Development of a Self-Clearing Investment Platform with Automated Processes

Financial services

Information technology

Identifying Challenges in Legacy Custodian and Trading Systems

The client experiences inefficiencies with legacy custody systems, characterized by prolonged hold times, hidden fees, manual workflows, and risks associated with manual account transfers. These issues hinder operational efficiency and client satisfaction, while limiting scalability and revenue opportunities.

About the Client

A mid-sized financial advisory firm aiming to modernize and automate its custodian services, enabling seamless account management and trade execution.

Goals for Developing an Automated Custodian and Trading Platform

Create a resilient, event-driven self-clearing trading platform that enables clients to execute trades internally without third-party intervention.
Implement automated customer account transfer processes to ensure seamless workflow during transitions, reducing errors and processing times.
Develop a comprehensive middle-office application to enhance operational efficiency, compliance, and decision-making.
Build advanced monitoring tools for error detection and system performance optimization.
Enable the platform to support rapid onboarding of enterprise clients through detailed technical documentation and integration suites.
Position the platform as a foundational product to offer clearing services as a revenue-generating service.

Core Functionalities for the Self-Clearing Investment Platform

Account opening and onboarding automation
Trade execution and order management system
Client and broker account management
Automated customer account transfer (ACAT) process
Background screening and compliance checks
Cashiering and transaction processing
Real-time error detection and monitoring tools
Middle-office application for customer care and operations support
API-driven integration suite for onboarding and platform expansion
Comprehensive technical documentation for client onboarding and integrations

Technological Foundations for a Robust Investment Platform

Java Spring Boot for backend development

Microservices architecture with event-driven system design

Kafka for event streaming and data integration

MySQL and PostgreSQL for relational data storage

DynamoDB for scalable NoSQL data needs

OpenSearch, Prometheus, and Grafana for monitoring and logging

JWT for secure authentication

Docker, Kubernetes (EKS), and Terraform for deployment and orchestration

DevOps pipelines with GitLab

Essential System Integrations for Seamless Operations

Background screening services
Banking and payment gateways
External custodial systems for data reconciliation
Client onboarding APIs
Regulatory compliance systems

Non-Functional System Requirements for Scalability and Security

High system availability with 99.9% uptime
Real-time processing with minimal latency for trade execution
Scalable architecture supporting rapid client onboarding and transaction volume growth
Robust security measures, including encrypted data transmission and authentication protocols
Automated error detection and alerting for system reliability
Comprehensive system logging and performance monitoring

Projected Business Benefits of the Investment Platform Development

The implementation of a self-clearing, automation-driven trading platform is expected to significantly enhance operational efficiency, reduce manual errors, and improve client satisfaction. It will streamline account transfers, support scalable growth, and enable the client to offer clearing services as a new revenue stream, mirroring industry best practices and increasing competitiveness in the financial advisory market.