FS Common Service Currency

Functional SpecificationsStatus - Final Volume 1 – 1.6Currency Services9NT979-Fusion FLEXCUBEJuly 2009

Document ControlAuthor: M S Iyer Group: Banking Products DivisionCreated on : 07 Aug 09 Revision No : 1.6Updated by : Reviewed by : Anup Sasikumar Approved by:Updated on : Reviewed on : Approved on :

Revision History

Version

Date Author Sections Changed

Description of changes

1.0 M S Iyer - Draft version1.1 07-Aug-09 M S Iyer a) 3.1.1.4,

b) 3.1.8.4c) 3.1.9d)3.2.20

a) Position General Ledger, Position Equivalent General Ledger & Generate 103+ dropped. Currency Master Table dropped. Currencies float days Field added.b) Currency 2 has been dropped.c) Enquiry screen dropped.d) Limits for Cross currency transactions dropped.

1.2 25-Aug-09 M S Iyer a) 3.1.1.4b) 3.1.3.4c) 3.1.8.4

CCB’s comments incorporateda) Dropped the Float day’s field

& added Fields weekly holiday1 and weekly holiday2.

b) Dropped ‘Source’ Field from the Rate Type/ Code Maintenance Table

c) Included Columns ‘Editable’ and ‘Validations’ in all the maintenance Table. Also specified validations for each fields.

1.3 02-Sep-09 M.S.Iyer 3.1.1.4 a) Inserted Currency Symbol Field in Currency Definition.

1.4 03-Sep-09 M S Iyer 3.2.1.23.1.1.4

a) Processing Service “Currency Rate Propagation” has been dropped

b) Added Field in Currency Definition for ‘User Ref. No.” if uploaded through an external system.

1.5 23-Sep-09 M S Iyer 3.1.1.43.2.12

a) Dropped Fields Cut-off Days, Cut-off Hours and Cut-off Minutesb) Dropped Processing Service ‘Get Currency Cut-off time’

1.6 09-12-2009 M S Iyer 3.1.2.33.1.4.43.1.5.43.1.8.43.1.2.3

a) The Length of Bank Code has been increased to 10 (to bring similarity with the Core Maintenance)

b) Unique constraint validation for ISO Numeric Currency code instead of Alternate Currency Code.

c) Removed Validation of No. of units and Spread Definition for Thru Currency.

d) Modification in the weekly holidays defined in Currency Maintenance has to automatically update the Currency Calendar.

1.7 5-1-2010 M S Iyer 3.1.1.63.1.1.7

a) Incorporation of revised Audit Trail and Action Functions

1.8 8-1-2010 M S Iyer 3.1.1.4 a) Changed Weekly Holidays 1 and Weekly Holidays2 Field as Optional instead of Mandatory.

Table of Contents

1 Introduction...........................................................................................................................5

1.1 Background................................................................................................................................. 51.2 Organization of the Document...................................................................................................51.3 Acronyms and Abbreviations.....................................................................................................51.4 References................................................................................................................................... 5

2 Overview of the Proposed System......................................................................................6

2.1 Introduction................................................................................................................................. 62.2 Scope of the System................................................................................................................... 62.3 System Features.......................................................................................................................... 62.4 System Functions....................................................................................................................... 72.5 External Interface........................................................................................................................ 8

3 System Functions.................................................................................................................9

3.1 Currency Maintenance Services................................................................................................93.1.1 Maintenance of Currency Definition....................................................................................................93.1.1.1 Definition.................................................................................................................................................93.1.1.2 Entity Level..............................................................................................................................................93.1.1.3 Pre-requisite............................................................................................................................................93.1.1.4 Input/Validations – Approach..................................................................................................................93.1.1.5 Use Case Diagram................................................................................................................................153.1.1.6 Action Features.....................................................................................................................................173.1.1.7 Audit Trails............................................................................................................................................183.1.2 Maintenance of Currency Pair............................................................................................................193.1.2.1 Definition...............................................................................................................................................193.1.2.2 Entity Level............................................................................................................................................193.1.2.3 Pre-requisite..........................................................................................................................................193.1.2.4 Input/Validations – Approach................................................................................................................193.1.2.5 Use Case Diagram................................................................................................................................253.1.2.6 Action Features.....................................................................................................................................253.1.2.7 Audit Trails............................................................................................................................................253.1.3 Maintenance of Currency Rate Type.................................................................................................253.1.3.1 Definition...............................................................................................................................................253.1.3.2 Entity Level............................................................................................................................................263.1.3.3 Pre-requisite..........................................................................................................................................263.1.3.4 Input/Validations – Approach................................................................................................................263.1.3.5 Use Case Diagram................................................................................................................................263.1.3.6 Action Features.....................................................................................................................................273.1.3.7 Audit Trails............................................................................................................................................273.1.4 Maintenance of Exchange Rate for Rate Types...............................................................................273.1.4.1 Definition...............................................................................................................................................273.1.4.2 Entity Level............................................................................................................................................273.1.4.3 Pre-requisite..........................................................................................................................................273.1.4.4 Input/Validations – Approach................................................................................................................283.1.4.5 Use Case Diagram................................................................................................................................323.1.4.6 Action Features.....................................................................................................................................333.1.4.7 Audit Trails............................................................................................................................................333.1.5 Maintenance of Forward Rates..........................................................................................................333.1.5.1 Definition...............................................................................................................................................333.1.5.2 Entity Level............................................................................................................................................343.1.5.3 Pre-requisite..........................................................................................................................................343.1.5.4 Input/Validations – Approach................................................................................................................343.1.5.5 Use Case Diagram................................................................................................................................373.1.5.6 Action Features.....................................................................................................................................37

3.1.5.7 Audit Trails............................................................................................................................................373.1.6 Maintenance of Amount Text.............................................................................................................373.1.6.1 Definition...............................................................................................................................................373.1.6.2 Entity Level............................................................................................................................................373.1.6.3 Pre-requisite..........................................................................................................................................373.1.6.4 Input/Validations – Approach................................................................................................................373.1.6.5 Action Features.....................................................................................................................................403.1.6.6 Audit Trails............................................................................................................................................403.1.7 Maintenance of Currency Denomination..........................................................................................403.1.7.1 Definition...............................................................................................................................................403.1.7.2 Entity Level............................................................................................................................................403.1.7.3 Pre-requisite..........................................................................................................................................403.1.7.4 Input/Validations – Approach................................................................................................................403.1.7.5 Action Features.....................................................................................................................................413.1.7.6 Audit Trails............................................................................................................................................413.1.8 Currency Branch Parameter Maintenance........................................................................................423.1.8.1 Definition...............................................................................................................................................423.1.8.2 Entity Level............................................................................................................................................423.1.8.3 Pre-requisite..........................................................................................................................................423.1.8.4 Input/Validations – Approach................................................................................................................423.1.8.5 Action Features.....................................................................................................................................433.1.8.6 Audit Trails............................................................................................................................................43

3.2 Currency Processing Services.................................................................................................433.2.1 Amount Rounding Rule and Rounding Unit.....................................................................................443.2.2 Amount Format....................................................................................................................................453.2.3 Get Rate................................................................................................................................................463.2.4 Get Rate and Spread...........................................................................................................................483.2.5 Calculation of Exchange Rate based on Through Currency...........................................................483.2.6 Spot Rate..............................................................................................................................................503.2.7 History Rate.........................................................................................................................................503.2.8 Amount1 to Amount2 Conversion.....................................................................................................503.2.9 Amount to Rate....................................................................................................................................513.2.10 Forward Rate Computation................................................................................................................523.2.11 Last Rate Date.....................................................................................................................................543.2.12 Currency Purge...................................................................................................................................54

3.3 Illustrations................................................................................................................................ 553.3.1 Spread Calculations............................................................................................................................553.3.2 Spread Type Calculation & Calculation of Buy and Sell Rate.........................................................563.3.3 Spot Days.............................................................................................................................................573.3.4 Settlement Days..................................................................................................................................573.3.5 Number of Units...................................................................................................................................583.3.6 Currency Denominations....................................................................................................................58

4 User Interface......................................................................................................................59

5 Security................................................................................................................................59

6 Pending Issues....................................................................................................................59

7 Annexure..............................................................................................................................59

7.1 Annexure A: Requirements - Functions Matrix......................................................................597.2 Annexure B: Screen Layouts...................................................................................................597.3 Annexure C: Report Layouts....................................................................................................597.4 Annexure D: References...........................................................................................................60

1 Introduction

1.1 Background

Fusion FLEXCUBE is proposed to be a composed set of different modules for Treasury, Trade Finance, Foreign Exchange, Money Market, Fund Transfer etc. Each of these modules will be serviced by a set of sub-system such as Brokerage, Tax etc. The Core services will be the first set of services which is being built for Next Generation Product [NGP]. All the other modules will be built subsequently. Currency Service will be part of the Core Services.

This document specifies a set of business objects and related abstractions as a proposed standard to support international currency. It describes the objectives and business requirements for each object.

This document will be base-lined after completing the review by client, peers, experts and SQA. The review comments will be incorporated before the document is base-lined.

The audience for this document will be the development groups of ORACLE Fusion FLEXCUBE Universal Banking and SQA.

1.2 Organization of the Document

The first chapter of this document gives an introduction with brief background and organization of the document.

Chapter two onwards describe the functional specifications for various enhancements documented in the requirement specifications document. RS items to FS items mapping matrix can be found at end of the document.

1.3 Acronyms and Abbreviations

1.4 References

None

2 Overview of the Proposed System

2.1 Introduction

Oracle has now embarked on the development of a next generation product christened as Oracle’s Fusion FLEXCUBE, which will seek to integrate, some of the diverse functionalities of its existing suite of core banking system products. This next generation product is proposed to be built around a modular architecture, where each module would manage the functionalities required in the different business areas like Trade Finance, Retail Loans etc.

Oracle proposes to develop Fusion FLEXCUBE, with a plethora of common services to meet the needs of the various modules of this Next Generation Core Banking System.

5

FS Functional SpecificationsNGP Next Generation Product

The Currency Services in Oracle’s Fusion FLEXCUBE, is one such common service, which is to be used by these different modules, and will provide a variety of support functions to them. These Currency Services are proposed to be embedded in the Common services of the NGP Fusion FLEXCUBE.

