RS-Securities

Success of activity of bank in security market in many respects depends on the technology level of accomplishment of the corresponding transactions. The software package RS-Securities V.6 covers the services provided by credit institution in this sphere. During its creation requirement analysis of the market was carried out and wishes of banks are considered. It allows to configure the schemes of work accepted by bank and provides speed and convenience of execution of operations with securities.

In essence this product represents a packet of RS-Bank V.6 of the software applications servicing back office divisions of bank integrated from the main IBS. A set of necessary components defines bank. Each of them can be applied and independently and also with the core banking system of other developers.

The following modules are a part of RS-Securities V.6:

• "The back office of transactions with securities" — is intended for conducting accounting, internal and tax accounting and also a documentary design of the security transactions.
• "The back office of transactions with derivative tools" — automates accounting and support of transactions with futures and options and also release of the accompanying reporting.
• "Depositary" — is intended for automation of activities of credit institution for depository accounting of both the issued, and not issued securities which are owned by bank and also transferred to credit institution by her clients for storage, accounting and implementation of broker and other transactions.
• "The considered bills of exchange" — are automated by registration and accounting of transactions with not issuance securities (the bills of exchange and bank certificates issued by third-party issuers) and also maintaining their registers.
• "Bills of exchange of bank" — automates work with own bills of exchange of bank, since the moment of their release (issue) and finishing with repayment.
• "Trust management" — is responsible for automation of accounting and support of trust management agreements (both individual, and collective — the General fund of bank management), execution of operations within these agreements and also for formation of the corresponding financial statements.

One of the main differences of IBS of RS-Bank V.6 — selection in its structure of the Accounting core in which key place is allocated to the module "Ledger of Back Offices" (LBO). Concerning the applied modules entering into RS-Securities V.6, the Accounting core:

• is responsible for accomplishment of general-system functions;
• implements reference books by clients of share dealing and depository service, partners according to transactions, financial instruments, issuers, settings of transactions, accounts, etc.;
• stores the executed postings.

Accounting of transactions in modules of the RS-Securities V.6 complex corresponds to the existing Russian legislation and is based according to domestic policy of credit institution. At the same time in each module it is possible to keep several Charts of accounts at once and to issue intra bank documents at different stages of work with securities.

One of essential requirements to IBS is existence of the flexible mechanism for formation of numbers of personal accounts. In RS-Securities V.6 the personal accounts necessary for execution of transactions and agreements, accounting of securities and bills of exchange open automatically on the basis of in advance configured categories of accounting. And there is a possibility of control of this process from user side. In categories of accounting numbering rules of personal accounts and parameters of their maintaining are set (by partners, releases, etc.).

The service module "Gateway" which is a part of the Accounting core serves for interaction with external systems and automates data loading about the bargains concluded on marketplaces about the market security quotations, etc.

At sharing the back office modules RS-Securities V.6 with software products of third-party producers "Shlyuz" it is configured for transfer of financial information to the main core banking system in which the consolidated balance of credit institution is conducted and the official reporting for submission to the Bank of Russia is prepared.

For June, 2013 RS-Securities is operated by the largest credit institutions of the country: JSC Gazprombank, FG "Life", JSC JSB International Financial Club, Trust National bank, GLOBEX, JSC Sobinbank, JSB Soyuz, JSC URALSIB, Home Credit and Finance Bank LLC and others.

2020

Adding of the mode of revaluation of securities in the module "Back Office of Transactions with Securities"

On May 27, 2020 R-Style Softlab announced adding of the updated mode of revaluation of securities in the module "Back Office of Transactions with Securities" entering a line of solutions of the software package RS-Securities V.6 for automation of banking activity in financial markets.

For the purpose of reduction of the amount of negative revaluation, and, as a result, stabilization of obligatory standards of banks, the regulator grants to credit institutions the right debt (except bills of exchange) and to estimate the equity securities purchased till March 1, 2020 at the fair value which developed for March 1, 2020, and to estimate the debt securities (except bills of exchange) purchased during the period from March 1, 2020 to September 30, 2020 at the fair value which developed at the date of acquisition.

The functionality is implemented according to the Instruction of the Bank of Russia of 3/24/2020 No. 5420-U "About a reflection order on accounts of accounting of investments of credit institutions in the securities (except bills of exchange) estimated at fair value".

R-Style Softlab constantly updates software products according to legislative initiatives of the Central Bank of the Russian Federation. Completions will fully allow the banks using RS-Securities V.6 to implement the anti-recessionary recommendations of the regulator, reported Rinat Karimov, the deputy CEO of R-Style Softlab, the director of the department of banking software of RS-Bank.

