When you create a product, you can specify the advices that you would like to generate for the various events that occur during the life cycle of a contract. You can also specify when the advices should be generated - either during the event or during authorization of the event. Events are classified as follows:
User initiated events are events that you initiate manually. Examples of such events are reversal of contracts, manual liquidation of contracts, manual roll-over of contracts, and so on.
Automatic events are events that are executed, automatically, during the end-of-day or beginning-of-day process. Examples of such events are auto roll-over, auto liquidation, contract confirmation, and so on.
This chapter contains the following sections:
The following are the advices that you can generate in the foreign exchange module:
Note
All advices that provide ‘In’ currency details will also provide the equivalent Euro values.
This section contains the following topics:
To confirm the details of a foreign exchange contract you enter into with a customer, you can generate a confirmation message that can be transmitted over SWIFT (in case the counterparty is a bank) or Telex or Mail.
SWIFT format (MT300)
The message contains the following information:
Confirmation of deals entered in the Foreign Exchange module of Oracle FLEXCUBE is automated.
On receipt of an MT 300 (FX Confirmation) SWIFT message from the counterparty, Oracle FLEXCUBE extracts all relevant information from the different fields and the header. Oracle FLEXCUBE automatically marks the contract, which matches the information extracted from the SWIFT message, as ‘confirmed’ and the message as ‘processed’.
If several contracts match the extracted information, the incoming message is marked out, automatically, for manual confirmation. A report furnishes this information, and the mismatches that occurred in the day.
To execute the auto confirmation function, invoke the ‘Automatic Confirmation Upload’ screen from the Application Browser.
Telex format
If the contract is to be netted for settlement, instead of the settlement details, the text “Netted contract, standard settlement instructions apply” will be printed.
Tracer
The system generates a confirmation tracer when broker confirmation or counterparty confirmation is not received for a contract (contract status is unconfirmed in Oracle FLEXCUBE). The confirmation tracer advice is generated in the MAIL or TELEX format by the messaging sub-system.
The following information is handed off to the message sub-system for the TELEX or MAIL messages:
The deal slip contains the following information:
The contract brokerage advice contains the following information:
If the brokerage amount is amended for the broker, the system passes the new amount and triggers a brokerage amendment advice.
If the broker code is amended, the system passes the new broker code and amount, and triggers a brokerage reversal advice (to the old broker) as also a fresh brokerage advice (to the new broker).
The foreign exchange SWAP confirmation advice is exchanged between financial institutions involved in Foreign Exchange Swap transactions — consisting of the simultaneous purchase and sale of currencies with different value dates — to confirm the transaction.
This message can be used to confirm details of a
The message provides the following information:
Sequence A (General details of the contract)
Sequence B (First Settlement)
Sequence C (Final Settlement)
The same information as in Sequence B but for the final leg of the contract
You can generate an amendment advice for any change to an authorized contract if it affects:
The original and changed information relating to the above field will be passed to the messaging sub-system.
You can print a roll-over advice for a counterparty at the time of contract roll-over. The advice contains the following information
When you reverse a contract, you can print the reversal advice. The reversal advice contains the following information:
In Oracle FLEXCUBE, when you enter into a Foreign Exchange deal either for yourself or on behalf of a customer, the SWIFT message MT202 (General Financial Institution Transfer), is generated.
When the liquidation of a buy or sell FX deal is reversed, the system automatically generates an MT 292 and sends it to the same party to whom the earlier SWIFT message was sent, requesting for cancellation of the message. The MT 292 will contain the following details:
The MT292 is generated for the reversal of a contract (full payment)- REVR or the reversal of the last payment- REVP, where the contract is partially liquidated but only in those cases where an MT202 was generated on full/partial liquidation.
If the receiver of the original SWIFT message has already acted upon the message, the MT292 will ask for a retransfer (reversal) request with the consent of the receiver.
Note
In addition to advices, you can generate messages for a counterparty. For example, when you make a payment to a counterparty, you can generate an FX Payment message. These messages tare generated by the External Payment System .
The following are the messages that you can generate for a counterparty:
This section contains the following topics:
Payment messages are generated by the External Payment System when a payment is made to a counterparty at the time of contract:
You can configure payment messages to suit the medium of communication. You can configure payment messages to suit the SWIFT, TELEX and the Mail mediums.
SWIFT messages
The format of the SWIFT messages that you generate for a counterparty would depend on the mode of settlement and whether the counterparty is
You can generate SWIFT messages in the following formats:
A SWIFT message provides the following information to the counterparty:
Telex messages
Telex messages contain the following information:
Mail messages
Mail messages contain the following information:
Receive messages are generated by the messaging sub-system when you receive payments from a counterparty.
You can configure receive messages to suit the medium of communication. Receive messages can either be for the SWIFT or TELEX mediums.
SWIFT messages
You can generate SWIFT receive messages in the MT 210 format.
A SWIFT message provides the following information to the counterparty:
Telex messages
Telex messages contain the following information:
Mail messages
Mail messages contain the following information:
If the option ‘User Ref. No. in messages’ is checked in the Foreign Exchange Branch Parameters maintenance then the user reference number will be used instead of the contract reference number in the following messages:
During amendment of a contract Oracle FLEXCUBE will reverse the old contract and rebook a new contract with the Reversed Oracle FLEXCUBE ref as the parent contract. If no payment messages have been sent for the parent contract then a configurable override will be provided. If the payment messages have been generated then the cancellation request message REVSWIFT will be generated.