Any System that will require currency related service for its operations will refer to the Currency Service.

This specification standardizes objects encompassing the concept of currency. This does not limit the specification to those abstractions, but extends to other abstractions necessary for comprehensive interfaces.

.

2.2 Scope of the System

The Currency Services will be part of the core service module of Oracle’s Fusion FLEXCUBE and will serve to record and retrieve the various currency related information. The Functional Specification will cover the understanding of various maintenances and services that are supported (or) required to be supported by a currency services. Wherever applicable, the Use Case diagram for the currency service has been provided for.

The following lists of static maintenance are required as a prerequisite to implement the currency service:-

Language Code Maintenance Country Code Maintenance Branch Code Maintenance

2.3 System Features

Oracle’s Fusion FLEXCUBE is bequeathed with a variety of unique and versatile features to meet the varying challenges of Oracle’s customers. The batten of some of these features, have been clearly laid out in the currency services which in turn, is embedded in its common services.

The currency services in common services have the following features for maintaining currency attributes for various purposes and modules of the core banking system.

The currency services system is also blessed with the standard audit trail and action functions, which enable a unique set of actions and a comprehensive audit tracking system.

These features have been organized into the following functions:-

Main Maintenances to record the various requirements for the servicesProcessing services detailing a list of available methods

2.4 System Functions

The main functions of the Currency Service System are to Maintain Currency and Exchange rate related information and provide Services to other system as and when required or called for. The high level use case diagram for the maintenance of Currency Services is as given below:

System

Admin

Currency

CurrencyCountryMapping

CurrencyRate

CurrencyRateType

<<uses>>

CurrencyPair

<<uses>>

CurrencyDenom

Forward Rates

<<uses>

HistoricalRates

<<uses>>

AmountText

uses

Fusion FLEXCUBE will be a multi-currency system. Transactions initiated through various product services and accounts will be in multiple currencies and the system will require a set of multi currency support services to define and handle multi-currency transactions and accounts.

The list of services being provided is as listed below:

Sr. No.

Name of the Service Description

Maintenance Services1 Currency Service to define Currency and maintain Currency

Information.2 Currency Pair Service to define currency pairs and basis

properties for the currency pair.3 Currency Rate Types Service to maintain different Rate Types4 Exchange Rate for Rate Types Service to maintain Mid-rates/ Buy Spread/ Sell

Spread/ Buy Rate/ Sell Rate by Currency Pair + Rate Type

5 Historical Rates Service to maintain Historical/back value dated rates for Rate Types

6 Forward Rates Service to maintain forward points for different currency pairs.

7 Amount Text Service to maintain verbal equivalent of numerals.8 Currency Denomination Service to define denomination for Currency9 Currency Branch Parameter Service to maintenance attributes of a currency

that will be specific to a branch.Processing Services

10 Amount Rounding Rule and Rounding unit

Service to perform rounding for a given amount and currency code/ Service to compute the rounding of amount based on the Rounding Rule logic

11 Amount Format Amount formatting as per number of decimal and format mask maintained for different currencies

12 Get Rate Service to derive currency rates based on various parameters

13 Get Rate and Spread Service to derive currency rates based on various parameters

14 Calculation of Exchange Rate based on Through Currency

Service to Compute exchange rate through a Third Currency

15 Spot Rate Service to derive Spot Rate16 History Rate Service to derive currency rates based on various

parameters17 Amount1 to Amount2

ConversionService to convert one amount to another based on the applicable exchange rates

18 Amount to Rate Service to derive exchange rate for a given amount and currency pair

19 Forward Rate Computation Service to compute the forward rate20 Last Rate Date Service to compute the latest rate date among two

currencies from the Currency Rate objects21 Currency Purge Service to purge the History rates beyond the

Currency purge days.

2.5 External Interface

The System can be linked to the external systems viz. Reuters/ Bloomberg etc for taking the rate feed from the external systems.

3 System Functions

3.1 Currency Maintenance Services

3.1.1 Maintenance of Currency Definition

3.1.1.1 Definition

The Currency Definition is used to define the static attributes of the currencies used in a bank. For each currency the user can define attributes like International Code for the Currency, Rounding Rule, Spot Days, and Interest Methods etc.

The Currency Definition will have both authorized and unauthorized records of the Currency Definitions.

3.1.1.2 Entity Level

This maintenance will be common across the bank and branches (Instance level).

3.1.1.3 Pre-requisite

As mentioned in 2.2 Scope of the System

3.1.1.4 Input/Validations – Approach

The description of the data elements of the Currency Definition Screen is as given below:

Sl No

Field Name

Field Type

Data Type

Length

Nature M /

O

Description Editable Validations

1 Currency Code

Text Item

Alpha numeric

3 M The currency will be identified by this code in all transactions that involve it. E.g. USD, GBP etc.

No Has to be unique and not blank

2 Currency Description

Text Item

Alpha numeric

105 M The User can enter the detailed name of the Currency. E.g. Canadian Dollar

No -

2a Currency Symbol

Text Item

Alpha numeric

1 O The symbol which is to be used for the currency

Yes -

3 Alternate Currency Code

Text Item

Alpha numeric

10 O Alternate Currency Code is used during interfacing with other Systems.

Yes

4 ISO Numeric Currency Code

Text Item

Alpha numeric

3 M Identifies the currency code specified by the International Standardization Organization

Yes This Currency code has to be unique

5 Country LOV Alpha numeric

2 M Identifies the country code identifier from country object. After the User identifies the currency, the User will have to indicate the country to which the currency belongs. The option will be given to the user to select a country code from the pick list available.

Yes Has to be a valid country code from the country definition table.

6 Decimals Text Item

Number 1 M Option for the User to indicate the number of decimal unit’s up to which the Currency can be denominated. The

No The decimal has to adhere to the rounding unit

number of decimals allowed for any amount in the currency can be: (a) ‘0’ – Currency with no decimals (b) ‘2’ – Currency with two decimals(c) ‘3’ – Currency with three decimals

specified.

7 Interest Method

List Item

Number 1 M The User should select the interest method that will be used by default whenever the currency is used in transactions. Values are - a) Actual/Actual b) 30(US)/360 c) 30(Euro)/360 d) Actual/360 e) 30(Euro)/365 f) 30(US)/365 g) Actual/365 h) 30(Euro)/Actual i) 30(US)/Actual.

Yes The field value should be from the selection list.

8 Spot Days Text Item

Number - M Identifies the Credit Value Date, Rate Date (for Value Dated) for Funds Transfer. The number of spot working days applicable for the currency. [Payment advices are generated number of spot days before the maturity date]. The number of spot working days applicable for the currency is specified here. Payment advises for FX and MM contracts will be generated on a date, which is calculated as the number of spot working days before the Maturity Date of the contract.

Yes The spot days will be of maximum length - 3

9 Rounding Rule

List Item

Alphanumeric

1 M The rounding rule refers to the method to be followed for rounding off fractional units of a currency. The options are: (a) Round Down - The amount is rounded down based on the number of decimals and the nearest rounding unit. (b) Round Near - The amount is rounded down

Yes The field value should be from the selection list.

or rounded up based on the number of decimals and the nearest rounding unit. ( c) Truncate - The amount is truncated to the number of decimals specified for the currency (d) Round Up - The amount is rounded up based on the number of decimals and the nearest rounding unit. Refer example 1 below.

10 Rounding Unit

Text Item

Number - M If the User has selected Round Up or Round Down in the Rounding Rule field, then the User need to indicate the nearest unit to which the rounding will take place. In case the option has been selected as truncate, then the Rounding Unit will not be applicable. Refer example in Processing Service

Yes The number of units specified here would not be greater than the number of decimals allowed for the currency.

11 Amount Format Mask

Radio Button

Alphanumeric

1 M The User can specify the format in which amounts in this currency are to be displayed for contracts in this currency. The values are Values are - 99,999,999,999 or 9999, 99, 99,999.The system would default to the 999,999,999 format.

Yes -

12 Weekly Holiday 1

List Item

Number 1 O Using this option the user can indicate the holiday in a week for the Currency. The user should be able to select the day for holiday from dropdown list. If user wants to set only one holiday in a week for the Currency, then the user will select the day for Weekly Holiday 1 and leave Weekly Holiday 2 Blank. If user wants to opt for two holidays in a week, then user will select the days for Weekly Holiday 1 &

Yes Has to be from the valid selection list.

Weekly Holiday 2. The values will be as follows:-

1 - Sunday 2 - Monday 3 - Tuesday 4 - Wednesday 5 - Thursday 6 - Friday 7 – Saturday

Whenever the weekly holidays are modified in the Currency Definition, the same has to updated in the Currency Calendar automatically.

13 Weekly Holiday 2

List Item

Number 1 O Same as above Yes Has to be from the valid selection list.

14 Generation of Payment Messages prior to Settlement days

Text Item

Number - M Identifies the number of working days prior to the settlement date, the pay messages need to be generated

Yes The will be of maximum length - 3

15 Generation of Receive Messages prior to Settlement days

Text Item

Number - M Identifies the number of working days prior to the settlement date, the receive messages need to be generated

Yes The will be of maximum length - 3

16 Source Text Item

Alpha numeric

20 O Identifies the source system if currency is uploaded from an external system

No -

17 User Reference No.

Text Item

Alpha numeric

20 O Identifies the source reference number if currency is uploaded from an external system

No -

Upload

An option to upload the currencies from the external system will be provided. The system will support the upload through auto batch as well as manual upload by users. There will be a separate screen defined for each of the upload option.

Apart from the fields defined in the currency definition, the following data elements will be additionally captured -

Sl No

Field Name

Field Type

Data Type

Length Nature M / O


18 Upload Status

Text Item

Alpha numeric

1 O Upon upload of the file this field identifies whether the upload status is Processed, Unprocessed or Error. Once the file is successfully uploaded, the records need to be updated in the Currency Definition Table. The type of the file to be supported for upload in the system shall be standard type of file across all the modules of Fusion FLEXCUBE.

