Report on the Description of the National Settlement Depository Controls, Suitability of Controls Design and Operating Effectiveness,
12 October, 2015
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Objective 4. Controls provide reasonable assurance that clearing transactions and transfer-agent services are performed
completely and accurately and in a timely manner
Ref # Control procedure
Testing performed
Results of tests
4.1
Functionality within Alameda automatically verifies whether
input information is matched to existing internal data, whether
all mandatory fields have been completed, and whether
necessary balances are available to complete a transaction.
Inspected the verification procedure in Alameda and noted that
the system functionality prevents the processing of not matched
or incomplete information.
No exceptions noted
4.2
Functionality within Alameda automatically matches clearing
orders for net settlement and transfers only the matched orders
to the next stage (expecting the balances).
Observed sample of counter clearing orders matching process
in Alameda and noted that the system functionality does not
transfer unmatched orders.
No exceptions noted
4.3
Functionality within Alameda and ASER enables execution of
matched clearing orders only if there are sufficient balances of
securities and funds on accounts of counterparties (based on
terms Delivery versus payment).
Observed the clearing orders executing process and noted that
the Alameda and ASER functionality prevents clearing orders
processing without sufficient securities and funds on accounts.
No exceptions noted
4.4
Functionality within Alameda prevents the closure of clearing
session unless the clearing pool of transactions is completely
executed.
Observed the clearing session closing process and noted that
the Alameda functionality prevents session closure unless the
clearing pool of transactions is completely executed.
No exceptions noted
4.5
The contracts between transfer-agent and registrars on
providing of transfer-agent services are signed and authorised
properly by both sides.
For a sample of registrars inspected contracts and ensured all
contracts were present, relevant and singed.
No exceptions noted
4.6
The exchange of electronic documents between registered
entities and registrators through the transfer-agent service is
carried out only after verification of input settings by the second
employee of interaction with registrars division.
For a sample of registered entities inspected settings in DPO
and ensured that all settings were accurate.
No exceptions noted
