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5. Beginning of Day Operations
5.1
Introduction
Before you enter FX transactions in the system, you must perform certain operations referred to
as Beginning of Day operations. The following are the Beginning of Day operations that you must
perform:

Maintain the exchange rates for currencies

Maintain discount and forward rates

Liquidate contracts that are marked for auto liquidation

Rollover contracts that have been marked for auto rollover

Run the deal level revaluation reversal batch process (only if you have opted for deal
level revaluation reversal while defining FX Branch Parameters)
You can maintain the exchange rates for a currency, daily, in the currency table. The forward and
discounting rates for a currency are maintained in the Forward Rates and Discounting Rates
Maintenance tables respectively. Forward and Discount rates are maintained daily or monthly.
That is, they are maintained as often as you revalue foreign exchange contracts using the Rebate
method.
To liquidate and rollover contracts marked for automatic liquidation and rollover, you must invoke
the respective procedures from the Application Browser.
5.1.1 Forward Rates
When you revalue a forward FX contract using the rebate method, you will use an exchange rate
(for the currencies involved) referred to as a ‘Forward rate’. The forward rate for a currency (for a
specific period) is computed using the spot rate and the prevailing interest rate.
The forward exchange rates for currency pairs are maintained in the ‘FX Forward Rate
Maintenance’ screen. These forward rates will be used when contracts in different currencies are
revalued using the Rebate Revaluation method.
The procedure to maintain forward rates is explained in the FX Module Specific Tables
Maintenance chapter.
5.1.2 Discounting Rates
Discount rates are used to compute the net present value of an outstanding FX contract.
The discounting rate for a currency is maintained in the ‘FX Discounting Rate Maintenance’
screen. These discounting rates will be used when contracts in different currencies are revalued
using the Rebate (with NPV) method of Revaluation.
You can maintain discounting rates (for a currency) for different tenors.
5-1