8.1 Advices

This topic describes the advices generated in Foreign Exchange module.

The following are the advices that generate in the foreign exchange module:

• FX Payment message and Receive Notice
• FX Contract confirmation advice (Dealing room telex)
• FX Contract confirmation tracer advice
• FX Contract deal slip
• FX Contract Brokerage advice
• FX Swap confirmation advice
• FX Contract Amendment advice
• FX Contract Roll-over advice
• FX Contract Reversal advice
• FX Brokerage Amendment advice
• FX Brokerage Reversal
• FX Confirmation advice
• FX Payment message
• FX Receive Notice
• REVSWIFT

Note:

All advices that provide ‘In’ currency details will also provide the equivalent Euro values.

FX Deal Confirmation message

To confirm the details of a foreign exchange contract you enter into with a customer, you can generate a confirmation message to transmit over SWIFT (in case the counterparty is a bank) or Telex or Mail.

SWIFT format (MT300)

The message contains the following information:

• Contract reference number
• Event Serial No
• Event Keyword
• Contract date
• Exchange rate
• Value Date
• Currency Bought
• Amount Bought
• Amount Sold
• Currency Sold
• Value Date Sold

Confirmation of deals entered in the Foreign Exchange module of Oracle Banking Treasury Management is automated.

On receipt of a MT 300 (FX Confirmation) SWIFT message from the counterparty, Oracle Banking Treasury Management extracts all relevant information from the different fields and the header. Oracle Banking Treasury Management 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 is printed.

Tracer

The system generates a confirmation tracer when broker confirmation or counterparty confirmation is not received for a contract (the contract status is unconfirmed in Oracle Banking Treasury Management). 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:

• Contract Reference Number
• Product Description
• Product Slogan (for MAIL)
• Deal Currency of the contract
• Deal Amount
• Exchange Rate
• Term Currency
• Term Amount
• Counterparty
• Broker Code
• Value Date

Contract Deal Slip

The deal slip contains the following information:

• Contract Reference
• Counterparty
• Deal Currency
• Deal Amount
• Buy / Sell Type
• Value Date
• Exchange Rate
• Term Currency
• Term Amount
• Split Value Date
• Broker
• Option Date
• Transaction Date and Time

Contract Brokerage Advice

The Contract Brokerage Advice contains the following information:

• Contract Reference number
• Contract Event
• Contract Event Serial Number
• Counterparty
• Deal CCY
• Deal Amount
• Term CCY
• Term Amount
• Exchange Rate
• Broker Code
• Broker Name
• Broker Address
• Brokerage Amount

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 fresh brokerage advice (to the new broker).

FX Swap Confirmation Advice

The foreign exchange SWAP confirmation advice 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 is used to confirm details of a:

• New contract
• Amendment of a previously agreed contract
• Cancellation of foreign exchange swaps
• Maturity for a foreign exchange swap

The message provides the following information:

Sequence A (General details of the contract):

• Transaction reference number (M)
• Related Reference (M) - will contain NEW in the case of new contract and in the case of Amend the reference of the contract being amended
• Code / Common Reference (M)
• NEW
• AMEND
• CANCEL
• MATURITY
• Date Contract Agreed / Amended (M) - Deal Date
• Currency Code, Traded Amount (M) - Currency Code and amount of the Deal currency
• Swap Points (M) - sub-field P or D to indicate premium or discount followed by the swap points (In Oracle Banking Treasury Management the Swap points would be the rate in the Final Legless the rate in First Leg
• Reference Rate (M) - Agreed basis rate for the contract (In Oracle Banking Treasury Management this would be the exchange rate for the first leg of the SWAP)
• Sender To Receiver Information (O)

Sequence B (First Settlement)

• Value Date, Currency Code and Amount Bought (from the point of View of sender) in the first leg of the contract.
• Intermediary
• Account with Institution
• Value Date, Currency Code and Amount Sold
• Sender’s Correspondent
• Intermediary
• Account with Institution

Sequence C (Final Settlement)

The same information as in Sequence B but for the final leg of the contract.

Contract Amendment Advice

You can generate an amendment advice for any change to an authorized contract if it affects:

• The amount
• Exchange rate
• Settlement instructions
• Contract date, value date or option date

The original and changed information relating to the above field is passed to the messaging sub-system.

Roll-over Advice

You can print roll-over advice for a counterparty at the time of contract roll-over. The advice contains the following information.

• Old Contract Reference Number and Maturity Date
• Old Contract Deal amount, Term Amount and Exchange Rate
• New Contract Reference Number and Maturity Date
• New Contract Deal Amount, Term Amount and Exchange Rate
• Roll-over Date
• Deal Currency
• Term Currency
• Event Keyword
• Event Serial No

Reversal advice

Reversal Advice can be printed when a Contract is reversed The reversal advice contains the following information:

• Contract Reference Number
• Event Serial No
• Event Keyword
• Contract Date
• Exchange Rate
• Value Date
• Currency Bought
• Amount Bought
• Amount Sold
• Currency Sold
• Value Date Sold

Advice of Cancellation (MT292)

In Oracle Banking Treasury Management, 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 Reference Number of the deal
• The Reference Number of the SWIFT message being canceled.
• The original message type (sent)
• The date of the original message and
• The text of the original SWIFT message (optional)

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 re-transfer (reversal) request with the consent of the receiver.

Note:

To enable the generation of MT292 on the reversal of an FX contract, you need to maintain the advice FX_REVERSAL and REVSWIFT for the product event REVR.A MT 292 generates when you reverse a deal and have associated the advice tag PAYMENT_MESSAGE to the reversal (REVR) event.