M2 Wealth
m2Wealth is a provider of custody data aggregation services. They collect both transaction and position data from custodians, clean it and provide it on a standardized format. This format includes most asset and transaction types that can be set up in FA. Using M2 as a data aggregation provider means that FA can integrate against one standardized format as opposed to one for each individual custodian.
Typical use-case flow:
How it works
The M2 movement data is imported into FA and if any transaction is made in a non-existing security from the system, the corresponding securities will also be imported. Checks are done on security code in FA. Positions as well as cash holdings are reconciled on a daily basis, after transactions are imported.
M2 integration files
For any given client, M2 can produce, daily, a movement file (MOV) containing transactions in various securities, and a position file (POS) containing holdings data of both securities and cash accounts at the linked custodians. This is transferred to a secure ftp from which FA fetches the files once they are available, which is typically at 8 am CET latest. Any delayed data will be sent in another batch during the day. An overview of the available data and usage can be seen in the table below:
Why is the file needed? | What does it do? | How does it work? | |
|---|---|---|---|
Securities | The securities file is required to create securities that are missing in FA to be able to create transaction later on. If there is no security data, transaction can't be created. | Once imported, the file compares if the security exists in FA. If not, it creates a new security card and automatically fills in mandatory security card fields. | New securities are fetched from M2-MOV file. If a security doesn't exist in FA, system fetches the data from the file structure and creates a new task called "m2-Import-Securities". |
Transactions | The transactions file is required to import the newly created transactions in client portfolios. | Once the file is imported, the system creates new transactions found in the file. | New transactions are fetched from M2-MOV file. Once the file is imported, the system creates a new task with results called "m2-Import-Transactions". |
Cash reconciliation | To perform cash reconciliation. | Compares client cash balances in the bank accounts between FA and Custody. | M2 provides a second file called M2-POS that contains the cash and position balances. Once the file is imported, the system runs reconciliation process for cash and positions separately and then provides results of reconciliation in two tasks: "m2-Recon-Cash" and "m2-REcon-Positions". |
Position reconciliation | To perform position reconciliation. | Compares client position balances between FA and Custody. |