Use Case 1: Efficient Investment Book of Record Reconciliation (Transactions API)

Company profile – an asset management company that reconciles the Investment Book of Record (IBOR) with the Accounting Book of Record (ABOR) prepared by the fund administrator

The challenge

Clients have been preparing the Investment Book of Record to track the intraday transactions, positions, pricing, and corporate actions. This allows clients to conduct an in-depth analysis on the performance and the risks of the fund to gain competitive advantage to make better trading decisions. However, there are usually data differences between the front office and back office that the IBOR may not achieve the above purposes effectively. To close the difference between the front office and the back office, clients can reconcile the IBOR with the ABOR prepared by the fund administrator. Currently, clients receive the ABOR via multiple delivery channels such as emails. As a result, the information may not be delivered timely and clients may not be able to conduct IBOR reconciliation at an earlier stage to make better trading decisions.

The solution

The asset management company can integrate HSBC Securities’ Services Transactions API within their own system in order to access the ABOR and transaction details of the funds. With this information, clients can perform IBOR reconciliation to close the difference between front offices and back offices. Moreover, clients can create a connection between their reconciliation system and the Transactions API. Once the clients call the API, the ABOR will be fed into the system immediately and automate the reconciliation process by removing the layers of communication and e-mails. This enables efficient data transmission to the front offices to make better trading decisions.

Benefits

• Clients can reconcile the IBOR with the ABOR prepared by the fund administrator to close the differences between front offices and back offices
• Front offices will be able to receive transactions data that are aligned with the back offices in a timely manner to make better trading decisions
• Less time spent in requesting the ABOR via multiple delivery channels

Use Case 2: Efficient Access and Transfer of Data (Open Subscriptions / Redemptions API)

Company profile – an international asset management company that transfers data to the depositary and the auditors on a regular basis for concurrent audit or any other purposes

The challenge

There are different types of fund data such as holdings and ledgers that are included in the fund’s balance sheet and income statement. The asset management companies will need access to this data and to send this information to the depositary for regulatory purposes and the auditors for auditing purposes. As multiple types of data are needed, client’s operations team will need to wait for the fund administrators to generate different datasets from their system. As a result, the efficiency of the data transfer process is dependent on the fund administrators running the different datasets and sending via email or other data transfer channels.

The solution

The asset management company can integrate HSBC Securities Services’ API within their own systems in order to enhance the efficiency of access to the data or to transfer the data to 3rd parties like the depositary and the auditors. The company can build a connection between their platform and HSBC Securities Services’ API. When the company requests any types of data, the company can call the corresponding APIs to obtain the data immediately to view or send to the relevant parties without having to manually request the data from the fund administrators. The lead time from the fund administrations is completely eliminated, maximizing the efficiency, and the company can call the APIs to obtain the data whenever needed. This can also ensure the data could be transferred to the relevant parties on the pre-agreed timelines.

Benefits

• The asset management company can obtain the fund financial information 24 x 7 across its managed funds
• Enhanced efficiency on the data transmission process as data sharing between the company and the fund administrator is automated
• Reduced chance of errors and delays in the data sharing process as manual effort is reduced and the process is automated

Use Case 3: Enhanced Efficiency on Continuous Audit (Ledger Movements API)

Company profile – an international asset management company that requires a continuous audit for their funds with their auditors to support error checking and data verification and oversight

The challenge

Client’s auditors regularly audit the fund’s financials to check for errors and clients may require the data to prepare reports for regulatory purposes, oversight and for investors’ information. To conduct the auditing process more efficiently, client’s auditors have been adopting a Continuous Audit model to assess risks and identify anomalies on a regular basis with the aid of technology. The automated model will need to receive the detailed fund financial information timely for auditing and errors checking. Currently, client’s auditors obtain the fund financial information via group’s multiple delivery channels such as emails. This can lead to delay and reduce the efficiency of the automated Continuous Audit model as it is dependent on the availability of the fund financial data.

