I work with supply management. That might sound a little boring right? But actually it really isn’t! When I tell people what I do, their first response is always ”what does that mean”, and when I then try to explain it, their second response is always: ”isn’t that boring?” But luckily I can say, and even with confidence in my voice, that I really like my job and that is not boring. But it hasn’t always been like that. When I first started my current job, about two and a half year ago, we were a considerably smaller firm than we are now, and we had to do a lot of our stuff like bookkeeping, invoicing etc. Ourselves. But since we have grown quite a lot since then, we have started using this online company for these things. Now everything just runs electronically and smoothly, and we don’t have to worry about making typing or comma mistakes. I’m personally very fond of our supplier management solutions, which help me a lot in my day-to-day tasks and work. So if you are considering getting an external partner to take care of these things for you, and believe that your business would benefit from it, then I can definitely recommend this firm.
Trading is one of the older forms of business transactions that are still done on a regular basis today. There are many types of stocks, assets, liabilities and the likes that can be bought and traded to other fellow traders. Many companies and business owners find trade and investment an integral part of their daily activities as it helps with the overall growth and expansion of their businesses. There are different types of trade transactions each with their own set of rules and instructions that need to be followed. Over the counter derivatives has been making a name for oneself giving traders the ease and freedom to engage in small time trades with little to no problems with regards to exchange listing requirements. What process is involved with over the counter derivatives?
Before a successful trade is done, several requirements need to be met in order for both parties to come into an agreement. Centralized exchanged is usually done to match an asset with an offsetting order. This can take a considerable amount of resources and time. However, such process is deemed necessary especially small time traders or recently established companies may not have the necessary tools and resources to engage to such trades, making it quite hard for them to successfully thrive in the market. It is good to hear that they can engage with such trades in a more streamlined and easy approach with over the counter derivatives.
Over the counter derivatives is a type of financial derivative that has its transaction directly negotiated between two parties instead with a usual exchange. The term “over the counter” is usually referred to medicines that can be bought without prescriptions. The same principle can be applied with over the counter derivatives as it allows clients to engage in trades with less supervision. This gives them the option to trade privately at any given time. Over the counter derivates is usually used by small time companies that are unable to meet an exchange listing requirements.
Because of its less regulated nature, the price is not necessarily published for the public during over the counter derivatives. Private trades can happen and enter into an agreement without other intervening parties. With regards to over the counter derivates, commodities, financial instruments, stocks can traded. This makes over the counter derivates quite a good alternative and option to traders. However, these have their own set of disadvantages also.
Over the counter derivatives may lack records and transparency. Because of this, there exist is an increased risk between an exchange since the agreement only happens between the parties involved. If by any chance, unexpected incidents occur such as fraud related incidents, no central body will be able to interfere, compromising the whole contract as a result. Over the counter derivatives has their own weakness and strengths. It is ideal for clients to engage with trades to trusted and well known individuals. This lessens the overall risks of losing a considerable amount of resources.
Technology has truly become a big part of every business model and has been used inevitably by successful companies and business establishments. Considering that risks too have developed and is becoming a more complex aspect in assessing the success of the company, it is wise to employ the help of technology to ease the burden among businessmen and still be able to achieve the same, if not better, results. This is where a Risk Management Software comes into play. There are many Risk Management Software that are available in the market and each has its own set of powerful tools and features that can help you determine the risk factors, possible solutions and accurate calculations of processes.
There are instances where a business is met with threats from possible project failures or from new and better opportunities from an adversary. Unpredictable catastrophic events can also happen such as natural disasters which could impact the whole business process increasing credit risks and liabilities and most of the time affecting the company’s man power. Using a Risk Management Software can help you eliminate or reduce the possibilities of errors and flaws in internal control. Risk management always comes with every business process and investments and a poorly designed risk management model could result to a disastrous outcome. That is why it is very important that a well-designed risk management system is being implemented. Using a Risk Management Software can help design and speed up the implementation of the system.
