This module will not be further enhanced. Support is limited to defect fixing only.

Introduction to Foreign Exchange Operations

This module assists banks in segregating contingent accounts based on the transaction type at Forex (FX) contract level, as well as in displaying the balances in the general ledger based on the classification at the FX contract level.

Click here to understand the terms and abbreviations used in this module.

Segregation of Spot Position Accounts

One of the activities done by the bank’s treasury operations is buy and sell of currency. For these operations, banks perform the spot Forex transaction with a deal date equal to the current day (D) and the value date equal to D+2.

From the time the spot Forex deal is booked, until the value date, the spot forex amount is accounted on contingent accounts (off-balance accounts).

The balance of these contingent accounts will be reported to the Bank of Spain on the M1 report with the following details of segregation:

• Contingent account: buy of the currency against EUR.
• Contingent account: sell of the currency against EUR.
• Contingent account: buy of the currency against other currency.

This functionality allows banks to segregate the Contingent Accounts based on the transaction type and update the balance in GL (General Ledger) due to a Forex deal spot deal where the value date of the deal is greater than the deal date so that the contingent spot position accounts will be segregated.

The following items have been introduced as part of this functionality:

• The FOREX,ESMB.SPOTDEAL.BUYFCY (FX Spot Trade Buy Currency against EURO) version allows users to buy currency against EURO.
• The FOREX,ESMB.SPOTDEAL.SELLFCY (FX Spot Trade Sell Currency against EURO) version allows users to sell currency against EURO.
• The FOREX,ESMB.SPOTDEAL.BUYSELLOC (FX Spot Trade Buy/Sell other Currency) version allows users to buy currency against any other currency.
• New configuration records for each deal type are created in the reporting module to display the contract balances separately under different lines in the general ledger based on the classification defined at the FX contract level.
• The Spot Deal Class field has been introduced in the FOREX application to specify the type of transaction for the segregation. This field will define the type of spot deal that is being executed. The value will be defaulted at the version level based on the type of spot contract.