No Will be populated by the system

19 Error Message

Text Item

Alpha numeric

255 O Identifies the error message encountered as part of upload. In the event of an error in one of the field in the file, the file would be uploaded and placed in the Unprocessed queue. The Pop error message would be displayed stating the error. The file would not be allowed to save unless the error in the field is corrected/ rectified. While the user views the record on the screen, the field would be marked with different color to convey the message that the field is having error.

No Will be populated by the system

Currency Country Mapping

There has to be a provision in the screen for Currency Country Mapping. The User can map a Currency Code to a Country. The currency-country mapping will have all the countries which could share the same currency. For example, the currency EUR could have the primary country as Germany and have Italy, Slovakia, and Netherlands as additional countries (in the currency country mapping) with same currency. These values are stored only for information purpose.

The description of the data elements of the Currency Country Mapping is as given below :

Sl No

Field Name

Field Type

Data Type

Length Nature M / O


1 Currency Code

Text Item

Alpha numeric

3 M The User would be able to select from the pick list the Currency Codes.

No In the User Interface , this will be shown commonly from the Currency Maintenance


Display Item

Alpha numeric

105 M The System would automatically populate the Currency Description from Currency Definition Screen. The field would only be a display field.

No -

3 Country Code

LOV Alpha numeric

2 O The User should be able to select from the pick list of the Country Codes.

Yes Has to be a valid country code from the Country Code definition Table

4 Country Description

Display Item

Alpha numeric

105 M Name of the Country. The system would automatically populate the Country Description from Country Code Maintenance Table. The field would be a display field.

No -

3.1.1.5 Use Case Diagram

Creating a New Record for Currency Maintenance

System

Admin/ Bank User

Login to CurrenyMaintenance-Currency

Definition Screen

Capture the details viz.CCY Code, CCY

Decimals, RoundingRule, Format mask,Interest Methods,

Currency Cut-off daysand Time Spot days

etc.

List of Action

NewCopyDeleteUnlockRe-openCloseSaveAuthorizeQuery

Select from theList of Actions

eg. New forcreating New

Record

Save the record ifall the MandatoryFields have been

captured

Map the Countryto the CurencyCode in the subscreen Currency

CountryMapping.

Uploading the Record

System

Admin/ Bank User


Definition Screen Click Upload.

List of Action


Click theUpload Button

and browse andselect the filethat needs tobe upload inthe system.

In case of anerror, the System

should displaythe details of theerror in the popup screen. If theuser press "ok",

the systemshould come out

withoutsaving/ uploading

the details.

If the file isuploaded

successfully, thesystem shouldgive the pop upmessage "File

uploadedSuccessfully".

Modifying the Record

System

User

User Login

Modify the requireddetails and check

for its correctness.List of Action


Go to the Currency View. Selectand open the record whcih

needs to be modifed and clik on'Unlock'. The record is now

ready for modification.

If the details arein order, Save the

record.

Authorize the Record.

System

Authorizer

Authorizer Login

Verify the detailsfor its correctness.

List of Action


Select'Authorize'

from the list ofAction andselect therecord to

Authorized

If the details arein order,

Authorize therecord. Else,

intimate the Userto modify the

record

3.1.1.6 Action Features

Sl No

Action/ Field Name

Description

1 Create The create action is used to create a new instance or record of a maintenance. A new maintenance screen with blank fields will be displayed to the user. If a record already exists then an error is displayed to the user.

2 Update The update action modifies or updates an existing instance or record of the maintenance. This mode will be applicable for an approved record. It will also be applicable for an unapproved record only if it is owned by the same user. The user who created the unapproved record alone can modify or update the unapproved record. Moreover, only certain attributes of a record can be changed after it has been recorded and authorized. These attributes are classified as "editable" in the various requirement tables given in this document.

3 Close The close action temporarily closes an existing instance or record of maintenance. Only an existing, approved and active record can be closed. A closed record cannot be used for business transactions. A record can be closed only if it is not linked to any other table.

4 Reopen The reopen action reopens a closed record or maintenance. A closed record which has been approved alone can be reopened. This action would reinstate a previously closed instance or maintenance.

5 Approve The approve action is used to either authorize or reject a record or maintenance. Approval of a record enables it to be visible for business transactions. It is required to be executed to create, update, close or re-open a record. In case of an approval for update action the modified fields will be displayed in a different color. An Approval would always increment the version of the record or maintenance by 1. For a create action alone, the approval will associate a version number to the record. The approve action

has to be performed before the End Of Day operations can begin. It can be carried out by a User known as the checker and different from the User (known as Maker) who has created, updated, closed or reopened the maintenance.

6 Fetch This action is used to query a record from database. The query condition is based on the values provided for the primary key fields. Summary screen would be used to query records for any other criterion. Query action results either in one record or no record since it is primary key based.

7 Delete This action is used to delete a record. A record can be deleted at any time prior to the authorization of the record. A record can be deleted only from the detailed view of the record. The deletion in this action is a hard delete. A deleted record cannot be recovered

8 Save As Draft

This action is used to save the record. The saved record needs to be authorized by an authorizer

9 Copy This action copies the details of the record on display onto a new record. The user has to query a record in order to copy. All the values except for primary key fields are retained in copy action.

These actions are a part of the common browser which the User will be able to access upon invoking each of the screens. A User is required to click on these icons in order to perform any of the above actions on all the Currency Services Maintenances.

3.1.1.7 Audit Trails

The following are the audit trail functions that appear at the bottom of each of the maintenance screens. These fields display the status of the record along with the latest details of the User and the Authorizer.

Sl No

Audit Parameter

Field Type

Data Type

Length Nature M/O


1 Maker ID Text Item

Alpha Numeric

12 M This field identifies the user who has created the new maintenance, or modified the existing maintenance or deleted an existing maintenance

No Populated by system

2 Maker Date & Time

Text Item

Date - M This field identifies the date and time the maintenance was raised. It will be updated for each new record created, modified or deleted by the User ID.


3 Checker ID Text Item

Alpha Numeric

12 M This field identifies the user who has authorized the data input. It will be updated for all authorizations for new


records, modified records and deleted records.

4 Checker Date & Time

Text Item

Date - M This field identifies the date and time the authorization has been effected


5 Version Number

Text Item

Numeric 4 M This field describes the current version of the operation/modification/ record. This number will increase with every change made to the record.


6 Record Status

Text Item

Alpha Numeric

1 M This Field will identify whether the Operation/Maintenance/record is active or closed. This Field will have two values [checkbox] (a) Active (b) Closed.


7 Authorization Status

Text Item

Alpha Numeric

1 M This Field identifies whether the operation/ Maintenance/record has been authorized or Unauthorized


8 Last Maintenance Action

Text Item

Alpha Numeric

1 M This field identifies the last action performed on the maintenance namely, Add, Modify, Delete, Close, Reopen & Authorize.


A detailed Audit Trail is maintained by the system on all the activities performed by the user from the moment of login. This audit trail lists all the functions invoked by the user, along with the date and time. The program reports the activities, beginning with the last one. It can be displayed or printed. The records can be optionally purged once a printout is taken.

Facility for the user/ administrator to enquire from the Front-end screen about various changes or activities carried out [viz. modify, add, delete, enquire etc.] based on various search criteria, for e.g. User Id, Branch code etc. In case of modifications the old values and the new values needs to be stored and would be displayed on the screen when the user enquires.

3.1.2 Maintenance of Currency Pair

3.1.2.1 Definition

In the foreign exchange markets, the exchange rates for some currency pairs such as the USD-GBP or USD-JPY are easily obtainable, since these are frequently traded. The exchange rates of other currencies such as the ZAR-INR (South African Rand - Indian Rupee), which is not traded very often, is determined through a third currency. This third currency is usually the Local Currency or US dollar, since the US dollar is quoted in all trading center. In the Currency pair

definition screen the User defines the static attributes of currency pairs for which a regular market quote is readily available. For other pairs, which do not have a regular market quote, the user also specifies the third currency through which the system would compute the exchange rate. Entity Level

Currency pair details can be maintained separately for each branch (Branch Level).

3.1.2.2 Pre-requisite Maintenance of Currency Definition


The description of the data elements of the Currency Pair Maintenance is as given below :

Sl No

Field Name

Field Type

Data Type Length Nature M / O


1 Bank Code Text Item

Alpha numeric

10 M This field identifies the Bank Code. The User should be able to select from the drop-down list the specific Bank Code.


2 Branch Code

Text Item

Alpha numeric

4 M This field identifies the Branch Code. The User should be able to select from the drop-down list either specific Branch or “ALL”. The default value would be “ALL”.


3 Currency1 Text Item

Alpha numeric

3 M Identifies the currency code 1 identifier from currency object

No The two currencies must be distinct. Has to be unique and not blank

4 Description Display Item

Alpha numeric

105 M The system would automatically populate the Currency Description from Currency Definition Screen. The field would only be a display field.

No -


Alpha numeric

3 M Identifies the currency code 2

No The two currencies

from currency object.

must be distinct. Has to be unique and not blank.If the user tries to create the existing Currency Pair, then the system would display an error message stating “Record already exists for Currency Pair XXX and XXX. This is applicable even for the creation of Inverse Records where original pair already exists.


Alpha numeric

105 M The system would automatically populate the Currency Description from Currency Definition Screen. The field would only be a display field. A currency pair (specified as Currency1 and Currency2, represents the two currencies for which the User need to maintain exchange rates.

No -

7 Through Currency

Check box

Alphanumeric 1 O If the exchange rate for a particular currency pair is not to be maintained, then

Yes If the User specifies the details of Through Currency

the User should specify the ‘Through Currency’ via which the exchange rate between the currencies would be calculated. A check box would be provided for the User to select the Through Currency. For example, in the case of GBP-NLG, for which a direct exchange rate may not be available, the User can define a through currency say, USD. The exchange rate between GBP-USD and NLG-USD would be picked up by the system to compute the exchange rate between GBP-NLG. In the absence of a direct exchange rate, the system will look for a through currency to compute the rate. If a ‘through currency’ has not been maintained then the System will through an exception. When a user defines Through Currency for a Currency Pair, then the User should not be allowed to define the (i) Spread Definition and (ii) Number of Units.

without checking the Check Box, then the system would display error message as “Through currency would be null if the through currency is unchecked”.

