Chapter 5 Treasury systems an data management

Question 1

FO system

Answer 1

1. Overview of your position
2. Enter transaction details
3. Calculates risk of individual position
4. Calculates P&L

Question 2

BO system

Answer 2

1. Contains transaction data
2. Create settlement instructions
3. Report to trade-repository
4. Create journal entries
5. Create confirmations
6. Create notifications
7. Register securities possessions
8. Trade event module

Question 3

Confirmation matching

Answer 3

Matches confirmations (can be SWIFT)

Question 4

Investigations system

Answer 4

Archive system

Question 5

Credit limit system

Answer 5

1. Credit risk
2. Current positions
3. Collateral

Question 6

Market risk system

Answer 6

Calculates bank’s market risk position

Question 7

Reporting module

Answer 7

Trade repository

Question 8

Static data

Answer 8

1. Client file
2. Bank file
3. Cutoff times
4. Currency file
5. Holiday file (holidays per currency)
6. Exchange rate
7. Trade type
8. Accounting rules

Question 9

BEN

Answer 9

Benificiary pays all the costs

Question 10

OUR

Answer 10

Sending party pays all the costs

Question 11

SHA

Answer 11

Costs are shared

Question 12

ACK

Answer 12

Acknowledged

Question 13

NAK

Answer 13

Not acknowledged