4.19 Product Code - FXS3

FXS3 – FX Spot deal product manual liquidation

Business Scenario

This financial product that is, SPOT helps customers/corporate to Purchase/Sale the Foreign Exchange Currencies at Cash Market.

Targeted Customer Segment: Inter Bank Clients who seek Cash Foreign Currency Buy/Sell.

Introduction

Cash product FXS3 is used to Buy/Sell the Foreign Exchange Currency at SPOT Market. The settlement of the deal is done immediately.

Synopsis (ex. High level features etc.)

• SPOT Product is used for Purchase/Sale of Foreign Exchange from Spot Market.
• The maximum period is 2 Days (T+1 Day).
• Customers of both type types that is, retail customers and corporate could be covered under this product.
• It may/may not involve insistence of Limit

Detailed Coverage

Product FXS3 covers the following features:

• Booking of Deal
• Settlement Message
• Payment Settlement
• Settlements
  • Conventional
  • Continuous Linked Settlement

Events Covered

Product FXS3 has the Life Cycle as listed below:

Table 4-31 Events Covered

Events Covered	Terminology
BOOK	Contract Booking event triggers when Bank Initiate the Deal.
CONF	On Counterparty Confirmation this event will get triggered.
AMND	Contract Amendment event will get triggered on User Assign
REAS	Reassign user event will get triggered on new User Assign.
SGEN	Settlement Message Generation.
LIQD	Liquidation Event will get triggered on Manual/Auto Payment of the Deal.
CANC	Deal Cancellation event will get triggered on cancellation of the deal.
REVP	Payment Reversal is processed under this event
REVR	Contract Reversal is processed under this event

Generic Features

Spot Product FXS3 features include:

• Deal booking
• Cross Currency Contract Booking
• Counterparty Confirmation
• Contract Re-assign
• Holiday period treatment
• Capturing of UDE values
• Liquidation of Contract – Auto / Manual

Special/Other Features

Other Features of the Cash Product FXS3 are as below:

• Split Value Date
• Partial Liquidation of the Contract
• Partial Cancellation of Contract
• Currency/Pair Wise Netting - Auto / Manual
• Limit Tracking
• CLS Status Change
• CLS Alleged Deal Status Change
• CLS Net Position Check
• CLS Status Change Alert

Advices Supported

Following Below are the advices supported for the TOM Deal Product FRR1:

• Confirmation Advice Confirmation
• Contract Amendment
• Contract Reversal
• Deal Slip

Messages

Following below are the messages supported for the Cash deal Product FXS3:

Table 4-32 SWIFT Messages

SWIFT Messages	Contract Field
MT 300	Confirmation, Amendment, Reverse
MT 304	T-Copy Settlement
MT 192/MT 292	Payment Reversal
MT 210	Receive Notice
MT 940/ MT 950	Account Statement
MT 103/ MT 202/ MT 205	Payment Message