8 Through Currency Code

LOV Alpha numeric

3 O The User should be able to select the currency code

No Has to be a valid currency as

from the pick list, which the User wants to specify as the ‘through currency’. The exchange rate for the currencies involved in the pair will be calculated using the through currency.

in currency definition screen. This field is mandatory if through currency flag is checked.

9 Quotation Method

Radio Button

Alphanumeric 1 O This is the method to be followed for quoting the exchange rate. There are two methods direct and indirect. A radio button would be provided as an option for the User to Choose the Values between Direct and Indirect.For Direct, Buy Rate = mid rate - buy spread; Sell Rate = mid rate + sell spread CCY1 = Rate * CCY2 For Indirect, Buy Rate = mid rate + buy spread; Sell Rate = mid rate - sell spread CCY2 = Rate * CCY1. For e.g. The market follows the direct quote convention for the currency pair USD-CHF e.g., 1USD=1.082. To maintain this pair, the User should specify currency 1 as USD and currency 2 as CHF, and specify “direct” in this field. The Default value is Direct.

No For Direct Quotation none of the fields are modifiable

10 No. of Units

Radio Button

Number 1 O This indicates the number of units of

Yes Whenever, the user

currency to be used for currency conversion. The Values are (a) One (b) Hundred (c) Thousand. Refer example in the Processing Service.

define a through currency for a currency pair, then the user will not be allowed to specify the following for the pair: (a) Number of units (b) Spread definition

11 Spread Definition

Radio Button

Alpha numeric

1 O The User need to indicate the method in which the spread for a currency pair needs to be defined. The values for this field are (a) Points (b) percentage. The User would be provided with the radio button to select the option. Refer example.

Yes Whenever, the user define a through currency for a currency pair, then the user will not be allowed to specify the following for the pair: (a) Number of units (b) Spread definition

12 Points Multiplier

Text Item

Number - O Points are the smallest unit of measurement in the exchange rate of a currency pair. If the user has opted for a points system of defining spread, then the User should specify the multiplication factor for the points to compute effective spread.

Yes Applicable for spread definition in points only and through currency flat is No.

The points multiplier will be of length – 7 (with 6 decimal places). It should not be greater than 1 and less than 0

13 Source Text Item

Alpha numeric

35 O Identifies the source system if currency pair is uploaded from an external system

No -

An option to upload the data elements from the external system would be provided for this maintenance. The Upload Status would be similar to the format mentioned in 3.1.1.3 (point no. 18 & 19). There will be a separate screen defined for each of the upload option.

For all Currency pairs, the actual record and an offset/inverse record needs to be created in the processing table. For e.g. If the User sends the Currency Pair as USD/INR and the USD amount is 100. Then the System can calculate the INR amount as USD 100 x 45 = 4500. (Assuming USD/INR Rate is maintained as 45.00). However, if the User sends the Currency Pair as INR/USD and the INR amount as 4500. Then the system would use the exchange rate for USD/INR which is maintained as 45 and calculate the amount as INR 4500/45.00 = USD 100.

Alternatively, if the User sends the Currency Pair as INR/USD and USD amount as 100, then the calculation Formulae would be USD 100 * 45 = INR 4500.The advantage is that the User need not have to maintain separate pair for both USD/INR and INR/USD.


Create a New Record for Currency Pair.

System

Admin/ Bank User


Pair Screen

Capture the details viz.CCY1, CCY2, Through

CCY if applicable,Quotation, Units,

Spread definition etc.


eg. New forcreating NewCurrency Pair

Record


captured


The action features will be similar to the format mentioned in 3.1.1.6


The audit trail features will be similar to the format mentioned in 3.1.1.7

3.1.3 Maintenance of Currency Rate Type

3.1.3.1 Definition

This is the rate type for which the banks maintains exchange rate for the Currency pair. For different transaction categories, the bank would like to maintain different exchange rates. For e.g.

A Travelers’ cheque, is bought at a certain exchange rate whereas the bill of exchange is bought at different rates. The Currency Rate Type is maintained at Banks level by the Head Office branch.

3.1.3.2 Entity Level

This maintenance will be common across the bank and branches (Instance level).


None


The description about the data elements on the Currency Rate Type is as given below:

Sl No

Field Name

Field Type

Data Type

Length Nature M / O


1 Rate Type Text Item

Alpha numeri

c

10 M Identifies the description for currency rate type. This is the rate type for which the User will maintain exchange rates for a currency pair. For different transaction categories the bank would like to maintain different exchange rates. For example, traveler’s check is purchased at a certain rate whereas a bill of exchange is bought at a different rate. Example of Rate Type could be Cash, Bills, DD, and Standard etc. If the user tries to save the existing details as new record, then the system would display an error message stating “Record Already Exist” and it would not allow the user to save the message.

No It should be unique and not blank

2 Description Text Item

Alpha numeri

c

105 OIdentifies the description for Rate Type.

Yes -


Create a new record for Currency Rate Type.

System

Admin/ Bank User


Rate Type Screen

Capture the details viz.Rate Type and

Description



Currency RateType Record


captured





3.1.4 Maintenance of Exchange Rate for Rate Types

3.1.4.1 Definition

A bank determines its buy and sell rate for a currency pair by applying a spread (i.e., its profit margin) to the mid-rate of the currency pair. Mid rate is the basic rate at which a currency pair is exchanged. The spread applied for a currency pair varies with the transaction type, while the mid-rate usually remains constant. Consequently, different rates are applicable to different transaction types. In the Currency Exchange Rate maintenance, the User can define the mid-rate, buy and sell spread applicable to each rate type, the buy and sell exchange rate are computed by the system. The Exchange Rate for a currency pair means the bank can buy and sell one currency for another at an appropriate applicable rate.

3.1.4.2 Entity Level Currency exchange rate details can be maintained separately for each branch (Branch Level)


Maintenance for Currency Definition

Maintenance for Currency Pair Maintenance for Currency Rate Type


The description about the Maintenance on Currency Exchange Rate data elements is as given below:

Sl No

Field Name

Field Type

Data Type

Length Nature M / O


1 Bank Code

Text Item

Alpha numeric



1a Branch Text Item

Alpha numeric

4 M This field identifies the Branch Code. The user should be able to select from the drop-down list either specific Branch or “ALL”. The default value would be “ALL”.

No Has to be unique and not blank. In the User Interface, this will be shown commonly from the Branch Maintenance


Alpha numeric

3 M User would have the option of selecting the Currency from the List of Values which can be retrieved from Currency objects.

No Has to be unique and not blank. The two currencies must be distinct and must have been defined as a currency pair without use of through currency


Alpha numeric

3 M Upon selecting the Currency1, all the Currency2 pair with currency1 would get automatically displayed based on the Currency pair maintenance. User should have option to select from the drop down the appropriate currency pair for maintaining the Exchange rate. The user will be able to maintain

No Has to be unique and not blank. The two currencies must be distinct and must have been defined as a currency pair without use of through

rates only defined currency pair. For e.g. the Currency pair defined is USD-INR and the user is trying to input rates for INR-USD, the system will not allow and it would be thrown as exception.

currency

4 Source Text Item

Alpha numeric

35 O Identifies the source system if the Rates are uploaded from an external system.

No -

5 Rate Type LOV Alpha numeric

10 M Identifies the description for currency rate type. This is the rate type for which the User will maintain exchange rates for a currency pair. For different transaction categories the bank would like to maintain different exchange rates. For example, traveler’s check is purchased at a certain rate whereas a bill of exchange is bought at a different rate. Example of Rate Type could be Cash, Bills, DD, and Standard etc. The User should have the option to choose the Rate Type from the Pick list which would be retrieved from Rate Type table.

No Must be a valid Rate Type from the Rate Type Definition

6 Mid Rate Text Item

Number - M Mid rate is an indicative exchange rate for a currency pair. It is the average of the buy and sell rate quoted by the market for a currency pair. For e.g. USD/CHF Buy/Sell rate is 1.2080/90. Then the Mid Rate will be 1.2085.

Yes -

7 Buy Spread

Text Item

Number - O Identifies the buy spread. It is the profit margin specified over the mid rate when buying currency 1 for currency2. The User can define the buy spread in two ways -- either in points or in percentage. The system would compute the effective buy spread for the User.

Yes The Buy Spread cannot be negative.

8 Sell Text Number - O Identifies the sell spread. Yes The Sell

Spread Item It is the profit margin specified over the mid rate when selling currency 1 for currency2. The User can define the buy spread in two ways -- either in points or in percentage. The system would compute the effective buy spread for the User.

Spread cannot be negative.

9 Buy Rate Text Item

Number - M Buy rate is the rate of exchange for a currency pair, which would be computed by the system based upon the mid rate, the spread specified, the spread definition and the quotation method maintained in the ‘Currency definition’ screen. Alternatively, the User should be provided with the option of Inputting the Buy Rate, in which case, the buy spread would be computed by the system for the rate type.

Yes -

10 Sell Rate Text Item

Number - M Sell rate is the rate of exchange for a currency pair, which would be computed by the system based upon the mid rate, the spread specified, the spread definition and the quotation method maintained in the ‘Currency definition’ screen. Alternatively, the User should be provided with the option of Inputting the Sell Rate, in which case, the sell spread would be computed by the system for the rate type.

Yes -

11 Rate Date Non UI Field

Date - M When the User enters the exchange rate for a currency pair, the system would default the Rate Date as the Application Date.

No The rate date would always be less than or equal to the System date.

12 Rate Serial

Non UI Field

Number - M This will be a running serial number for the Rate Date. The entry will be validated for

No This will be a unique rate serial for a

uniqueness. For example, there could be only one exchange rate between USD and EUR for 31/07/2009 with Rate Type STANDARD with Rate Serial as 0001. Thus, this will be a unique rate serial for a currency pair, rate type combination for a given rate date. When the User enters the exchange rate for a currency pair, the system would default the Rate Date as the Application Date and the Rate Serial as the latest available serial for the currency pair + 1. The Rate Serial Number would be system generated. This number takes into account the Rate Serial Number present in the Currency Rates History screen too. The Rate Serial Number and the Rate Date would also be displayed during authorization of the Rate in the Currency Authorization screen.

currency pair, rate type combination for a given rate date.

An option to upload the data elements from the external system would be provided for this maintenance. There will be a separate screen defined for each of the upload option. The Upload Status would be similar to the format mentioned in 3.1.1.3 (point no. 18 & 19).

