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
International Business Importance