When choosing a Risk Management Software, pick one that meets the requirements when measuring the internal and regulatory risks. There are also some that offer advanced features that can help you achieve an advantage over your competitors. Efficient software helps your company achieve scalability and flexibility especially when new requirements are being presented and new factors are being added as well as make interpretations of results and calculations more understandable. If you want to speed up the flow of your system while gaining the benefits of well-designed risk models, pick the best Risk Management Software and employ a competitive risk management solution for your system.
Transparency in accounts is necessary when you handle diverse investment portfolios for numerous clients. You need to provide account summaries in time and process portfolio accounts in a systematic and fast approach. You must see to it that your operational system becomes efficient for audit trails and follows an up-to-date data generation to reflect real values and market positions. With portfolio management systems made available for wise portfolio accounting, portfolio managers will find it easier to provide clients with the needed investment information for an efficient t and transparent portfolio accounting. Portfolio management systems eliminate more than just a single bottleneck in portfolio accounting.
A promising portfolio management system is one that does not disregard the importance of risk control and analysis in optimizing the growth potential of clients’ investment accounts. With risk analysis manager and related solutions, you will not only provide safeguard policies and strategies for all investment classes that you handle, you will also be empowered with more features and benefits that only risk analysis and manager software could provide for your portfolio management systems. To get a better idea on how important risk-hedged, fully supported portfolio management systems are, below are the most remarkable advantages that this technological tool provides to portfolio managers.
Following a flexible structure in risk assessment, your portfolio management systems should provide risk ratio analysis features that are comprehensive enough in scope so that you can come up with better investment decisions after singling out the best feasible strategy out from a dozen of investment scenarios and perspectives. Since the method used in calculating risk levels and generation of data for reports and summaries are automated, your portfolio management systems will help eliminate manual processes that are more susceptible to error and data manipulation. If your portfolio management systems are supported by a great risk analysis manager, possibility is that you will be given the capabilities to fully control elements of risk by use of diverse key ratios, comprehensive risk models and strategic simulations based on real business scenarios.
When it comes to the aspect of transparency and integrity, your portfolio management systems should be integrated with multifunctional risk analysis manager software to fully provide you with point-by-point framework in risk measurement out from calculation methodologies and input policies that are reflective of the current and existing market conditions. The tool even provides functionalities in computing trade risk compliance analyses.
One of the terms that can describe you, if you happen to be a portfolio investor, is a speculator. This is primarily because you are expected to speculate on the market before you actually come up with a decision whether or not to invest. Apparently, you are at risk of making wrong decisions if you are not properly informed of the situation in the market. This is the primary reason why you should always be equipped with the tools that could provide you with real time market data. With such tools, the risk of making wrong analysis and subsequently erroneous decisions are avoided.
While it is easy to understand the need for real time market data, getting it is a totally different thing. In fact, it could be quite challenging if you are not well-informed of the many ways to gather this. Since you are tackling market data here, you may have the impression of this being found in the newspapers. To some extent, such information could indeed be found in the dailies. You could easily encounter one just by browsing the business pages. However, you should not consider this as real time market data. Real time refers to information that is actually developing at the very moment that you have come across it. The same goes to other traditional sources, such as radio and TV.
If you are really interested in real time market data, the best resource would be the internet. The internet is where those news providers could easily upload information at any time of the day. This means that you are assured of the freshest news regarding the market. With the real time market data, you could come up with timely resolutions or actions regarding the investments that you have or those that you still have to realize. The internet though is still a generic resource for such information.
It would even be more advantageous on your part if you actually get to know of websites that could provide you with real time market data. Such websites actually abound already. You could thank the different companies that provide the service of informing investors like you of the trends and possibilities of the market. While the information is free, such companies may ask you for some amount as payment for related services or for additional and more strategic information. Of course, if you wish to take advantage of real time market data, you may have to pay for these.
One of the best ways of obtaining real time market data though would be to download software programs related to market analysis. Portfolio management software is one example of such tool. With such a tool, you could easily get real time market data from different sources. The good thing about this is that the sources are always credible. This means that your data is very accurate and could serve as reliable basis for your plan of action. You may have to buy the software though but you should think also of the gains that you would have by having this.