Maintenance of Historical Rates

For each currency pair, it would be possible to store all the exchange rates maintained for various historical dates. The data structure for the same would be similar to the exchange rates maintenance mentioned above.

On a daily basis, all the versions of exchange rates maintained for that date will be copied in the history maintenance.

There will be no maintenance for historical exchange rates from the front-end. The Users will only be able to view the historical exchange rates through a User Interface.


Create a New Record for Exchange Rate Maintenance.

System

Admin/ Bank User

Login to CurrenyMaintenance-CurrencyExchange Rate Screen

(a) Select the CurrencyPair (b) Select the RateType (c) The User can Input Mid Rate, Buy

Spread and Sell Spreadaand the system would

calculate the Buy and SellRate and the same shall

be displayed respectivelyunder Buy and Sell Rate

(d) Alternatively the usercan input the Buy and Sell

Rate and the Systemwould automatically

calcualte the Mid Rate,Buy and Sell Spread.



Currency RateType Record


captured

Uploading of the Exchange Rate

System

Admin/ Bank User

Login to CurrenyMaintenance-CurrencyExchange Rate Screen

If the file isuploaded

successfully, thenthe system shallgive the pop-upmessage stating

"The file isuploaded

successfully".

Click on uploadbutton and

browse the filethat needs to

be upload. ThenClick on upload

button.

In case the systemencounters with error,then the system shall

display the error on thepop-up message along

with a "ok" button.Once the user clicks onthe "OK" button, then

the system shouldcome out of the pop up

message withoutsaving the records.





3.1.5 Maintenance of Forward Rates

3.1.5.1 Definition

Forward Rates are derived based on the spot rate and forward premium/ discounts. The forward rates are required for applying exchange for future dated transactions and for revaluations of forward positions. The forward rates are maintained for multiple future periods on any date.

3.1.5.2 Entity Level Forward rate details can be maintained separately for each branch (Branch Level)


Maintenance of Currency Code Definition Maintenance of Currency Pair Definition


The description about the Maintenance on Forward Rate data elements is as given below:

Sl No

Field Name

Field Type

Data Type

Length Nature M / O



Alpha numeric



1a Branch Code/ Name

Text Item

Alpha numeric

4 M This field identifies the Branch Code. The user would be able to select from the drop-down list either specific Branch or “ALL”. The default value would be “ALL”. Upon selection of the Branch code, the name of the Branch would automatically get displayed.

No This has to be a valid branch from branch definition.


Alpha numeric


No This has to be a valid currency from the currency definition. Both the Currency1 and Currency2 should be distinct.

3 Description Displa Alpha 105 M The System would No -

y Item numeric automatically populate the Currency Description from Currency Definition Screen. The field would only be a display field.


Alpha numeric


No This has to be a valid currency from the currency definition. Both the Currency1 and Currency2 should be distinct.


Alpha numeric

105 M The System would automatically populate the Currency Description from Currency Definition Screen. The field would only be a display field. A currency pair (specified as Currency1 and Currency2, represents the two currencies for which the User need to maintain exchange rates.

No -

6 Base Date Display Item

Date - M This is a display field. When the User enters the exchange rate for a currency pair, the system would default the Rate Date as the Application Date.

No The rate date would always be less than or equal to the application date.

7 Spot Rate Display Item

Number - - This would be the display field. The Standard Mid-rate from the Currency Exchange Rate would be picked up for display. Based on the Spot Rate and Premium/Discounts, the rates for the forward period will be calculated.

No -

8 Period Text Item

Number 5 M

Identifies the maximum period for forward rate computation

No No Decimals allowed. Will be a multi record structure

9 Premium/ Text Number MProvision for the user to

Yes will be a

Discount Points

Item enter the premium or discount points for forward rate computation. Positive and Negative values would be allowed. Positive Value means Premium and Negative value means discount.

multi record structure

10 Final Rate Display Item

Number - M This field would automatically calculate the Forward Rate based on the Premium/Discount plus the Spot Rate for the Currency Pairs. This would be the display field.

No -

11 Rate Date Display Item

Date - M When the User enters the exchange rate for a Forward rate, the system should default the Rate Date as the Application Date.

No The rate date should always be less than or equal to the application date.

12 Rate Serial Display Item

Number 3 M This will be a running serial number for the Rate Date. When the User enters the Premium/Discounts for a currency pair, the system will default the Rate Date as the Application Date and the Rate Serial as the latest available serial for the currency pair + 1. The Rate Serial Number will be system generated.

No The entry will be validated for uniqueness.

An option to upload the data elements from the external system would be provided for this maintenance. The Upload Status would be similar to the format mentioned in 3.1.1.3 (point no. 18 & 19).

Maintenance of Historical Forward Rates

For each currency pair, it would be possible to store all the forward exchange rates and currency premium/ discounts maintained for various historical dates. The data structure for the same would be similar to the forward rates maintenance mentioned above.

On a daily basis, all the versions of forward rates maintained for that date will be copied in the history maintenance.

There will be no maintenance for historical forward rates from the front-end. The Users will only be able to view the historical forward rates through a User Interface.


Maintain forward points and periods, for the purpose of calculating, the forward exchange rate.

System

Admin/ Bank User

Login to CurrenyMaintenance-CurrencyForward Rate Screen

(a) Select the CurrencyPair for which the Forward

Rates needs to bemaintained.(b) The SpotRate from the ExchangeRate will be displayedalong with the Base

Date.(c) The User can addthe period and points for

which Forward Rate needsto be

maintained/ Computed.



CurrencyForward Rate

Record


captured





3.1.6 Maintenance of Amount Text

3.1.6.1 Definition

The user can describe the amounts printed on account statements, messages, advices, etc., in words, for the benefit of the Bank customers. To describe ‘amounts’ in a specific language, the User have to maintain the verbal equivalents of numerals in the language. The User can maintain verbal equivalents of numerals in the ‘Amount Text Maintenance’ screen. Amount Text in Arabic’s will also to be supported.

3.1.6.2 Entity Level This maintenance will be common across the bank and branches (Instance level).


Maintenance of Language Code


The description about the Maintenance on Amount Text data elements is as given below:

Sl No

Field Name

Field Type

Data Type Length

Nature M / O


1 Language Code

LOV Alpha numeric

4 M The User would be able to select the Language code and Locale from the Language Code definition. This means that the User can maintain the verbal equivalents of numerals in different combinations of language and locales.

No Has to be a valid language code from Language Definition.


Alpha numeric

105 M Based on the Language code, the descriptions would be automatically displayed.

No -

4 Amount Text Item

Number - M Provision to Input the Amount for e.g. 1, 100, 1000 etc. In the description column below the User should type the text such as One, Hundred, Thousand etc.

No This cannot be in negative and should be greater than ‘ 0’. The Maximum length will be (22)


Alpha numeric

50 M There will be an option for the User to describe the numerals in the Description field (in the language that User specifies in the Language field.

Yes -

6 Prefix one Check box

Alphanumeric 1 O The Check box would be provided for the User to choose, if the User would like amounts such as ‘1000’ described as ‘One thousand’.

Yes -

8 Currency LOV Alphanumeric 3 M The User should be able to select the currency from the List of values.

No Valid currency code from currency definition

9 Pre Decimal

Text Item

Alpha numeric

50 O The User can describe the pre-

Yes -

decimal and the post-decimal units of a currency in different languages. The User will enter the verbal equivalent of the ‘pre’ and ‘post’ decimal units of a currency in the Pre-Decimal and Post-Decimal fields respectively. For e.g. The User can enter the Pre Decimal as “Dollars”.

10 Post Decimal

Text Item

Alpha numeric

50 O Refer point no. 9. For e.g. The User can enter the Post decimal as “Cents”.

Yes -

11 Final Text Text Item

Alpha numeric

50 O The User should specify the Final Text to be attached to the currency. For e.g. “Only”.

Yes -

12 Text Before

Check box

Alphanumeric 1 O The User can opt to prefix, or suffix, an amount with its currency. If the User would like the suffix an amount with its currency, then the User should not choose the ‘Text Before’ option. If User would like to prefix an amount with its currency, then User should choose the ‘Text Before’ option.For example, if User would like to describe USD 1000, as Dollars One Thousand, then User should choose the ‘Text Before’ option.

Yes -

13 Fraction Check box

Alphanumeric 1 O Indicate the use of Fraction

Yes -

14 Text Between

Text Item

Alphanumeric 10 O The user can opt to enter a text between amounts

Yes -





3.1.7 Maintenance of Currency Denomination

3.1.7.1 Definition

In the ‘Currency Denomination’ screen, the User can maintain the standard currency denominations for each currency that the bank deals with. This is required to specify the break-up of a transaction amount by denominations.

3.1.7.2 Entity Level This maintenance will be common across the bank and branches (Instance level).


Maintenance of Currency Definition


The description about the Maintenance on Currency Denomination data elements is as given below:

Sl No

Field Name Field Type

Data Type

Length Nature M / O


1 Currency Code

LOV Alpha numeric

3 M Identifies the currency code 1 identifier from currency object. The User should be able to select the Currency code from the LOV. The code of the currency for which the User is defining denominations

No Valid currency code from the currency definition


Display Item

Alpha numeric


No -

4 Denomination Text Alpha 10 M A unique code to No -

Code Item numeric identify each denomination of the currency. For example, the User can assign D1, D10, and D50 for USD 1, 10, 50.


Alpha numeric

105 M This field would contain the description of the denomination unit.

Yes -

6 Value Text Item

Number - M The value of the denomination in relation to one unit of the currency. It could be a fraction for coins. For e.g. If the description is mentioned as 100 Euro, 50 Euro, 1 Euro, 50 Cents, 10 Cents, then the value could be 100, 50, 1, 0.5, 0.10 etc. Refer example below the table. It would be a positive value.

Yes The Number cannot be in negative. The maximum length will be (22,3)

7 Sequence No.

Text Item

Number - M This field contains the Serial No. for each denomination code which would be input by the User.

Yes The number cannot be in negative. The maximum length will be of 3.

