M2M Transfers Implementation
ARQA Technologies products enable end-to-end online processing of M2M instructions: from the client’s instruction submission to the transfer being displayed in internal and depository accounting systems.
M2M is a fast and simplified transfer of securities between accounts of the same client held with different brokers or depositories.
Used Modules and Services
The QUIK software package is an interface for clients to submit instructions and perform risk control.
The Non-Trade Instructions module allows submitting instructions to deposit or withdraw securities.
Clients can access instruction registration via the QUIK workstation, webQUIK workstation, QUIK mobile terminals (iQUIK X/QUIK Android X), or their own applications/ broker's personal account.
The automated back-office backQORT registers incoming instructions, forwards them for depository processing, receives execution results, updates statuses, adjusts positions, and generates a tax certificate of expenses for transferred securities.
The system of depository accounting depoQORT receives instructions from backQORT, performs necessary depository checks, interacts with the NSD, and returns processing results to backQORT.
For seamless operation, the front-office, back-office, and depository system must exchange data and keep client positions online. Third-party systems may be used in the process, provided they ensure prompt transmission of instructions, statuses, and execution results.
Solution Architecture
Explanations to the Scheme
Clients send an instruction to transfer securities from QUIK terminals or through their own applications/broker’s personal account. After the order is registered in the Non-Trade Instructions module, the QUIK server checks sufficiency of funds and blocks the securities on the client’s position. If the check fails, the client receives a rejection of registration with the reason for rejection.
The Non-Trade Instructions module exports information about the registered order sequentially to the broker’s backQORT and depoQORT, where a set of checks required for execution are performed.
From the sending side, depoQORT forwards information about the instruction to the MOEX BRIDGE service.
If MOEX BRIDGE rejects the transfer of securities, a command to cancel the client’s instruction is sent via depoQORT and backQORT to the Non-Trade Instructions module, with the rejection reason. After cancelation, the client’s position blocking on the QUIK server is released, and the cancelation reason is displayed in the client’s terminal.
If the transfer is processed successfully in MOEX BRIDGE, depoQORT and backQORT on the sending side initiate the signing of the registered securities withdrawal instruction in the Non-Trade Instructions module. After this, the order is considered executed, the client’s position blocking on the QUIK server is released, and the client’s securities are written off from the position.Next, an instruction to deposit securities is registered in the Non-Trade Instructions module through depoQORT and backQORT on the receiving side. After the order is executed, the securities are credited to the client’s position on the QUIK server. In the terminal, the client sees the executed securities transfer instruction and the resulting position.
Introduction and Deployment
During the selection and deployment phase, ARQA Technologies provides:
- presentations and webinars for a detailed introduction to the functionality,
- testing on the premises of ARQA Technologies,
- system installation and training of the client’s IT staff in operating and administering the solution,
- consultations on integrating QUIK with other software platforms.