Key Terminologies
Account | The object which keeps information about client and the history of the relationship with the company |
Assets Under Management (AUM) | The total market value of the investments that a person or entity manages on behalf of clients. |
Authorised Person | An Individual who has been granted the authority to view or manage the client's portfolio within agreed-upon parameters. |
Bank Account | Account opened by the Bank / Custody where financial investments are actually held. |
Client Portfolio | Simple portfolio which consists from the client bank account(s) |
Company | A brokerage firm or asset management company that provides services to clients. |
Company Account | Legal Entity (company account itself), can be created to create PROP or OMNIBUS portfolio |
Company Holding | An union of Companies |
Company Portfolio | Portfolios owned by the company (PROP portfolios or OMNIBUS portfolios) |
Consolidated Portfolio | Client portfolio which consists from the several client portfolios. It’s possible to consolidate portfolios from the different accounts but from the same company |
Corporate Action Orders | Orders which causes security or cash movement due to Corporate Action |
Credit Risk | Credit risk is the possibility of losing a lender takes on due to the possibility of a borrower not paying back a loan |
Custodian | Person or Entity appointed to hold and manage assets on behalf of another party. Custodians primarily focus on safeguarding and administering assets on behalf of clients, ensuring their safekeeping, record-keeping, and settlement. |
Direct Market Access (DMA) | Electronic facility to place an order directly to financial market exchanges |
Entity Account | Legal entity |
Execution | Order execution is the process of accepting and completing a buy or sell order in the market on behalf of a client |
Individual Account | Individual client |
Instrument | Any tradable asset or contract that represents a financial value and holds the potential to generate economic returns for its owner. |
Mandate | Contract for the provision of services, where all conditions and rates are fixed. |
Marginal Trading | Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of an investment and the loan amount |
Market Value | Is the price an asset would fetch in the marketplace. |
Matching | Automated confirmation of order based transaction with reprocessed custodian transaction |
Non-trading Orders | Instruction to back office managers to transfer cash or assets, write off the fees |
Omnibus Bank Account | Bank Account where it’s possible to hold and manage assets of more than one person, it saves the anonymity of the persons in the account. Bank Account is opened in the Custodian. |
Order Initiator | Person who made the decision to place an order |
Order transaction | Temporary transaction created based on order execution details. It participates in the calculations but calculates as unsettled part of security / cash position until it’s matched with Custody report info |
Over-the-counter (OTC) | The process of trading securities via a broker-dealer network |
Performance | Gain or loss of an investment or of a portfolio. |
Portfolio | A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). |
Position | Position is the reflection of the amount and performance of a security, asset, or property that is owned or been owned by some individual or other entity. |
Product | A product of a management company based on financial assets, designed for convenient management of investment portfolios. |
Product Subscription Orders | Order to subscribe / unsubscribe on the Investing Firm products such as recommendation or strategy |
Profile | A profile allows you to define permissions for users to give them full or restricted access to modules and records. |
Prop Bank Account | Bank Account with Company own positions opened in the Custodian |
Recommendation | A type of product. It represents an investment recommendation for the purchase of an asset or assets. In this type of product, the included assets are not interconnected. |
Reconciliation | Process of comparing Custody data with System info by transaction and positions |
Reprocessing | Process of converting custody transaction and position data to internal format |
Role | A role reflects the part that the user plays in the company hierarchy |
Standard Bank Account | Client bank account based on the bank account opened in the custodian for the client |
Strategy | A variety of product pursuing a specific idea.For example, an energy sector strategy. It includes financial assets and their weights relative to each other. Upon subscribing to the strategy, the entire invested amount should be allocated according to the specified weights. |
Trading Orders | Instruction to a broker or brokerage firm to purchase or sell a security on an investor’s behalf including forex instructions |
Transaction | The operation of buying/selling, transferring an asset or moving funds within a bank account. |
Virtual | Client bank account created in the System from the Omnibus Bank Account to store all the history of the transactions and positions related to the specific client. |