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    Of Treasury Operations

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    najamulhaq
    Treasury operations involve three main activities: dealing, settlement, and control. Dealing involves maintaining investment portfolios and utilizing surplus funds. Settlement involves processing payments, reconciliations, and statutory returns. Controls involve formulating policies around trading instruments. The treasury function takes on responsibilities like managing risks around settlement, operations, documentation, costs, data management, reconciliations, staffing, fraud, and governance.

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    Of Treasury Operations

    Uploaded by

    najamulhaq
    36 views19 pages
    Treasury operations involve three main activities: dealing, settlement, and control. Dealing involves maintaining investment portfolios and utilizing surplus funds. Settlement involves processing payments, reconciliations, and statutory returns. Controls involve formulating policies around trading instruments. The treasury function takes on responsibilities like managing risks around settlement, operations, documentation, costs, data management, reconciliations, staffing, fraud, and governance.

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    Treasury operations involve three main activities: dealing, settlement, and control. Dealing involves maintaining investment portfolios and utilizing surplus funds. Settlement involves processing payments, reconciliations, and statutory returns. Controls involve formulating policies around trading instruments. The treasury function takes on responsibilities like managing risks around settlement, operations, documentation, costs, data management, reconciliations, staffing, fraud, and governance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    36 views19 pages

    Of Treasury Operations

    Uploaded by

    najamulhaq
    Treasury operations involve three main activities: dealing, settlement, and control. Dealing involves maintaining investment portfolios and utilizing surplus funds. Settlement involves processing payments, reconciliations, and statutory returns. Controls involve formulating policies around trading instruments. The treasury function takes on responsibilities like managing risks around settlement, operations, documentation, costs, data management, reconciliations, staffing, fraud, and governance.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    Overview

    of
    Treasury Operations
    Treasury Operations
    Treasury is the name for the center of financial
    operations within a company.

     A Treasury Operation is concerned with three


    main activities:

     Dealing
     Settlement

     Control
    Dealing
     It involves the maintenance/development of
    Investment Portfolio and utilizes the bank’s
    surplus funds for:

     Day-to-day funding requirements


     Funding investments in associated companies

    and subsidiaries
     Raising debt to meet capital requirements

     The above jobs are carried out by Front Office


    Settlement
    The settlement office is responsible for

     Processing payments,
     Issuing confirmations,
     Reconciliation of accounts,
     Custody of securities,
     Systems and accounting and statutory returns.

    The above jobs are done by Back Office


    Controls
    The treasury function takes on the responsibility for
    formulating:

     a set of policies and procedures governing the way


    in which the bank trades in the various
    instruments and the level at which it trades
    The role of BACK OFFICE
    Key Risks
     Settlement risk
     IT and operation
     Legal/Documentation
     Cost/reputation
    Key Risks
     Static Data
     Reconciliations
     Staffing and retention
     Fraud
     Governance
    Settlement Risk

     The biggest impact if not the most likely


     The risk that the asset to be delivered is
    delivered before the asset to be
    received in
    exchange is received and the second
    never
    occurs and the first cannot be undone.
    IT and Operation

     the most pervasive risk


     the least easy to quantify
     the lure of STP
     the lure of direct membership of
    infrastructure
     the challenge of MIS
    Cost/reputation

     Outsourcing as an option

     Implementation of STP as an option


    Static Data
     Needs tight control: but who controls

     Needs to be kept up to date


    Reconciliation
     Scope
     Frequency
     Intra organization
     With third parties
     Response
     Clear up rates
     MIS
    Staffing and retention

     Recruitment within a bank


     Retention
     Training and development
    Fraud

     Segregation of duties within back office


     Dual versus triple control
     Correction of errors
     Internal Audit and Compliance
     Incentives
    Legal / Documentation
     Covers counterparties, but also customers,
    infrastructure systems, service providers
    (nostros, custodians)
     Have you contracted with the party you
    intended?
     Are the service levels expected fully
    documented?
     How often do you review the range and
    quality of the service providers?
    Governance
     Segregation of Duties
     Role of Middle Office
     Reporting lines
     Location of functions [low value fx,

    nostro funding, unadvised receipts,


    customer (call) deposits
     Balance sheet management
    The End

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