[ad_1]
A switch room is a hub for transmitting customer orders, transaction notifications, and funds. Banks and brokerage houses have wire rooms, which are often supported by computer systems and staffed by trained personnel. The switch room staff is responsible for verifying the information that passes through their hands and creating a record of activity printouts. Background checks may be required for personnel working in a cable room due to the sensitive financial material they handle.
A switch room is a room that serves as a hub for sending and transmitting customer orders, transaction notifications, and funds. Banks have wire rooms to handle wire transfers, and these rooms are also found in brokerage houses. Depending on the size of the institution, the room may be staffed by full-time staff dedicated specifically to transfer duties, or employees may rotate in and out of the distribution room and share responsibilities. In some cases, it can be handled at a desk, rather than a literal room.
Much of the work in the cable room is supported by computer systems. These systems must be protected because they handle personal financial data, and interference with the system could be costly. For example, if a hacker changes the terms of orders that are sent in and out of the switch room, the wrong orders will be executed on behalf of the clients.
At a brokerage house, when a client places a buy or sell order, it goes through the wire room so it can be transmitted to the trading floor, with a representative from the brokerage house executing the trade as instructed . Similarly, executed trades are reported to the switch room so they can be properly recorded. The switch room staff is responsible for confirming that the orders they send back and forth are correct and for verifying the information that passes through their hands. Typically, activity printouts are generated to create a record that can be used later.
At a bank, the key function of the transfer room is to handle electronic fund transfers between accounts. Incoming and outgoing cables run through the room. Several companies make standard equipment and software packages that can be used to manage electronic transfers, and these packaged products are popular with smaller banks. Larger institutions generally prefer to install custom systems that will allow for greater flexibility and functionality.
Personnel working in a cable room may need some form of technical training, or they may learn their skills on the job. Because they are entrusted with sensitive financial material, they may be required to pass background checks to confirm that they do not have any events in their history that could conflict with their ability to work effectively in the switch room. For example, someone with a history of financial fraud convictions is probably not the best choice for an employee for this type of job.
Smart Asset.
[ad_2]