TradeEdge-Bankers Edge in Trade Finance                       Object Edge Inc.                           315 Lennon Lane  ...
TradeEdgeBanker’s Edge for Trade FinanceTradeEdge OverviewWith globalization and growing supply chain complexities, the ri...
TradeEdge    Banker’s Edge for Trade Finance    Trade Edge – The Product    TradeEdge is captured at a high level in the d...
TradeEdgeBanker’s Edge for Trade FinanceValidationValidation is part of the basic repertoire of OE frameworks and is used ...
TradeEdgeBanker’s Edge for Trade FinanceNLSOur framework allows for multi-lingual operations with total ease.Correspondenc...
TradeEdgeBanker’s Edge for Trade Finance       System supports multiple beneficiaries and split liabilities     LC suppo...
Upcoming SlideShare
Loading in …5
×

Trade edge oe's trade finance product

522 views
475 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
522
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Trade edge oe's trade finance product

  1. 1. TradeEdge-Bankers Edge in Trade Finance Object Edge Inc. 315 Lennon Lane Walnut Creek, CA 94598 USA
  2. 2. TradeEdgeBanker’s Edge for Trade FinanceTradeEdge OverviewWith globalization and growing supply chain complexities, the risks of doing business hasincreased multi-fold. At the same time, the developed market place demands multi-facetedfinance options and variations. Bankers need to equip themselves with the best enablingtechnology to thrive in this demanding environment.TradeEdge is designed to process all aspects of Global Trade Finance for major internationalbanking institutions. The solution allows for multi-channel, multi-lingual and multi-currencyoperations. TradeEdge is built using the latest technology platforms and has been architected toprovide users with state-of-the-art capabilities, while ensuring easy integration with existinglegacy ecosystems.TradeEdge caters to all important trade finance vehicles, such as Letter of Credit, Standby Letterof Credit, Letter of Indemnity, Documentary Collections and Guarantees. It supports all possiblebanking roles in a trade transaction, such as issuing bank, advising bank, remitting bank etc.With increasing trade volumes and risk, issues such as syndication and split liability arebecoming increasingly important. TradeEdge caters to all such trends that characterize moderntrade finance operations.TradeEdge provides self-service for all system users, ranging from the corporate requiring tradefinance to any of the bank roles engaged in trade finance, including all internal roles, withinthese banks, such as the clerical staff, supervisors, managers etc. The users can transact theirbusiness, have access to their book of business, view their transaction history and create reportsthrough a highly intuitive user interfaceSelf-service is facilitated by a responsive and flexible workflow that is configurable withseamless connectivity to a rich set of back office functionality. TradeEdge is built to allowstraight through processing, with easy configuration to allow manual exits and approvals.TradeEdge supports all required protocols for trade finance communication such as Swift, SCOREand Bolero. With its robust architectural foundation, TradeEdge can integrate with any eco-system with relative ease.TradeEdge is brought to you by Object Edge, an organization that prides itself on itsarchitectural capabilities and its domain expertise in International Finance. Object Edge hasworked with some of the largest global financial institutions – to name a few, Credit Suisse,Charles Schwab, Dresdner Bank, Banker’s Trust, and Aviva. TradeEdge encapsulates this wide-ranging experience and architectural excellence, through a set of functional frameworkcomponents that ensures consistent robust delivery to the customerOne of the important advantages that a framework-based architecture offers is its futuristiccapability. Changes in business for the most part are already envisioned while creating theframework and there is minimal impact on the core solution on account of such changes. Forinstance, there have been extensive modifications to Swift over the last decade, but all thesemodifications, could be accommodated with minor re-configurations. Page 2 of 6
  3. 3. TradeEdge Banker’s Edge for Trade Finance Trade Edge – The Product TradeEdge is captured at a high level in the diagram below: Contract Purchase Order LC-Issuance Seller Buyer Syndication Issuing Bank LC, Standby LC, Guarantee, LOI Advising / Issuing Purchase of ClaimConfirming Bank LC-Availment Goods Release Bank Discounting Frameworks Documentary Collections Remitting Bank Collecting Remitting Bank Bank Split Liability Liquidation Covering Bank Reimbursement Bank At the heart of TradeEdge are a number of extremely well-crafted engine-level frameworks that are designed to be generic in address while still capturing the essence of the functionality for which they are created. The frameworks are usable across trade finance vehicles, i.e. LC, DC etc. They are briefly discussed below: Unit of Work All trade finance vehicles go through a lifecycle of events, for e.g. LC’s lifecycle stages include issuance, availment, settlement, amendment, free-form message, liquidation, etc. These lifecycle stages may be grouped into a unit of work, and the framework provides a common, robust manner of handling them. For example, a unit of work is transactionally approved, disapproved, validated, etc. . Page 3 of 6
