Introduction to Cannex Interface
The purpose of this user guide is to explain the different processes and functionality included in Cannex Deposit deal booking, the changes to confirmation file generation and generating a new monthly reconciliation file through the AA Deposit module.
For a better understanding, the reader of this document has to be familiar with the navigation around Temenos Transact product, with the Temenos Transact accounting concepts, FT, TFS, TT and AA Module.
Purchase Order File: Downloading and Validations
The Cannex Purchase Order file will be available for upload every day that the bank is open for business.
Upon receipt of the daily Cannex Purchase Order file, Temenos Transact has to validate the Cannex Order file for syntax errors and then to upload and store all information in a staging application. This application will be used as the source for GIC (Guaranteed Investment Contract) creation as well as provide a historical record of the contents of the purchase file.
For each record in the Purchase Order file, Temenos Transact will:
Identify the Lead Company
Identify which lead company the GIC will be booked under by mapping agent code and company code provided in the order file.
Map the Purchaser Information
Map the purchaser information to the nominee CIF in Temenos Transact. The nominees may have one CIF under different company codes. The correct CIF will need to be selected based on previous step.
If the system is unable to map the purchaser information to the nominee CIF, it shall place the record on hold for manual review.
Select the Product to Purchase
Select the correct product to purchase a GIC based on the mapping. If the system is unable to select the product as per above mapping, it shall palace the record on hold for manual review.
Validations Required for GIC Arrangement
Some validations have to be performed, while a GIC arrangement is created. These validations can be attached to the required company.
- Verify the GIC issue date. If the GIC issue date is backdated more than 1 business day, the system shall place the record on hold for manual review. For LBCFS purchases, the system shall allow trades to be backed up to 2 business days.
- Compare the Broker Interest Rate provided in the Cannex PO file against the rate in interest rate table for the selected GIC in Temenos Transact and calculate the interest rate variance (PO File Rate – Posted Rate = Interest Rate Variance):
- If the interest rate variance is in negative (i.e.-0.01%) process the record as per the current posted rate in the Temenos Transact interest rate table for that GIC.
- If the interest rate variance is greater than the commission rate stated in the commission plan for the product selected, place the record on hold for manual review (i.e. currently 0.25 for GIC terms > 1 year).
- If the interest rate variance is nil (Broker Rate = Temenos Transact Rate) than verify if the nominee is marked to settle purchases net of commissions (commissions taken upfront) AND:
- If the nominee agent has deducted commission upfront then compare the commission amount provided in the order file with Temenos Transact calculated commission and perform as follows:
- If the Commission amount in the Cannex file = Temenos Transact calculated commission, system shall process the GIC arrangement and post commission as per Temenos Transact calculated commission.
- If the Commission amount in the Cannex file > Temenos Transact calculated commission, system shall place the record on hold for manual review.
- If the Commission amount in the Cannex file < Temenos Transact calculated commission, system shall process the GIC arrangement and post commission as per Temenos Transact calculated commission. However, shall notify the bank user to ensure they are aware of this transaction.
- If the nominee agent has not deducted commission upfront, system shall process the GIC arrangement and post commission as per Temenos Transact calculated commission.
- If the nominee agent has deducted commission upfront then compare the commission amount provided in the order file with Temenos Transact calculated commission and perform as follows:
- If the interest rate variance is less than the commission rate stated in the commission plan for the product selected, then the system shall recalculate Temenos Transact commission using “Base Commission Rate – (Broker Interest Rate - Posted Rate)” AND:
- If the nominee agent has deducted commission upfront then compare the commission amount provided in the PO file with Temenos Transact recalculated commission and perform as follows:
- If the Commission amount in the Cannex file = Temenos Transact re-calculated commission then the system shall process the GIC arrangement and post commission as per Temenos Transact recalculated commission.
- If the Commission amount in the Cannex file > Temenos Transact recalculated commission then the system place the record on hold for manual review.
- If the Commission amount in the Cannex file < Temenos Transact calculated commission then the system shall process the GIC arrangement and post commission as per Temenos Transact calculated commission, however shall notify the bank user to ensure they are aware of this transaction.
- If the nominee agent has not deducted commission upfront then compare the commission amount provided in the PO file with Temenos Transact recalculated commission and perform as follows:
- If the Commission amount in the Cannex file = Temenos Transact recalculated commission then system shall process the GIC arrangement and post commission as per Temenos Transact recalculated commission.
