Transaction - Creation with Exchange rate

To apply exchange rates between two different currencies of a new transaction, you must go to the Messaging menu and click on the specific Dashboard (Live Board) where you want to create this transaction. In the Create a Transaction form, you can specify the exchange rate of your choice.

Obtaining an external exchange rate for a transaction is restricted to specific roles. If you do not have access to this part of the platform and need to access an external exchange rate, please contact your administrator.

What is an exchange rate?

An Exchange rate is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country's currency about another currency. The exchange rate is therefore associated with a currency pair and is not the same depending on the direction of these currencies.

In the Platform, you can enter or retrieve the Contract ID (contract identification) too. This is a unique and unambiguous reference to the foreign exchange contract agreed upon between the sending account currency and the receiving account currency.

How to manually enter exchange rate information

A manual Exchange rate can be provided in the Transaction Details step of the manual entry. If you have access to a daily rate bulletin from the bank for certain current currencies or if a long-term contract has been negotiated before the transaction, you can add this value to the transaction.

To enter information relating to the exchange rate, you can:

  • Fill in the transaction Instructed amount based on the source currency.

AND/OR

  • Fill the transaction Equivalent amount based on the destination currency: this amount is not required, it will be calculated based on the exchange rate entered.

  • Select the Currency from and Currency to for the transaction. These two fields are required.

  • Choose the FX type: select Manual to manually enter the information.

  • Enter the Exchange rate between the two currencies you want to apply to your transaction.

  • Enter the Contract ID related to the exchange rate and amount.

How to manually enter exchange rate information

The FX type used in the manual entry needs to match the FX type of the flow used to create the transaction.

If you select different from/to currencies in an FX Manual flow, the platform will validate that an exchange rate is not missing. If the transaction has no exchange rate, the transaction will be rejected or put to correction based on flow configuration.

How to request an external exchange rate

An external exchange rate can be provided in the Transaction Details step of the manual entry.

The platform offers the availability of configuring 3 steps for obtaining and managing external exchange rates. All of these steps refer to external providers which must be developed according to the specificity of each provider.

  • Request a quote: The external provider gives a potential exchange rate.

  • Request a trade: The external provider gives a valid exchange rate with a contract ID and a quotation date linked to this rate.

  • Cancel a trade: If the transaction is rejected, we will need to cancel the unused rate.

To configure external providers, please refers to the Flows documentation.

Request a quote

To obtain an exchange rate for your transaction, you can fill in:

  • The transaction Instructed amount based on the source currency.

AND/OR

  • The transaction Equivalent amount based on the destination currency: this amount is not required, it will be calculated based on the exchange rate entered.

  • Select the Currency from and Currency to for the transaction. These two fields are required.

  • Choose the FX type: select External for an external request.

Choose FX type

  • Click on the Request a quote button to send an external request to the provider integrated with our solution.

  • Confirm the quote request by clicking on Request and waiting for the response.

Confirm quote

  • You can Accept this rate or Cancel and request a new quote if desired.

Accept rate

This action allows the user to request a quote. The exchange rate and quotation date will be added to the transaction.

Request a trade

When a user clicks on Create a transaction at the end of the Transaction - WIRE Creation form, the request trade external provider will be called to confirm the quote and retrieve a contract ID to assign to the transaction.

If the quote is invalid or missing when you try to confirm it, an error message will be displayed and the transaction will not be created. Depending on the error message, you might be asked to make a new quote request before creating the transaction.

The quote is only valid for a few minutes, please do not wait too long between the quote and the trade requests.

Cancel a trade

When a transaction with a valid external trade is rejected, we always need to cancel the trade. The cancel trade external provider will be sent a cancel request if the status of the transaction is “To correct” or “Rejected”.

How to use static exchange rate values

Based on FX static type in Reference Data and the Static FX type in the Flows, the user can upload static exchange rates.

When you manually create a transaction, you do not need to add exchange rates or external exchange rates in the Transaction details manual entry step.

If the exchange rate corresponding to the currencies of the transaction is not found in the FX Static market data, the transaction will be rejected or put to correction based on flow configuration.

How to manage exchange rates on postdate payment

For all transactions with an exchange rate, we can validate the quotation date, this is the validity date of the exchange rate.

Based on this date:

  • Transactions will be rejected or put into the correction queue based on the flow configuration on the send day of the transaction. The engine allowing the validation can be configured into post-processing engines.

  • A new exchange rate would need to be entered or requested on the edit screen.