Open Clearing Network System

Open Clearing  Network System 
An enhanced electronic cash management processing system for financial clearing, linked to banking payment systems, that collectively performs funds movement management,  matching  and an intelligent  routing between any two trading facility.  Such system provides  continuous clearing and  settlement.   The system additionally provides an auxiliary processor generating physical delivery receipt against cash settlement.  The system further provides frequent marked-to-market pricing data to permit risk management  based on margin calculation.

Open Clearing System incorporates standard cash management service to broker's clients which includes a full capability of short- and long-term investments, Automatic sweeps of cash deposit balances to interest-bearing, FDIC-insured bank deposits, control of funds to and from fiduciary account including Fed Wire, access to the  account information and transactions 24/7.

The Implementation
The Nodes or  trading facility maintains a segregated customers' Fiduciary accounts at designated local banks. Fiduciary account deposits are tagged to an individual identifier ( pin).  The Fiduciary account acts as a common settlement account that allows the Escrow account to withdraw from or deposit to at any time.  A two way fund transfer from Fiduciary account to an Escrow account  allows the Escrow account act  as a  matching processor.


The designated local commercial bank is a Partner provided the bank  support ACH as well as  open network of S.W.I.F.T communicating with any local bank that would support  conversion formats  for transferring funds  for cross border clearing.