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
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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 MODELLING & SIMULATION
Verify Limits Capture Deal
MeasureProt & Loss
Limits Utilised Credit Settlement Instrument
Set Limits Credit Dealer Instrument Operational
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
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
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:
Counter party information
Settlement account details
Instrument in which you deal
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 bank 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
Enforces limit, i.e. Dealers cannot breach limit prescribed by middle-oce
Revaluation with rate feed from Reuter
Transfer pricing to adjust protability for funding cost
Comprehensive operational controls, e.g. Rate/date deviation, audit trails
The unique features of fmbTrade include the following:
Building interfaces such as to Reuters, general ledgers, Cube360 and Basel+ in response to
Excellent internal controls e.g. Audit trails, segregation of front and back oce, and
custodian and bank script
Cash management facility
Open systems technologies
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
fmbTrade caters for the following instrument categories:
Transaction & Accrual Based Instruments
Fixed Despoists | Saving A