Municipal Bond Sales Incentive and compensation System Fact

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0001100 Inc. 000000
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0001100
0001100Inc.
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Dynamic
Services
Inc.
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0001100
Dynamic
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0001100
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rnational,
Inc.
Dynamic
Services International, Inc.
0001100
000000
Dynamic
International,
Inc.0001100
Dynamic Services
Municipal Bond
SalesServices
Incentive
and compensation
0001100
000000
Dynamic
Services
000000
000000
System Fact
Sheet International, Inc.
Dynamic Services International, Inc.
Web-based application for a Municipal Bond Trading House to track bond sales,
derive sales compensation, and analyze sales by customer,
bond and bond type, and region
Background
DSI was approached by a well-established
Municipal Bond Trading House to develop
a Web-based compensation application
for its sales force. The client is active in
the sale and trading of Municipal Bonds
issued by all 50 states, and has offices
in New York, Florida, and California.
Challenges
1. Must conform to applicable SEC
regulations
2. Must conform to generally accepted
accounting standards.
application that will
meet the Firm's
immediate needs,
and to the extent
possible, provide the
ability to adjust
incentives to meet
future goals without
additional
programming.
PROJECT AT A GLANCE
* J2EE Web Application (iPlanet)
* Employee Incentive Application
* Sales Commission System
* Table Driven Business Rules
2. Produce a thin-client,
secure, intranet
web-based application operating
within the corporate firewall.
3. Automate commission
calculations to run on a daily
basis.
3. Must log all update and delete activities
related to security, customer, trader,
dates, quantity, commission amount,
trader, and trading desk.
4. Commission calculations should be
available for restarting and rerunning
while maintaining data integrity.
7. Automate the trade-data feed from
the IBM DB2 database.
Project Benefits
The traders typically receive
compensation based on
a portion of the revenue
realized in the successful
completion of transactions.
The benefits of the project
included:
. Greater accuracy in the
compensation process
5. Application access by user groups will
be secured with mandatory password
protection.
6. Database platform and programming
tools should not be proprietary.
Project Objectives
Develop a web-based commission
system and establish a periodic data
feed (trades) sufficient to allow users
to maintain and control the commission
calculation formula.
1. Design, create, and implement an
. Reduction of overhead
resulting from manual
processing
Pay rate control
4. Create quarterly commission
feeds to Payroll.
5. Provide user controllable parameters
for calculating commissions and sales
incentives.
6. Provide a tool to evaluate sales force
performance.
.
Sufficient flexibility to permit
the firm to remain competitive in its
compensation practices with similar
firms trading Munies.
Business Highlights
1. The processing logic is based on
the foundation of DSI's commission
product.
1
57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297
0001100
0001100
000000 Dynamic Services
International,
Inc.
0001100 Inc. 000000
amic Services International,
0001100
0001100Inc.
000000
Dynamic
Services
Inc.
000000International,
0001100
Dynamic
Services
International,
00000011
000000
000000
0001100
0001100
rnational,
Inc.
Dynamic
Services International, Inc.
0001100
000000
Dynamic
International,
Inc.0001100
Dynamic Services
Municipal Bond
SalesServices
Incentive
and compensation
0001100
000000
Dynamic
Services
000000
000000
System Fact
Sheet International, Inc.
Dynamic Services International, Inc.
2. Table driven commission pay out rate
easy to be administrated.
3. Managers and traders can review
production daily
4. The time it takes to review data and
produce reports is a fraction of what it
was before
5. Analysis is now possible that was not
possible before, particularly analysis of
sales by customer
Seagate Crystal Reports in a Browser.
. Commission calculation engine written
in Java bean running on application
server can be involved real-time, batch
or on-demand.
. Table driven business rules easy to be
controlled by administrative managers.
Function List
. Commission Calculation
Engine:
a daily job scheduler
controlled by the system
administrator to calculate
commission rates at the
end of the business day.
The commission calculation
engine consists of a series
of programs that process
transactions through
a number of procedural
steps:
Technology Highlights
. Deploy on Sun Solaris I-Planet web
application.
. Use JNDI directory services to better
manage the distributed applications.
. Feed transaction data from IBM main
frame DB2 data using XML.
. I-net Crystal-Clear enables the use of
the market-leading database access
and analysis tool on any platform. I-net
Crystal-Clear makes reports designed
with Seagate Crystal Reports available
on any platform due to its leading
technology. I-net VOYA is a Viewer for
Trade search
. Trade capture:
the mainframe transmits transaction and
trader ASCII files to the Commission
Server daily.
