4.18 Product Code - FFR1

FFR1 – Forward (FX Forward Deal)

Business Scenario

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

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

Introduction

Forward product FFR1 is used to Buy/Sell the Foreign Exchange Currency at Forward Market. This product is setup for Straight Line Revaluation

Synopsis (ex. High level features etc.)

• Forward Product is used for Purchase/Sale of Foreign Exchange from Forward Market.
• Forward deals are available for maturities from 3 days out to about 2 years. The maximum period is up to Spot Days of the Currency.(Normally 2 days).
• 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 FFR1 covers the following features:

• Booking of Deal
• Settlement Message
• Payment Settlement
• Settlements
  • Conventional
  • Continuous Linked Settlement
• Revaluation
  • Batch Revaluation – Straight Line

Events Covered

Product FFR1 has the Life Cycle as listed below:

Table 4-29 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 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
REVL	Deal Revaluation for the period is accounted under this event
RRVL	Deal Revaluation Reversal for the previous period is done under this event

Generic Features

Spot Product FFR1 features include:

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

Special/Other Features

Other Features of the TOM Product FFR1 are as below:

• Capturing of Charge details
• Split Value Date
• Partial Liquidation of the Contract
• Partial Cancellation of Contract
• Currency/Pair Wise Netting - Auto / Manual
• Limit Tracking
• Deal Revaluation
• Option Date
• Multiple Options
• 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 TOM Deal Product FFR1

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

Messages

Following below are the messages supported for the Cash deal Product FFR1:

Table 4-30 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