SD-11.1 — Cash Management

Business Domain: BD-11 Treasury, Cash & Collateral (Middle office) · Applies: BOTH

Purpose

Knows and positions the cash of every fund and portfolio under management — across every account and every currency — and puts idle cash to work. SD-11.1 is the present-tense treasury capability: it answers where is the cash, today, runs the sweeps and nostro movements that keep it positioned, funds the day’s settlements, and places surplus balances so cash earns rather than sits idle. Modern buy-side cash management is alpha-aware — cash is an asset with a yield, not only a settlement balance. It is not the forecasting of future liquidity needs — that is SD-11.2 — and it does not own the booking and reconciliation of cash, which are SD-12.2 and SD-12.10’s; SD-11.1 makes the cash decision and instruction, operations records it.

Service Operations

Position cash — maintain the real-time view of cash across every account, custodian and currency for the funds and portfolios.
Manage sweeps and nostro accounts — run the sweep structures that concentrate and mobilise cash, and oversee the nostro accounts.
Fund the day’s settlements — ensure cash is in the right account and currency to meet the day’s trade settlements and obligations.
Place surplus cash — invest idle balances — money-market funds, short-dated instruments, deposits — so cash earns a return within the firm’s cash-investment policy. This places operational cash, including into money-market funds as a vehicle; the running of a cash / money-market allocation sleeve or a money-market product is SD-05.13 Cash & Money-Market Portfolio Management’s.
Instruct cash movements — issue the payment and transfer instructions that move cash, on the standard rails.

Inputs and outputs

Inputs: the IBOR cash position from SD-12.1; settlement obligations from SD-12.4; income and distribution receipts from SD-12.7; the cash-investment policy; bank and custodian cash statements.
Outputs: the positioned cash record and cash-movement instructions — consumed by SD-12.4 Trade Settlement (the settlement cash), SD-11.2 Liquidity Management (the starting position for the forecast), and SD-12.10 Reconciliation.

Entities

Consumes: E-06 Cash Flow Event, E-04 Holding / Position (book = ibor — the live cash positions from the IBOR), E-03 Portfolio / Mandate, E-25 Account (account_type = cash — the bank-account side, owned by SD-11.7); the SD-12.1 IBOR cash position; the SD-12.4 settlement obligations; the SD-12.7 income and distribution receipts.
Owns: none as a master entity — the cash position is a view over E-04 and E-06. The cash-account structure is E-25 Account on its cash partition, owned by SD-11.7 Bank Account & Mandate Administration.

Standards

ISO 20022 cash messaging (the camt and pain message families) and the SWIFT rails for payment and nostro reporting.
SEC Rule 2a-7 and the EU Money Market Fund Regulation, where surplus cash is placed in money-market funds.

Open extensions

The cash-investment-policy sub-model.
The Service-Operation-level input/output contracts.