Overview/General
- Manages Banks' Custodial CD Holdings
- Handles Both Interest Bearing & Discount CDs
- Projects Interest Received & Paid
- Facilitates Payment Processing By Check & ACH
- Prints Credit Advices & Reports
MIMICS Certificate of Deposit Custody System Overview
MIMICS Certificate of Deposit Custody System manages your customers' custodial CD holdings from the point when the order is posted on the website. Both Interest Bearing and Discount CDs are handled through our system. The system tracks multiple levels of status of the CDs, from Pending to Approved, based on different compliance issues needed to complete the transaction.
The system projects the interest to be received by you from the Institutions and projects the interest to be paid by you to your Customers. It also calculates the spread in rates, and determines the portion of interest that you take, and the portion to amortize the broker commission.
In addition, the system facilitates payment processing by check, by ACH to your customers' DDA account, or by wire. Checks can be printed on blank check stock or pre-printed check stock based upon your specifications. Credit advices and reports can be printed from the system.
Recording the trade is easy. If your procedures require it, the initial entry of new holder purchases can be entered by the brokers at a remote site. Otherwise, they can be entered locally.
Verification by bank employee is simple because all trades entered by the brokers passes by a bank employee for verification before final posting. Custody receipts can then be produced.
A sinking fund account manages the payments received from the issuer that can then be distributed to the holders. This account can be handled by CD or by issuer.
Interest payments can be paid by check or ACH. Interest can be calculated on any calendar and can be paid at any frequency. Maturity payments are received from the Issuer and passed through to the holders. You can have the system mature securities automatically on maturity date or they can be matured manually. The system will let you know if the CD is pledged.
Commissions paid to the brokers can be a flat amount, a percent of the purchased amount, or according to another scheme. They can be paid at once or can be amortized over a period of time.
MIMICS allows you to charge fees for your service. You can do this in a flexible manner. Just set up your customer to be either hard dollar or soft dollar. Then set up your fee schedule. In fact, you can have several fee schedules for different customer groups. The system will automatically calculate the fees. You can have fees for adding receipts, changing pledges, holding the securities, paying interest, and others. The fees can be flat, by receipt, by certificate or by amount of par. You can have a higher fee for holding municipals than for holding governments. In addition, you can charge periodic maintenance fees.
Receipts are prepared for all new CDs being held. The system prepares maturity notices, interest advices, and 1099s. Interest processing is a snap. The system will print advices for the period you enter. Perhaps you would like to pay interest to your customers even though you haven't received it from the paying agent. Payments can be made by check, credit advice, or ACH transfer.
MIMICS CD Custody System comes with a long list of effective features and functions to meet your needs.
If you would like more information about our products and services, please fill out our online request form.