Domestic Cash TLM Migration

12/30/2014

Domestic Cash TLM Migration

Gorantla Suman
gorantla.suman@tcs.com

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Table Of Contents

1. Introduction 3
1.1 Client Profile..3
1.2 Project Profile....3
2. Scope.4
2.1 Technologies/Tools....4
2.2 Business Drivers....4
2.3 Challenges..4
3. Reconciliation process overview....5
4. Schema & KB Design.5
5. Static Data Setup7
6. Domestic Cash Match Logic Implementation..9
6.1 ECD vs Download ....9
6.2 ECD vs EOD ..10
6.3 Exception Handling11

7. Dashboard Design..12
8. Business Benefits / Value to Customer.13
9. Deliverables.13
9.1 Requirements Gathering and Analysis..13
9.2 Design ...13
9.3 Development, Configuration and Unit Testing ...13
9.4 User Acceptance Testing .13

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1. Introduction
This document provides a methodology and approach for implementation/ migration
of a typical TLM Recon project and is based on experience gained from previous
TLM implementation/migration projects for various leading Global Investment
Banks. The objective of this offering is to provide a standard process, methodology,
framework, and governance for TLM projects so that the benefits of standardization,
reuse, timely deliveries and lower TCO are reaped.

1.1 Client Profile:

Client is a leading global investment bank with a strong private client base, is one of the
largest in terms of financial assets that are managed.The Clients requirement was to
streamline the reconciliation process within the business and opted for the
SmartStreams product TLM (Transaction Lifecycle Management). The objective was
to eliminate the manual workaround within the reconciliation process and replace the
existing legacy applications with TLM.
The initial phase of implementation started with Poland and Japan business. The
opportunity was to cover the implementation across various locations geographically.
The initiative was mainly focussed on enhancing its Straight Through Processing (STP)
capabilities across the entire trade life cycle. Trade Match Manager (TMM), a major
component of the trade processing services was envisioned to be globally deployed. It is
a multi-currency, multi-legal entity and enterprise wide solution for real-time trade
matching capability with all counterparties, brokers, customers, clearing corps and
settlement agents.

1.2 Project Profile:

Domestic cash Reconciliation involves Migration of business logic from existing legacy
system to TLM 2.7version. Creating automated reconciliations processes in a more timely
manner, along with greater visibility of the resulting reconciliation items, is a key element
to reducing risk. It was one of the important drivers behind choosing TLM. This project
primarily had recons which were to be built from scratch. Project duration was for one
month. Feed files are received from TITAN system namely Download (ledger), ECD
(72500 ledger & 7915 statement), EOD (statement) respectively. Reconciliation is done
across ECD 72500_A ledger and Download ledger, ECD (72500_C) Ledger and EOD
Statement. Exception is created for all transactions whose Amount doesnt nets down to
zero and also for all the existing singletons.

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2. Scope:
The broad scope of work for the implementation would involve:
1. End to end implementation/migration of reconciliations on TLM
2. Support for UAT, regression and performance testing
3. User Training

2.1 Technologies/Tools:

Applications

TLM 2.7,
Smart Schema 4.1
Smart Studio 2.8

OS - Unix

DB Sybase 15.0.3

Web Server - Websphere

Thin client Web Connect

2.2 Business Drivers:

Standardization by establishing a centralized recon utility for all business lines.

Re-Engineering the existing stock recon, to cater to the business requirements
Creating the framework for the building the cash reconciliation
Reconciliation cost reduction/optimization, future business growth, enhanced
productivity

2.3 Challenges:
Schema levels & KB design as per the Business requirements.
Complex Reconciliations involving Matching and Automating, updating and
closing of Exceptions for the transactions between attributes of three different
Schema levels.

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3. Reconciliation process overview:

In Domestic Cash reconciliation end-to-end business is implemented encompassing.

ETL services comprising of extraction, transformation and loading the data

from various source systems such that it is TLM readable
The reconciliation framework for Validation & matching the Transactions
The reporting framework comprising of dashboards

The entire Reconciliation Process implementation is depicted in Figure 3.1as below:

Figure 3.1
4. Schema & KB Design:
The Universe, Attributes & Objects in schema & KB are built as per the business
requirements. In Legacy system feed files are generated from Source system namely
TITAN (Download file) & ECD( 7250 Ledger & 7915 Statement). The 7250 ledger
from ECD system is duplicated as 72500_A & 72500_C through ETL. The Legacy
system is as shown below in Figure 4.1

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Figure 4.1
The TLM Schema is with Smart Schema 4.1 version. The Universe Item consists of
three levels of schema PB EOD Statement, PB Download Ledger, PB ECD under the
base level of PB Domestic Cash Reconciliation Posting as shown in Figure 4.2,.The
amount & Currency attributes are added at base level to enable multi level matching.

