A real-time FULLY INTEGRATED treasury trading real-time FULLY INTEGRATED treasury trading ... fmbTrade is a real-time fully integrated treasury trading system that ... such as call and term accounts

Download A real-time FULLY INTEGRATED treasury trading   real-time FULLY INTEGRATED treasury trading ... fmbTrade is a real-time fully integrated treasury trading system that ... such as call and term accounts

Post on 06-Feb-2018




1 download

Embed Size (px)


  • w w w . r i s k o w . c o m



    A real-time FULLY INTEGRATED treasury trading SYSTEM


    fmbTrade is a real-time fully integrated treasury trading system that segregates the FRONT,

    MIDDLE, and BACK OFFICE on security access levels. It provides total accounting exibility in

    line with latest Basel requirements with special reference to operational, liquidity, market,

    interest and exchange risk issues on an operational level.

    fmbTrade is a treasury specialist sub-system developed to cater for the nancial instruments

    dealers encounter in the treasury environment and provides a unique combination, catering for

    account based instruments such as call and term accounts and transaction based instruments

    such as buying and selling bonds, treasury bills and FX transactions.

    fmbTrade is developed around its own database which has to host details regarding the dealers,

    counterparties, treasury instruments, portfolios, limits etc. This provides the ideal scenario where

    the front, middle and back oce can always access the same data - it is integrated. A deal

    captured in the front oce is immediately visible in the middle and back oce. A limit or

    restriction imposed in the middle oce has an immediate impact on the front oce and at the

    same time the back oce is notied on the settlement and conrmation details. It is a real-time

    system: there are no time delays. All positions and limits are updated immediately. fmbTrade

    can interface with other systems available in the market to still create a straight-through process.

    For instance, when an FX deal is captured on systems like Reuters or City Dealer, portfolios and

    exposure limits are immediately updated via fmbTrade. Likewise, it is updated by the core

    operational system catering for administration and general ledger functions. fmbTrade has its

    own sub ledger system that provides real-time update of the trial balance. (See diagram below for more details).


    Deal Negotiation Verify Counter Party

    Financial Database

    Real-time Positions


    Risk Control



    Verify Limits Capture Deal

    Conrm Deal

    Settlement Limit



    MeasureProt & Loss

    Limits Utilised Credit Settlement Instrument

    Set Limits Credit Dealer Instrument Operational

    Settle Deal

    Maintain Contract

    Mature Contract




  • fmbTrade is in eect the rebranding of Riskow's TASMAN system, which has been available to

    the market since 1992. It is a stable and reliable system which has been given a facelift

    celebrating its conversion to a multi-country and group treasury exposure system.

    FRONT, MIDDEL AND BACK OFFICE treasury trading system

    fmbTrade is a fully integrated system that segregates the FRONT, MIDDLE, and BACK OFFICE on

    security access levels. fmbTrade provides accounting exibility.

    fmbTrade does a clear segregation of the front, middle and back oce functions where the:

    FRONT OFFICE refers to the deal capturing, position keeping and the cash management


    MIDDLE OFFICE includes control, audit, prot and loss, risk and limit management.

    BACK OFFICE refers to conrmations, settlements, statements, regulatory reports and other

    administrative procedures.

    fmbTrade has been developed and designed from day one to be client/server and make use of

    the latest GUI functionality such as Windows connectivity products.

    fmbTrade is written in PROGRESS, which is a full graphical client/server-programming tool on its

    own relational database. The FRONT, MIDDLE and BACK OFFICES are totally integrated and can

    be fully linked to other applications such as Riskow's Cube (Balance Sheet Management), + +Riskow's Basel (Basel Compliance and Management Decision making Tool), as well as word

    processing, spreadsheets and Management Information Systems.

    Interest Rate Comparison Calculator

  • FRONT OFFICE (Dealer) Section

    The FRONT OFFICE section of the system, which is only accessible to the dealers through the

    security set-up procedure, allows the dealers to:

    Provide customer service through on-line account enquiries, updating, and rate changes.

