ITEd 122 – Systems Analysis and Design

Securities Trading System of ABC Bank

Background

ABC Bank is a local commercial bank based in Hong Kong. In addition to traditional banking functions (ie
saving and current account), ABC also operates a securities department to provide securities trading services
to its customers.

Before a customer can trade via ABC, he/she needs to open a securities account. This can be done by filling
in a Securities Account Application Form. There is also a pre-requisite that the customer must have got either
a current or saving account with ABC, for settlement of the securities transaction amounts. Once a securities
account is opened, the customer can place order to buy and sell any stocks listed in the Hong Kong Exchange
(HKEx), via telephone or Internet or through the counters in the branches. Fax instructions can also be
accepted if the customer has completed a properly executed Fax Indemnity, either during or subsequent to the
account open time. The buy/sell orders received from customers should be placed to HKEx’s trading system
AMS/3. However, ABC needs to ensure that the customer has got sufficient credit or stock holding (short-
selling is not allowed) in his/her account before placing the order. For buy orders, ABC will place a hold on
the customer’s saving/current account for the buying amount to ensure that he/she will be able to pay for the
order.
Order submitted to AMS/3 will either be executed immediately (if there are pending orders in the market
which meet the price of the submitted order), or queued for matching price. An order will be transmitted back
to ABC once it is executed.
ABC will then need to advise the customer immediately about the execution price and volume (sometimes
partial execution of an order will result if the customer allows it) via telephone call, except in the case of
Internet order which the confirmation will be via Internet. At the end of the day, all the unexecuted orders
will be dropped.
Following the introduction of the Central Clearing and Settlement System (CCASS) which is operated by
HKEx, holdings of listed securities are now based on the registration in CCASS. ABC has a broker’s account
on CCASS into which all its customer’s holdings are deposited. In case a customer wants to deposit stocks
into or withdraw from his/her securities account in ABC, ABC will need to perform a deposit/withdraw
transaction to CCASS accordingly.
ABC also has a cash account with HKEx and all the amounts for stock transactions with HKEx will be
settled through this account. The current rule is that all settlement should be done on the second business day
after each transaction. On the settlement day, ABC will collect the amount from the customer account for
payment into the HKEx account for the buying transactions. The opposite will be done for the selling
transactions. In each case, ABC will also collect its fee on the transaction (based on the transaction amount,
with a minimum chargeable amount) from the customer account at the same time.
For stocks that pay dividend, the dividend will be paid to ABC’s account with HKEx according to the
registration of holdings in CCASS. ABC will need to distribute the dividend received to the customers who
are the actual shareholders. This will be done by payment into the customer’s saving/current accounts, after
the deduction of a service charge based on the dividend amount (with a minimum and maximum chargeable
amount).
In case there are corporate events that involve the splitting or consolidation of stocks,
HKEx will adjust the CCASS holding accordingly. ABC will need to adjust the holding balance in the
customers’ securities corresponding to the CCASS adjustments.
Both the dividend and corporate event announcements need to be advised to the ABC customers who are the
shareholders. This will be done by letters posted to the address provided by the customer during account
opening.
A monthly statement will be sent to each customer with details of the transactions in the month and the
balance at the end of the month. ABC will also charge an annual service fee to all the securities account
holders. The charge is done on September of each year.

For this case, develop the following documentation;

1. Introduction
- (should contain 2 t0 3 pages of
o The evolution of computers in the society
o The importance of automated system or information system in the society)
2. Related Literature
Project - FINALS
ITEd 122 – Systems Analysis and Design
- Based on the background of the company assume that you will develop an automated system.
Cite 3 similar systems to your system design.
3. Statement of Purpose and objectives
-Explain in a numbered format the different purpose and objectives of the system that you are to
develop.
4. Assumptions
 Based on the statement of purpose and objectives, explain the benefits once the system will be
realized and implemented.

5. System Design
o Use Case Diagram of the Proposed System with automation boundary
o Class Diagram with attributes and methods
o Use Case Specification
o Sequence Diagram
 Shall be place in a plastic folder.
Requirements:

 Use front cover with the same title.

 Use short bondpaper- encoded in 1.5 line spacing using: Font Times New Roman, Font Size 12 .
 Shall be placed in a yellow plastic folder.
 Shall be submitted on or before October 10, 2013.
s:

























Credit Card Management System (CCMS)

Project - FINALS
ITEd 122 – Systems Analysis and Design

___________________

A Case Study Presented to the Faculty of

College of Information Technology
Bucas Grande Foundation College
Socorro, Surigao del Norte

___________________

In partial fulfilment of the requirements in

SYSTEM ANALYSIS AND DESIGN (SAD)

By:

Group Names

October 10, 2013




















Project - FINALS
ITEd 122 – Systems Analysis and Design








.
 Shall be submitted on or before March 16, 2007 10AM.

Project - FINALS