- If the Commission amount in the Cannex file > Temenos Transact recalculated commission then the system shall place the record on hold for manual review.
- If the Commission amount in the Cannex file is blank or < Temenos Transact calculated commission then the system shall process the GIC arrangement and post commission as per Temenos Transact recalculated commission. No notification for bank user is required for this scenario.
- If the nominee agent has deducted commission upfront then compare the commission amount provided in the PO file with Temenos Transact recalculated commission and perform as follows:
- Compare the minimum or maximum amount defined on the product and place the record on hold if outside of this range.
GIC Currency
GIC’s can be created in any currency, provided such currency(ies) are configured in Currency field of CANNEX.GIC.PRODUCT.PARAM application and product is available for GIC creation based on mapping.
If currency is available in PO file, but not in CANNEX.GIC.PRODUCT.PARAM, then an exception will be created and the record will be on hold for manual review.
Automatic Funding
Automatically fund the GIC’s by debiting an internal account specified in the parameter for each company and crediting the new GIC arrangement.
The system has to accept overrides if any, for funding the deposit from a Temenos Transact internal account (non-customer account) to ensure that the automated process is not obstructed.
Generate Accounting Entry
Generate accounting entry to the nominee Agent commission account for commission pay-out.
For those nominee agents that take commission up front, commission will pay into their commission arrangement but then must be debited and credited to the internal account under respective company.
The certain nominees do not submit their business through Cannex. The bank users will manually create a nominee GIC and Temenos Transact will automatically default the settlement instruction, agent code and commission plan.
The nominee re-registration can be internal (within same nominee client) or external. All requests regardless the type of re-registration will be processed manually. Once re-registration is performed Temenos Transact shall automatically update the settlement instruction, agent code and commission plan.
Below are the files and version supported in Cannex.
|
S.No |
File Name |
Version No |
|---|---|---|
|
1 |
TERMO |
V1.11B |
|
2 |
TERMC |
V1.12B |
|
3 |
TERMG |
V1.03C |
|
4 |
TERMU |
V1.03C |
|
5 |
TERMH |
V1.03C |
Generate Cannex Confirmation File
Once all records processed, Temenos Transact will produce the confirmation file(s) for all GIC arrangements successfully processed that day regardless the date of the original PO file. The following are specific for this one:
- One or multiple confirmation files can be produced for the day. When multiple files are produced, each following file shall not include the duplicate for the record already generated in the previous file.
- The confirmation will include all the records in all companies that were successfully processed and booked.
- Nominee agents that do not require confirmation shall be excluded from the confirmation file.
Reconciliation File Generation
The Monthly Reconciliation file for Cannex must be generated by Temenos Transact, to support nominee business.
On monthly basis, Temenos Transact shall provide one Cannex Reconciliation File for each nominee agent, for each issuing company. The file will include all GIC holding for a nominee with the bank regardless, if it was submitted through Cannex or not. Also, the file shall be available to be run at a schedule that the nominee requires.
Special Handling
The standard Cannex files submitted from Financial Institution, the Carrying Dealer contain extra information that needs to be extracted and mapped in Temenos Transact. In particular, the branch from which the GIC purchase originated must be captured.
During the process of Purchase Order File - Downloading and Validations, if the CIF identified is for lead company, then from the Cannex file, the Branch Code field will have a value 9502 - suffixed with 3 digit branch code. This branch code will either determine the company under bank which the GIC must be booked or will be stored in a field at the arrangement level.
Transfer of Books
FI (Financial Institution) has an ability to transfer the book of one broker to another, when the broker wish to dissolve the agreement with the FI. This is performed via transferring of all the related deposits where the broker is linked to another broker.
Re-Registration
FI have an ability to transfer or re-register the term deposit from one nominee to another using the re-registration file processing.
This functionality comprises of the below process.
- Processing the TERMG file for re-registration.
- File validation, which included the mandatory information validation.
- Processing of the Testing/Validation file in re-registration.
- Re-registration process consist of three type Full:
- Full Re-registration.
- Partial Re-registration.
- Split Re-registration.
- Full re-registration, where the beneficiary detail of the old TD will be changed with the new details from the TERMG file.
- Split re-registration, which will split the existing term deposit in to multiple deposits based on the incoming TERMG file.
- Partial re-registration, the term deposit will be re-registered partially from the original TD.
- Processing of TERMU file for bulk re-registration processing.
- Re-registration confirmation file generation.
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