The solution

The asset management company and auditors can integrate HSBC Securities Services’ API within their Continuous Audit model in order to access the latest and historical fund financial information. Clients and their auditors will be able to create a connection between the API and the Continuous Audit model for the API to feed the data into the model instantaneously and automatically once the clients call the API. This will eliminate any delays on receiving the fund data and maximize the efficiency of oversight and the auditing processes. With a highly efficient, accurate and automated auditing process, clients and their auditors can easily identify errors, and highlight these for resolution. At the same time, they will also be able to closely monitor and assess risks and take precautionary measures for risk mitigation, which can protect the interests of the investors as well.

Benefits

• Clients and auditors can automate the data feeding process to the Continuous Audit model to maximize efficiency
• Clients and auditors can check for errors and assess risks more frequently with a high quality of data source for better risk control
• Less time spent in requesting the fund accounting information via multiple delivery channels

Use Case 4: Enriched Information on Fund Analysis (Open Securities Purchases / Sales API)

Company profile – an international asset management company that makes use of fund data to conduct fund analysis

The challenge

Clients have been using fund administration services and have their fund data stored in the middle-office/ back-office system. These data are crucial for the clients’ internal processing or analysing for the purposes of MIS reporting, data validation, NAV oversight, process oversight and investment analysis. Currently, clients obtain the data by requesting the fund administrator to send over different types of the reports. However, the reports are designed in a reader-friendly format where the report page size is limited and the reports may not contain all the required data fields. As a result, clients are unable to obtain all the necessary fund data for them to conduct an in-depth fund analysis.

The solution

The asset management company can integrate HSBC Securities Services API in order to have full visibility of the underlying data which may not be visible from the current reports sent by the fund administrator. With our comprehensive Fund Administration API suite, clients will have the full access to various fund data, captured as the single source of truth. This allows clients to conduct an in-depth analysis on the funds’ financial data, providing an insight of the funds’ performance and market trending.

Benefits

• Clients can fully understand any data movements on a daily basis with the underlying data provided by the API
• Clients can conduct an in-depth analysis on the fund with the API to check if there are any potential issues and further improve fund performance
• Less time spent in requesting the fund administrators to provide the data for analysis that can enhance the efficiency

Use Case 5: Enhanced Efficiency on Continuous Audit (Subscription / Redemption Transactions API)

Company profile – an international asset management company that requires a continuous audit for their funds with their auditors to support error checking and data verification and oversight

The challenge

Client’s auditors regularly audit the fund’s financials to check for errors and clients may require the data to prepare reports for regulatory purposes, oversight and for investors’ information. To conduct the auditing process more efficiently, client’s auditors have been adopting a Continuous Audit model to assess risks and identify anomalies on a regular basis with the aid of technology. The automated model will need to receive the detailed fund financial information timely for auditing and errors checking. Currently, client’s auditors obtain the fund financial information via group’s multiple delivery channels such as emails. This can lead to delay and reduce the efficiency of the automated Continuous Audit model as it is dependent on the availability of the fund financial data.

The solution

The asset management company and auditors can integrate HSBC Securities Services’ API within their Continuous Audit model in order to access the latest and historical fund financial information. Clients and their auditors will be able to create a connection between the API and the Continuous Audit model for the API to feed the data into the model instantaneously and automatically once the clients call the API. This will eliminate any delays on receiving the fund data and maximize the efficiency of oversight and the auditing processes. With a highly efficient, accurate and automated auditing process, clients and their auditors can easily identify errors, and highlight these for resolution. At the same time, they will also be able to closely monitor and assess risks and take precautionary measures for risk mitigation, which can protect the interests of the investors as well.

Benefits

• Clients and auditors can automate the data feeding process to the Continuous Audit model to maximize efficiency
• Clients and auditors can check for errors and assess risks more frequently with a high quality of data source for better risk control
• Less time spent in requesting the fund accounting information via multiple delivery channels

Use Case 6: Enriched Information on Fund Analysis (Securities Income Entitlements API)

Company profile – an international asset management company that makes use of fund data to conduct fund analysis

The challenge

Clients have been using fund administration services and have their fund data stored in the middle-office/ back-office system. These data are crucial for the clients’ internal processing or analysing for the purposes of MIS reporting, data validation, NAV oversight, process oversight and investment analysis. Currently, clients obtain the data by requesting the fund administrator to send over different types of the reports. However, the reports are designed in a reader-friendly format where the report page size is limited and the reports may not contain all the required data fields. As a result, clients are unable to obtain all the necessary fund data for them to conduct an in-depth fund analysis.