  4. 4. TradeEdgeBanker’s Edge for Trade FinanceValidationValidation is part of the basic repertoire of OE frameworks and is used by TradeEdge to validateits units of work. Validation rules are represented declaratively, associated with business objectsat any level of granularity. A rule is triggered when a unit of work, which contains rule’s ownerobject, is validated.SettlementSettlement is one of the more complex activities, which is very critical in terms of ensuring thatresults are totally consistent and verifiable. Our settlement framework has successfully gonethrough millions of transaction cycles and is extremely robust.PaymentPayment sounds like a simple transaction, but with the host of intermediary parties, especially inthe event of syndication and split liability, the scenarios could get extremely complex. Ourpayment framework allows providing a graphical UI, to configure payment routes, with totalease thus enabling complex payment routing at a press of a button. The framework alsoincludes integration adapters which can be easily configured to interface with any payment andcurrency conversion system.BookingAccounting and liability booking is another significant part that requires comprehensive address.There are a number of account types, such as Nostro, Vostro etc., besides myriad transactions,that require complex accounting entries, including contingency bookings, reversals andadjustments. With our framework, we can easily meet all these requirements and accommodateany changes in accounting procedures.SWIFT /SCORE / BOLEROThe frameworks that we have built for these standards have withstood the test of time. Asindicated earlier, there have been extensive modifications to Swift over the last decade, but allthese modifications, could be accommodated with minor re-configurations.Commissions and ChargesOur charge framework allows for a highly flexible model for commissions and charges; these canbe fixed amounts in any currency, or based on percentages against fundamental quantities suchas credit or collection amount. Calculated charges may be defined in multiple steps, withdifferent rates per step. Charges and commissions are defined in external files, and may becustomized by authorized administrators. Page 4 of 6
  5. 5. TradeEdgeBanker’s Edge for Trade FinanceNLSOur framework allows for multi-lingual operations with total ease.CorrespondenceFlexible, multi-lingual correspondence generation is one of the most important aspects of TradeEdge. Our framework allows representation in two modes: a semantic definition of a particularcorrespondence independent of any output method, and a structured form based on aparticular messaging standard, such as SWIFT or Bolero.Scheduling (Agenda)The framework provides for automatic planning for activities to be carried out and managescalendar entries denoting tasks to be done or things that the user is waiting on before he canproceed with the next series of steps. TradeEdge automatically creates, updates and deletesagenda entries. The user can also create and delete custom agenda entries at any time.TechnologyTradeEdge is built on open and modern architecture, which allows for high flexibility, scalabilityand maintainability. The n-tier, browser based architecture, with rich interface allows both localand remote access. This makes it highly suitable for implementations, where the data center iscentralized though end users could be geographically dispersed across regions or evencontinents.TradeEdge is built on J2EE platform and supports both Linux and Windows environment. Thebrowser-based user interfaces uses RIA (Rich Internet Application) and hence has all the typicalcontrols of a normal UI. The application can connect to popular databases, such as Oracle orDB2.Feature ListSome of the major features of TradeEdge are listed below:• Scope  The solution caters to LC, Standby LC, Back-to-Back LC, Transfer LC, Documentary collections, and Revolving LC’s (cumulative & non-cumulative). The system supports seamless transition from import LC to back-to-back LC and transfer LC etc.  Any number of intermediary banks can be introduced and the solution can work with any bank role, i.e. advising bank, issuing bank, remitting bank etc.  The solution caters to all payment modes, i.e. sight, deferred payment, mixed payment Acceptance and Negotiation. Documents can be negotiated on trust basis or copy basis. Page 5 of 6
  6. 6. TradeEdgeBanker’s Edge for Trade Finance  System supports multiple beneficiaries and split liabilities  LC supports multiple availments and partial shipments.  Syndication is integrated with transaction processing and could include non-bank partners.  The system supports purchase of claims of the beneficiary in the case of export LC and discounting in the case of deferred payment.• Interface  Web-based user interface is available for all lifecycle transactions  Payment can be routed graphically using a very friendly interface• Functional  Booking of commissions and charges is highly flexible and can be based on % age, time, stepped etc. Commissions can be separately charged for risk and processing.  System can be configured to pick up exchange rate online. Alternatively the user can manually enter dealer quote or use a middle rate (typically used for conversions with only internal relevance), based on transaction type.  System supports re-instatement of inactive accounts and closed transactions  Multiple levels of approval (four eye principle) can be configured based on transaction type  Multiple modes of payment can be used, i.e. through SWIFT, SIC (Swiss Interbank Clearing), ACH (Automated Clearing House) etc.  Accepts document value with tolerance and availment could exceed or fall short of LC value by the stipulated tolerance. If tolerance values are exceeded, approval flows could be configured as required  Complete support for all correspondences (Swift, Score, Bolero or free form)• General  Automatic generation of agenda entries to identify next steps  Effective search of document through a host of parameters, e.g. applicant, beneficiary, bank, document number etc.  A set of representative use cases are integrated in the system to run business level regressions tests  Calculators are provided for a variety of purposes, e.g. Interest calculation, commission calculation etc.  Interest calculation can be configured to comply with German practice, French practice, or English practice  Rounding rules can be configured by currency Page 6 of 6

×