Figure 4.2
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The schema attributes for all the Schema levels as explained in the DC_Schema
model.xls

DC_Schema
Model.xlsx

The KB file is the base for the GEMS engine to read the feed file received from ETL
layer. The feed file is processed through ETL such that it is in TLM readable format.
An Entry in Master Kb has to be done for all the Kb files generated for each Schema
level Objects. Gems server must be restarted to trace the changes made in the Master
KB file. The GEMS engine will terminate automatically if the new Kb files generated
are not as per the design.To debug this scenario we need to alter the state of GEMS in
Verbose mode such that the GEMS log contains more descriptive & user friendly
error messages.

5. Static Data Setup:

Static data setup include Asset Register, Currency loading & Business Data (Category,
Account & message feed) Insertion.

5.2 Currency File Loading:

For loading Currency feed file below steps need to be followed:
1. Stop the currency engine by executing the following command:
tlmstop TLMDB currency
2. Update SYST table executing following command:
update syst set syst_string = ' -s|SV -cp1 -rp3 -dp7 -ep2 -fp6 -dfYYYYMMDD' where
syst_name='CURRENCY_PARAM'

3. The system's base currency is defined in the System Configuration Table (syst)
with a SYST_NAME of 'BASE_CURR' (which is USD in PB Master Trust
project). Update syst table to define a base currency by executing the following
command
update syst set syst_string='USD' where syst_name='BASE_CURR'
4. Place the asset register file e.g. TLM_CURRENCY.txt into /tmp directory for
loading purpose.
5. Start stocks engine executing following command:

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tlmstart TLMDB currency

6. Login to Recon Admin.
7. Go to Servers -> Validations branch.
8. Right click and select Insert.
9. Make an entry be giving Filename as /tmp/ TLM_CURRENCY.txt, select
currency from Servers dropdown and click OK.
10. Once the entry disappears from Servers -> Validation branch, loaded data can be
checked in curr and crat tables.
11. curr - This table holds information that defines a currency.
12. crat- It records the Currency exchange rates to the system's base currency (USD)
rate.
13. In Recon Admin the loaded currencies and their rate can be checked under
Currencies branch:

5.3 Business Data Insertion:

Each account will be represented by a cash account.

All accounts carry USD amounts.
The Static Data like Categories, Lead Sets, Sets and Message Feeds are
configured through one time process. There are two set of accounts to be
created in TLM.

1. DDA
a.
b.
c.

to DDA:
72500 Ledger(72500_domcash_A)
Download Ledger
7915 Statement

2. EOD to 72500
a. EOD Statement
b. 72500 Ledger(72500_domcash_C)

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6. Domestic Cash Match Logic Implementation:

6.1 ECD (72500_A Ledger) vs Download (Ledger):

If there is 1 Download record and 1 DDA(72500_A) record (irrespective of

amount Nets to Zero). Download record is moved to Perfect match/History. Cat,

Match Subcategory and download # are copied from download record to DDA record.

If there is atleast 1 DDA record but no Download records Match Category is set to

Unassigned. Match Subcategory is set to UNK. Download # is set to -1.

There is no concept of creating Exception Header over here for breaks between DDA
record and Download record. The following table 6.1 will summarize pass details &
figure 6.1 has Matching logic.

Scope
Population
Group By
PQR 1
PQR 2

IRS = Outstanding
JPMPB/PB DC Download
JPMPB/PB DC ECD Posting where account = 725A
Transaction Number, Corr Acc No
1 Download record and 1 DDA record
At least 1 DDA record but no Download records
Table 6.1

Figure 6.1

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6.2 ECD (72500_C Ledger) vs EOD (Statement):

Grouping is done by Transaction number.

Matches the transactions whose Amount nets down to Zero & send all

corresponding matched Transactions to History, Updates match Date to system date

and Update Match Number to min(gin) as shown in Figure 6.2.The Pass details are as
shown in Table 6.2.