The solution

The asset management company can integrate HSBC Securities Services API in order to have full visibility of the underlying data which may not be visible from the current reports sent by the fund administrator. With our comprehensive Fund Administration API suite, clients will have the full access to various fund data, captured as the single source of truth. This allows clients to conduct an in-depth analysis on the funds’ financial data, providing an insight of the funds’ performance and market trending.

Benefits

• Clients can fully understand any data movements on a daily basis with the underlying data provided by the API
• Clients can conduct an in-depth analysis on the fund with the API to check if there are any potential issues and further improve fund performance
• Less time spent in requesting the fund administrators to provide the data for analysis that can enhance the efficiency

Use Case 7: Enhanced Efficiency on Continuous Audit (Securities Income Received API)

Company profile – an international asset management company that requires a continuous audit for their funds with their auditors to support error checking and data verification and oversight

The challenge

Client’s auditors regularly audit the fund’s financials to check for errors and clients may require the data to prepare reports for regulatory purposes, oversight and for investors’ information. To conduct the auditing process more efficiently, client’s auditors have been adopting a Continuous Audit model to assess risks and identify anomalies on a regular basis with the aid of technology. The automated model will need to receive the detailed fund financial information timely for auditing and errors checking. Currently, client’s auditors obtain the fund financial information via group’s multiple delivery channels such as emails. This can lead to delay and reduce the efficiency of the automated Continuous Audit model as it is dependent on the availability of the fund financial data.

The solution

The asset management company and auditors can integrate HSBC Securities Services’ API within their Continuous Audit model in order to access the latest and historical fund financial information. Clients and their auditors will be able to create a connection between the API and the Continuous Audit model for the API to feed the data into the model instantaneously and automatically once the clients call the API. This will eliminate any delays on receiving the fund data and maximize the efficiency of oversight and the auditing processes. With a highly efficient, accurate and automated auditing process, clients and their auditors can easily identify errors, and highlight these for resolution. At the same time, they will also be able to closely monitor and assess risks and take precautionary measures for risk mitigation, which can protect the interests of the investors as well.

Benefits

• Clients and auditors can automate the data feeding process to the Continuous Audit model to maximize efficiency
• Clients and auditors can check for errors and assess risks more frequently with a high quality of data source for better risk control
• Less time spent in requesting the fund accounting information via multiple delivery channels

Use Case 8: Enhanced Efficiency on Continuous Audit (FX Transactions API)

Company profile – an international asset management company that requires a continuous audit for their funds with their auditors to support error checking and data verification and oversight

The challenge

Client’s auditors regularly audit the fund’s financials to check for errors and clients may require the data to prepare reports for regulatory purposes, oversight and for investors’ information. To conduct the auditing process more efficiently, client’s auditors have been adopting a Continuous Audit model to assess risks and identify anomalies on a regular basis with the aid of technology. The automated model will need to receive the detailed fund financial information timely for auditing and errors checking. Currently, client’s auditors obtain the fund financial information via group’s multiple delivery channels such as emails. This can lead to delay and reduce the efficiency of the automated Continuous Audit model as it is dependent on the availability of the fund financial data.

The solution

The asset management company and auditors can integrate HSBC Securities Services’ API within their Continuous Audit model in order to access the latest and historical fund financial information. Clients and their auditors will be able to create a connection between the API and the Continuous Audit model for the API to feed the data into the model instantaneously and automatically once the clients call the API. This will eliminate any delays on receiving the fund data and maximize the efficiency of oversight and the auditing processes. With a highly efficient, accurate and automated auditing process, clients and their auditors can easily identify errors, and highlight these for resolution. At the same time, they will also be able to closely monitor and assess risks and take precautionary measures for risk mitigation, which can protect the interests of the investors as well.

Benefits

• Clients and auditors can automate the data feeding process to the Continuous Audit model to maximize efficiency
• Clients and auditors can check for errors and assess risks more frequently with a high quality of data source for better risk control
• Less time spent in requesting the fund accounting information via multiple delivery channels

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