8 Type Check Box

Alpha numeric

1 M This field identifies the type of the denomination. The values are Note and Coin.

Yes -





3.1.8 Currency Branch Parameter Maintenance

3.1.8.1 Definition

The Currency branch parameter maintenance will have the attributes of a currency that will be specific to a branch.

3.1.8.2 Entity Level Currency branch details can be maintained separately for each branch (Branch Level).


Maintenance of Currency Definition


Sl No

Field Name

Field Type

Data Type

Length Nature M / O



Alpha numeric



1a Branch Code/ Name

Text Item

Alpha numeric

4 M The User would have an option to choose the Branch Code from the pick list. Upon selection of the Branch code, the name of the Branch would automatically get displayed.

No This will be defaulted to current branch.


Alpha numeric


No This will be a valid currency from the currency definition.


Alpha numeric


No -

4 Spot Days Text Item

Number - O Identifies the Credit Value Date, Rate Date (for Value Dated) for Funds Transfer. The number of spot working days applicable for the currency. [Payment advices are generated number of spot days before the maturity date]. The number of spot working days applicable for the

Yes It has to be of maximum length - 3It should not be an negative Number

currency is specified here. Payment advises for FX and MM contracts will be generated on a date, which is calculated as the number of spot working days before the Maturity Date of the contract.

5 Generation of Payment Messages prior to Settlement days

Text Item

Number - O Identifies the number of working days prior to the settlement date, the pay messages need to be generated

Yes It has to be of maximum length - 3

It should not be an negative Number

6 Generation of Receive Messages prior to Settlement days

Text Item

Number - O Identifies the number of working days prior to the settlement date, the receive messages need to be generated

Yes It has to be of maximum length - 3

It should not be an negative Number





3.2 Currency Processing Services

The high level diagram on the Processing Service is as given below:

System

CurrencyCurrencyCountry

Mapping

Currency Rate(Manual and

Upload)

CurrencyRateType

Currrency Service

CurrencyPair

External System

Retreive Ccy Date

<<include>>

Retrieve Ccy Rate

Amt2Amt Convert

ComputeAmountToRate

ComputeSpotRate

AmountRound

Amount Format

ComputeForwardRate

Purge Rate History

Retrieve Rate&Spread

<<include>>

<<include>>

<<include>>

ComputeHistorical Rate

<<include>>

LastRateDate

<<include>>

Retrieve Rate ThruCCy

<<include>>

<<include>>

<<include>>

<<include>>

<<include>>

<<include>>

<<include>>

Amount WordText

Currency UtilBranch Parameter

<<include>>

<<include>>

<<uses>>

<<uses>>

<<uses>>

CurrencyCuttoff

CurrencyDenom

Forward Rates

HistoricalRates

UploadService

Currency Upload

CurrencyPairUpload

Forward RateUpload

Currency RatesUpload

<<include>>

<<include>>

<<include>>

<<include>>

Currency CutOff<<include>>

AmountText

Currency BranchParameters

<<include>>

Currency RatePropogation

<<include>>

3.2.1 Amount Rounding Rule and Rounding Unit

Illustration on Rounding Rule and Rounding Unit

Original Amount

Rounding Method

No. of Decimals

Rounding Unit

Final Amount

1234.678 Truncate 2 Nil 1234.671234.678 Round up to

the nearest Rounding Unit

2 0.05 1234.70

1234.678 Round down to the nearest Rounding Unit

2 0.05 1234.65

1234.678 Round Near 2 0.01 1234.68

Sr. No. 1(a)

Function Amount RoundInput Parameter

Currency Code and Amount

Description

The service would round the amount by applying the Rounding Method, Rounding Unit and decimals maintained for the Currency Code.

Diagram Use case diagram on Amount Rounding Rule and Rounding Unit

Sr. No. 1(b)Function RoundingInput Parameter

Amount and Rounding unit

Description

The service would round the amount by applying the Rounding unit and for the decimal and Rounding Method it would call Amount Round service.

Diagram Use case diagram on Amount Rounding Rule and Rounding Unit

Use case diagram on Amount Rounding Rule and Rounding Unit

System

Amount Round

USD 1234.678

Chk in CCYDefination Table(a) The RoundingMethod (b)No. of

Decimals (c)Rounding Unit

and the RoundingMethod is Round

Near and theRounding Unit is0.01, the amountwill be rounded to

1234.68

and theRoundingMethod is

Round Downand the

Rounding Unit is0.05, the

amount will berounded to

1234.65

and the RoundingMethod is Round Upand the Roundingunit is 0.05, theamount will be

rounded to 1234.70

and the RoundingMethod is Truncate,the amount will be

rounded to 1234.67.The Rounding Unit isnot relevant for this

method.

If the No. ofDecimal is 2

3.2.2 Amount Format

Sr. No. 1Function Amount FormatInput Parameter

Currency Code and Amount

Description

1) The System would check the No. of Decimals and Amount Mask from the Currency Definition Table.

2) If the amount mask is 9999,99,99,99,999 and a. If the decimal is “0”, then the Amount Format will be

9999,99,99,999b. If the decimal is “2”, then the Amount Format will be

9999,99,99,999.99c. If the decimal is “3”, then the Amount Format will be

9999,99,99,999,9993) IF the amount mask is 99,999,999,999 and

a. If the decimal is “0”, then the Amount Format will be 99,999,999,999

b. If the decimal is “2”, then the Amount Format will be

99,999,999,999.99c. If the decimal is “3”, then the Amount Format will be

99,999,999,999.999 Diagram Use Case Diagram on Amount Format.

System

AmountFormat

InputParameter -CCY Code,Amount

Check in the CurrencyDefination Table, the No.of Decimals and Amount

Format Mask

If the AmountFormat Mask is99,999,999,999

and

If the AmountFormat Mask is99,999,999,999

and

(a) if the decimal is "O", thenAmount Format is 9999, 99, 99,999

(b) if the decimal is "2", thenAmount Format is 9999, 99, 99,999

.99 (c) if the decimal is "3", thenAmount Format is 9999, 99, 99,999

.999

(a) if the decimal is "O", thenAmount Format is 9999, 99, 99,999

(b) if the decimal is "2", thenAmount Format is 9999, 99, 99,999

.99 (c) if the decimal is "3", thenAmount Format is 9999, 99, 99,999

.999

3.2.3 Get Rate

Sr. No. 1(a)Function Get Rates Input Parameter

Branch Date, Currency Pair, Rate Type(default is STANDARD), Rate Indicator (default is MID), Rate Date, Branch Date

Description

The System would check if the Rate Date = “Null”, then default Rate Date = Branch Date, if Rate Type = “Null”, then default Rate Type is STANDARD and if Rate Indicator is “Null”, then default Rate Indicator is “Mid Rate”.

(a) If the Rate Date is greater than Branch Date, then Forward rate needs to be calculated based on Forward Rate calculation logic.

(b) If the Rate Date is less than the Branch Date, then the rate needs to be picked up from the History Table

(c) Else, the Spot Rate needs to be returned to the Calling SystemDiagram Use Case Diagram on Get Rate1.

System

Get Rate1

Input Parameter(a) Branch Code (b)

CCY1 (c) CCY2(d)Rate Type (e)Rate Indicator (f)Branch Date (g)

Rate Date

(b) IfCCY1=CCY2,then Rate =

"1"

if Rate Date is greater than Branch Date,then Calculate Forward Rate through

Forward Rate Logic, Else

If Rate Date is less than the BranchDate, then get the Rate from the

History, Else

Return Spot Date

If Currency1 = "Null" orCurrency2 = "Null" orBranch Date = "Null",

then display errormessage.

If Rate Date = "Null",then Rate Date =

Branch Date. If RateType is "Null", then

Rate Type isSTANDARD. If Rate

Indicator is "Null", thenRate Indicator is Mid

Rate.

Sr. No. 1(b)Function Get Rates Input Parameter

Currency Pair, Rate Type(default is STANDARD), Rate Indicator (default is MID)

Description

This function is similar to Function 1(a) except the Date parameter is not given. In such case the Branch Date and Rate Date to be considered as the Current Date and the Rate needs to be returned based on Rate Type and Rate Indicator. If the Rate Type and Rate Indicator is “Null” then Standard Mid Rate needs to be Returned for the Current Date. If the rate is not available then the Error message needs to be displayed.

Diagram Not Applicable

Sr. No. 1(c)Function Get Rates Input Parameter

Branch Date, Currency Pair, Rate Date, Branch Date

Description

This function is similar to Function 1(a) except the Rate Type and Rate Indicator is not given. If the Rate Type and Rate Indicator is “Null” then the system would take

(i) Rate Type = default Rate Type “Standard” and (ii) Rate Indicator = default Indicator “Mid Rate”

Based on the above parameters, the system would return the rate as Standard Mid Rate for the applicable date.


Sr. No. 1(d)Function Get Rates Input Parameter

Currency Pair, Branch Code

Description

This function is similar to Function 1(a) except Rate Date, Branch Date, Rate Type and Rate Indicator parameters are not given.

(i) the Branch Date and Rate Date to be considered as the Current Date(ii) Rate Type = default Rate Type “Standard” and(iii) Rate Indicator = default Indicator “Mid Rate”

Based on the above parameters, the system would return the rate as Standard Mid Rate for the current date for the applicable currency.

Diagram Use Case Diagram on Get Rate 4

System

Get Rate1

Input Parameter(a) Branch Code (b)

CCY1 (c) CCY2

If Rate Date = "Null", then RateDate = Branch Date. If Branch Date

= "Null", then Branch Date =Currenct Application Date, If RateType is "Null", then Rate Type isSTANDARD. If Rate Indicator is

"Null", then Rate Indicator is MidRate.

