DEPO/X

Overview

DEPO/X is a Central Securities Depository (CSD) system designed to support registry, clearing and
settlement operations as well as closely related business areas like statutory reserves, auctions, etc.
DEPO/X supports all models of DvP via an interface with any payment systems (e.g. via S.W.I.F.T).

The System is based on a modern component-based business process driven approach. It offers the
full functionality of Securities Settlement system with integration into Financial Market infrastructure.
DEPO/X may be integrated with CMA’s packaged applications like RTS/X (RTGS system) to provide a
fully integrated depository and settlement system for in-union financial market.

DEPO/X ● Corporate action processing;

Functionality ● Enquiries processing;
● Calculation of fees;
Functionality of the system covers all requirements ● Access rights and security control;
including instructions (orders) operations ● Online monitoring;
processing, liquidity management facilities, multi- ● Event processing;
currency support, billing calculations, statistical ● Audit and archiving;
analysis etc. ● Others.

Main functions of DEPO/X Core are listed below: Technical view

● Message exchange with Participants via DEPO/X solution consists of following major
Secure Extranet or SWIFT network; components:
● Routing of answers and unsolicited
messages to Participants; ● DEPO/X Central Node is responsible for
● Processing of messages (Instructions, CSD system functionality;
non-financial messages etc.) received from ● DEPO/X Participant’ platform provides
Participants; Participants’ access to the system. This
● Managing of Participant’s accounts; platform may have different configurations
● Queuing facilities; (GUI-based, API-based, mixed etc.) to
● Settlement facilities; fit needs of a particular Participant and
● Maintenance of participant directory and generally consists of Transaction platform
static data; to provide transaction message exchange,
● Interaction with Central Bank internal and Monitoring platform used for monitoring
systems; and control purposes from Participant’
● Report generation; perspective;
 ● DEPO/X Central Bank transaction
platform that provides GUI to Central Bank System at the secondary site is identical to the
personnel responsible for transaction primary site in all aspects except high availability
message exchange with a system; and redundancy. Our experience of implementing
● DEPO/X Central Bank administration and supporting similar mission-critical settlement
platform that provides GUI for full control systems proved that redundant configuration
and monitoring of the system. should not be provided for the backup site: it is
● Network communication component not cost-effective to provide backup for backup.
provides information exchange between System at the secondary site provides backup for
Central Node and Participant’s sites via the case of disaster or major failure in the primary
Primary and Backup delivery channels like site or other contingency cases.
Secure Extranet and/or via SWIFT
network. To cater for disaster, the infrastructure is designed
such that the business operation can be resumed
Scalability with minimal data loss in case of disaster. In
addition, it is designed in ways that switch over
DEPO/X system uses multitier architecture: from primary site to disaster recovery site and vice
versa can be achieved within very short period of
● 1st Tier – database level, represented time. Typically such a switch requires ten to fifteen
by Oracle RDBMS, responsible for data minutes after IT and operations staff arrives to
management, backup site.
● 2nd Tier – application level, represented
by DEPO/X Core software, responsible for Business Continuity
core system functionality,
● 3rd Tier – presentation/access level, A continuous operation of the system is a key
represented by Gateway software and Web objective from the point of view of business-process
server that provides web access to DEPO/X reliability. In order to follow this objective, there is
system. a set of measures intended to increase system
fault-tolerance. Impact of software and hardware
All components can be installed on one or several failures can be reduced or eliminated by means
servers. For DEPO/X system each tier will be of creation of the backup copies, redundancy and
installed on dedicated server. Such approach mutual backup of the hardware equipment. These
allows building easy-scalable system as each measures are described below.
level supports scalability to increase overall
system performance. The Bank can increase Proposed solution uses both built-in features of
system performance in future by increasing DEPO/X application software and infrastructure
number of servers for each or particular level or support (such as high available cluster, redundant
upgrading servers that are used for integration hardware, disaster recovery solution) to eliminate
system. single points of failure and provide availability
level superior to 99,9%. Effectiveness of the
Reliability proposed solution for achieving the required
service availability & business continuity is proven
DEPO/X server and network solution is designed by DEPO/X systems in “live” operation.
for redundancy and scalability. There is no single
point of failure within the primary system. The DEPO/X has built-in features to deal with system
components are working in active/passive high failures.
available and active/active load sharing modes.
Specifically for network infrastructure, all network In case of a general fault of the service (such as
switches, routers and firewalls within the primary disaster impacting the Main site), the resumption
site have redundant components for load sharing of service using the backup system in the alternate
and resilience purpose. site requires less than 30 minutes after failover
 Central node
DEPO/X DEPO/X core
DataBase

Integration Bus
Transaction
platform
DEPO/X Interfaces
business to external
Administration level systems
platform

Primary dellivery channels: Secure Extranet; an option: SWIFT

BackUp dellivery channels: Dial-up, CDs etc.

