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4) Introduction To T24 - T2ITC - Money Market

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0% found this document useful (0 votes)
49 views27 pages

4) Introduction To T24 - T2ITC - Money Market

Uploaded by

Mohamed Hamdy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Introduction to T24 - Money Market

TEMENOS EDUCATION CENTRE


Warning: This document, is protected by copyright law and international treaties. No part of this document
may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any
purpose, without the express written permission of TEMENOS HEADQUARTERS SA Unauthorized
reproduction or distribution of this presentation or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under applicable law.” Information in this
document is subject to change without notice
MM - Product Overview

MM
Deposit / Loan

Call / Notice Fixed period

Principal Interest Principal Interest

Fixed Floating

Bullet Rollover Fixed


Bullet
Frequency
Floating
Manual
Partial Partial Periodic
repayment repayment Automatic
Liquidate Defer
Frequency Bullet

Capitalisation Capitalisation

Yes No Yes No
Slide 2
Introduction

 T24 Money Market handles short term instruments


 Deposits / Takings
 Loans / Placements

 Front Office
 Call, Notice and Fixed term contracts input
 Rolling over Fixed period contracts
 Online receipts / payments handling

 Back office
 Authorising contracts and their amendments
 Settlement and accounting
 Monitoring maturity of contracts

Slide 3
MM.MONEY.MARKET - Static Tables

COUNTRY
CURRENCY
HOLIDAY

CUSTOMER

MM.MONEY.MARKET FT.COMMISSION.TYPE
PERIODIC.INTEREST

BASIC.INTEREST CATEGORY

INTEREST.BASIS

Slide 4
DEPOSITS / TAKINGS

Slide 5
Deposits - Mandatory Details

 Id can be auto generated


 MMYYDDDNNNNN - Application, Year, Julian date and serial number

 Counterparty with whom deal is struck


 If Bank, then called Placement / Taking. Otherwise called Loan / Deposit

 Currency and Principal amount


 Amount can also be expressed in T and M – Thousands and Millions
 Outstanding Principal amount displayed and not the original Principal

 Start date and Value date


 Commencement of deposit and used for interest calculation
 Start date cannot be in future. Value date can be back or forward dated

 Term
 Call and Notice indicated with 0 and a Number between 1 and 999
 Fixed period specified as date or number suffixed with D,W or M

Slide 6
Deposits - Mandatory Details

 Interest Rates
 Rate to be input for Fixed interest
 Floating rate key for variable interest with positive or negative spread
 Also possible to opt for Negative interest rate
 Interest due date and frequency
 rest

 Mandatory for Call and Notice contracts


Interest can be deferred or liquidated or liquidated and capitalised
 Optional for fixed term contracts
Interest has to be liquidated if frequency is indicated
 Tax Interest - Special Conditions
 Possible to indicate multiple tax interest keys for deposits
 Accounts
 Drawdown account to debit Customer for initial deposit
 Liquidation accounts to credit back principal and pay interest
Different liquidation accounts possible for principal and interest
 Accounts should be in the same currency of contract
First current account in contract currency defaulted

Slide 7
Workshop - 1

 Use User menu > Treasury Operations > Forex & Money Market
Trader > Front office > Money Market Trader > MM Takings/Deposit >
Input Fixed Maturity Contract
 Input a 3 month deposit for USD 50,000 for your Corporate Customer
 Fixed interest of 3% is applicable
 Indicate your customer’s current account for drawdown and liquidation
purposes
 Accept overrides, if any and commit the record

 Get the record authorised

 Use User menu > Treasury Operations > Forex & Money Market Trader
> Back office > Accounting Entries > View Transaction entries
 View summary of accounting entries

Slide 8
Workshop - 1 Solution

Slide 9
Workshop - 1 Solution

Slide 10
Rollover of Deposits

 Automatic or Manual Rollover possible

 Manual Rollover
 New maturity date to be entered in MATURITY.DATE Field
 Old maturity date defaults as date for rollover in ROLLOVER.DATE Field
 Mere extension of maturity or rollover with interest liquidation or
capitalisation choices

 Automatic Rollover
 Auto Rollover Term
Used to indicate frequency of rollover
 Rollover Interest Rate can be same or different
For fixed rate contracts, could also be picked from PERIODIC.INTEREST
Periodic interest can be indicated as Pnn, PnnB, PnnO and PnnS
Periodic rate depending on Deposit / Loan, Only Bid rate, Only Offer rate,
Periodic rate + a desired Spread are these choices