(b) If CCY1=CCY2, then Rate ="1"

if Rate Date is greater than Branch Date,then Calculate Forward Rate through

Forward Rate Logic, Else

<<include>>

If Rate Date is less than the BranchDate, then get the Rate from the

History, Else

Return Spot Date

3.2.4 Get Rate and Spread

Sr. No.Function Get Rate and SpreadInput Parameter

Branch, Currency Pair, Rate Type and Rate Indicator

Description

a) Invoke the Get Rate function to derive the buy/sell rate (explained in Get Rate)

b) For Mid type rate, the Spread will be “0”c) Invoke the Get Rate function to derive the Mid Rate (by changing the Rate

Indicator to “M”)d) Compute the spread from the derived buy/sell rate and mid-rate. e) Spread = ABS(Buy/Sell Rate – Mid Rate)


3.2.5 Calculation of Exchange Rate based on Through Currency

Forex rates are available in the market based on market demand and supply. Hence exchange rates will be freely available only for actively traded currencies. In the forex market, USD is the most actively traded currency, followed by British Pounds, Japanese Yen…. Now if a customer asks for a Forex rate between two currencies, which are not actively traded, then the bank may not be in a position to give the rate. In this case the bank will look for the exchange rates of these two currencies in relation to a common currency to compute the exchange rate for the customer. Here the common currency is called the “Through currency”.

Example

Suppose, for the currency pair (DEM/INR), a quote, is not available. For this pair, a Through Currency – USD – is used. When a transaction is entered involving this currency pair, the

exchange rate between DEM/USD and INR/USD is taken to arrive at the exchange rate between DEM/INR. Suppose you are given the following bid/ask quotations for two foreign currencies against the domestic currency, the U.S. dollar:

Bid Asked€ / $ 0.9002 0.9023¥ / $ 109.38 109.40

we want to calculate what the ¥ / € bid and ask quotations will be.

Answer: The ¥ / € bid price will be the number of yen the dealer is willing to pay in order to buy one euro. This transaction would be the equivalent of selling yen to purchase dollars (at the bid rate of 109.38), and simultaneously reselling the dollars to purchase Euros (at the ask rate of 0.9023). The bid ¥ / € would be calculated as 109.38/0.9023 = 121.22.

The ¥ / € ask price would be the number of yen the dealer wants to receive in exchange for selling one euro. This transaction would be the equivalent of buying yen with dollars (at the 109.40 ask rate) and at the same time buying those dollars with Euros, at the 0.9002 bid rate. The transaction could be expressed mathematically as:

Ask ¥ / € = 109.40 / 0.9002 = 121.53

so the resulting dealer quotation would be:

¥ / € = 121.22 – 121.53

Example 2 USD EUR JPY GBP CHF CAD AUD HKD

HKD 7.75 11.0185 0.08212.72

4 7.2545 7.0082 6.3088 1

AUD 1.2284 1.7465 0.0132.016

9 1.1499 1.1109 1 0.159

CAD 1.1058 1.5722 0.0121.815

7 1.0351 1 0.9002 0.143CHF 1.0683 1.5188 0.011 1.754 1 0.966 0.8696 0.138GBP 0.6091 0.8659 0.007 1 0.5701 0.5508 0.4958 0.079

JPY 94.248 133.996 1154.7

4 88.2224 85.2267 76.722 12.16

EUR 0.7034 1 0.0081.154

8 0.6584 0.636 0.5726 0.091

USD 1 1.4217 0.0111.641

9 0.9361 0.9043 0.814 0.129

Case 1 Case 2

a usd/cad 1.1058 a chf/usd

0.9361

b usd/chf 1.0683 b chf/cad

1.0351

b/a cad/chf 0.9661 b/a usd/cad

1.1058

a/b chf/cad 1.0351 a/b cad/usd

0.9044

Case 3 Case 4

a usd/cad 1.1058 a eur/hkd

11.0185

b chf/usd 0.9361 b eur/chf

1.5188

1/(a*b) cad/chf 0.9661 b/a hkd/chf

0.1378

a*b chf/cad 1.0351 a/b chf/hkd

7.2547

Case 5 Case 6

a cad/usd 0.9043 a gbp/aud

2.0169

b usd/chf 1.0683 b aud/jpy

76.7216

a*b cad/chf 0.9661 a*b gbp/jpy

154.7398

1/(a*b) chf/cad 1.0351 1/(a*b) jpy/gbp

0.0065

3.2.6 Spot Rate

Sr. No.Function Spot RateInput Parameter

Branch Date, Currency Pair, Rate Type, Rate Indicator

Description

a) Invoke the Get Rate Function to derive the buy or sell or mid rate. (Explained in Get Rate) from the Currency Rate Table


3.2.7 History Rate

Sr. No.Function History RateInput Parameter

Branch Date, Currency Pair, Rate Type, Rate Indicator and Rate Date

Description

a) Invoke the Get Rate Function to derive the historical buy or sell or mid rate. (Explained in Get Rate).


3.2.8 Amount1 to Amount2 Conversion

a) Try Getting the Rate for the Specified Pair Directlyb) If not fount try getting the relationship from the Currency Pair Tablec) If no Through Currency available for the pair, then give exception.d) If Through Currency is available then try CCY1 + Through CCY/Through CCY + CCY2e) The example is given in point no. 3.2.5

3.2.9 Amount to Rate

Sr. No.Function Amount to RateInput Parameter

Currency Pair, Amount1 and Amount2

Description

a) Retrieve Pair Quotation Method and Offset Record from Currency Pair Table.

b) If Pair Quotation Method is “Direct” and Offset Record = “N” or If Pair Quotation Method is “Indirect” and Offset Record = “Y” then, Rate = (Amount2/Amount1) * (Power (10, Number of Units). Else,

c) If Pair Quotation Method is “Direct” and Offset Record = “Y” or If Pair Quotation method is “Indirect” and Offset Record = “N” then, Rate = (Amount1/Amount2) *(Power (10, Number of Units.

Diagram Use case on Amount to Rate

System

Amount to Rate

Input :- CCY Amount1 andCCY Amount

2

RetrieveCurrency Pair,

QuotationMethod and

Offset Record andNo. of Units from

Currency PairTable

If Pair Quotation Methodis “Direct” and OffsetRecord = “N” or If PairQuotation Method is“Indirect” and Offset

Record = “Y” then, Rate =(Amount2/ Amount1) .

Else,

If Pair QuotationMethod is “Direct” andOffset Record = “Y” or

If Pair Quotationmethod is “Indirect”and Offset Record =

“N” then, Rate =(Amount1/ Amount2)

3.2.10 Forward Rate Computation

Points

The forward rates for a currency pair would be maintained in the form of premium or discount points vis-à-vis the spot rate for the currency pair.

In the ‘Points’ column, the user must specify the forward rate for the period that user specified in the previous column (for the currency pair).

Example

The local currency at Royal Services Bank Ltd. is Deutsche Mark (DEM). The bank deals with Great Britain Pound (GBP), US Dollars (USD) and Italian Lira (LIT). The Spot Rate between USD and DEM is 1.8 where 1.8 DEM = 1 USD. Against this Spot Rate, the forward rates would be as follows:

Period Exchange Rate10 days + 0.0130 days + 0.0290 days + 0.05

To maintain these rates, you would do the following:

Enter USD as the CCY. Enter a Base Date.Enter the Spot Rate between DEM and USD as 1.8. In the Period and Exchange Rate columns, enter the information exactly as in the Table.

For all contracts with a Maturity Date that is later than the Base Date, the exchange rate variance specified by the user will be picked up for revaluation for contracts revalued.The variance the user specifies will be applied on the Spot Rate to arrive at the Forward Rate, depending on the quotation method for the currency. The following table summarizes the method of application:

Direct quotation Indirect quotationPremium Add to the Spot Rate Subtract from the Spot RateDiscount Subtract from the Spot Rate Add to the Spot Rate

Example

Forward Rate MaintenanceCurrency 1 GBP GBP GBP GBP Currency 2 USD EUR INR EUR Spot Rate 75 1.162 80 1.1623 Base Date 12-Aug-09

Period PointsFinal Rate Period Points

Final Rate Period Points

Final

Rate Period PointsFinal Rate

15 0.1 75.1 15 0.0011.1633 15 1 81 15 -0.001 1.1613

25 0.15675.156 25 0.002

1.1643 25 1.5 81.5 25 -0.002 1.1603

30 0.17575.175 30 0.003

1.1653 30 3.6 83.6 30 -0.003 1.1593

60 0.2 75.2 60 0.0051.1673 60 4.5 84.5 60 -0.005 1.1573

90 0.22275.222 90 0.015

1.1773 90 6 86 90 -0.015 1.1473

120 0.3 75.3 120 0.0551.2173 120 8 88 120 -0.055 1.1073

180 0.18875.188 180 0.1

1.2623 180 9 89 180 -0.100 1.0623

Input Greater than

Period exists

Period exists

Period exists in the

Period exists

Period exists

Max Period

in the Forward Rate Table

in the Forward Rate Table (Broken Period)

Forward Rate Table (Broken Period)



Branch Code Branch Date

12-Aug-09

12-Aug-09

12-Aug-09 12-Aug-09

12-Aug-09

12-Aug-09

Rate Date 12-Feb-10

11-Sep-09

3-Sep-09 3-Dec-09

18-Aug-09

7-Dec-09

CCY1 GBP GBP GBP GBP GBP GBPCCY2 EUR EUR EUR EUR EUR EUR

CalculationStep 1 Get the Standard

Mid Rate

1.1623 1.1623 1.1623 80 80 1.1623Step 2 Max Period for

CCY Pair 180 180 180 180 180 180Step 3 Diff Period ( Diff

of Rate date and Branch Date)

184 30 22 113 6 117Step 4 Final Rate [Step2

-Step1] 1.2623 1.1653 Step 5 Prev Period1 15 90 0 90 Prev Points 0.001 6 0 -0.015Step 6 Post Period 25 120 15 120 Post Points 0.002 8 1 -0.055Step 7 Calculate

Premium/Discount. The formulae is Prev points + (((Post points-Prev points)*(Period -Prev period))/(Post period - Prev period))

0.00177.533333333 0.4 -0.051

Step 8

Final Rate [Step1 +Step7]

1.16400 87.53 80.40 1.1113

3.2.11 Last Rate Date

Sr. No. 1Function Last Rate Date Input Parameter

Branch, Currency Pair

Description

This function would compute the latest rate date (maintenance) among the two currencies from the Currency Rates object.

Diagram N.A.

3.2.12 Currency Purge

This function shall purge the history rates from the tables based on the purge days defined for Currency Module in purge maintenance. The current scope is to handle the processing of currency purge only. The maintenance of purge parameters for all modules will be generic and will be defined later as part of purge service

Generally, this function will be triggered as part of the end of day batch, to purge all the history rates less than the purge date (which will be derived based on the currency purge days).

