1. Introduction
The
RIBS4 FX, MM & derivatives trading module supports trading
and back office operations for the purchase and sale of currencies,
both spots and forwards, swaps, discounted papers, forward rate agreements
and interest rate swaps. As Money Market instruments, this module handles
time and call deposits, short and medium term loans and mortgage type
loans. The derivative part supports hedge trades and normal trades as
well.
In addition
to direct input from the traders or by the traders and the back-office,
this module can be fed by the RIBS4 Order Management module (e. g. as
a result of transactions coming from a client order or of direct input
from connected customer). Furthermore this module has a standard interface
to the RiskPro™ integrated suite of financial analysis product
of WINTER PARTNERS sister company IRIS integrated risk management AG,
covering the requirements of risk management, treasury, controlling,
alm, risk based regulatory reporting.
Major general
features of the RIBS4 FX, MM & derivatives trading module are:
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On-line
position keeping by currency and instrument type |
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On-line
limit control which is adaptable to user requirements |
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On-line
payments and confirmations via SWIFT record or paper |
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Flexible
accounting concept |
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Accrued
interest calculations with optional posting functions |
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Forward
revaluation, for Options mark-to-marked |
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Comprehensive
set of standard and user defined inquiries, statistical reports
and processing functions |
|
Optional
connections to trade order functions in the context of trading on
behalf of clients as covered by the RIBS4 Order Management module
|
Specific
Front office characteristics
|
The
system is user friendly with on-line help and search facilities,
default values and standard settlement instructions |
|
Usage
of function keys |
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Standard
calculation functions are available during deal input |
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Flexible
inquiries options, making fast data access |
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The
dealer has access to trade date information, counterpart positions
and limits |
Specific
Back office characteristics
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Deals
entered in the dealing room can be controlled by allowing the back
office to verify dealer input |
|
Previously
entered deals may be modified or reversed |
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Input
of fees and commissions in any foreign currency is available |
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Complete
follow-up processing exists for all deals (postings, printing of
confirmations, money transfers and statistics) |
|
Users
may utilize standard instructions as default values or enter data
manually for payment instructions |
|
Interface
link to other systems |
|
Reports
are generated for various in-house departments |
2. Instruments
Foreign
exchange (front-office) :
|
Spot |
|
Outrights |
|
Swaps |
|
Derivatives |
Money
Market (front-office) :
|
Time
deposits |
|
Call
deposits |
|
Fiduciary
deposits |
|
Loans |
|
Future
rate agreement |
|
Interest
rate Swaps |
|
Cross
currency Swaps |
|
Cap |
|
Floor |
|
Collar |
3. Deal
processing (main features)
Real-time
update of positions :
|
Liquidity
positions |
|
Currency
positions |
|
Money
market positions |
Real-time
update of limits :
|
Dealer
limit |
|
Counterparty
limit |
|
Group
limit |
|
Country
limit |
4. Positions
& related functions
The positions module provides the dealers with up to 20 summary dates
on-line positions information. The different types of positions are
:
Liquidity
positions :
|
Nostro
positions per currency for the 19 dates (user definable) |
Currency
positions per profit center
|
Spot
position by currency: The spot position inquiry displays a summary
position for all currencies of all relevant deals including the
average rate, the market rate and the profit and loss of the trading
day. |
|
Forward
dealing position: The inquiry shows the position by currency
pair, the average spot rate, premium/discount and the pips : |
|
 Summary
position |
|
Individual
value date position |
|
Individual
deals |
Instrument
positions :
|
Money
market positions by currency : The inquiry shows the maturity
position split into placed and accepted money by currency average
interest rate and the break-even rate. Instrument reflected in this
position are accepted and placed deposits, and forward rate agreements. |
|
Call
deposit positions by currency: The inquiry shows the placed
and accepted opening balance, the average by currency interest rates
and the break-even rate. The closing balance is displayed by notice
period. |
Inquiries
Inquiries
are available for each position type. Different inquiry zooming levels
are available :
|
Summary
position |
|
Individual
value date position |
|
Inquiry
for individual deals or accounts |
Control
reports for all position types with selection possibilities are available.
As the system is an integrated front and back office system, consistency
is guaranteed between the information provided by the positions module
and the bank's balance sheet.
5. Limits
& related functions
The limit
module allows the definition of hierarchical structures where the limits
of dealers, counterparts, countries or any group of it
and the relationships between them may be defined. In the case of counterpart
affiliation to groups, the group limit will be automatically updated
as well as the country of residence, the dealer closing the deal.
The
limit module also gives the possibility to define percentages to which
the nominal affect the various limits. This is mainly used for derivatives.
The
limit module can handle three standard limit types :
Foreign Exchange transaction limit
When closing
a foreign exchange transaction the bank must evaluate the inherent risks.
These risks include the payment risk and the foreign exchange forward
transaction risk.
Money Market transaction limit
Since the
duration of money market deals is different for every deal and the risk
inherent to long-term loans is higher, three sub-limits are available
to control the risk factor.
|
Short
term limit (moneys up to n days) |
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Long
term limit (moneys with a duration of more then n days), whose availability
is added to the short term limit |
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Duration
limit specifies the maximum duration permitted for long term deposits
|
Inquiries
The purpose
of the limit inquiry is to provide real-time information regarding availability.
The user may inquire on a specific limit type at dealer, counterpart,
country or group level. The currency in which the figures are expressed
is also defined at selection. The limit inquiry provides limit availability
summary information, which can be broken down to the individual deals
related to the exposure at a selected date.
Reports
|
Control
reports for all limit types with selection possibilities are available |
|
Limit
exceedance reports |
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