2 Overview of Repo

Introduction

Securities repurchase agreements (referred to as Repos) are entered into to raise money, or meet your Central Bank statutes. The users use reverse Repo transactions to invest short-term surplus funds, at minimal risk. The Securities Repurchase module of Oracle Banking Treasury supports processing of Repo (borrowing) and Reverse Repo (placement) transactions captured by the front office. OBTR supports external margin processing for securities and cash margin call and Repricing of the Nominal amount when the collateral value goes up/down. The buyer calls for variation margin from the seller to re-balance cash and collateral and vice versa based on their agreement.

Automatic Deal Upload

The cornerstone of this module is the Deal Upload facility. With this facility, the user can automatically upload the deals captured in your dealing room system. On upload, the user can enrich the deals with additional information relating to accounting and messaging (such as interest accrual, brokerage, tax, rollover, customer advice generation details, etc.). This information determines how deals are handled by the automatic processes that the user execute. Processing, thus, requires minimal manual intervention and is efficient.

Architectural Advantages

In architecture, Oracle Banking Treasury Management is modular yet integrated. Front-end modules such as Securities Repo function around a Core consisting of the Security Management System, the Limits Service, etc. This architecture eliminates replication of commonly accessed information in every module. Information that is common to several modules is maintained in the systems' Core (for example, currency information). This is accessed by front-end modules such as MM, SR, etc. The architecture, thus, ensures that all front-end modules use reliable and consistent data drawn from the Corer. Oracle Banking Treasury Managements' architecture also ensures that constantly monitor, real-time, your exposure. Crucial services such as Limits reside at the Core of Oracle Banking Treasury Management. This means that your liability towards a customer is tracked real-time across front-end modules.

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