Sr. No. 1Function Currency Purge Input Parameter

Branch, Currency Pair, Rate Type

Description

This function would purge the currency rates history for a currency pair and rate type. This function would delete those currency records for which the number of days between the current system date and rate date exceeds the currency purge days.

Diagram N.A.

3.3 Illustrations

3.3.1 Spread Calculations

Illustration on Spread Calculation and Points Multiplier

Let’s examine the impact of each of these spread definition methods on the currency pair USD: DEM.Mid rate = 1.6040 Spread = 10

In points the buy rate and sell rate would be calculated as:

Buy rate = Mid rate - spread x points multiplierSell rate = Mid rate + spread x points multiplier

If points multiplier = .0001 thenBuy rate would be = 1.6040 - 10 x .0001

Sell rate would be = 1.6040 + 10 x .0001

In percentage the buy rate would be calculated as:

Buy rate = Mid rate - spread /100 x mid rateSell rate = Mid rate + spread / 100 x mid rate

Buy rate would be = 1.6040 - 10/100 x 1.6040Sell rate would be = 1.6040 + 10/100 x 1.6040

The default-spread definition is through the point’s method.The method of spread definition that User specifies here applies to two instances:

(a) While maintaining exchange rates for this currency pair(b) While maintaining Customer Spread for this currency pair

Clarification on the point’s multiplier.

Suppose for the currency pair USD-CHF the rates are as follows:Mid-Rate: 1.6045Buy rate: 1.6040Sell rate: 1.6051

The effective buy spread is 0.0005 (1.6045 - 1.6040) and the effective sell spread is 0.0006 (1.6051 - 1.6045).

In the Rates screen, when the User define rates and spreads for a currency pair, the User can specify the buy and sell spreads as 5 and 6 instead of as 0.0005 and 0.0006 (i.e., as spread points), and specify here the points multiplier as 0.0001.

The effective spread, buy and sell rates are then computed as follows:

Effective buy spread = Buy spread x Points multiplier = 5 x 0.0001 = 0.0005Buy rate = Mid rate - Buy spread = 1.6045 – 0.0005 = 1.6040

Use case Diagram on Calculation of Buy Rate

System

Calculation ofBuy Rate

Input:CurrencyPair, Mid

Rate, RateType

Check in the CCY Pairwhether the SpreadDefinition is in Points

or Percentage

If the Spreaddefinition is inPercentage,

then BuyRate =Mid

Rate -(Spread/ 100*

Mid Rate)

If the Spreaddefinition is inPercentage,

then BuyRate =Mid

Rate -(Spread/ 100*

Mid Rate)

3.3.2 Spread Type Calculation & Calculation of Buy and Sell Rate

The options are: Percentage - The Buy/Sale spread value Currency Rates Maintenance option is taken as Percentage of Mid rate and subtracted/added to the Mid rate to get the Buy/Sale Rate. Example: If in Currency Rate Maintenance screen the Midrate = 200 and Buy Spread = 10, Direct Quote in the Currency Pair Definition option percentage is selected, the Buy rate is calculated as follows:

= 200 – (200 * 10%) = 200 – 20 = 180 Similar calculation for Sale rate. Example : If Midrate = 200 and Sale Spread = 10, Direct Quote in the Currency Pair Definition option percentage is selected, the Sale rate in BAM26 is calculated as follows:

= 200 + (200 * 10%) = 200 + 20 = 220

Points - The Buy/Sale spread value Currency Rates Maintenance option is taken as points and subtracted/added to the mid rate to get the Buy/Sale Rate. Example: If Midrate = 200 and Buy Spread = 10, Direct Quote, Points Multiplier = 1 in the Currency Pair Definition option point is selected, the Buy rate is calculated as follows:

= 200 – 10 (Points Multiplier) = 190

Similar calculation for Sale rate. Example : If Midrate = 200 and Sale Spread = 10, Direct Quote, Points Multiplier = 1 in the Currency Pair Definition option point is selected, the Sale rate is calculated as follows:

= 200 + 10 (Points Multiplier) = 210

Type the point’s multiplier value.

This field would be enabled only if Points option is selected in the Spread Definition field.

For example: If the Points multiplier is changed to 0.5 then the currency rates will be as follows: The Buy rate is calculated as follows: = 200 – 10 (0.5) = 195 The Sale rate in is calculated as follows: = 200 + 10 (0.5) = 205

3.3.3 Spot Days

The number of spot working days applicable for the currency is specified here. Payment advises for FX and MM contracts will be generated on a date, which is calculated as the number of spot working days before the Maturity Date of the contract.

The tenor of an MM contract is as follows:

Value Date - 01/01/99Maturity Date - 31/01/99Contract Currency - USDContract Amount – 5000

For USD, the number of Spot Days is specified as: Spot Days - 3For this contract, the payment advices will be sent on 28/01/96.

3.3.4 Settlement Days

In the Currency Definition Maintenance screen, the user can specify the ‘Settlement Days’ for a currency. Settlement messages for the components of a contract (in the LC, BC, LD, MM, FX, and FT modules) will be generated according to the settlement days specified for the currency of the settlement account. The following example illustrates this.

When maintaining the details of USD in the Currency screen, the User specifies the ‘Settlement Days’ as ‘2’. This implies that two working days prior to the settlement of a component through a USD account, a settlement message will be automatically generated if specified (when user run the Settlement Messages function at the end of day).

The settlement details of a contract are as follows:

Settlement Date: 06 May 1999

Settlement Account Currency: USD

Component: Principal

Settlement Message: Yes

Component Currency: GBP

When User generates the Settlement Messages function, at the end of day, on 04 May 1999, a settlement message for the Principal component of the contract will be generated.

The user can run Settlement Messages function as part of EOD operations to automatically generate settlement messages for contracts marked out for automatic liquidation.

The settlement day specification for a currency will determine the contracts that are picked up for settlement message generation.

3.3.5 Number of Units

Quotation Method

No. of Units Formulae for calculating conversion rate

Direct 1 1ccy1 = rate x ccy2Direct 100 100 ccy1 = rate x ccy2Direct 1000 1000 ccy1= rate x ccy2Indirect 1 1ccy2 = rate x ccy1Indirect 100 100ccy2 = rate x ccy1Indirect 1000 1000ccy2 = rate x ccy1

3.3.6 Currency Denominations

Currency Code

Denomination Code

Description Value Type [Note/Coin]

USD D100 100 dollars 100.00 NOTEUSD D50 50 dollars 50.00 NOTEUSD D20 20 dollars 20.00 NOTEUSD D10 10 dollars 10.00 NOTEUSD D5 5 dollars 5.00 NOTEUSD D1N 1 dollar Note 1.00 NOTEUSD D1C 1 dollar Coin 1.00 COINUSD C25 25 cents 0.25 COINUSD C10 10 cents 0.10 COINUSD C5 5 cents 0.05 COINUSD C1 1 cent 0.01 COIN

4 User Interface

5 Security

6 Pending Issues

7 Annexure

7.1 Annexure A: Requirements - Functions Matrix

FS Tag No.

Requirement RS Tag No. / JIRA Ref#

3.1 Currency Maintenance Services3.1.1 Maintenance of Currency Definition NGP-CCY-MS-0001 /

9NT979FS-2253.1.2 Maintenance of Currency Pair NGP-CCY-MS-0002 /

9NT979FS-2263.1.3 Maintenance of Currency Rate Type NGP-CCY-MS-0003 /

9NT979FS-2273.1.4 Maintenance of Exchange Rate for Rate

Types & Maintenance of History Rate. NGP-CCY-MS-0004, NGP-CCY-MS-0005 & NGP-CCY-PS-0014 /9NT979FS-228, 9NT979FS-229

3.1.5 Maintenance of Forward Rates NGP-CCY-MS-0006 /9NT979FS-230

3.1.6 Maintenance of Amount Text NGP-CCY-MS-0007 /9NT979FS-231

3.1.7 Maintenance of Currency Denomination NGP-CCY-MS-0008 /9NT979FS-232

3.1.8 Currency Branch Parameter Maintenance NGP-CCY-MS-0009 /9NT979FS-963

3.2 Currency Processing Services -3.2.1 Amount Rounding Rule and Rounding Unit NGP-CCY-PS-00013.2.2 Amount Format NGP-CCY-PS-00023.2.3 Get Rate NGP-CCY-PS-00033.2.4 Get Rate and Spread NGP-CCY-PS-00043.2.5 Calculation of Exchange Rate based on

Through CurrencyNGP-CCY-PS-0005

3.2.6 Spot Rate NGP-CCY-PS-00063.2.7 History Rate NGP-CCY-PS-00073.2.8 Amount1 to Amount2 Conversion NGP-CCY-PS-00083.2.9 Amount to Rate NGP-CCY-PS-00093.2.10 Forward Rate Computation NGP-CCY-PS-00103.2.11 Last Rate Date NGP-CCY-PS-00113.2.12 Currency Purge NGP-CCY-PS-00123.1.4 Currency Rates Upload NGP-CCY-PS-0013

7.2 Annexure B: Screen Layouts

Not Applicable

7.3 Annexure C: Report Layouts

Not Applicable

7.4 Annexure D: References

Not Applicable

Functional Specifications

July 2009

1.0

Oracle Corporation

World Headquarters

500 Oracle Parkway

Redwood Shores, CA 94065

U.S.A.

Worldwide Inquiries:

Phone: +1.650.506.7000

Fax: +1.650.506.7200

www.oracle.com/ financial_services/

Copyright © 2009 – 2010 Oracle Financial Services Software Limited. All rights reserved.

No part of this work may be reproduced, stored in a retrieval system, adopted or transmitted in any form or by any means, electronic, mechanical, photographic, graphic, optic recording or otherwise, translated in any language or computer language, without the prior written permission of Oracle Financial Services Software Limited.

Due care has been taken to make this [Document Name] and accompanying software package as accurate as possible. However, Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this [Document Name] and the accompanying Software System. Furthermore, Oracle Financial Services Software Limited reserves the right to alter, modify or otherwise change in any manner the content hereof, without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes.

All company and product names are trademarks of the respective companies with which they are associated.

FS Common Service Currency

Documents