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)

Product NDF has the Life Cycle as listed below:

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

Following Below are the advices supported for the SPot Deal Product FSB3:

• 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