What is the core function of the Financial Control Department (FCD) of a securities industry firm?
To manage financial resources of the business
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What is Statutory Reporting?
providing the firm's balance sheet and P&L accounts, then subject to internal & external audit
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What is a corporate General Ledger System used for?
To record all assets, liabilities, income and expenditure of the firm. Assist the FCD to allocating expenses across departments & managing the firm's purchase ledger.
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What does the Equities Trading System calculate?
Commissions & Fees
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Which trading system would be responsible for calculating interest due to the HOLDER?
Bond Trading System
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The FX & Money Market Trading System is responsible for calculating what?
Trade proceeds & commission
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How often do positions in the Derivatives Trading System need to be revalued?
End of each business day
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What is the best definition of a "Reconciliation System"?
A system which takes feeds about transactions, balances and positions FROM the main settlement systems and compares them to data received from external agents
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What are the 2 more important IT requirements for Reconciliations?
Configured systems able to deal with innovation in the products & automated interfaces between systems to avoid the problems of missing/ late general ledger entries.
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What is the underlying principle behind the Doubly-entry bookkeeping?
There must be an account being debited, and an account being credited. Total debits = total credits
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What are Credits in the General Ledger Category?
Liabilities, expenses, gains, shareholder equity
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What are the Debit Categories of General Ledger?
Assets, revenue, losses
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"Assets - Liabilities" is a measure of what?
Shareholder Equity
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Cash in the bank account, interest receivable & fees for client advise is what category in the General Ledger?
DEBIT - because it is money going into the firm's account/ money the firm has
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What is the General Ledger?
A summery of all the transactions that occur in the company
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What is the "accounting equation" for the mathematical structure of the balance sheet?
Assets = liabilities + shareholder's equity
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If "liabilities are greater than assets", should the account be CREDITED or DEBITED?
DEBIT
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What information about the General Ledger should be included in the IT System?
Reference Data Items, Balance Information, Transaction Information
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If the QNTY of shares purchased exceeds the QNTY of shares sold what position will the firm hold & is it Debit/Credit in the General Ledger?
Long position - D
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If a firm is trading in 4 different currencies, how many sub-accounts in the General Ledger would it need?
4 sub-accounts
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In an Explosion Table, a FX payment would fall under which column?
Transaction Type
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In an Explosion Table, a "security position" or "security client" would be found in which column?
Account Type
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Table column entries that begin with the sign "@" are INDIRECT REFERENCES to what?
system entities eg currencies, securities & clients - prevents the table from becoming millions of rows.
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What is the STOCK RECORD used for?
Double-entry bookkeeping to record stock quantities and balances - shows ownership & location of stock.
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Other cards in this set
Card 2
Front
What is Statutory Reporting?
Back
providing the firm's balance sheet and P&L accounts, then subject to internal & external audit
Card 3
Front
What is a corporate General Ledger System used for?
Back
Card 4
Front
What does the Equities Trading System calculate?
Back
Card 5
Front
Which trading system would be responsible for calculating interest due to the HOLDER?
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