Foreign exchange activity is an offshoot of the settlement of foreign trade in goods and services (import and exports transactions).

The dealing activity comprises:

	Front office
	Middle office
	Back office

The front office undertakes dealing activity.

The primary function of the middle office is to continuously monitor various risk exposures. The middle office is fully focused on risk monitoring and generation of reports relating to violation of various limits such as the dealing limit, the counter-party limit, the gap limit, the daylight limit, the overnight limit, etc.

The back office handles recording of the transactions, verification and confirmation of deals with the counter-party, settlement in rupees and in foreign currency, transmission of payment messages, reconciliation of receipts and payments as reflected in nostro accounts with the bank's records, accounting aspects, brokerage payments, etc. It also undertakes activities such as dealers' profitability and revaluation of outstanding deals.

	Inter-bank module
	Outright deal
	Cross-currency deal
	Swap deal
	Cross-currency swap deal
	Merchant module
		forward contract
		export
		import
		remittance
		FC deposits
		FC loans
	Other deals
		nostro to nostro transfer
		borrowing / lending
		brokerage payment
	SWIFT
		inward messages
		outward messages
	Card rates
	DBA module
	Reports
		interbank reports
		merchant reports
		other reports
	Nostro reconciliation
	Masters
	Financial accounting

Strengths

	Forward contract utilisation
	CCIL settlement
	Online rates pick up from the Reuters screen
	Statutory returns required by central bank
	Inward and outward SWIFT messages generated
	CCIL (IFN300) message generated
	Auto reconciliation

Indicative client list

The United Western Bank Ltd (Integrated treasury management system with domestic)

Case study
United Western Bank

Contact
Head - BFS
CMC House
C-18, Bandra-Kurla Complex
Bandra (East)
Mumbai - 400 051
Tel: 022-26591000-2
Fax: 022-26591046
Email : bfs@cmcltd.com