4.9 Product Code - INS1

INS1 – Internal Swap (FX Internal Swap Deal)

Business Scenario

This financial product that is, Internal Swap helps Bank to take the advantage of arbitrage/hedge in the prevailing Foreign Exchange Market Condition.

Targeted Customer Segment: Bank seeks Arbitrage/Hedge Foreign Currency Position.

Introduction

Internal Swap Product INS1 is used for Purchase/Sell the Foreign currencies between Foreign and Money Market. Internal Swap Product INS1 is the combination of the Spot Deal, Forward Deal, Forward Interest Deal, MM Borrow and Placement. Forward Interest Deal is difference of the MM Borrow and Placement Interest Amount and would be booked by the system.

Internal Swap Product INS1 is the Combination of below Products

• FSB1- FX Spot Product
• FXFW- FX Forward Product
• FFC1 – FX Forward Deal
• MMBR - MM Borrow Deal
• MMP1 - MM Placement Deal

Synopsis (ex. High level features etc.)

• Internal Swap deal used for arbitrage/hedging purpose.
• FX Interest Forward deal booked for the difference of the Interest Amount of MM Borrow and Placement deal.
• Internal Swap deal is a combination of FX Spot, Forward, Interest Forward Deal and MM Borrow and Placement.
• Internal Swap is booked by Bank itself.