India Operations Overview

Trade Booking
 Trade  Trade

Trade Management
 Trade

Core Ops
 Confirmations  Pre-settlement  Fails

Margin
 Derivative

India Value Proposition

Capture Amendment Deal Review

 Structured

Reconciliation  Trade Control  Life-cycle Mgmt  Client Reporting

Management  Payment Processing  Network Mgmt

Portfolio Reconciliation  Margin  Client Valuation  Exchange Funding

Centre of Excellence

Operational Risk Management & Governance Business Continuity Management Operations Training

Controls & Quality

Time Zone Leverage

Ops Control
 Cash/

Regulatory & Mgmt. Reporting
 Metrics

Corporate Actions
 Announcements  Entitlements  Coupon

Global Reference Data
 Instrument Data  Client

Talent Pool

Bank Rec.  Fails Resolution  Inter System Rec.  Stock / Depot Rec.  Interest Claims  Fees & Brokerage. Processing

Analysis & Reporting

& Dividend Processing

Data  Organizational Data

Cost Arbitrage

etc. business continuity planning.India Operations – Departments Middle Office support for fixed income derivatives (FID) and foreign exchange (FX) products Middle Office functions for equities.and postsettlement activities related to equity and fixed income trades FID / FX MO Equity MO Core Operations CAO Supports Operations in the areas of administration. commodities and prime business Pre. metrics and training Ops Control GDM Reconciliations and investigations. liaise with external and internal parties to resolve discrepancies and control risk exposure Set up and maintenance of “static data” related to counterparties. instruments. .

Role of Middle Office Transactions Front Office Middle Office Settlement Core Operations Act • as primary contact between front office and core operations • as control and risk management function • as an escalation point on all operational issues for trading desks Ensure • firm side bookings match with client side and street side • all transactions feed between systems front-to-back • all breaks / incorrect bookings identified and resolved Provide • specialized trade dated services for the trading floor • transparency to senior management on risk profile and key performance indicators .

Middle Office Job Profile  Confirmation and settlement of cash. booking in the risk management system and legal confirm that is sent to the counterparty are all in line      . expiry of options etc so that they are aware of the upcoming events Reviewing all structured deals to ensure the pricing supplement. and money market trades Calculating coupon payments on structured deals. derivatives. preparing the notices and sending them out to counterparties Matching key trade details with the counterparty on a recorded line or via e-mail Reconciling various systems to ensure that feeds in all the systems tie up with each other Sending reports to the traders EOD on upcoming cash flows.

• In equity and bond markets. Securities Only. it means we pay cash and the counterparty delivers the equity or bond to us. Cross Currency Settlement. it could mean that we pay YEN to our counterparty and they pay us USD.Role of Core Operations  Settlement occurs when the exchange of cash and the product successfully takes place. Net Settlement • Failure to settle the trade on due date can affect profitability and reputation of the Firm • In foreign exchange. . Settlement could also be Full Settlement. Partial Settlement. Cash Only.

and prevent trade failure and late settlement interest claim. A trade may have failed due to various reasons including: Trade economics still unmatched Either party lacks the securities or cash to settle the trade Refers to pre-matching of trades. prior to the actual settlement date to ensure timely settlement of trade. Postsettlements Presettlements Settlements Actual exchange of cash and securities Asset Servicing Funding and cash management Inventory management Reconciliation .Core Operations Investigating and resolving trades that have failed.

clients. settlement and fails management across equities.Core Operations  Pre-settlement. Front Office and Traders Ensuring that minimum balances are available in the Nostro accounts for settlement purposes Identifying and processing all income events to be processed and enabling appropriate entitlement of resulting income       . brokers and internal Nomura desks to perform daily functions Processing of incoming and outgoing margin call and registration of collateral Escalating and addressing issues to the Middle Office. fixed income and stock loans Investigating and resolving breaks and all failing trades Liaising with counterparties.

Trades Front Office Middle Office Trade enrichment GDM . internal books and projects for various businesses in the Nomura Wholesale Banking.Global Data Management (GDM) Literally the “backbone” of Operations. settlement instructions. the team is responsible for ensuring accuracy of product and pricing data. GDM is responsible for the setup and maintenance of client accounts. In addition.

GDM  Set-up and maintenance of:  organizational data. and settlement instructions  Product data–equities. bonds. OTC products . confirmation details. listed derivatives. book and other reference data tables  client and counterparty data – name and address.

logging and tracking incoming and outgoing claims    Street-side and trading account setup and maintenance for cash and derivatives businesses globally across numerous systems Liaising with IT to build / improve reconciliation. position. and defining dashboard and MIS requirements for Operations Control Groups  . validation and distribution of control and MIS reports Investigating. trade and system reconciliations Managing the production.Ops Control  Performing cash.

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