17) Introduction To T24 - T2ITC - Forex

Introduction to T24 - Forex
TEMENOS EDUCATION CENTRE

Warning: This document, is protected by copyright law and international treaties. No part of this document
may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any
purpose, without the express written permission of TEMENOS HEADQUARTERS SA Unauthorized
reproduction or distribution of this presentation or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under applicable law.” Information in this
document is subject to change without notice
Forex – Product Overview
Today
Spot
TOM
Currency Normal Spot
Forex
Precious
metal Internal
Forward
Swap
Slide 2
Introduction
 Front office handles Spot, Forward and Outright Forward deals

 Minor variants of these products can also be handled
 Precious metal trading also handled
 Back office takes care of Broker confirmation and handles special

arrangements like Netting
 Forex is integrated with

 Accounting, Limit, Delivery and Currency Positions
 Open currency positions revalued daily during Close of Business
Slide 3
FOREX – Static Tables
COUNTRY HOLIDAY
CURRENCY FOREX NOSTRO. ACCOUNT
CUSTOMER
FORWARD.RATES
CATEGORY
Slide 4
Spot Deal - Mandatory Details
 Counterparty
 Customer with whom dealer strikes a deal
 Dealer desk for internal deal
 Currency Bought
 Currency Sold
 Two of the following details

 Buy amount
Amount of currency purchased
 Sell amount
Amount of currency sold
 Spot rate
Identifies the spot exchange rate between currency bought and sold
Slide 5
Spot Deal - Optional Details
 Settlement accounts
 Customer’s account
 Nostro account
 Value date
 Spot date defaulted
 User can also indicate T or TO or S

For Today, Tomorrow and Spot dates
 Buy and Sell value dates can be set as different dates

Split value date deal
Slide 6
Workshop - 1
 Use User Menu > Retail Operations > Account > Open Current Account
 Open a GBP Current account for your Individual Customer
 Commit and get the record authorised
Slide 7
Workshop -1 Solution
Slide 8
Workshop - 2
 Use User Menu > Treasury Operations > Forex & Money Market Trader
> Front office > Forex Trader > Forex Deals > Capture Forex Spot Deal
 Input a spot deal for your Individual customer
 Buy USD 19,500 and Sell EUR 13,500
 Commit the record and accept overrides, if any
> Back office > Forex > Auth/Rev/Confirm Forex Deals >
Authorise/Confirm Forex Deals
 View the defaulted settlement accounts of your Deal for bought and sold
currencies
 Get the record authorised
Slide 9
Workshop - 2 Solution
Slide 10
Slide 11
Forward Deal – Mandatory Details
 In this case, spot rate is defaulted and forward rate to be given
 Any two of the following details to be provided

 Amount Bought
 Amount Sold
 Forward rate
 Forward rate could be input as

 Actual rate for forward settlement or
 Premium or Discount rate preceded with a + or –
Forward rate arrived at by adding/subtracting this from spot rate
Slide 12
Workshop - 3
> Front office > Forex Trader > Forex Deals > Capture Forex Forward
Deal
 Input Forward deal for your Individual customer
 Sell USD 10,000 and Buy EUR
 3 months forward at 1.93
 Validate the record and observe Spot rate getting defaulted. Commit
the record and get it authorised
Slide 13
Slide 14
Slide 15
Swap Deals - Mandatory Details
 This will have two legs

 Spot deal in the first leg and a Forward deal in the second
 While inputting Spot leg, Base Currency for Swap should be indicated
 It will be one of the currencies involved in the deal
 On committing, T24 leads automatically to the next Forward leg

 Information from first leg defaulted into the second leg
 Both appear as independent deals with different Ids
 But, in the forward deal, amount in Swap base currency retained as no input
field
 Only other currency amount varies as per the Forward rate
Slide 16
Workshop - 4
> Front office > Forex Trader > Forex Deals > Capture Forex Swap
Deal
 Input USD / GBP Swap deal for one month for your individual customer
 Buy USD 10,000 and sell GBP in spot @ 1.95 with USD as Swap base
currency and forward premium of 0.0015
 Commit the record
17
Slide 18
3 4
Slide 19
Workshop - 5
> Front office > Forex Enquiries > Forex Positions
 Look at positions of all currencies
> Front office > Forex Enquiries > Forex Revaluation
 Look at how EUR position has been marked to market
20
Slide 21
Bank’s Internal Deal - Mandatory Details
 Internal deals are handled differently from Normal Customer deals

