4.4 Product Code - FFB1

FFB1 – Forward (FX Forward Deal)

Business Scenario

This financial product that is, Forward helps customers/corporate to Purchase/Sale the Foreign Exchange Currencies at Cash Market. This product will cater to the FATCA TAX requirements of the Bank.

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

Introduction

Cash product FFB1 is used to Buy/Sell the Foreign Exchange Currency at Forward Market. This product is setup for Discounted Straight Line Revaluation.

Synopsis (ex. High level features etc.)

• Forward Product is used for Purchase/Sale of Foreign Exchange from Spot Market.
• Forward deals are available for maturities from 3 days out to about 2 years.
• 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 FFB1 covers the following features:

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

Events Covered (including brief information on accounting)

Product FFB1 has the Life Cycle as listed below:

Table 4-7 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 triggers on modifying a deal.
REAS	Reassign User event will get triggered on new User Assign.
SGEN	Settlement Message Generation
CANC	Deal Cancellation event will get triggered on cancellation of the deal.
LIQD	Liquidation Event will get triggered on Manual/Auto Payment 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 for the previous period is done under this event.

Advices Supported

Following Below are the advices supported for the Cash Deal Product FFB1:

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

Messages

Following SWIFT Messages setup done in the IDRS product as part of product life cycle.

Table 4-8 SWIFT Messages

SWIFT Messages	Contact 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

Generic Features

Cash Product FFB1 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

Other Features of the Spot Product FFB1 are as below:

• 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