Model Bank
Treasury – Pre-Sales Demo Guide
(R23 AMR)
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Treasury – Presales Demo Guide – R23 AMR
Contents
Document History ............................................................................................................................... 3
Treasury:............................................................................................................................................ 4
Customers & Accounts: ....................................................................................................................... 4
Customer PNC.......................................................................................................................................4
Customer CIBC......................................................................................................................................4
Customer PNC’s Account.......................................................................................................................4
Customer CIBC’s Account..................................................................................................................... .4
Role Based Home Pages: ................................................................................................................ ...5
Treasury Front Office............................................................................................................................. 5
Treasury Back Office............................................................................................................................. .5
Treasury Front Office (TFO): ............................................................................................................... 8
Single Sign-On (SSO) Feature:............................................................................................................ 8
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Treasury – Presales Demo Guide – R23 AMR
Document History
Author Version Date
Rishivignesh Srisabari R 0.1 22nd Feb 2023
Comments:
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Treasury – Presales Demo Guide – R23 AMR
Treasury:
In Transact Model Bank, Treasury Banking covers Forex, Forward Rate Agreement, Money Market, Non-
Deliverable Forward, Position Management, Interest Rate Swaps (IRS) and Currency Interest Rate Swaps
(CIRS) products.
Customers & Accounts:
In Model Bank the following customer have been created to showcase the Treasury related product feature
Customer PNC
Figure 1 – Treasury- PNC Customer Details
Customer CIBC
Figure 2 – Treasury – CIBC Customer Details
Customer PNC’s Account
Figure 3 – List of Accounts for PNC
Customer CIBC’s Account
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Treasury – Presales Demo Guide – R23 AMR
Figure 4 – List of Accounts for CIBC
Role Based Home Pages:
The following Role Based Home Pages are present in Treasury Operations
Treasury Front Office
Treasury Back Office
Treasury Front Office
The Treasury Front Office home page has a custom set of Menus/Enquiries required by the Treasury Front
Office to carry on their operations covering applications - Forex, Money Market, Repo, Swap, Forward Rate
Agreement, Securities, Derivatives and Position Management. This home page will help the user to input/amend
Treasury Transactions and view enquiries. The various components in this Home page are explained under the
relevant sections below.
To Login to this page please use the following
User Credentials : DEALER1
Password: 123456
Figure 5 – Treasury Role Based Home page- Dealer
Activities like Capture of Deals, Position Management Enquiries and General Enquiries etc. can be done from
the Front office page.
Treasury Back Office
Treasury Back Office page has set of Enquiries required by Treasury Supervisor to carry on with his process.
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Treasury – Presales Demo Guide – R23 AMR
To Login to this page please use the following:
User Credentials : SUPERVISOR01
Password: 123456
Figure 6 - Treasury Role Based Home pages - Supervisor
Activities pertaining to Nostro Accounts, Position Management Enquiries, Authorization Enquiries and General
Enquiries etc. can be done from the Back office page.
Payment Order Integration with Treasury: Payment order (PO) is integrated with modules such as Forex,
Money Market, Forward Rate Agreement, Non-Deliverable Forward and Swaps. When PO is opted, the
aforementioned applications make the payments related to trade settlements using PO.
LIBOR to RFR migration: The regulatory agencies that oversee LIBOR has announced that the rates would
be retired at the end of 2021 and it will not be used to price new loans starting 2022, while it will formally stick
around until at least 2023 Each Central Bank has identified an alternate rate as a replacement of LIBOR. These
alternate rates are the Overnight Risk-Free Rates (RFRs). While LIBOR is a forward-looking rate publishing
rates for various tenors such as ON, TN, 1W, 1M etc, the RFRs are the backward-looking rates published with
a delay. Meaning, the transactions which use RFRs cannot fix rates at the beginning of a given period. This rate
must be referenced each business day to be averaged until a final rate is calculated for the period.
Transition from LIBOR to RFRs Modules that supports the RFRs in Treasury are MM (Money Market) & SW
(Swaps).
RFR rate from Periodic Interest Table:
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Treasury – Presales Demo Guide – R23 AMR
Figure 7 – RFR processing Screen
Utilization of Forex (Sp and Fwd) Other Applications: Forex application has been enhanced to allow partial
or full utilization of Forex contract by transaction processing applications such as Trade Finance or Payments
before or on the value date of the contract. If the contract remain unused, then the bank requires the ability to
cancel or extend such contracts prior or on the value date. Partial utilization is not possible for Spot contracts
and is enabled only for Forward contracts.
Apart from Utilization, the Bank can also Fully cancel (in case of a contract has not been used at all) or partially
cancel (in case of a contract that has been partially used) the forex contracts.
Continuous Linked Settlements (CLS): Forex Application has been enhanced to handle the CLS functionality.
The Forex application supports CLS where T24 bank as Direct Participant and T24 bank as Third-Party
participant. A new parameter table (FX.CLS.PARAMETERS) to support this functionality has been introduced.
Figure 8- CLS Details
Pretermination of Swaps : Swap application has been enhanced to handle rate correction and pre-termination
of contracts. The Swap contracts can now be manually amended by the user to provide the final RF rate or pre-
terminate the contracts.
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Treasury – Presales Demo Guide – R23 AMR
What if Deals: Treasury Front Office now supports What-If deals functionality to simulate and view the impact
on position, limits and P&L by the Treasury dealers.
Treasury Front Office (TFO):
Treasury Front Office or TFO is the front end user interface of Transact which is designed to carry out Treasury
related activities. The objective of TFO is to replace the Front office Treasury Trader system with the new
treasury user agent that uses the Temenos UX platform (Edge) and interacts with Transact system via IRIS.
The selected functionalities that TT offered are to be supported using the new Treasury Front Office module
(TY Module).
This module (TY) which stands for Treasury, has been introduced to support the functioning of TFO which
contains the following tables/parameters
TY.PARAMETER allows the user to define their preferences and default values, such as Rate Source, Rate
provider and revaluation currency.
TY.CURRENCY.PAIR allows the definition of currency pairs to be used in the TFO. This table lists all the
currency pairs available to the dealer. Records in this table is displayed in TFO. Rates for the multiple Tenors
for a single cross currency can be created using the TY.MARKET.RATE for which the currency pair should be
a valid record in Ty currency pair.
The rates for the tenors for the valid currency pairs are sourced from the data vendors like Reuters & Bloomberg.
The records for rate providers are set in the table TY.RATE.PROVIDERS and the bank can as well add on
based on their source providers / data vendors.*
TY.EXCEPTIONS: This table has been introduced as part of Exceptions Workflow. This table is used to define
the overrides per product for the Exception workflow process in TFO.
Exceptions Workflow for Forex, Forward Rate Agreement, Money Market, Swap and Non Deliverable Forwards
has been introduced in TFO. This feature allows the Front Office Deal capture to undergo a flow of Verification
and Authorisation by the exception Handler (Chief Dealer and Back Office Supervisor).
When a deal is captured in FO with Overrides which are defined in the TY.EXCEPTIONS table, upon committing
the transaction, the deal flows to the Chief Dealer for Approval (for Overrides) and then to Back office for
Authorisation.
TFO is enhanced with what if deal flag on Swap and Forex contracts which allows to simulate the deals impact
on the limits gap position and P&L.
Attached PPT in the below link
TFO
*For more information, please refer to the TFO user guide.
Single Sign-On (SSO) Feature:
Single Sign-On (SSO) feature has been introduced in UXP Browser for Treasury Front Office that provides a
seamless, bug free Transition between TFO and UXPB. It enables the user to launch T24 new browser screen
from TFO.