Release of the module for back office processing and accounting of securities

On March 3, 2020 R-Style Softlab announced the module for back office processing and accounting of exchange and off-exchange transactions of banks with the issued bonds which filled up a line of solutions of the software package RS-Securities V.6 for automation of banking activity in financial markets.

The block of functionality providing processing of transactions with the issued bonds works in the integrated mode with "A back office of transactions with securities". In a complex they are the versatile tool optimizing activity of banks with any kinds of issued securities. Thanks to data integration of solutions specialists of bank can keep the uniform list of transactions — both with the issued bonds, and with other securities. All transactions and procedures of the module are called from the menu of "A back office of transactions with securities". As a result of performing transactions with the issued bonds accounts automatically are opened and accounting entries which are unloaded afterwards in the main core banking system of bank are generated.

Technological capabilities of "A back office of transactions with the issued bonds" allow creditno-financial to the organizations to solve the wide list of tasks, in particular:

• keep the normative reference information (the reference book of the issued securities issued by bank, the reference book by partners, currencies and so forth);
• perform maintenance of operations on placement, the redemption and repayment of the bonds issued by bank and also messages back office and accounting of such transactions;
• consider costs for placement and service of issues of securities;
• keep tax accounting for transactions with the issued bonds;
• receive the reporting under these transactions;
• create the documents connected with placement and service of the issued bonds, in particular, of the message on disclosure of information by the issuer (in connection with repayment of coupons and bond issues), instructions to the payment agent for carrying out payments for bonds, orders of depot in "National Settlement Depositary" (NSD).

Many banks use bonds of own issue for attraction of financial resources. Clients of our company whose needs we always try to consider not an exception, among them the functionality for work with the issued bonds is also demanded. With the advent of this module our line of the software implementing back office processing of transactions with securities received a logical conclusion. Possibilities of the presented solution were already highly appreciated by one of the Russian banks, and we are glad to offer this product to other our clients, reported Rinat Karimov, the deputy CEO and the director of the department of banking software of RS-Bank, R-Style Softlab

2018: In RS-Securities V.6 report forms on banking activities in the financial markets are updated

On July 19, 2018 R-Style Softlab announced updating of a software package for work with securities and the RS-Securities V.6 derivative financial instruments. The provided version includes the finished and updated report forms on banking activities in financial markets. The necessity of updating is caused by change of rules of law, namely requirements of the Instruction of the Bank of Russia of 11/24/2016 No. 4212-U "About the list, forms and an order of drawing up and representation of forms of the reporting of credit institutions in the Central bank of the Russian Federation" (with the changes and additions which became effective from II quarter 2018).

Architecture of RS-Securities V.6

In progress in updating of RS-Securities V.6 according to requirements of the regulator report forms 0409127 of "Data on an interest rate risk", 0409405 "Data on calculations for transactions with securities, shares, shares and deposits are given in property, perfect between residents and nonresidents", 0409702 "Information on not performed transactions", 0409707 of "Data on implementation of broker, depository activity and the securities management", 0409711 "The report on securities". Besides, the software package includes a form — 0409712 "Data on the individual investment accounts opened by credit institution — the professional participant of security market".

The RS-Securities V.6 software product became the best-seller for automation of the banks working with securities. Clients appreciate it not only functional completeness and convenience, but also that he is supported by our company in current status — according to changes in the Russian legislation. Rinat Karimov, deputy CEO and director of the department of banking software of RS-Bank of R-Style Softlab company

The updated forms of the reporting are available to users of RS-Securities within software updating.

2017

In RS-Securities V.6 accounting of banking activities in financial markets is finished

The R-Style Softlab company provided on September 27, 2017 upgraded version of the solution for work with securities and the RS-Securities V.6 derivative financial instruments. The solution includes completions regarding accounting of banking activities in financial markets.

Need of updating of a system is connected with entry into force since October 1, 2017. Provisions of Bank of Russia No. 577-P "About rules of internal accounting at implementation of broker, dealer activity and the securities management".

In progress in updating of a system the company changed accounting treatment for the transactions made by bank as the professional participant of security market, implemented account management of internal accounting according to requirements of Provision No. 577-P, finished procedures of reconciliation of data of internal accounting with accounting, depository accounting and also with the documents confirming transactions. Besides, in a system the report forms providing visualization and information representation on records of internal accounting are implemented: instructions and transactions of clients, registers of internal accounting and reconciliation statements.

