FROM LEDGER-BASED CASH TO REAL-TIME CALCULATION: AN ORIGINAL CASHLESS FRAMEWORK FOR INVESTMENT BANKING MIDDLE OFFICES
DOI:
https://doi.org/10.65009/kka6af82Keywords:
Real-time cash calculation, Cashless middle-office framework, Event-driven architecture, Effective-dated cash states, Investment banking operations, Intraday liquidity management, Cash data lineage.,,Abstract
Proper cash calculation is essential to trading, settlement, risk management, and regulatory
reporting of investment banking that legacy middle-office systems rely on the use of batch
oriented ledger and end-of-day reconciliation. The current paper proposes a new system of
cashless implementation that reformulates cash concept as a real-time event-based position as
opposed to ledger balance stored in a warehouse. The framework performs computing of
authoritative cash states in real time using validated transactional events and allows full
intraday accuracy whilst maintaining an entire history reconstruction. One of the fundamental
contributions is proper management of the cash state on an effective date to control every
calculation with trade date, value date, posting time and lineage of corrections, contributing to
as-of views, to replay the audit and to disclose to regulators. An integrated cash model can be
viewed as a single control layer that checks event validity and enforces consistency without the
introduction of slow processes and manuals, and a coherent consistent cash model without
product-specific silos of assets is an integrated middle-office control layer. Through making it
batch free (and reconciliation free) not only does the framework eliminate systemic operational
risk but also links the middle-office cash architecture to real time settlement, liquidity
monitoring and contemporary regulatory demands.
References
L. Pankaczi and M. Eldefrawy, ‘‘Enhancing the security of ISO/IEC 14443- 3 and 4 RFID
authentication protocols through formal analysis,’’ in Proc. IEEE Int. Conf. Omni-layer
Intell. Syst. (COINS), Jul. 2023, pp. 1–6.
M. Ieva and C. Ziliani, ‘‘The interplay between customer experience and customer loyalty:
Which touchpoints matter,’’ in Proc. 20th Excellence Services Int. Conf., 2017, pp. 347
E. Bonsón and M. Bednárová, ‘‘Blockchain and its implications for accounting and
auditing,’’ Meditari Accountancy Res., vol. 27, no. 5, pp. 725–740, Oct. 2019.
R. B. Adams, ‘‘Trust in finance: Values matter,’’ J. Japanese Int. Economies, vol. 60, Jun.
, Art. no. 101123.
B. Tang, H. Kang, J. Fan, Q. Li, and R. Sandhu, ‘‘IoT passport: A blockchain-based trust
framework for collaborative Internet-of-Things,’’ in Proc. 24th ACM Symp. Access Control
Models Technol., 2019, pp. 83–92.
J. Tayazime and A. Moutahaddib, ‘‘DeFi, blockchain and cryptocurrencies: Proposing a
global money matrix for the blockchain era,’’ Eur. Sci. J., vol. 19, no. 16, p. 160, Jun. 2023.
I. Lee and Y. J. Shin, ‘‘Fintech: Ecosystem, business models, investment decisions, and
challenges,’’ Bus. Horizons, vol. 61, no. 1, pp. 35–46, Jan. 2018.
M. Zachariadis, G. Hileman, and S. V. Scott, ‘‘Governance and control in distributed
ledgers: Understanding the challenges facing blockchain technology in financial services,’’
Inf. Org., vol. 29, no. 2, pp. 105–117, Jun. 2019.
A. Rijanto, ‘‘Blockchain technology adoption in supply chain finance,’’ J. Theor. Appl.
Electron. Commerce Res., vol. 16, no. 7, pp. 3078–3098, Nov. 2021.
U. Chelladurai and S. Pandian, ‘‘A novel blockchain based electronic health record
automation system for healthcare,’’ J. Ambient Intell. Humanized Comput., vol. 13, no. 1,
pp. 693–703, Jan. 2022.
E. Kabaklarlı, ‘‘Future of money: Cryptocurrencies, blockchain technology and central
bank digital currency,’’ in Proc. Int. Academic Conf. Manage. Econ., Barcelona, Spain,
, pp. 1–4.
B. Li and Z. Xu, ‘‘Insights into financial technology (FinTech): A bibliometric and
visual study,’’ Financial Innov., vol. 7, no. 1, pp. 1–28, Dec. 2021.
X. Chen, J. Ji, C. Luo, W. Liao, and P. Li, ‘‘When machine learning meets blockchain:
A decentralized, privacy-preserving and secure design,’’ in Proc. IEEE Int. Conf. Big Data
(Big Data), Dec. 2018, pp. 1178–1187.
M. Bouchaud, T. Lyons, M. S. Olive, K. Timsit, S. Adinolfi, B. Calmejane, and M.
Singer, ‘‘Central banks and the future of digital money,’’ ConsenSys, Fort Worth, TX, USA,
White Paper, 2020, pp. 1–20.
A. L. Ostrom, J. M. Field, D. Fotheringham, M. Subramony, A. Gustafsson, K. N.
Lemon, M.-H. Huang, and J. R. McColl-Kennedy, ‘‘Service research priorities: Managing
and delivering service in turbulent times,’’ J. Service Res., vol. 24, no. 3, pp. 329–353, Aug.
A. Haddaji, S. Ayed, and L. Chaari, ‘‘Federated learning with blockchain approach for
trust management in IoV,’’ in Proc. Int. Conf. Adv. Inf. Netw. Appl. Cham, Switzerland:
Springer, 2022, pp. 411–423.
Y. Lee, B. Son, S. Park, J. Lee, and H. Jang, ‘‘A survey on security and privacy in
blockchain-based central bank digital currencies,’’ J. Internet Services Inf. Secur., vol. 11,
no. 3, pp. 16–29, Aug. 2021.
in
K. Stopar and T. Bartol, ‘‘Digital competences, computer skills and information literacy
secondary education: Mapping and visualization of trends and concepts,’’
Scientometrics, vol. 118, no. 2, pp. 479–498, Feb. 2019.
B Manaf, Omar T Raewf, Abdulrahman, H Thabit, Saif K Thabit, Younis. “The
Adoption of E-commerce in SMEs A case study on a sample of Iraqi enterprises “.
International Journal of Latest Research in Engineering and Technology (IJLRET),
volume 2, p. 38 - 46 Posted: 2016.
