The Inferno Sub Ledger and Accounting engine (InfernoSL) was developed by an investment bank and is now available more widely after a management buyout. It provides a full accounting engine and operational sub-ledger that can generate multi-GAAP accounting reports from a single source of financial data. It offers configurable accounting rules, reports, and integrations with various front office and general ledger platforms. InfernoSL handles trade accounting, journal entries, overnight processing, accrued interest, FX adjustments, and regulatory reporting.

1. The Sub Ledger written by an Investment Bank
The Inferno Sub Ledger and Accounting engine (InfernoSL
) was designed and developed by
a global investment bank and following a management buyout by Torstone Technology,
the very team that wrote and supported it; it is now available to the wider market.
The product consists of a full, template based, multi-GAAP,
multi-entity, multi-currency, event-based accounting engine
and operational sub-ledger, with flexible code-block for
balance summarisation
Provides a single source of accounting truth for the
organisation, which means you have a single place to
generate Multi-GAAP accounting, PL and Balance
Sheet reporting
Enhanced user experience refined over many years of
usage in Investment Banking finance, with profile driven
User Interface including workflow and dashboard capability,
fully integrated with Excel and Office tools
Designed for rapid deployment with out of the box
Accounting Rules, Balance Sheet and PL Reports,
Chart of Accounts and full support for financial
services products
Flexible integration layer with additional accelerators
and adaptors for many trading platforms such as (but not
limited to) Bloomberg, Murex, Misys Sophis, SunGard,
Fidessa as well as GL platforms including Oracle,
Sun and Coda
Fast close monthly processing, with automated FX and
PL treatments for improved productivity and efficiency

2. Flexible rules-based reconciliation engine delivers end to
end reconciled finance data
Enables full control and audit trail, delivering analysis and full
traceability of financial data, drilling down to the transaction,
event and journal
Torstone offer Sub Ledger as a Service; hosting,
24/7 support and application management, the service
model is bespoke to suit client needs
Trade Accounting
As part of the straight-through processing of trades, InfernoSL
generates accounting entries using postings rules that are
configurable by asset class and the accounting ledger.
Postings will be generated on trade, value and settlement
date (and also on expiry and other event dates during the
lifecycle of a derivative trade). InfernoSL also calculates
and posts realised PL in real-time.
Journal Entry and Approval
Journals can be entered manually into InfernoSL, or can be
processed via an automatic journal feed. All journals require
approval and this approval can be given via e-mail interaction
with InfernoSL. A set of journal templates exist so that users
can be restricted to templates related to their business
area. Freeform journals are also available to users with the
appropriate access rights. Journals can be set to auto-reverse
on any date, and can also be cancelled (an action that also
requires approval).
Overnight Processing
InfernoSL provides a full suite of overnight accounting
processing that allows the Finance department to arrive the
following morning with a full set of Accounting Reports ready
for their review. A clean cut-off is achieved for each ledger
separately for each day, and accounting periods can be
closed for different types of transactions or left open for late
transactions to be processed.
Unrealised PL
InfernoSL will take prices from a multitude of different sources,
including front-office systems and external vendors, and also
provides a screen for inputting prices manually. Every ledger,
book and even instrument in InfernoSL can be configured
to use prices from a list of sources in a given priority order.
The end-of-day process automatically calculates and posts
the unrealised PL, and will adjust previous dates (if required)
for any late trades.
Accrued Interest
Inferno’s static Data Management Module stores data relating
to all instruments traded in the system. It includes fully featured
instrument models for interest bearing instruments including
bonds (fixed, floating, amortising, and more). The end-of-day
accrued interest process uses the value dated position from
the accounting stock record and the static data stored in
FDE to calculate the daily interest accrual which is then posted
to the ledger. InfernoSL also automatically adjusts postings
when either trade or static data is amended.
FX Levelling (“sell-down”)
InfernoSL can be configured to “sell-down” currency PL
into the base or reporting currency. This can be set to occur,
daily, monthly or annually (or not at all).
FX Revaluation
InfernoSL will take FX rates from the front office or external
systems and use these to revalue the accounts that have
been flagged for revaluation. All postings occur automatically,
and any late journals or trades are taken into account.
Regulatory Reporting
InfernoSL comes with a pre-configured suite of reports
covering all the standard information that a Finance
department would need. These include a Trial Balance Report,
Transaction Report and various PL reports. Users can run
reports manually, specifying their own parameters, and can
drill down from within the reporting screen from a summary
balance, through more detailed balances and ultimately to
the transactions themselves. Reports can be exported to
Excel, csv and a variety of other formats. Reports can also
be scheduled to run overnight and placed in a data archive.
Data can also be extracted from the system using the
Open Data Protocol (OData) allowing users to pull InfernoSL
data into their usual Microsoft applications.
Reports in formats suitable for uploading to regulatory
systems such as FRS Global are also available.
Reconciliations (separate Inferno module)
Rather than relying on a generic reconciler, Inferno provides
three reconciliation engines that have been specifically tailored
to the reconciliation of cash, positions and trades. Data is
loaded into the reconcilers (from Swift messages and other
sources), with the reconciliation engines using configurable
rules to automatically match transactions. Any remaining breaks
are aged and assigned to users. The user-friendly screens
display breaks and allow the recording of any investigations
undertaken. Tolerances can be configured for each
reconciliation and write-offs are created automatically.
Data Management (separate Inferno module)
Inferno models complex instruments and hierarchical
organisations and also contains data on calendars, markets,
regions, credit ratings and currencies. Static data received via
feeds from the major vendors is cleaned and automatically
merged with existing data. Inferno can therefore be used
as an organisation’s central data repository and act as the
master copy for static data, distributing this information to other
systems as required.
London +44 207 418 7900
New York +1 347 708 1830
Hong Kong +852 58 083623
Singapore +65 6591 8602
Torstone Technology Limited is a company registered in England and Wales with company number 07490275
www.torstonetechnology.com
info@torstonetech.com
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