Transition to the current version of a distribution kit for users will take place almost imperceptibly as the mechanism of internal accounting of transactions with securities remained invariable. It is built in a system and does not require additional efforts on setup at an implementation stage.

Updating of the module Depositary

R-Style Softlab updated the module Depositary entering the software package RS-Securities V.6 which is intended for automation of work of a bank back office in the share and urgent markets. In support of requirements of Provision of the Bank of Russia of 5/13/2016 the No. 542-P IT company added in a system a feature to make mass document registration on corporate actions by depositors and registration of incoming documents on changes of key attributes in questionnaires of securities.

Within the performed works on updating of the module specialists of R-Style Softlab implemented a procedure of mass registration of incoming documents for the list of depositors, added a new printed form "The register of depositors", based on the available report on the reference book of securities created a printed form "The register of securities".

Besides, the IT company included in a system two new information transactions — Notification of Depositors, the automating mailing to clients of the entering information on corporate actions, and "Sending documents" simplifying mass formation of the same outgoing documents for a large number of receivers.

2016

R-Style Softlab updated a system for automation of work of banks in stock and exchange financial markets

R-Style Softlab updated in the summer of 2016 the solution RS-Securities V.6 automating work of credit institutions with securities and the derivative financial instruments and also transactions with currency.

The IT company sold in a system new tools for work in financial markets that will allow banks to increase product assortment of the treasurer divisions. So, there was an opportunity to carry out the transactions of purchase and sale of currency which are not considered as the derivative financial instruments (DFI), to execute SVOP on currency of PFI, netting on precious metals and also client netting.

The developer expanded possibilities of use of a system, having integrated in one solution functionality of the modules "Back Office of Transactions with Derivative Tools" and "Conversion transactions" from the RS-Dealing V.6 system. The updated module received the name "Financial Instruments of the Forward Transactions and Conversion Transactions".

Users of RS-Securities V.6 and RS-Dealing V.6 who for the same types of transactions in both applications used earlier different panels and different approach to the made transactions can work in the single interface now. In it netting on all payments of transactions is implemented, there was a possibility of release of the general reporting, and the general agreement can be issued on all types of transactions now.

In the integrated module users of a system had an opportunity to work with broad tool kit: stock and off-exchange forward transactions of purchase/security sale of T+3 and more; urgent and today transactions of purchase/sale of precious metals and currencies; exchange and off-exchange options for securities, currency, stock index, goods; forwards and futures for securities, currency, stock index; banknote transactions.

"Regular updates of the legislation demand from software developers for the financial sector quickly to enter the corresponding completions to the products — Frenkel Lev, the director reported department of banking software of RS-Bank of R-Style Softlab company. — But the release of new regulations and instructions from regulators is not always the only reason of emergence of fresh software versions. R-Style Softlab on a regular basis develops and implements the new functionality designed to increase quality and convenience of application by clients of our solutions.

R-Style Softlab added the Dealer's Monitor web application to RS-Securities V.6

In May, 2016 the R-Style Softlab company sold in a system for automation of work of bank in RS-Securities V.6 financial markets the new web application — "Dealer's Monitor". With its help financial institutions can perform in real time the conversion security transactions on the basis of the quotations of marketplaces and information systems of Reuters and Bloomberg.

The interface of a subsystem was developed taking into account specifics of work of the employee of the bank specializing in maintenance and control of client transactions on purchase and sale of currency. It is separated into two zones: with information on the quotations of currencies for tracking of currency pairs and the related bank rates; with data according to transactions of clients of bank, volumes of these transactions and lists of clients — legal entities and physical persons.

In a system automatic update of data on quotations and client purchase transactions and sales of currencies is executed. Frequency is configured depending on requirements of specific bank.

The ability to integrate with the DBO different systems in which there is an execution of the transaction on client side is provided in the module. Interaction of new development with solutions of a class Internet and mobile banking increases convenience of work of the user and controllability of process in financial institution.

So, for example, changes of parameters of purchase and the security sale entered by the employee of the bank in "The dealer's monitor" become available to the client in the RBS system. Also thanks to integration the dealer can click at any time in Monitor, stopping biddings and to block thereby order taking.

This development is suitable for banks of the Russian Federation and the CIS. Special settings for the indication of different currency pairs, connections of the most widespread information systems, marketplaces and other parameters are provided in a system, - the director of the department of banking software of RS-Bank of R-Style Softlab company Lev Frenkel noted.

