4.6 Product Code - FXNS
FXNS – 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: Inter Bank Clients who seek Cash Foreign Currency Buy/Sell
Introduction
NDF Forward Product FXNF is used for Buy/Sell of the trade restricted Foreign Exchange Currency for Future Date.
- Fixing Date- Date at which Fixing Deal is booked.
- NDF Currency- Currency in this settlement not done.
Synopsis (ex. High level features etc.)
- NDF Fixing Product is used for Fix the NDF Forward Purchase/Sale Deal
- NDF Fixing Deal will be normally fixed two days prior to the Value date.
- No settlement process happens for the NDF Fixing Deal.
- 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 NDF covers the following features:
- Booking of Deal
- Reversal of Deal
Events Covered (including brief information on accounting)
Table 4-11 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 |
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 |
Advices Supported
- Confirmation Advice Confirmation
- Contract Reversal
- Deal Slip
Messages
Following SWIFT Messages setup done in this product as part of product life cycle.
Table 4-12 SWIFT Messages
SWIFT Messages | Contact Field |
---|---|
MT 300 | Confirmation, Amendment, Reverse |
MT 304 | T-Copy Settlement |
MT 940/ MT 950 | Account Statement |
Generic Features
Cash Product FXNS features include:
- Booking Deal(Fixing NDF Forward 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
Other Features of the Spot Product FXNS are as below:
- Limit Tracking
- CLS Status Change
- CLS Alleged Deal Status Change
- CLS Net Position Check
- CLS Status Change Alert
Parent topic: Product Catalog - Treasury – Foreign Exchange