Inbound Verification · Custodian & Carrying Broker Side

The FVD-R Receive Workflow

Custodians and carrying brokers field Letters of Free Funds from dozens of executing brokers every day — many still arriving by email and fax. FVD-R receives every request on one channel, uses AI to index and route even unstructured submissions, and lets your desk respond in minutes instead of hours.

Freefunds Verified Direct
FVD-R
Freefunds Verified Direct · Receive
Settlement WindowT+1 Compressed Cycle
Regulatory BasisSEC 15c3-3 · Reg T 220.8
Record RetentionSEC Rule 17a-4 · WORM
Operational Flow7 Steps · 2 Exception Paths
Operational Flow — Inbound Request to Response
Exception Paths
1

Inbound LOFF Received

Trigger

A Letter of Free Funds request arrives from an executing broker. FVD-R accepts it on a single centralized channel — whether it comes through the FVD network, a partner API, or legacy email and fax from brokers not yet digital.

2

AI Indexing & Classification

System Control

Every request — including unstructured PDFs, scans, and email bodies — is automatically parsed, classified, and matched to the correct account, desk, and request type. No manual sorting, no inbox triage.

× Ambiguous / unmatched
Exception · A

Manual Triage Queue

Low-confidence or unmatched items route to a review queue where staff confirm the account in a click; the model learns from each correction.

3

Account & Balance Lookup

Compliance

FVD-R surfaces the relevant account, free-credit balance, and designation directly against your books and records — giving the reviewer everything needed to act without leaving the screen or rekeying data.

4

Reviewer Verification

Supervisory Review

An authorized operations user verifies availability and selects a response with one action — confirm, deny, or provide prime-brokerage routing — under role-based permissions and supervisory sign-off.

× Insufficient / discrepancy
Exception · B

Operations Escalation

A shortfall or data discrepancy is escalated to the Ops desk with full context, so the issue is resolved bilaterally before the settlement window closes.

5

Standardized Response Generation

Compliance

FVD-R structures the decision into a standardized digital response, applies required approvals, and timestamps the sign-off — eliminating free-form replies that are hard to track and reconcile.

6

Secure Encrypted Transmission

Security

The response is returned to the requesting executing broker over the centralized channel, end-to-end encrypted with TLS 1.3 / AES-256 — closing the loop without touching commercial email or fax.

7

Regulatory Archive & Audit

Retention · Audit

The inbound request, indexing metadata, reviewer actions, and outbound response are stored together WORM — giving the receiving firm its own complete, retrievable SEC Rule 17a-4 audit trail for every letter it answers.

AI Intake

Index, Don't Sort

Email, fax, and PDF requests are parsed and matched to accounts automatically — turning a manual inbox into a structured queue.

Response Speed

Hours → Minutes

One-click verification with balances surfaced in context lets desks clear inbound requests well inside the T+1 window.

Defensibility

Your Own Audit Trail

The receiving firm retains a complete, searchable 17a-4 record of every request it received and how it responded.

FVD-R Receives. FVD-S Sends.

FVD-R is the custodian and carrying broker's Receive side. The executing broker that originates the request works the other half of the loop with FVD-S — generating and transmitting the Letter of Free Funds.