Tutorial Step By Step And Study Forex

Step One Study Forex

For most corporations of any size, improving STP in payments and receivables has long been a major
objective. By contrast, introducing STP into FOREX transactions has historically been a rather lower priority. However, for corporations with even a relatively low level of FOREX exposure there are a number of areas of FOREX activity that can benefit from STP, including international payments, subsidiary funding and of course FOREX hedging.

At Juniper we have implemented STP for all three of these processes. (An illustration of FOREX STP in the international payments process is in the July 2005 issue of e-Forex - "Integration of FOREX STP and automation into other processes).

The three FOREX activities in question inevitably involve extensive interaction with banking systems, so consultations with banking partners - especially Bank of America - have been a key ingredient in determining the most efficient way of achieving this interaction.

And greys them out to indicate that manual confirmation is not required. The ability to use FOREX all as a trade confirmation agent (even for any manual trades) means that it is no longer necessary to check trades in two separate systems in order to submit confirms. Particularly where trade volumes are substantial, this not only saves time, but also significantly reduces the risk of errors.

To ensure appropriate segregation of responsibility, a member of treasury who is not authorised to trade confirms any manual trades. In Orbit this is done in a trade confirmation screen, and in FOREX all via the Settlement Center.

The member of treasury authorised to confirm also issues settleructions ment instto the counterparty bank via phone or FXall as appropr settlemeiate. Allnt instructions are standard repetitive approved delivery instructions, which cannot be changed without the written approval of senior management.

The Benefit Forex

The new FOREX hedging process has netted a number of significant gains, both for Juniper’s treasury and the corporation as a whole. Prominent among these gains has been the drastic reduction in the time taken to complete the monthly FOREX hedging process – down from sixteen hours to one hour. The time required to complete confirmations, netting and settlement has contracted even more dramatically – from four hours to ten minutes.

Data is now keyed once, rather than six times, so the probability of keying errors has also been reduced.