    Support paperless trading. There is no need to ll in dealing slips and deals will be directly

    captured onscreen for verication by the BACK OFFICE.

    Deal with the latest real-time information (including on-line prot/loss) with no end of day


    Be more productive. It is user friendly, designed by users

    Do full cash management activities on all bank accounts with system generated entries

    such as maturities and also allowing for manual updates of cash transactions outside the


    Use dealing analytic tools such as price calculations, break-even analysis, calendar and carry

    transaction calculators.

    Produce prot and loss reporting.

    BACK OFFICE (Administration) Section

    The BACK OFFICE module of fmbTrade handles conrmations, settlements, statements, journal

    entries, regulatory information reports, and other administrative procedures.

    The back oce module includes an action ags function that signals pending events such as

    deposits maturing, payments that are due, cheques to be printed, interest payments etc.

    Reporting capabilities allow you to have up to date, on demand reports. Conrmation

    correspondence is automatically generated and can be processed as required.

    A Trial Balance is updated automatically as transactions get processed. Detail journals are kept

    and can be exported to a company wide GL system.

    Detail information is kept on transactions and can be aggregated and exported to Riskow's +Cube (Balance Sheet Management), Riskow's Basel (Basel Compliance and Management

    Decision making Tool).

    fmbTrade keeps track of all scrip and securities that accompanies transactions. It allows you to

    group scrip in parcels and also to split a security in more tradable denominations. There are

    various inventory reports to track your own securities as well as securities in safe custody.

  • The necessary information to complete your regulatory reports like month-end and average

    balances is available and aggregated under various time buckets and exposure categories.

    In the BACK OFFICE MODULE you set up all environmental details in preparation for dealing

    activities. These details include:

    Portfolio breakdowns

    Counter party information

    Settlement account details

    Dealer specications

    Brokers details

    Instrument in which you deal

    Public holidays


    Rates and

    General organisation information

    The System Supervisor's role is executed through

    the Administration module. Users are granted access to specic

    activities in a module. Access to setting user access levels is granted to your organisation's

    System Supervisor only a trial balance facility and will post entries to your General Ledger daily,

    weekly or monthly.

    General Ledger Entry Transactions include:

    Detail transactions

    Detail bank transactions

    Consolidated transactions

    Export to general ledger system

    Remove old general ledger transactions

    General ledger balance report

    MIDDLE OFFICE (Risk Control) Section

    The middle oce section is the management and control section. Except for the dening of

    limits the middle oce can view everything in the system, but is not allowed to enter any deals

    or do any of the administrative actions. Middle oce can do the following:

    Online, real-time information

    Comprehensive limit monitoring/reporting

    Bond Calculator

  • Enforces limit, i.e. Dealers cannot breach limit prescribed by middle-oce

    Revaluation with rate feed from Reuter

    What-if analysis

    Dealers/products/portfolio/aggregate protability

    Transfer pricing to adjust protability for funding cost

    Comprehensive operational controls, e.g. Rate/date deviation, audit trails

    Unique Features

    The unique features of fmbTrade include the following:

    Building interfaces such as to Reuters, general ledgers, Cube360 and Basel+ in response to

    user needs

    Excellent internal controls e.g. Audit trails, segregation of front and back oce, and

    custodian and bank script

    Cash management facility

    Open systems technologies

    Report builders

    Cash Flow Management Monitor

  • Real-time update of all limits

    Counter party details including statements for the receiver of revenue

    Exposure evaluation which instantaneously

    Revalue FX positions

    Revalue bond positions

    Revalue discount instruments

    Calculates interest to date on all instruments

    Displays the eect of changes in interest rates

    Updates cash position by currency

    Separates settlement from dealing operation

    Imposes constraints on user and dealer accessibilities

    IFRS calculations Fair value calculations

    Functional RequirementsDeal Capturing and recording

    fmbTrade covers activities in the money market, capital market, derivative market and foreign

    exchange market.

    fmbTrade caters for the following instrument categories:

    Transaction & Accrual Based Instruments

    Instument Types

    Fixed Despoists | Saving A


View more >