Transaction Settlement
Fundserv’s transaction settlement service is called Net Settlement Messaging (N$M). N$M is a clearing system that nets the payable or receivable position to each member by calculating the sum of all daily trade contracts, as well as the daily total commission amounts, as two separate payment streams.
Members in a net-payable position send a wire payment to Fundserv which is deposited into the counterparties’ bank account. Members in a net-receivable position receive a credit to their bank account.
N$M in Practice
In this example:
- The Distributor is in a net payable position of $25,000
- The Distributor will then wire the net payable amount to Fundserv
- Fundserv then wires the money received directly to the counter-party accounts in a net receivable position.
Ad-Hoc Money Movement
Fundserv’s Ad-Hoc Money Movement (A$M) service allows institutions to send payments and non-trade instructions to other institutions through our network. The clearing of these ad-hoc payments is performed by Fundserv using the same net settlement approach as Transaction Settlement (N$M).
Ad-hoc payments include:
- In-cash registered transfers
- Contributions
- Dilutions
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