a consistent process for all global sites (Boston, London, Sydney)

•       Provide a general ledger to enable tracking of cash investment and financial accounting activities

•       Provide the capability to configure new investment vehicle structures to support new products (e.g. Floating Rate NAV)

5. Segregation of internal SAS Admin users from Weblend Auto borrow ID’s –CIS Segregation of internal SAS Admin users from Weblend Auto borrow ID’s –CIS policy states that it is a violation for non-security admin users to perform security administration functions. CIS mandates that all Security administration functions need to be performed by SAS and in order to meet this requirement there are several gaps that need to be resolved to enable the transition to SAS. Security administration functions need to be performed only by the SAS team. Broker on boarding functions should no longer be part of the Security Admin menu. Segregate the SLE2 user login activity from the Weblend users. Today Weblend sits on the SLE2 infrastructure and it acts as a self-service tool for Borrowers (for the Availability locate and loan requests). SAS creates the Weblend Site Minder user login at the request of the client on boarding team. The client on boarding team is then responsible for adding that ID to SLE2. Going forward SAS and broker on boarding functions will not be part of Security Admin.

6. SSga Risk fund performance UI (fund threshold breach across all asset classes). The asset classes currently incorporate investor comments to explain fund performance threshold exceedances. In general comments only apply to portfolios where threshold metrics exceed the threshold band  limits. Fund performance and risk attribution is being measured for different asset classes -Equity, Fixed Income, Cash, Currency and ISG. Data conversion, configuration and daily batch data loads via ETL onto Netezza(data warehouse) via ETL. The performance UI also included the master fund data along with the historical net asset value, expense ratios and performance threshold breach information

7. Client on Boarding stands offering -State Street (STT) is responsible for onboarding John Hancock (JHI) sub advisor trade records into STT transaction management. The OTC derivatives (Interest rate swaps, credit swaps and currency swaps) trade records will be on boarded via custom trade instruction management method and all the other asset trade records will be on boarded via SWIFT. These trade records are enriched with other information and sent back to John Hancock data warehouse. Trades will be on boarded either at sub advisor level or portfolio level. Trade terminations and other adjustments will be managed at the subadvisor/portfolio level.

1.    Mark to Market Alerts using Actimize (Compliance FINRA regulation associated project) MTM (Mark to Market model) design identifies each CUSIP by book or account on the Fixed Income Trader Mark data that has a mark-to-market impact over a certain threshold. The model will also identify accounts having positions over specified face value that have a bid/ask spread over a certain threshold. Mark to Market is a measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or a specific company's current financial situation. It is also the accounting act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value. Problems can arise when the market-based measurement does not accurately reflect the underlying asset's true value.

2.  CRM Retail Integration using  SAML 2.0(FIT Group)

3. CRM Sales Force NASU integration using SAML 2.0.

The CRM projects delivered a deep integrated product with National Financial, Fetter NASU and the markets’ leading third party providers of (CRM) applications (Envestnet, RedTail Technologies and Salesforce.com). This integration will now provide the custodians (RIAs) an open technology platform specifically in portfolio management and client relationship management space. This Product will be deployed to multiple NF correspondents.  The primary NF objective was to integrate the three disparate 3^rd party systems in terms of prefill and business capabilities (The two CRM 3rd party applications Sales Force and Redtail and NASU for account opening). CRM vendors’ integration to NF Streetscape creates and saves multiple AO (Account opening) prospect data and transfers the prospect information to NASU (automatic Prefill at NASU). The primary objective of this project design was to make that experience as seamless as possible. These projects used SAML 2.0 Web authentication federation. Redtail integration deployed will be using the vendor model whereas the SalesForce.com will use the correspondent model. Each correspondent will have their own site key, relay state and contract.

4.    E-Signature  with Fetter NASU and BPM (FIT Group)

E-Sig provided clients using the Fetter/NASU 2.0 (New Account Set Up) tool with web based electronic signature (e-signature) capability solution. Fetter’s e-signature capability will enable the clients and correspondents to electronically sign forms/documents to establish a new account. Fidelity has a strategic alliance with Fetter Logic’s  (New Account Set Up) platform to support an e-signature solution provided by DocuSign, a vetted and approved vendor with Fidelity. LFA and PNC were  first two clients of the eSignature solution. 

5.    Automation for electronic notification of trade-prospectus and shareholder documents for Fidelity and non-Fidelity funds Via FMX/C360 and Broadridge e-delivery services for NF clients (This project needed to comply with the ‘Securities Act’ and provide NF group of shareholder’s e-delivery services for annual and semi-annual interim and proxy shareholder documents. This project required more enhancements since a new e-delivery indicator/flag was designed for the front-end systems. Shareholder documents included interim materials (annual prospectuses, semi-annual) and proxy materials (ad hoc basis). Interims and proxies are not the responsibility of the correspondent, but the fund company/issuer. The fund hires Broad ridge (BFS) to mail the documents to all shareholders of record. BFS then works with platforms and broker-dealers to obtain all shareholders of record, names/addresses for the mailing. NFS works with BFS to get them the names/address of account owners. BFS mails directly to the account owner (on behalf of fund).

6. DVP/RVP Trade Away Trade (Custody Settlement for Advisor trades with new market)

Fidelity is not the Prime Broker for IWS DVP/RVP trade away trades but will settle the trades for the Investment Firms/managers/advisor accounts. The new process required a new DTC Institutional ID, which has been established to identify the DVP/RVP trade away activity. The product supported self-affirmed advisor trades and Fidelity affirmations on behalf of the advisor via secured online Wealth Central application. This project required multiple regulatory meetings, comprehensive analysis of complicated trade rules (trade exception fail to receive and fail to deliver scenarios) to determine appropriate solutions or custody trade processing logic abiding by the SEC regulations and DTC rules. 

7.    Direct Edge ECN to  (EDGA and EDGX) EXCH conversion project

  Direct Edge needed to fuse ISE's (International Securities Exchange) equities trading technology with its existing systems to create a trading platform. They were targeting end of second/third quarter (2010) exchange launch. In addition to ISE, the company currently operated on two electronic equities markets EDGA and EDGX. Direct Edge's effort to secure exchange status for its EDGA and EDGX markets required approval from the SEC (Securities and Exchange Commission). Upon converting the two markets to exchanges, Direct Edge closed the ISE Stock Exchange (for equities), shifting trading activity over to the EDGA and EDGX markets. Fidelity needed to go through a certification process to use the new EDGA and EDGX exchanges. Fidelity is already a member of the Direct Edge ECN, so only a waive-in document was completed for exchange access. In order to add the new exchanges to the current system Fidelity needed to implement the new Alpha Market Code infrastructure.

8.    Internationals (Action Exchange conversion, Dividenda Globe-Tax Reclamation, Swift-Receive-Payments). The goals of the International Corporate Actions Project -Provide the Ability to trade, settle, finance and custody International securities, in either US Dollars or local currency, in an efficient manner that provides transparency and flexibility to the client.