Business Introduction

Overview

An asset account in securities business refers to an account opened by a client at a securities firm or broker-dealer specifically for holding and trading securities. This account is typically used to hold the client's investment funds and securities, and to execute related buying, selling, trading, and settlement activities.

At the same time, the back-office asset flow records within securities operations are primarily used to track and record the movement and direction of assets within the securities firm. It is an important module in the firm's back-office system, primarily used to manage and monitor the circulation of client assets, ensuring the accuracy, security, and compliance of transactions.

In addition to transaction flow inquiries, back-office staff routinely use the following operational functions in day-to-day work:

1. Account Adjustment (Reconciliation): Account adjustment refers to the process of verifying and adjusting the funds, securities, or other assets within an account. Back-office personnel can use the reconciliation function to compare the account's transaction data, settlement data, and other relevant information to ensure accuracy and consistency. Reconciliation operations typically include comparing transaction records, settlement records, cash flows, and securities positions, and resolving any discrepancies or errors.
2. Asset Freeze: An asset freeze refers to an operation that restricts or prohibits the disposition of specific assets or accounts. Back-office personnel can use the asset freeze function for specific circumstances or requirements to freeze assets or accounts to prevent unauthorized actions or to protect interests. An asset freeze may be temporary, such as during an investigation or legal proceedings, or long-term, such as in response to legal requirements or at the customer's request.
3. Temporary Adjustment: This typically refers to provisional account adjustments used to handle special circumstances or rectify errors. Such adjustments are usually temporary and are subject to further verification and adjustment thereafter.