Subsidiary Request Process (FX, Loan & Commodity)

Created by Erik Åkerlund, Modified on Wed, 07 Feb 2024 at 03:03 PM by Sara Flodin

Subsidiary requests are used for companies where trading is centralized to a treasury department. The subsidiaries knows their business and have internal FX exposure, commodity and lending needs. 

The subsidiaries can enter the following type of deals as deal requests:
FX spot, FX Forward. FX Swap, Commodities and Loans. The requests are entered without rates/prices/interest rates. 

Treasury prices these requests and can take these into account when looking at the whole organization's exposure or lending needs. The set up needed before entering a subsidiary request is described in Subsidiary Requests set up

Enter a subsidiary request (Subsidiary user)

The subsidiary request is entered as a normal deal without any Price, FX rate or interest %. They will get deal status request. 

Email alert to trader

A distribution report can be sent to the trader indicating that there is a  new request and that  it needs to be priced.

Price Request ledger (Trader at Treasury)

The traders at treasury that should price the requests have the following options:

  1. Open the request from request ledger and enter the price manually
  2. A fixed price could also be updated and saved in the template
  3. Automatically price subsidiary request from daily or real-time prices 
  4. Automatically send the request to a trading station to create an external back to back deal. The request will get the price from the external deal.

When the requests have been priced they will get status New and be treated as a normal internal deal in the system.

Email alert to subsidiary for Priced request

In the end of each day a report can be sent on all priced requests. 

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