The Independence Clearance System

by

Black Diamond Systems, Inc.

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ð State-of-the-art Back-Office and Clearing System for fixed-income securities and derivatives

ð Processes the entire trade life cycle from completion of trade through year-end reporting

ð Off-the-shelf modules available for:

Corporate Bonds

Mortgage-backs and Asset-backs, TBA's and allocations

Repos

LDC

Canadian Repos and T-Bills

Interest-rate agreements - Swaps, FRA's, Cross-currency

ð Easily expandable to handle additional security types

Corporate Bond Trade Entry Screen

Architecture

State-of-the art client-server architecture

SQL Database server running on Sun host(s)

Data entry under Windows on PC's networked to Sun

All data entry screens developed in 4th Generation Language (4GL)

Designed for minimal operator intervention and system administration

Integrated facility for permanent data archiving as well as remote site backup

Real-time interface to third-party electronic databases for security lookup

Repo Single Collateral Data Entry Screen

Repo Multiple Collateral Data Entry Screen

Trade Life-Cycle

Data entry from broker-originated trade tickets or blotters. (Automatic entry from broker system an option)

Built-in calculator for quantities such as commissions, accrued interest, and profit

Extensive reporting, including summaries by broker, desk, customer, and security

Automatic faxing of trade confirmations

GovPX feed

Automatic trade clearing and cleanup appropriate to trade type. Includes:

Immediate giveup

Scheduled giveup

Automatic electronic link to clearing bank (DTC, PTC, Fedwire)

Transmission to MBSCC/SIAC for Mortgage-backs

P&L tracking

Complete tracking of Mortgage-backed TBA allocations, including subsequent clearing of pools

Generation of month-end commission bills for give-up trades

Mortgage-backed Data Entry Screen

Mortgage-backed Allocation Screen