. Commission Rate Parameter
Control:
provide a series of screens that
1. Maintain variables for a
sequence of commission
calculations.
2. Administer the application of
commission rates at predefined
steps in the processing.
Trade split commission
Java(TM) technology which enables the
presentation of reports done with
screens. Different from the
commission rate parameters control
screen, these screens support a
system administrative function that
controls and maintains the
commission calculation engine.
Parameter tables include a holiday
table, a table for daily, monthly,
quarterly and year-end cut off times,
and tables for user login and
password maintenance.
3. Support commission
simulations (what-if scenarios).
. System Parameter Control:
exercise system parameter control
using a set of system table maintenance
1. Convert downloaded
trades to the commission
trade layout.
2. Based on commission rate
parameter tables, apply pay rate
and commission payout to each
trade or create additional
commission records
(e.g. by trading group).
3. Generate MTD commission
summary records on a daily basis.
4. At month-end, generate monthly
commission summary records.
. Daily batch
1. Run the DB2 daily transaction
download.
2. Prepare the download for
processing.
3. Run the daily trade insertion.
2
57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297
0001100
0001100
000000 Dynamic Services
International,
Inc.
0001100 Inc. 000000
amic Services International,
0001100
0001100Inc.
000000
Dynamic
Services
Inc.
000000International,
0001100
Dynamic
Services
International,
00000011
000000
000000
0001100
0001100
rnational,
Inc.
Dynamic
Services International, Inc.
0001100
000000
Dynamic
International,
Inc.0001100
Dynamic Services
Municipal Bond
SalesServices
Incentive
and compensation
0001100
000000
Dynamic
Services
000000
000000
System Fact
Sheet International, Inc.
Dynamic Services International, Inc.
4. Run the daily commission
calculation.
5. Generate summary data,
month-to-date and year-to-date.
Support re-runs and restarts.
. Monthly Batch
1. Generate reports from summary
data, month-to-date and
year-to-date.
2. Close out month and update batch
statistics.
3. Create year-to-year comparisons.
4. Support re-runs and restarts.
. Quarterly Feed to Payroll:
provide input to the payroll system
at the end of each quarter. Once the
third month of each quarter, as defined
in the Parameter Control tables, has
been processed, the Administrator is
able to generate a file for input to the
firm's payroll system
for compensation
processing. The
quarterly feed
processing produces
reports that
display the results of
the consolidation
of data into the
quarterly format.
Completion of this
step closes out the
quarter. Restarts and
re-runs are supported.
Comparative reports and
charts may be created
based on the results of
the completed
processing.
. Reports
Commission Year-to-Date
Summary
This report is
a spreadsheet that
displays current year
year-to-date and past
year summaries at
year-end.
The spreadsheet will
display commissions by
Desk and by Trader,
Commission calculation engine
commissions by Situation Trade
day's commission totals by Desk and by
buy / sell; Bid Wanted buy / sell, and
Trader,
by Situation Trade buy / sell; Bid
by lot. It will look similar to the current
Wanted
buy / sell, and by lot. It may be
Excel spreadsheet.
viewed online and printed out as required.
Trader Commission Monthly
This report displays current month-end
totals. It will display commissions by
Desk and by Trader, commissions by
Project Duration
10/2001 - 02/2003
References
Available upon request
. Year-End Processing:
at year-end, to close
out the year and to
provide comparison
reporting over the twelve months and
year-to-year, the Commission
Compensation application provides
a special process. Completion of
this step closes out the year.
Restarts and re-runs are supported.
Trader Commission Transaction Detail
The Daily Detail report displays the day's
activity Desk and by Trader. It is
designed to report show the transactions
behind the commissions that were
generated that day. It can be run singly
for each Desk and each Trader. It may be
viewed online and printed out as required.
Technology platforms
Commission report
Situation Trade buy / sell; Bid Wanted
buy / sell, and by lot. It may be viewed
online and printed out as required.
Server OS: Sun Solaris
Client: Workstations with Web browsers
Database: Oracle 8i on Sun Solaris
Application Server: I-Planet
Languages: Java, JavaBeans, JSP, JNDI
DSI contact
Trader Commission Daily
This a daily report that aggregates the
info@dsii.net (212)997-2000
3
57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297
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