What is the function of Treasury front office

What is the function of Treasury front office?

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What is the function of Treasury front office?

Functions of Treasury Front Office: Statutory management

  • Optimization of risk return through specialization and management
  • Funding of the Balance Sheet at optimum prices
  • Proposing interest rate matrix to the ALCO
  • Proposing various investment options to the ALCO
  • Analyze various economic trends and propose Balance Sheet Strategy to the ALCO
  • Quotation of various foreign exchange and interest rates to customers
  • Dealing in foreign exchange for position covering as well as for own account trading  Various funding activities through various derivatives
  • Provide structured treasury solutions to customer
  • Remain vigilant for any arbitrage opportunities  Marketing activities for future business growth
  • Estimate daily P&L and work with reporting unit in resolving any difference
  • Record/ maintain all foreign exchange and money market positions and check for differences with system generated/back-office reports
  • Sending dealing information to Back Office through deal slip (if the deal is not done through automated system)  Performing money market activities
  • Security/fixed income trading (if it is a PD)


Functions of Treasury Mid Office:

  • Limits monitoring and managing limit
  • Adherence to various internal as well as regulatory policies
  • Minimization of all risks
  • Monitoring & management of various foreign exchange and money market positions
  • Monitoring & management of various cash flows and cash positions
  • Proposals/ renewals for various internal limits
  • Monitor for trader’s adherence to various internal and regulatory limits
  • Monitor for trader’s adherence to various counterparty limits
  • Prepare, monitor and manage all balance sheet gaps
  • Report any occurrence of crossing limit
  • Various internal and regulatory reporting


Functions of Treasury Back Office:

  • Input, verification and settlement of deals
  • Receiving and sending of deal confirmation certificates
  • Preparation of currency positions (of previous day-end) and report to traders prior to commencement of day’s dealings
  • Reconciliation of currency positions
  • Rate appropriateness function for all deals done
  • Revaluation of all foreign exchange positions at a pre-determined frequency
  • Managing discrepancies and disputes
  • Daily calculation for adherence to statutory maintenance
  • Reconciliation of nostro accounts
  • Reconciliation of vostro accounts
  • Claim/ pay good value date effect of late settlements

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