Transaction

Open API
platform Interfaces
Participant
to participant
platform systems
Monitoring
platform

Participant`s side

started, assuming availability and commitment ● SWIFTNet Cash Reporting User 2007,
of all the resources necessary for the recovery, 2008;
including Central Bank’s IT staff in the alternate ● SWIFTNet Cash Reporting Provider 2006,
site. 2007, 2008;

Adherence to standards Implementation view

DEPO/X development and implementation CMA’s implementation procedures cover the

processes are compliant with the following design, development, supply, installation,
standards and certification programs: configuration, testing, implementation, delivery
and support of DEPO/X system. Responsibilities
● BIS Core principles for systemically are aligned with these management streams both
important payment systems (cpss34e), within the CMA team and, correspondingly, within
BIS General Guidance for payment system the Client’s team. The project is further divided
development (cpss69), New developments into phases that include requirements analysis,
in large-value payment systems (cpss67), testing and training. During all the different phases
Delivery versus payment in securities of the project, the CMA team works very closely
settlement systems (cpss06), CPSS/IOSCO with their counterpart at Client site.
Recommendations for securities settlement To supplement the local knowledge and cross-
systems, and other related papers (e.g. industry project expertise of the Client, CMA assigns
Bank of Finland Discussion paper “Large a dedicated team for project implementation which
Value Payment systems – principles current brings their individual experience of implementing
and future developments”, 2004 etc.); DEPO/X system and other banking project
● ISO/IEC 17799:2005 Information Security expertise to the successful delivery of the Clients
Management System standard; projects.
● ISO9001:2000 certification for “Provision of
information technology consulting services”; DEPO/X Key Benefits
● ISO9001:1994 certification for “Provision of
customer support services” ; CMA delivers a modern solution based on
● SWIFT Gold Ready Label 2004, 2005, extensive experience that company has in a
2006, 2007, 2008; number of similar projects, the key benefits of the
DEPO/X are listed below: nature of changes during customization;
only affected modules should be changed
● Functionality of the system covers all ensuring easy and flexible management
requirements including instructions of the entire system or its separate
(orders) operations processing, liquidity components;
management facilities, multi-currency ● Powerful monitoring of business, application
support, billing calculations, statistical and system behavior is available to Central
analysis etc.; Bank administrators providing full picture
● The systems are based on proved, of system behavior, Participant’s and
high-reliable, state-of-art and efficient their Users activities, bottlenecks, etc.
technologies that are successfully Component-based architecture allows
implemented and used in a number of monitoring and audit the behavior of
projects throughout the world; separate modules and components; and the
● Business Driven approach provides entire system;
transparency of application behavior ● The system has built-in Integration Bus that
from business point of view. Graphical incorporates a set of dedicated tools for
description of system functionality allows connection with other external applications.
Central Bank staff to better understand Integration Bus includes special
the system behavior and thus significantly components, so-called Adapters that allow
decrease the “human error” risk factor; establishing of information exchange with
● High level of STP-processing is based on External applications using commercially
automated processing of all requests and available third-party tools and protocols
uniform data presentation based on XML like WebSphere MQ, MSMQ, SAP etc.
standard and SWIFT standards; The adapters perform necessary message
● DvP models I, II and III are built-in transformations to/from external systems’
functionality of CSD solution. DvP model in proprietary formats. This allows the Client to
CSD solution may function with any external perform seamless and intelligent integration
system that support these models as well; of DEPO/X with his existing systems.
● Development approach and technology ● The basic package utilizes SWIFT network
used together with an advanced training and/or Secure Extranet for instruction
course set gives a very high level of exchange. The Secure Extranet may
knowledge transfer to Central Bank staff function instead of or in a parallel with
necessary for support and maintenance of SWIFT network if Central Bank will decide
the System; it useful. In case of “mixed” network
● Flexibility of technology used in solution solution some of Participants may use
allows smooth adaptation of the system SWIFT network and others may utilize
according to regulations and business Secure Extranet. This functionality and
policies changes and evolutions; all necessary software components are
● Multi-tier modular design provides high included into the basic package of the
performance and scalability. It is possible solution;
to distribute the load within each Layer ● The basic package utilizes Secure Extranet
and between Layers. All processes may be for monitoring.
executed in parallel. The solution supports: ● The solution is fully SWIFTNet-Ready and
– automatic load balancing; supports full range of SWIFTNet services:
– manual distribution depending on the InterAct, FileAct and Browse services that
user groups; may be used for monitoring together or
– manual distribution depending on the instead of monitoring via Secure Extranet;
function groups. ● Simple user interface. Any workstation’s
● Easy extension of functionality and user interface is very simple so any user
manageability of the solution is based on who has an idea about web applications
modular design ensuring a “granularity” can easily get used to its interface.