Abhi Maheshwari Akshay Hemanth Debottama Das Sharma Mehul Goyal Gaurav Jain Tawishi Singh Yashaswi Priyadarshi

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Treasury is the nerve center of the Bank All the inflows and outflows of funds is monitored by the Treasury Pricing and marketing of all wholesale liabilities is done here Trading in forex, money markets , bonds and derivatives is an important function including risk management at the treasury level.

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Money Markets Desk Devoted to buying and selling interest bearing securities Foreign Exchange Desk Buys and sells currencies for clients as well as the bank. Capital Markets Desk Deals in shares listed on the stock market. Derivatives Desk Facilitates trading in derivatives on long and short positions

Money Markets Desk

Management of Interbank liabilities book, Corporate liabilities book, liquidity gaps in B/S. Trading in Government Securities. Trading in Non SLR papers

Derivatives Desk

Structuring and trading derivative products Hedging for exposures

Capital Markets Desk

Investments in units of Mutual funds. Investment in Equity IPO

Foreign Exchange Desk

Structuring and advisory for corporates. Marketing of wholesale corporate forex business Proprietary trading in Forex

Retrieve, review, analyze and transmit large amounts of financial data in a timely manner
Interact with internal and external counterparties including accounts payable, payroll and financial institutions Ensure accuracy and security in all treasury activities Leverage SWIFT and CBS developments Optimize liquidity in a tight credit market

Manual activities
Rekeying data Cash forecasting

Control
Multiple locations issuing payments /

Data storage
Security Scalability Consistency

making collections Intercompany obligations Regional reporting needs Multiple G/Ls Bank relationship management

Integration
Treasury and ERP ERP and banks Banks and treasury

MIDDLE OFFICE
Policy Formation and MIS

FRONT OFFICE
Dealing

BACK OFFICE
Settlement

Front Office

Middle Office

Establishing Compliance Systems Liquidity Planning Portfolio Management

Providing funding, liquidity support Clearing house for matching, managing risks

Back Office

Framing Policies

Interface to Markets

Statutory, Regulatory Compliance

Technical Support
Limits Maintenance

Revaluations and Mark to Market

Settlements

Export Proceeds, Inward Remittances, Payments for Imports, Outward Remittances and Others
Bank Branch Branch Office Reports Transactions to Merchant desk Merchant Desk Consolidates transactions, updates position book and advices chief dealer

Chief Dealer Records transactions in dealers daily transaction pad.

Sells forex to market

Matches and sells off against merchant sales of the branch

Buys forex from the market

Dealer Generates Deal Slip recording full details of inter bank Deal

Deal Slip to chief dealer and settlement section

Deal Ticket
All transactions in a treasury function are recorded through a system that tracks the flow of each transaction through its life cycle. The document that records the transaction is called a deal ticket or ticket for short.

Dealing System
The system that treasury function uses to trade and interact with other treasuries in the market. This is generally different from the treasury system that is used to record, track and manage transaction workflow within treasury.

Treasury Desks
A treasury desk refers to a business line or business group whose performance and profitability is generally tracked separately. For instance Money market or Fixed Income, Foreign Exchange and Treasury Marketing Unit (TMU), Equities and Margin lending desks each refer to a distinct line that forms the treasury group.

Ticket Approval
Once the deal ticket has been created, it needs to be approved by another user residing in the Front Office. For approval purpose, each user has been provided with a financial limit. If the ticket amount is more than the limit assigned to that user, then the user is not able to approve that ticket.

Ticket Verification
Once the deal ticket has been approved, it needs to be verified by another user. The verification is done by a user residing in the Back Office.

Ticket Authorization
Once the deal ticket has been approved & verified, it needs to be authorized by an independent user, once again, residing in the Back Office. For authorization purpose, each user has been provided with a financial limit. If the ticket amount is more than the limit assigned to that user, then the user is not able to authorize that ticket. At any stage during the confirmation process the ticket may be returned to the original dealer who created the ticket either for cancellation or for corrections/ editing. The edited ticket will be go through the confirmation cycle again, i.e. approval, then verification and finally for authorization.