As a serious investor, you should not be complacent about the conditions of your investment portfolios. You should remember always that you have spent huge amounts of money in acquiring such stocks or shares. In this circumstance, you simply should not allow losses in whatever way. This could be resolved with the help of investment management software. When you have more than just a few investment portfolios, you would certainly feel the need for the capabilities of investment management software. The next thing that you may have to deal with is the question of where you could acquire such software. You may also need it to be the best.
You really do not have to look far for searching investment management software. All that you have to do is to make good use of the internet. You could particularly seek the help of Google for your search. Once you hit the search button, you would be surprised to find out that there are many websites that actually offer to sell investment management software. You could browse these one by one and get to know more about the software and what it could do for your business. However, this may be considered as a long and tedious process.
You must realize that even as you encounter so much information about investment management software, you could still end up clueless on the matter. This can be attributed to the fact that you may still not know what the necessary features that such software must have are. One of the features that investment management software must have is that it should be able to help you in managing more than one portfolio investments. Actually, such a feature is imperative because, you may have to diversify and increase the number investments in the future. Managing these portfolios could be very difficult if you do not have such software.
There are two types of investment management software that you should learn about. These are web-based and installed software programs. The former means that the software that you are going to use would require you to have a stable internet connection all of the time. If you are not connected to the internet, you may not be able to make use of the said software. Obviously, there is a disadvantage here. On the other hand, installed investment management software does not require internet. It is downloaded and directly runs on your PC independent of the web. However, you must realize that the information that the software would need to process may come from the internet too. This is the reason why many would prefer the one that is internet-based.
If you wish to know what the best investment management software programs are, you could make use of the reviews. There are websites that are totally dedicated to providing people like you with reviews on the different investment management software programs. However, you should still try to be objective in determining which really can be considered as the best. You could always do some trial though.
Many traders commit the mistake of sealing a negotiated trade with no room for doubts. While there are instances that trading is successful right from the start of the process down to the very end until the goods or investments are delivered, there are also a number that went awry with one of the parties getting the losing end. Apparently, failures like these could be attributed to the absence of proper post trade processing. There could be some loose ends during the actual trade but with the application of post trade processing, errors or vulnerabilities could be avoided. This means that both parties could come up with fair bargains.
Usually, the weak points of the trade do not become very obvious while negotiations are going on. This could be caused by many factors. In cases when both parties involved in the trade are fair and honest in their dealings, such weak points could still occur because of miscommunication. This is particularly common when it comes to trading that is done through the internet, where communication may not be as effective as when the parties involved actually sit and discuss. With post trade processing though said vulnerabilities could be discovered. This happens when the parties go through the details of the transaction. This is why post trade processing should be part of the agenda as an important process.
Ownership of stocks that are subjected to a trading transaction is the main concern. Apparently, unless the papers related to the ownership of stocks or commodities are not transferred to the buyer, the trade may be deemed as unconsummated. However, the transfer of records of ownership does not occur immediately. It happens after a lengthy process of negotiation between the seller and the buyer. Once the deal is done, the transfer could be carried out as part of the post trade processing. Such transfer of ownership rarely happens before the post trade processing.
Another agenda that should be tackled during the negotiation or transaction is the transfer of securities or cash. A clear process should be implemented in this regard, one that is beyond the suspicion or doubt of either party. This too is part of post trade processing. Details about the procedure for the transfer may be discussed during the actual transaction. However, these should be reiterated by both parties during the post trade processing. The absence of such could lead to mistrust that could result in either party being labeled in a negative way, which is definitely not an advantage for traders.
There are cases when it is through post trade processing that adjustments are made; ones that may absolutely change the nature of the previous transaction. This is primarily because of the fact that the market is constantly fluctuations. If the fluctuations do not create a huge difference in the prices, then the adjustments may not be necessary. However, if the prices on the trade were based increases or decreases sharply, then there may be a need for adjustments during the post trade processing.
Portfolio accounting is essentially about determining gain or loss. This is especially important when an investments in the portfolio is sold. Closing a position causes a realized gain or loss. Before selling, the gain or loss since purchase is only an unrealized appreciation or decline in value. Proper portfolio accounting requires an understanding of cost basics and holding period.
