The challenge.
The client wanted to automate its Mutual Fund Processing System by integrating its legacy investment-processing platform and fund management system with an Internet-based mutual fund product. Information on trade executions, acknowledgements, confirmations and rejections had to be processed by the investment-processing platform in real time. The client was looking for a solution architecture which could seamlessly integrate the legacy application with the vendor’s product on a real time basis.

Our solution.
We proposed a real-time solution by using MQ series. Open architecture APIs were developed to transmit all the mutual fund requests and order cancellations originating in the client’s investment processing system to the Mutual Fund Processing System through the usage of MQ series.

The Mutual Fund system handled trades originating in both the legacy application and/or record keeping systems. Once the system received purchase or redemption messages it automatically transmitted trade orders to Fund/SERV via the Depository Trust Company (DTC) or directly to the National Securities Clearing Corporation (NSCC) for submission to the appropriate mutual fund company. The fund companies confirmed executed trades through confirmation messages that were transmitted
back from Fund/SERV to the mutual fund system. A real-time messaging system extracted the message from the message queues, parsed it and invoked the appropriate business function that could update the record keeping system.

The results.
• Flexibility in mutual fund processing.
• Work flow automation and exception based processing for all mutual
  fund activities.
• Same-day and late-day trading, reconciliation, income collection and
  net asset value calculation.
• Faster time to market solutions.
• More scalability and tightly integrated services.