The automated support of transactions of a repo the clearing participation certificate (CPC) of the Moscow Exchange

The R-Style Softlab company expanded in the spring of 2016 functionality of a system for work of banks in RS-Securities V.6 financial markets, having added in it a feature for the automated support of transactions of a repo with the new tool of the Moscow Exchange — the clearing participation certificate (CPC).

The company implemented support of a full stroke of back office processing of transactions with a new type of securities: loading of transactions of direct and return repo with KSU, reflection of transaction of issue and repayment of KSU, transfer of securities in a property pool and return from it, implementation of accounting, internal and depository accounting according to transactions and transactions with KSU.

"Using transactions of a repo with the clearing participation certificates certifying a property asset pool of credit institution, banks had new opportunities for the liquidity management — Olga Kireeva, the manager of projects of department of banking software of RS-Bank of R-Style Softlab company noted. — Automation of this process supplements the current resources of banks on the automated processing of repo transactions and allows credit institutions quicker and more qualitatively to execute back office service of the new instrument of the money market".

2015

RS-Securities V.6 was replenished with the multiple currency stock exchange transactions of a repo

On May 26, 2015 the R-Style Softlab company announced inclusion in functionality of RS-Securities V.6 of tools of the automated accounting of the stock exchange transactions of a repo^[1].

A system expands a range of opportunities on multiple currency repo, in particular, according to transactions with payments in foreign currency at the Moscow Exchange.

To implement this tool in the RS-Securities V.6 system, developers changed functionality, having made unloading of information of exchange files of MICEX of SEM03 and EQM06 and displaying parameters of transactions in that type as they are presented in these files, without additional recalculations.

In a system accounting of these transactions is implemented:

• execution of the first and second parts of the transaction,
• accounting of payments of income for securities during transaction term,
• accounting of compensating payments and deliveries,
• tax accounting.

"Regarding loading and processing of the multiple currency stock exchange transactions of a repo the opportunities at the Moscow Exchange will allow clients not to limit development of a system — Olga Kireeva, the RS-Securities V.6 project manager of department of banking software RS-Bank of R-Style Softlab company noted. — We pay much attention of permanent updating of our systems — in RS-Securities V.6 the full range of opportunities on the security transactions is implemented".

2014

RS-Securities is "Deferred Tax Assets and Obligations"

On April 24, 2014 the R-Style Softlab company announced expansion of systems capabilities RS-Securities - the functionality for calculation of deferred tax assets and obligations is added.

Updates will allow the bank working with a software package to obtain the data necessary for accounting during the work with securities and derivative tools, in full accordance with the legislation (in particular, provision of the Central Bank of the Russian Federation of November 25, 2013 No. 409-P "About an order of accounting of deferred tax liabilities and deferred tax assets").

The new functionality is created in cooperation with banks- partners R-Style Softlab.

"Deferred tax assets and obligations — a new concept for accounting of bank. Provision became effective on January 1, 2014, and banks should make recognition according to the current requirements of the legislation till May 15 of this year. Despite deadlines, the companies it was succeeded to implement all updates and to propose to the market the ready-made solution timely — Olga Kireeva, the project manager RS-Securities V.6, R-Style Softlab told. — We pay much attention to compliance nashkh products to requirements of the regulator and we develop necessary functionality. Several banks already used our completions".

2013

Implementation of changes of the legislation

The changes of the legislation published periodically regarding accounting and taxation of transactions with securities in financial markets require conversions of the software used by banks. Specialists of R-Style Softlab company trace legislative initiatives and timely turn on in RS-Securities the relevant amendments. Recently were published new drawing patches 2030.60 and 2031.14 in which a number of regulatory requirements was implemented. So, the Order of Federal Financial Markets Service (No. 12-78/pz-n of 8/30/2012) enters a new order of opening and maintaining custody accounts by depositaries. The completions of a system concerning new types of custody accounts were executed earlier – by the time of entry into force of the corresponding part of the Order. The accounting of fractional parts of securities should be carried out, since July 1, 2013. By new rules at transfer of securities into the custody account their fractional parts are summed up. Write-off from the account of a fractional part of the security without integer number of securities is allowed only in the absence of an integer number of securities, except for write-off on the custody account of the nominee holder or the custody account of the foreign nominal holder.

Approach to accounting of securities found reflection in the R-Style Softlab software product. In the module Depositary the possibility of accounting of a fractional remaining balance appeared. The display format of the columns containing a remaining balance or informing on the number of securities is changed, procedures of accomplishment of postings, the internal reporting are finished (the number of securities is output in the corresponding format: the fractional part – to within 6 signs after a comma, an integer number – without fractional part), is implemented also transaction of rounding of number of securities up to 6 signs after a comma. As for the module "Back Office of Transactions with Securities", in it transactions with fractional shares were already supported, and after the publication of the Order processing of transactions and performing transactions with fractional securities of any kinds became available.

