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It splits differences arising from failed settlements between the two counterparties

It eliminates the need to send out SWIFT payment authorizations on a case-by-case basis

It avoids having to confirm each deal separately

Pay a cash settlement in USD

Receive a cash settlement in USD

Receive a cash settlement in CNY

A FX Swap

A repurchase agreement

A dual swaption

When the deal is done

Two business days before the start date of the FRA period

On the third Monday of the contract month

EONIA - 5 basis points

EONIA flat

0%

CLS minimizes the settlement risk

CLS reduces operational banking costs

CLS eliminates the settlement risk but reduces operational efficiency

You will pay a cash settlement to the counterparty

There is no cash settlement pending

There is insufficient information to make a determination

Jamaica

Jordan

Bosnia

To keep the multilateral limits updated

To invest funds at the highest available interest rate

To keep the management informed about interest rate developments

The overnight interest rates of both currencies

The spot next interest rates of both currencies

The one week interest rates of both currencies

MTn99

MT300

MT670/671

London Interbank Overseas Rate

London Interbank Offered Rate

Leading Interbank Offered Rate

USD 9,900,000.00

USD 10,000,000.00

USD 9,903,196.26

SSIs and confirmation methods only

Credit lines and trading limits only

Solely client contacts for the Front Office and Operations

17:00 (5.00 p.m.) Central European Time (CET)

18:00 (6.00 p.m.) Central European Time (CET)

18:30 (6.30 p.m.) CET, but on the last minimum reserve fulfillment day (23rd of a month)
19:30 (7.30 p.m.) CET

The taping of conversations between counterparties

The separation between front/back office duties

The existence of contingency plans

Receives a lower price than he originally paid

Receives a price calculated using the price originally paid

There is not enough information to know how much the seller receives

CHAPS

EAF

FX-NET

16:00 (4:00 p.m.) Central European Time (CET)

17:00 (5:00 p.m.) Central European Time (CET)

18:30 (6:30 p.m.) Central European Time (CET)

Free of settlement payment

Cash settlement

Same day value settlement

The level of interest rates in the counter currency

The differential between the interest rates in the two currencies

The current volatility in the FX markets

From the counterparty: the trade confirmation, In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout

From the counterparty: the trade confirmation, In-house: the open item list, nostro reconciliation details and the dealing ticket

From counterparty: the balance report and the trade confirmation; In-house: the dealing-system
conversation printout

An exposure in Singapore Dollar (SGD)

An exposure in Thai Baht (THB)

An exposure in Hong Kong Dollar (HKD)

An option on fixed/floating interest rate swap

The sale of a bond against cash with a simultaneous agreement to buy the bond at an agreed upon rate and date

The sale of a fixed rate bond against the simultaneous purchase of a floating rate note

The Government (Debt Management Office)

The Bank of England

The FSA

Once the trade is agreed to by both the front offices

As soon as one of the counterparties has confirmed the trade

Once the confirmation is accepted by both parties to a trade

Monday, 13 March

Tuesday, 14 March

Thursday, 16 March

Confirmation procedures

Procedures for confirming bilateral net amounts

Alternative procedures in case netting cannot be performed

The risk that there is no liquid market at the exchange to close a trade

The risk that the present value of a trade will be negative one day prior to value date

The risk that an OTC-derivative product cannot be closed before maturity

Standard settlement instructions

Terms of engagement

Master agreement

18 months

5 years

2 years

Certificate of Deposit (CD)

FRA

ECP

Front office staff should not be able to modify confirmations.

The staff who confirm trades should be distinct from those who agree to and execute trades.

The process of confirming trades should be done only by Operations staff.

EUR 3,354.17

EUR 3,225.00

EUR 2,833.33

Keep the information to yourself

Tell your work-mates but not your supervisor

Talk to the colleague in question

The purchase of shares through Eurex Clearing (payment against delivery)

The taking of call money

A long position in Bund futures

EUR 620.83

EUR 968.06

EUR 2,183.33

0.75%

0.0075%

0.25%

A series of American call options on FRAs

A series of American put options on FRAs

A series of European put options on FRAs

The notional amount of a contract

A deposit amount per contract that is determined by the futures exchange

The minimum net loss during the contract period

31 July

2 August

3 August

A bank which processes payment orders on national level only

A bank which has subsidiaries in CLS-countries

A bank which has a minimum reserve account in more than one country

The repo market

The foreign exchange market

The over-the-counter market for U.S. Government Bonds

When a trade has been agreed to with dates (maturities) different from the standard dates

When one of the parties to the deal unilaterally decides to withdraw from the on-going transaction

When, due to a system break, one or both parties to the deal chooses to withdraw from the ongoing transaction

The parties may agree verbally not to exchange confirmations

A party can unilaterally eliminate confirmations for these trades

The parties may agree in writing not to exchange confirmations

Claims after 30 days of the actual settlement date need not to be submitted.

Claims should be sent to the counterparty as soon as possible and within 30 days at the latest.

Claims must be sent to the counterparty within 15 days of the actual settlement date,

If that day is not the final trading day of the month, all contracts maturing on that day are shortened to the preceding business day

All new maturity dates have to be agreed upon with the counterparties involved

Decisions about the maturity dates of trading contracts are made by ACI's Committee for Professionalism on a case-by-case basis and must be adhered to

When the option is exercised

Two business days after the trade

In monthly installments until the option is exercised

The head of IT

The board of directors (top management)

One cannot say, it depends on the financial institution

By a SWIFT MT 320

By a SWIFT MT 340

By a SWIFT MT 360

Economic: such as initial and final amounts, rates

Product identification: counterparty, currency, index

Dates including the trade day: initial day, final day, settlement day

The most recently processed deal

The counterparties in your own country

The counterparty which claims first

CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 00:00 CET deadline.

CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 06:30 CET deadline.

CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank after the 06:30 CET deadline.

A convention whereby a transaction is dated the following business day

A convention whereby a transaction is dated the preceding business day

A convention whereby a transaction is dated the next business day that corresponds to the same numerical day of the month as the preceding payment

Non-cash emerging markets collateral

Cash collateral in JPY, your base currency is GBP

Non-cash high yield collateral

The fixed rate and the floating rate payers know the cash value of their payments at the outset

There is exchange of principal at the start and at the end of the swap

Payment netting is only allowed through a third party

The interest rate differential between the fixed and floating leg of the swap

The brokerage fee for an interest rate swap transaction

The payment made when a swap is terminated