Report on the Description of the National Settlement Depository Controls, Suitability of Controls Design and Operating Effectiveness,
12 October, 2015
25
Ref # Control procedure
Testing performed
Results of tests
2.6
Functionality within Alameda automatically matches the client
order and the order execution report from the higher rank
depository and books, removes, or transfers securities between
depositors' accounts without access for manual intervention of the
orders parameters.
Observed the order and report matching process in Alameda
and noted that all orders were matched automatically,
accurately and the system does not give the authority to
change message to higher rank depositories.
No exceptions noted
2.7
The failure message with refusal to proceed order in the higher
rank depository is automatically generated in Alameda and
automatically sent to the client without access for manual
corrections.
Observed the failure message generating and sending process
in Alameda and noted that the failure message based on
source data was sent to the client automatically and the
system does not give the authority to change failure message
parameters.
No exceptions noted
2.8
Functionality within Alameda prevents sending to higher ranking
depositories of orders for transaction execution for local markets
without controlling division verification.
Observed the orders for transactions in local markets
processing and noted that the system functionality prevents
the execution without controlling division verification.
No exceptions noted