Realized Gain or Loss
In this portfolio accounting, the sale proceeds realized from selling a security in a portfolio is the whole amount received. This includes both cash and the fair market value of anything else received in exchange for the security. Determining gain or loss on the same of a portfolio security involves comparing the amount received with the basis of the investment. A gain occurs when the sale proceeds exceed the basis in the sold investment. There is a loss when the same proceeds are less than the basis.
Basis of a Security
The basis of a security in portfolio accounting is usually the cost of the purchase plus any associated commission and fees. The basis is different in portfolio accounting if a security is acquired by a different way than purchase. A gift during the life of a donor retains the basis of that donor. The portfolio accounting of the gift recipient uses the basis of the donor. However, the recipient of inherited property accounts for basis as the fair market value of the investment on the date of the decedent’s death.
Portfolio accounting for sold investments requires determining whether the holding period was short-term or long-term. A gain or loss is long-term when the investment is held fir more than a year. The gain or loss is short-term if the investment is sold a year or less after the purchase. The date of purchase is recorded to account for the holding period. The date of sale is the final day of a holding period.
A fund accounting software system manages business transactions and accounting activities across multiple currencies for alternative investment investors. There are so many of them in the market today. Here are eight of the most popular.
Abila Fund Accounting 100. Formerly Sage MIP, this fund accounting software is ideal for governments and nonprofits. It has earned the Campbell Award for popularity among customers on multiple occasions. This scalable system allows users to add modules to the system.
The Financial Edge. A forerunner in fund accounting software, this is specifically developed for nonprofits. It offers one of the best fund accounting solutions. Manage all accounting functions with its specific functionality and user-friendly interface.
Accufund Accounting Suite. This fund accounting software is a scalable nonprofit accounting solution that is easily implemented to cover the core accounting needs of most organizations. It also offers a specific option for government accounting needs.
Microsoft Dynamics GP. For organizations managing multi-tiered funds and unique funding streams, this fund accounting software is a great choice. It is able to automate much of the administration process and give timely detailed financial reports.
Microsoft Dynamics AX. Known as the most functionality rich ERP system in the Microsoft Dynamics family of products, it offers more than fund accounting software. It is usually installed on-premise, but can also be hosted remotely.
Microsoft Dynamics NAV. The fund accounting functionality in this system can help nonprofits track their expenses across multiple ledgers, manage grants and monitor donor contributions. It also helps with GASB compliance.
Multiview Enterprise .NET n10. A full-featured financial management solution, this fund accounting software offers 14 user-friendly modules and alerts with dashboards, imaging workflow and ViewSource 360 for users to easily monitor and control processes.
SAP Accounting. Over 30,000 global companies use its ERP Financials to manage different kinds of accounting needs, including fund accounting features. It ensures compliance with industry standards as well.
The financial services industry continues to be more electronic, global and regulated, with new capital and margin requirements and reporting rules. This requires financial institutions to address operational efficiencies and look into new ways to reduce costs. With growing volumes, a more complex clearing process and declining commission rates, firms should streamline post trade processing globally.
Aside from post trade processing, managing money is also at the core of a financial institution’s business. From profitability to investing its own fund balances on a day to day basis to underwriting bonds and holding customer assets in safekeeping, the lifeblood of a firm is tracking and investing funds to its best advantage.
For both sell and buy side mangers, effective confirmation matching and processes are an important subset of this overall post trade processing trend, and they will become more and more significant over time. As post trade processing volumes for FX, options and OTC derivatives grow, it becomes more and more important for real time confirmation matching and related services to keep up with these volume flows.
The post trade processing environment has become an area where competitive advantages are won and lost though effective solutions. Those investing in these services will clearly win out over those who do not. And this trend will most likely accelerate as volumes continue to increase, and as regulatory and compliance standards become more demanding.
Fortunately, there are so many companies today that offer world-class, post trade processing solutions that help both sell and buy side clients improve management of operational risk, reduce costs and drive competitive advantages.
These post trade processing solutions includes operations that help financial institutions process securities and derivatives to efficiently manage their middle and back office processes and workflow along with integrated solutions for bank treasury and portfolio management, settlement and clearance.