Foreign exchange (Spot, Forward, Swap)

Created by Erik Åkerlund, Modified on Wed, 22 Nov 2023 at 11:10 AM by Teuvo Suoraniemi

In new deal “FX” both FX spot and FX forward deals can be entered.

  1.  New deal / FX
  2. Enter Legal entity and counterparty, mandatory fields
  3. Select BUY currency and amount in either buy or sell field depending on which amount is fixed 
  4. Select SELL currency and amount if not entered in buy 
  5. Enter deal date when the deal is made. 
  6. Note, Spot date is set automatically and can not be changed. The system will always take into account the buy currency and sell currency bank holidays calendar, as well as, the US bank holiday calendar, if 2 bankdays ahead is a bank holiday according to the US calender. E.g. Deal date 2018-07-02 spot date 2018-07-05 because 2018-07-04 is a bank holiday in US. If Deal date is 2018-07-03 the spot date will be 2018-07-05
  7. Enter maturity date when the FX deal matures. If spot date and maturity date is the same date the system will categorise it as a FX spot deal. 
  8. TAB Bank Accounts: Bank accounts are set according to the setup in in Default Bank Accounts. Legal entity's bank account must be filled in (mandatory fields) for both legs. Counterpart's bank account are optional.
  9. TAB Tags are optional. If it is an internal deal the mirror will get the same tags.
  10. TAB Advanced is optional. If additional bank holiday calendar will be added this will be done on tab - Advanced. By default the transactions currency will be set as effective calendar. If an internal FX deal and an automatic mirror deal shall be created this needs to be set up in Mirror Rules. The rule can be overruled here by changing from "Use rule" to No Mirror or Create mirror in field Mirror creation type. In this tab you can also set specific FX cross rates to be used between the Deal base currency and the legal entity's accounting currency (Spot rate and Forward points). 
  11. TAB Info is optional is for information only.. Will show the FX rate at maturity and the total maturity in Days.
  12. Press Save

Suggested rates: 

Suggested FX rates are extracted from the latest imported FX rates. Will show the worst price depending on buy and sell currency. BID= lowest price ASK= Highest price. If you buy USD (sell SEK) the FX rate from ASK will be presented.     

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