The letter of Department of bank regulation (No. 41-2-1-8/1175 of 10/16/2012) entailed changes of numbers of balance accounts for two account types of depot: "Securities in trust management" and "Securities of owners". With respect thereto the reference book of distributive account types of depot is updated, and their client can independently configure. The publication of the Letter of the Federal Tax Service of 12/26/2012 No. 3-5-06/2146 @ "About application of forms 2-NDFL and 3-NDFL for the tax period of 2012" removed questions of accounting in the 2-PIT statement of the deductions permitted by the Tax Code, but which do not have the corresponding codes. Completions in RS-Securities concerned determination and calculation of the following deductions: the amounts of a negative financial result on transactions with transferable securities reducing a financial result on transactions with the securities which lost the address; expense amounts on the financial instrument transactions of the forward transactions, not being traded on organized market of securities; the amounts of a loss on repo operations accepted in reduction of income on transactions with not transferable securities. Also earlier implemented unloading of form 2-NDFL in XML format was finished.

Federal law No. 282 of 12/29/2012 modifies separate legal acts of the Russian Federation, and some provisions became invalid. The law changed determination of the Russian depositary receipt and features of issue of securities are described by reorganization. According to these changes, as the underlying financial instrument of the depositary receipt it is authorized to specify in a system "stocks", "bonds" or "depositary receipt". The next planned stage of completions – implementation of replacement of the bond issuing institution.

Work in the T +2 mode is available

R-Style Softlab made changes in RS-Securities, the press service of developer reported on July 4, 2013, it is connected with emergence at the Moscow Exchange of new types of transactions:

• Repo with the Central counterparty
• transition to the mode of biddings "T +2".

Technology of biddings

In 2013 at the Moscow Exchange the new technology of biddings appeared: conclusion of the transaction with partial providing and delayed settlements, so-called market "T +2". it is supposed that these actions will improve quality of the Russian stock market and stimulations of growth of its liquidity will promote.

Changes

For maintenance of new exchange products and the new mode of biddings in RS-Securities it was required to finish the procedure of import of exchange registers of the performed and concluded bargains, to make changes to a procedure of formation of summary postings and summary orders of depot for the stock exchange transactions (depending on the code of calculation for transactions different clearing accounts of the National Clearing Centre (NCC) and different sections of providing on custody accounts in the National Rated Depositary (NRD) can be used).

The RS-Securities system is completely ready to service of transactions of "a repo with the Central Committee" and "T +2". Considerable completions and transition to new updating were not required. All settings are carried out on platforms of banks.

Release 20.031.18

On December 20, 2013 R-Style Softlab announced entering of updates into functionality of RS-Securities V.6 — a product for automation of work of banks in the currency, share and urgent markets.

Except compliance to requirements of the regulator, in the solution new opportunities for support of the tool of the Bank of Russia — an off-exchange repo with a basket of securities appeared and considerably performance due to use of pipeline technologies improved.

The functionality of the modules "Back Office of Transactions with Securities", "Back Office of Transactions with Derivative Tools", "The Considered Bills of Exchange" underwent serious processing for reduction of a system in a full compliance with the last requirements of the legislation, including on change of accounting rules of the forward transactions (3134-U, 3053-U, 3106-U, 3107-U). The product is prepared for use in 2014 — by the time of entry into force of the corresponding instructions of the Bank of Russia.

Possibilities of support of the tool of the Bank of Russia on liquidity provision — an off-exchange repo with a basket of securities with management of providing, clearing and calculations in the National Settlement Depositary (NSD) are most widely implemented. Users will be able to perform loading of transactions and structure of providing from the reports of NSD imported from software Beam. For calculation of income tax the new tax register "Income and Expenses according to Transactions of a Direct Repo on a C Basket / B" is added. The changes announced by vendor in August, 2013 are made.

Use of new technologies in the module "Back Office of Transactions with Securities" led to increase in speed of carrying out transactions. Different types of accounting (accounting, internal, depository) do not depend from each other now that increases convenience to the staff of different divisions of bank. Pipeline processing of data, autonomy of types of accounting and the standard scheduler of a system in total allow to organize business process according to transactions with issued papers in the Straight-Through Processing (STP) mode — the end-to-end data processing which is not requiring manual user intervention.

All updates in the solution are available in release 20.031.18.

Notes