4.13 Product Code- FXN1

FXN1– NDF (FX NDF Deal)

Business Scenario

This financial product that is, NDF helps customers/corporate to Purchase/Sale the Banned Foreign Exchange Currencies at Forward (Future) Market.

Targeted Customer Segment: Corporate Clients who seek spot Foreign Currency Buy/Sell

Introduction

Spot product FXN1 is used is used of the trade restricted Foreign Currency for Future Date.

• Fixing Date - This is the day and time where the comparison between the NDF rate and the prevailing spot rate is made.
• NDF Currency- Currency in this settlement not done.

Synopsis (ex. High level features etc.)

• NDF Product is used for Purchase/Sale of Banned Foreign Exchange Currencies from Forward Market.
• NDF Forward Deal is normally fixed 2 days prior to the Value date.
• NDF Forward settlement will happen for only net amount. Not the Deal amount.
• Customers of both type types that is, retail customers and corporate might be covered under this product.
• It may/may not involve insistence of Limit.

Detailed Coverage

Product FXN1 covers the following features:

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

Events Covered

Product FXN1 has the Life Cycle as listed below:

Table 4-19 Special Features

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 deal modification.
REAS	Reassign User event will get triggered on new User Assign.
FIXG	NDF Contract Fixing
UFIX	NDF Contract Unfixing
SGEN	Settlement Message Generation.
REVP	Payment Reversal is processed under this event
REVR	Contract Reversal is processed under this event
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.

Generic Features

Spot Product FXN1 features include:

• Forward dated Contract booking
• Fixing of the Deal
• Unfixing of the Deal
• 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 Spot Product FXN1 are as below:

• Capturing of Charge details
• Limit Tracking
• Extension
• 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 Spot Deal Product FXN1:

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

Messages

Following below are the messages supported for the Cash deal Product FXN1:

Table 4-20 Special Features

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