Cash type client are usually settle on
settlement date. For selling of stock, broker firm will retain the printed
cheque until the client come for collection. The delivery of stock is done via the
Central Clearing System. Unless the client are short of stock and require
physical stock delivery, there will be no difficulty for broker firm to handle
this type of settlement.
However, for client who purchase stock and did
not turn up for settlement. The amount receivable from client will become a
financial burden for the broker firm.
Broker firm often charge them a penalty interest
for failed to make settlement for number of days after the settlement date.
Alternatively, broker firm will sell out their
purchased stock to compensate the due amount. However, there will be a deficit
if there are price difference.
To ensure that the broker firm will not suffer
from such loss, an advance deposit will be collected for each cash type client.
This deposit is maintained in a trust account. In other word, a cash client
will have 2 accounts, namely trading account and custody account. The custody
client will be used to keep the deposit amount while the trading account is for
normal transactions.
To make the client well aware how the deposit goes, this module relate two accounts and print the balance of the custody account on the statement of the trading account. I.e. The client with transaction on T-day will get a statement reporting the transaction done as well as the latest cash balance of their custodian account.
Since custodian account can be used to keep
client's money, the account can be used for interest calculation. For clients
who have a credit balance of up to certain amount, the system can generate
credit interest for that account.
Similarly, the system will debit with interest
if the balance is debit in balance.
這是很有創意的安排,每個現金客戶’A’客同時有一相對的’P’戶口, 而’P’戶口是以Custodian形式計算,平時以’A’戶口處理交收,但以’P’戶口來管理不動的資金,這方式既滿足現金客戶喜歡逐單交收的習慣,也同時管理有關現金客戶之按金,將不動部份呈現在Trust A/c Report上.