Cash management
Foreign exchange

Process objective
Ensure foreign currency transactions are conducted accurately and in a timely manner at competitive exchange rates

Process requirements
Service providers must provide foreign exchange execution services - for both spot and forward transactions - in all currencies.  Competitive rates should be quoted.  Trade execution should be conducted without error, in order to avoid the typically high cost of overdrawing foreign currency accounts and other costs.  Preferably, clients should have a direct link to the service provider's systems to view rates and perform transactions.

Clients may require foreign exchange advisory services to allow them to determine the efficacy of holding material foreign currency balances.  If this service is offered, the service provider should supply daily, or intra-day, comment together with occasional market studies and regular in-depth analysis.

FX & contractual programs
Service providers typically offer "contractual" programs, which can extend to settlement, corporate actions, income collection and tax reclamation.  These provide for a client's cash account to be credited or debited on the due date for payment, in place of the actual payment date.  These programs operate with funds in local currency.  Typically, they also operate where there is a standing instruction for local currencies to be exchanged into the client's base currency.

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Service Matrix