PURPOSE
This document describes how to create and amend non-deliverable forward.
PROCEDURE
1. From the main menu, select Transaction > Non-Deliverable Fwd. The launch screen appears.
2. Click on Action and select New.
3. Fill in the fields as required.
4. Accounting centre would have been defaulted to the user’s accounting centre. If not, it will be left blank. Choose the Accounting Centre from the dropdown.
5. Key in the TDate (Trade Date), the VDate (Value Date) and the Fixing Date. The trade date is defaulted to the system date and cannot be a future date. However, you may change it to earlier date. Fixing Date is the date on which the comparison between the NDF rate and the prevailing spot rate was made.
6. Choose the Fixing Basis. The user can determine the timestamp when or where the fixing rate is based on. This is user-definable. For details on how to set up a user-definable field, click How to Create User Definable Field.
7. The transaction can either be Buy or Sell. In this example, Buy will be selected.
8. Choose the Buy/Sell Currency.
9. Type in the Buy/Sell amount.
10. Select the Against Currency. In this example, SGD will be chosen.
11. Enter the spot reference rate.
12. Type in the forward points, if any; the default is 0.
13. Click on Refresh Button beside the Countervalue field. The Contract Rate and Countervalue field will be auto populated.
14. Click Refresh beside the Facility field. Once the screen refreshes, the facilities available will show in the dropdown. Choose a facility to book the NDF transaction. As you do this, the system will re-compute the limit that is available for booking this transaction.
15. After Facility is selected, the Counterparty ID auto populates.
16. At this point, the transaction can be booked; however, Portfolio may also be filled out. Portfolio is used for transaction tagging that can be used for grouping transactions by portfolio in some CS Lucas reports. To set up portfolio, click here.
17. If the Show Advance tick box is checked, the screen expands.
18. These are non-contractual fields. They are optional and you can fill in the fields, if necessary.
19. Click Book to complete the transaction.
20. Select and filter the accounting centre and VDate Fr accordingly and click Refresh. The launch screen will show the transaction.
21. To amend NDF, click on the Edit button of the transaction. In this example, the transaction previously entered will be selected.
22. On this screen, non-contractual details are under the Soft Amend Button. If Portfolio, Transaction Type, Project, Ctpy Dealer and Narrative needs to be changed, use Soft Amend. When soft amend is used, the transaction ID’s suffix will not change. Therefore, no re-authorization and re-verification is required.
23. Contractual details are hard amend, and need re-authorization and re-verification to take effect. The suffix of the Trade ID changes as well.
24. In this example, Amount and Spot Reference Rate will be changed, requiring a hard amend.
25. Click Refresh Button in Countervalue. The Contract Rate and Countervalue will be recomputed.
26. Click Update. When a popup appears, click Yes.
27. The launch screen will show the amended trade and will show the change in the Trade ID.
FREQUENTLY ASKED QUESTIONS
FAQ01. I encountered an error saying the limit was exceeded.
System will prompt you upon booking the trade if counterparty limit is exceeded. However, if you have the rights 13618 – Book NDF Trades that exceed limit, you may proceed to book the trade.
FAQ02. I encountered an error saying one of the currencies must be NDF currency.
To book an NDF trade, one of the currencies must be an NDF currency. To see how to set up an NDF currency, click here.
RELATED INFORMATION
Launching Non-Deliverable Forward
CHANGE HISTORY
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