 Done to transfer positions between Dealers within Bank
 Counterparty will be a dealer desk
 Deal sub type will be IN
 No accounting entries, payments or advices
 System will automatically update Positions of both dealers engaged in

the deal
Slide 22
Workshop - 6
> Front Office > Forex Trader > Forex Deals > Capture Bank Internal
Deal
 Spot deal with dealer F2
 Buy USD 20,500 and Sell EUR at 1.95
 Value Date of the transaction is today
 Accept overrides, if any. Commit.
Slide 23
Slide 24
Slide 25
Enquiries
 Forex Enquiries can be used to view Positions

 Forex Position
 Position Movement Entries – Today
 Position Movement Entries yesterday
 Historical Position Movement
 Other enquiries also available

 Spot Deals – Today
 Forward Deals – Today
 Deals maturing in next 5 days
Slide 27
Workshop - 7
 Use User Menu > Treasury Operations > Forex & Money market Trader
> Front office > Forex Enquiries > Forex Position
 View Summary position of all currencies. Drill down further to view details of
select currencies.
 Use User Menu > Treasury Operations > Forex & Money market Trader
> Back office > Forex > Forex Enquiries
 View the following enquiries for your dealer desk in USD
Position Movement Entries – Today
Spot Deals done Today
Forward Deals done Today
Slide 28
Slide 29
Slide 30
Slide 31
Slide 32
COB Reports
 FX Position Report
 Currency wise position report
 Asset Liability Revaluation Report
 Daily revaluation report
 FX Revaluation Summary
 Summary of revaluation with unrealised profit / loss so far
 FX Revaluation Detail
 Details of the above
 FX Maturity Report – Details of maturing contracts
 FX Unconfirmed by Broker, FX Unconfirmed by Counterparty
 FX Incomplete Delivery Instruction Report
 Deals without details of settlement instructions
 FX Exceptions Report
 FX Matured Today – Contracts matured today
Slide 33
Workshop - 8
> Back office > Forex > Forex COB reports
 View FX Position Report
 View Asset Liability Reval Report
 View FX Revaluation Detail
Slide 34
Slide 35
Slide 36
Slide 37
Forex links
Limits Commission Customer
Currency
Precious metal
FOREX
Spot Our Paying Account
Forward
Our Receiving Account
Swap
Slide 38
Summary
 You have learnt about
 Important features of FOREX application
 Linkage to Static tables
 Inputting transactions
Spot, Forward and Forex Swap
 Viewing enquiries and reports
Slide 39
Thank You
TEMENOS EDUCATION CENTRE

Warning: This document, is protected by copyright law and international treaties. No part of this document
may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any
purpose, without the express written permission of TEMENOS HEADQUARTERS SA Unauthorized
reproduction or distribution of this presentation or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under applicable law.” Information in this
document is subject to change without notice

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Introduction to T24 - Forex

TEMENOS EDUCATION CENTRE

Currency Normal Spot

 Front office handles Spot, Forward and Outright Forward deals

 Back office takes care of Broker confirmation and handles special

 Forex is integrated with

 Open currency positions revalued daily during Close of Business

CURRENCY FOREX NOSTRO. ACCOUNT

 Two of the following details

 User can also indicate T or TO or S

 Buy and Sell value dates can be set as different dates

 Commit and get the record authorised

 Get the record authorised

 In this case, spot rate is defaulted and forward rate to be given

 Any two of the following details to be provided

 Forward rate could be input as

 This will have two legs

 On committing, T24 leads automatically to the next Forward leg

 Commit the record

 Internal deals are handled differently from Normal Customer deals

 System will automatically update Positions of both dealers engaged in

 Spot deal with dealer F2

 Buy USD 20,500 and Sell EUR at 1.95

 Value Date of the transaction is today

 Accept overrides, if any. Commit.

 Forex Enquiries can be used to view Positions

 Other enquiries also available

 View FX Position Report

 View Asset Liability Reval Report

 View FX Revaluation Detail

Limits Commission Customer

Spot Our Paying Account

 You have learnt about

 Important features of FOREX application

 Linkage to Static tables

 Viewing enquiries and reports

TEMENOS EDUCATION CENTRE

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