Front office Operations
The front office operations consist of dealing room operations wherein the dealers enter into deal with the various approved counterparties. Deals are entered into by dealers on various trading anonymous order matching platform such as NDS-OM, CROMS, NDS-CALL, FX-CLEAR, FX-SWAP, FX Trading and over communication platform such as Reuters’, Bloomberg, telephonic conversation with counter party or brokers.
The dealers are primarily responsible to check for counterparty credit limits, eligibility, and other requirements of the Bank before entering into the deal with the counterparty. Dealers must ensure that all risk/credit limits are available before entering into a deal. Also, the deal must not contravene the current regulations regarding dealing in INR with overseas banks/counterparties. All counterparties are required to execute the International Swaps and Derivatives Association (‘ISDA’) agreement as well as pass a board resolution allowing it to enter into derivatives contract. As soon as the deal is struck with counterparty, the deal details are noted in a manual deal pad and thereafter captured in front office system of the Bank which gets queued in for authorization for back office.