Confirmation
Whenever a deal is complete, a Confirmation letter setting forth the terms and conditions of the deal is sent to the counterparty. A confirmation is then required from the counterparty which usually arrives the same day. The confirmation provides a necessary final check against dealing errors. It should be independent of the trading room and be performed entirely by operations. Using the data from the settlements and payments systems, the confirmations provide a check to ensure that the operations areas of each party to the deal have recorded the same details for each of the transactions carried out. The confirmation should contain (at a minimum) details of the counterparties and location, brokerage, transaction date, value/ settlement date, settlement instructions, currency amounts and exchange rates (for FX deals), etc. The treasury system tracks the confirmation status of all deals including the monitoring of all unconfirmed transactions. There are 4 ways of receiving a deal confirmation from the counterparty. Swift Manual confirmation System generated confirmation Others In the event that there are delays or where confirmations are not received there should be an established escalation procedure to follow up on missing confirmations. In addition to this management also needs to be informed.

MIS Requirement

Functional Requirements

Technical Requirements

Reporting

Receivable Manageme nt

Core financial system

Funds Manageme nt

Cost Manageme nt

Payment Manageme nt

Payment Management
The Payment Management function consists of the following processes: a) Payee Information Maintenance b) Payment Warehousing c) Payment Execution d) Payment Confirmation and Follow-up

Receivable Management
The Receivable Management function consists of the following processes: a) Customer Information Maintenance b) Receivable Establishment c)Debt Management d) Collections and Offsets

Funds Management
The Funds Management function consists of the following processes: a) Budget Preparation b) Budget Formulation c) Funds Allocation d) Budget Execution e) Funds Control

Cost Management
Measures the total cost and revenue generated, and their various elements, activities and outputs The Cost Management function consists of the following processes: a) Cost Setup and Accumulation b) Cost Recognition c) Cost Distribution d) Working Capital and Revolving Fund

Operations and Computing Performance Interoperability Security

General Design/Archite cture

Technical Requirements

Internet Access

Infrastructure

Document Management

User Interfaces

Workflow/Me ssaging

General Design/Architecture

Related to applications design, internal data management, and general ease of use Modular in design, utilize open-systems architecture, and upgradeable Commercially available product, subject to regular maintenance & scheduled software releases & database consistency. Identifies computing platforms and operating system environments Identify all software and hardware products needed by an agency to install, operate, access, and maintain the application Utilize transaction Control Protocol and database, and workstation connectivity

Infrastructure

Operations and Computing Performance

Covers two related areas - operating support functionality and computing performance criteria Scheduling capability to initiate, monitor, and stop scheduled processes

User Interfaces

Specifies how agency users and operators interact with the system Provide a consistent, Windows-compatible, on-line user interface to all modules and integrated subsystems Incorporate common GUI characteristics To ensure that data can move effectively between the applications Provide internal controls to ensure the integrity of received and processed transactions Ability to View, update, or delete suspended transactions & automatically re-process suspended transactions

Interoperability

Workflow/Messaging

Provide an integrated workflow management capability, including generation and routing of internal forms and reports

Document Management

Includes how to store and retrieve electronically formatted documents

Internet Access

Defines user connectivity options Support secure Internet access

Security

Internal and external access controls Integrated security features configurable by system administrator to control access to the application, functional modules, transactions, and data.

Spreadsheets

Treasury Management Systems

Stand alone ERP based ASP Treasury Management Systems

Banks to TMS for cash positioning

Banks to ERP for cash application and positive pay

Treasury to ERP for GL Loading Accounting to treasury for cash positioning and forecasting

Accounting to banks for outsourced payments

System to system within treasury if using multiple solutions such as cash system and FX trading system)