Cash segregation for custody holdings provides a custodian view of transaction activity. You can pair a custody location and bank cash account to facilitate the reconciliation of the accounting quantity and cash back to the custodian.
With cash segregation, one accounting position can have multiple trades with different custody locations. Cash segregation allows the system to track and store transaction activity by custody location and settlement cash account in a separate accounting basis from that used for core accounting. Trade processing increments/decrements both the core accounting basis as well as the custody basis positions. You can share custody locations and cash accounts across accounting positions for omnibus account processing and tracking across funds. Cash segregation does not affect the ledger, and has no impact on Eagle's Performance solution.
With cash segregation you can: ■ Set
- Set up cash accounts, custody bases and other entity reference data, and security reference data.
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- Mark transactions in the custody basis with custody account information and create segregated position and cash balances.
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- Generate entitlements (units and cash) by custody location account and cash account. This includes all post transaction activity such as simple and complex corporate actions, maturities, and so on.
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- Manage segregated cash balances. Report on multiple cash accounts within an entity custody basis and across the custody basis.
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- View units (by custodian) and cash balances (by custody location and settlement cash account) for positions
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- Transfer cash between cash accounts and units between custodian location accounts with no impact on accounting.
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- Match inbound cash settlements at the omnibus level to individual cash activity across accounting entities and allocate settlements back down to the entities.
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- Use reports specific to cash segregation or reports that use custody attributes in grouping and sorting.
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- Invest cash account balances into assets which accrue interest.
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- Apply accrued interest and income earned to the core accounting basis.
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- Sweep the cash balance from a cash account into a money market or other interest bearing account where you accrue interest.
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