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Operations
Industry Trends and Challenges
In the last decade the Foreign exchange and money markets have undergone significant changes. Volume growth and emergence of new
class of investors is now making FXMM instruments a distinct asset class. FXMM is now seen not only as a hedging instrument but also as
a specific class of asset for trading and speculation. Last decade also has seen emergence of hedge funds and retail investors as key con-
tributors to demand. Cross border investment activity has also resulted in increasing demand for FX instruments. Wide spread usage of
Electronic trading networks and innovative trading strategies necessitated changes to infrastructure, workflows and overall resiliency of
IT systems. These key trends are shaping new approaches to risk management, collateral management, regulation and client servicing.
Success of FXMM operations is heavily contingent not only on a scalable, reliable system but also on controls and risk management fea-
tures these systems provide. Reducing Cost per trade and improving STP rates continues to be high on the agenda for bank executives
as the industry adopts a commoditized operations model and the variety and the complexity of the products / instruments increases.
Risk management and compliance to new regulations without escalation in costs continues to shape not only investments in the new
systems but also the back office operations. These challenges are driving Change The Bank (CTB) initiatives to focus on optimization of
existing operations infrastructure and workflows, increased adoption of outsourcing and off shoring strategies, and underlying platform
improvement.
Reconciliation between Front Office and Operations systems, Internal Books and passing of Internal
Ledger and Journal entries
Reconciliations
Reporting and clearing of breaks, investigating Non-Receipt/Non-Payment cases
Liaising with Business for P&L write offs and Maintenance of Suspense account
Research capabilities:
Basic Data monitoring & tracking news from various sources to analyze the impact on
Maintenance & FX and commodities under coverage
Designing Economic calendars (Weekly, Monthly), building data models and update periodically
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