Scope
Populations
Group By
PQR

IRS = Outstanding
JPMPB/ DDA(72500_domcash_C)
JPMPB/EOD Statement
Transaction Number
Many EOD Many DDA(72500_domcash_C)
Table 6.2
Yes

Net Amount =0,

at least 1 EOD
and 1 DDA
(72500)
record?

Update all records to

History/Perfect Match.
Update Match Date,

Figure 6.2

If amount doesnt nets down to Zero an Exception header is created, underlying

records will remain as outstanding in TLM. Grouping is done based on transaction

number. Exception Header will be created if the transactions where Amount doesnt
Nets to zero in TLM and the Net of Amount will get updated on the Value Difference.
All the underlying records will be outstanding & If Net of Amount <=0.01 USD, set
OverShortFlag to True in TLM as shown in figure 6.3.The pass details are as
mentioned in Table 6.3.
Scope
Populations
Group By
PQR

IRS = Outstanding
JPMPB/ DDA(72500_domcash_C)
JPMPB/EOD file
JPMPB/Common Header
Transaction Number
Many EOD Many DDA(72500_domcash_C)
Table 6.3

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Figure 6.3

6.3 Exception Handling:

Exceptions are created for all Download, (72500_A Ledger), and ECD (7915) un-matched
Transactions & singletons.. The Exception is closed if the Underlying transactions amount
nets down to zero else the particular exception Header values are updated with the new values
and the transactions remain outstanding. This Scenario is same for all the Download, ECD
(72500_A Ledger), and ECD (7915) Statement Transactions but, the population & grouping
Columns vary. The pass details for Download, (72500_A Ledger), and ECD (7915) statement
are summarized in Table 6.4, Table 6.5, Table 6.6 and Match logic is as shown in figure 6.4
respectively.
Scope
Populations
Group By
PQR 1
PQR 2
PQR 3

Scope

IRS = Outstanding
JPMPB/Download
JPMPB/Common Exception
Acct Number, Match Category, Match Subcategory, Settle Date, download,
report name
EH does not exist?
Create Exception Header
Transactions exist?
Close Exception Header
(blank)
Update Exception header
Table 6.4
IRS = Outstanding

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Populations
Group By
PQR 1
PQR 2
PQR 3

12/30/2014

JPMPB/72500
JPMPB/Common Exception where account = 725A
Account, Match Category, Match Subcategory, Settle Date, ECD download
EH does not exist?
Create Exception Header
Transactions exist?
Close Exception Header
(blank)
Update Exception header

Table 6.5
Scope
Populations
Group By
PQR 1
PQR 2
PQR 3

IRS = Outstanding
JPMPB/7915
JPMPB/Common Exception
Account, Match Category, Match Subcategory, Settle Date
EH does not exist?
Create Exception Header
Transactions exist?
Close Exception Header
(blank)
Update Exception header

Table 6.6

Figure 6.4

7. Dashboard Design:
The Dashboard design is not the conventional for this reconciliation. They are designed at
Multiple Object levels on the basis of Pass logic. In detail Download vs ECD ( 72500_A
Ledger) pass will process the corresponding records so, to show only Download & ECD
transactions the dashboard is built at PB Domestic Cash Level & only these two Schema level
Objects & attributes are added. Similarly other Dashboards are created as per the Pass logic
Configuration basis.

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8. Business Benefits / Value to Customer

Centralized reconciliation tool for all business lines with standardized

reconciliation processes across products and functions supported by common
reconciliation platform

Scalable and stable recon capable of handling large volumes

Enhance the frequency of reconciliation for business needs

Enhanced control and productivity improvements with considerable cost and risk
reduction.

Achieve Audit and Compliance requirements

Improved Business Continuity Plan

Increased STP/Match Rate with higher automation

Better/improved MIS reporting for the management

Reduced Processing Time

Replacement of the existing legacy application which was not as

flexible as TLM for Reconciliation process ,business requirements and
demands

9. Deliverables
Following documents would be delivered as per the various implementation stages:

9.1 Requirements Gathering and Analysis

Project Plan
Functional Specifications Document

9.2 Design
Design and Mapping documents for ETL
Configuration Documents for TLM

9.3 Development, Configuration and Unit Testing

Unit test results
SIT Plan

9.4 User Acceptance Testing

UAT sign-off
Final application code base/ configuration component Suport

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