UNIFORM STRUCTURING OF POSITIONS

The Middle Office Data Model (MODM) is a concept to uniformly structure and present information on financial instrument positions.

The concept is independent of requirements set by different accounting standards. Subject to suitable definitions of the account system, it can meet all standards at the same time. The only prerequisite for MODM is that financial instruments are ultimately defined in FIDM™. On this basis, complex position structures, ordered account to account structure and accounting or reporting requirements can be set up.

MODM also incorporates the entire client base as well as all the information necessary to process orders and to the automatic accounting of commission, fees and taxes.

The theoretical concept was developed by ECOFIN in the 1990s.

Clients include banks, clearing houses and stock exchanges.



CORE AREAS

MODM consists of four modules (so-called packages), in addition to information as described in FIDM™:

With the help of this information, the bank can obtain a complete overview of all financial transactions and positions and comply with all legislation, internal regulations and client instructions.

MODM consists of the following packages:

  • INSTITUTION: additional information not contained in FIDM™, e.g. properties in terms of clients and business partners
  • INSTRUMENT: financial assets, which are not also financial instruments, e.g. property
  • POSITION: accounts, deposits, etc., and their corresponding individual positions
  • ORDER: transactions and accounting entries
  • CONDITION: contracts and financial conditions of services
  • INVESTMENT RULE: Regulatory requirements, internal regulations and client instructions regarding investment of funds.

INSTRUMENT-FLOW APPROACH

The central concept of the MODM is an instrument-flow approach. This starts from the actual financial instrument flows and derives all positions and assessments from these. This approach means that the model is stable even when requirements change – as for FIDM™.

POTENTIAL APPLICATIONS

The concept and configuration of the MODM afford a wide range of applications:

  • Automation of order processing and Back Office procedures
  • Evaluation according to uniform criteria over the entire range of all financial instruments and all positions (using FIDM™)
  • Construction of a bank-wide portfolio – and risk-management system based on the latest financial market theory findings
  • Construction of a risk reporting system, e.g. using a “value at risk” approach (BSBC 239 – Risk consolidation and risk reporting in banks).


Advantages

The MODM is fully compatible with FIDM™. There are no duplications or inconsistencies. Both models together form a comprehensive basis for data management of any financial institute. The MODM, like FIDM™, is comprehensive, stable, future-orientated, user-friendly and internationally aligned.


COMPREHENSIVE

The MODM covers all information relating to clients, orders and financial instrument positions. The model is therefore suitable as the basis for all position management systems in the finance sector and – if used correctly – significantly simplifies position management and accounting systems.

STABLE

The basic principle of MODM is the instrument-flow approach. This makes actual flows in the financial instruments the basic principle of all further representations. This approach enables evaluations to be made according to any accounting or reporting standards. This means it is also suitable as the basis for a modern portfolio- and risk management process and ensures high stability of the model.

FUTURE-ORIENTATED

The model opens up new possibilities in the development of modern bank applications due to the clear separation between position and financial instrument as well as uniform representation of all positions. This applies in particular to portfolio and risk management, and also for the development of modern back office systems, which can be established more easily and cost-effectively due to the uniform data structure.

USER-FRIENDLY

Although with MODM the most complex position structures and order sequences can be described, it is insight-friendly and intuitive due to its clear structure. The comprehensive documentation permits fast and easy access to the material at all stages for the user.

INTERNATIONAL

The MODM was developed right from the outset as a model that can be used worldwide; the model hence supports several currencies, languages, time zones, etc. As it is independent of specific accounting standards and at the same times enables configuration of every accounting standard, it can be used at both national and international level.


TECHNICAL OVERVIEW

MIDDLE OFFICE DATA MODEL (MODM)

    • Version: 3.1 (January 2017)
    • Model type: Unified Modeling Language (UML)
    • Descriptive elements
    • CATEGORIES: 303
    • ATTRIBUTES: 988
    • VALUE RANGES: 218
    • ENUMERATION VALUES: 1197
    • RELATIONS: 312
    • Hardware environment: Platform-independent

Documentation

The documentation is available in hard copy and on CD-ROM.

Languages: English

User manual

The user manual is comprehensive; it describes all aspects of MODM in detail. It has 800 pages on modelling technology, MODM elements with its financial and economic background as well as the links between the different MODM sectors. All categories, attributes and relations are defined individually; use of these is explained with various situations. Representation is supplemented by a wide range of graphics and concrete examples. The user manual is available as a print-out and in electronic format. The electronic version in the form of HTML documents can be used with any Internet browser and enables fast navigation through the model definitions.

Data dictionary

The data dictionary contains all the definitions of categories, attributes, relations and value ranges with corresponding enumeration values. The data dictionary is available as a print-out (600 pages approx.) and in electronic format. The electronic version in the form of HTML documents can be used with any Internet browser and enables fast navigation through the model definitions.

Detailed UML diagram

The MODM is presented comprehensibly in graphic form in a UML diagram. All the categories and relations can therefore be seen at a glance. The user manual also contains some 200 diagrams illustrating the relationship between individual groups of categories.

CONTACT


Andreas Glatter
E-mail: andreas.glatter@ecofin.ch
Telephone: +41 43 499 3040

DOWNLOAD


MODM.pdf