Slide 11
Workshop - 2

 Use User menu > Treasury Operations > Forex & Money Market Trader
> Front Office > Money Market Trader > MM Takings/Deposit >
Rollover/Amend Fixed Period Contracts
 Roll over the deposit input in previous workshop on the following terms
Opt for automatic rollover every 15 days
Final maturity is after 2 more months
Rollover interest to be applied from PERIODIC.INTEREST record 01
 Accept overrides, if any and commit the record

 Get the record authorised

Slide 12
Workshop - 2 Solution

Slide 13
PLACEMENT / LOAN

Slide 14
Call / Notice Loan

 Term should be 0 for Call and a number between 1 to 999 for Notice
contracts
 Number indicates the number of days of Notice required
 Later, while serving / receiving notice, when a maturity date is indicated,
T24 checks whether the date is as per the Notice period required
If the Notice period has not been observed, Override generated

 Interest payment frequency mandatory


 Possible to Defer or Liquidate interest payment
 If interest is to be liquidated, it could be capitalised and added to Principal or
paid

Slide 15
Workshop - 3

 Use User menu > Treasury Operations > Forex & Money Market Trader
> Front office > Money Market Trader > MM Placement / Loans > Input
Call/Notice Contracts
 Input a Call loan of USD 30,000 for your Corporate Customer
 Set Interest rate type as 3 for floating interest rate
 Choose Floating interest key as 1 with a spread of 0.5 per cent
 Defer the interest.
 Give a interest payment frequency of twice a month (TWMTH).
 Observe how the due date is defaulted.

 Accept overrides, if any and commit the record

Slide 16
Workshop - 3 Solution

Slide 17
Workshop - 3 Solution

Slide 18
Workshop - 4

 Use User menu > Treasury Operations > Forex & Money Market Trader
> Front office > Money Market Trader > MM placement /Loans > Input
Call/Notice Contracts
 Input a 10 day notice loan of USD 30,000 for your Corporate Customer
 Set Interest rate type as 1 for fixed rate
 Indicate Fixed interest rate of 4 percent
 Liquidate the interest but capitalise
 Give a interest payment frequency as monthly

 Accept overrides, if any and commit the record

Slide 19
Workshop - 4 Solution

Slide 20
Enquiries and COB Reports

 Enquiries
 List of Call/Notice deals done today
 List of Fixed period deals done today

 COB Reports
 Money Market Maturity report
Report on imminent maturity
 Money Market payments report
Report on external payments

Slide 21
Workshop - 5

 Use User menu > Treasury Operations > Forex & Money Market Trader
> Front Office > MM Enquiries > List of Call/Notice deals done today
 View the list of Call and Notice deals done today

 Use User menu > Treasury Operations > Forex & Money Market Trader
> Front Office > MM Enquiries > List of Fixed period deals done today
 View the list of Fixed period deals done today

 Use Role Based Home Pages > Treasury Operations > Home Page –
Treasury Back Office > Treasury COB Reports > MM COB Reports >
Money Market Maturity Report
 View report on imminent maturity contracts

Slide 22
Workshop - 5 Solution

Slide 23
Workshop - 5 Solution

1
2

Slide 24
MM Links

Currency Commission Limit Customer

Fixed, Floating,
Periodic
Deposits / Loans

Call and Notice


Draw down Account
contracts
Principal liquidation Account
Fixed maturity contracts
Interest liquidation Account

Automatic and Charges liquidation Account


Manual rollover
Slide 25
Summary

 You have learnt about

 Important features of Money Market Deposits and Loans


Call / Notice / Fixed

 Linkage to Static tables

 Inputting various types of contracts


Term deposits
Rollover of deposit
Call and Notice Loans

 Viewing related accounting entries

 Viewing enquiries and reports

Slide 27
Thank You

TEMENOS EDUCATION CENTRE


Warning: This document, is protected by copyright law and international treaties. No part of this document
may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any
purpose, without the express written permission of TEMENOS HEADQUARTERS SA Unauthorized
reproduction or distribution of this presentation or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under applicable law.” Information in this
document is subject to change without notice

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