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An in-house forex management system

GENERAL DESCRIPTION
                FX-Manager is a Visual Basic system and is suitable for small single entity companies as well as large centralised companies. It caters for the following foreign currency exposures:

               Forward Contracts
               Put and Call Options
               Foreign Loans

                               1. Data Input
                               2. File Structure
                               3. Strategy
                               4. Payments
                               5. Currency Rates
                               6. CFC Accounts
                               7. Calculators
                               8. Holidays
                               9. Accounting Integration
                               10. Reporting
                               11. Networking

1. DATA INPUT
               Data may be inputted directly to the Access database or via interfaces to accounting, order entry and other management systems.

2. FILE STRUCTURE
               FX-Manager comprises two main file groups, those containing static data and those containing variable data. The static data files, or maintenance files, record basic information such as names, addresses and telephone numbers for Bankers, Suppliers, Subsidiaries and Clients. Data relating to transactions with banks and clients are held in the database in the dynamic files. Dynamic data are verified against static information to ensure accuracy and to control financial processes. The two major database files record foreign currency exposures and information on hedging instruments purchased to cover those exposures. These files record all transactions whether they are import or export related. It will also allocate orders to hedges and hedges to CFC accounts to establish relationships between these deals and create audit trails of contract usage. The data structure results in a simple database with powerful calculation and reporting capability.

3. STRATEGY
               This module allows the user to determine a management strategy for each currency and subsidiary and for the group as a whole. Once this is entered into the system FX-Manager will monitor the company's exposure against this strategy. Should the exposure deviate from this strategy a message is printed to the screen, advising the user of the variance. The strategy may be revised at any time by an authorised user.

4. PAYMENTS
               The payments module permits the user to determine the best method of making payments or receipting funds, depending on the present drawn down value of the forward book and the dynamic spot rate at the time of payment. This function will match hedges to the order to achieve the costing rate while adding more or less spot, depending on the movement in that particular currency. If CFC accounts are used, contracts can be allocated to mature to the CFC to refund drawings from these accounts. At the time of payment the user can override the system and allocate payments and contract usage as desired.

5. CURRENCY RATES
               FX-Manager includes a rates file which stores spot and forward rates. These rates are obtained directly from our in-house source or from the user's bank. If rates are not acquired electronically, they may be entered manually or down loaded from disk or a network source.

6. CFC ACCOUNTS
               Customer Foreign Currency accounts for imports and exports are provided for. The system caters for several accounts per currency in several banks. If CFC accounts are used for making payments, contracts can be allocated to mature to the CFC to refund drawings from these accounts. Interest accrued or paid in the CFC account is treated as an exposure and may be hedged.

7. CALCULATORS
               FX-Manager includes a Forward Rate Calculator for determining the forward rate for a currency to a specific date and a Best Rate Selector for determining the instrument in the portfolio which will provide the best conversion rate under given circumstances. The calculator will also provide interest rate differentials and early delivery and extension values for contracts.

8. HOLIDAYS
               To ensure that transactions are not established for currency holidays, FX-Manager includes a Holiday File which has all currency trading holidays stored in it and which is referred to whenever a transaction in done. If a holiday is selected or entered, FX-Manager will default to the next working day for the currencies involved.

9. ACCOUNTING INTEGRATION
               FX-Manger may be integrated into the company's accounting system. It permits hedging exposures to different base currencies on split leg deals. FX-Manager includes a ledger file for accounting integration. Accounts in the ledger file can be made to mirror the main accounting system so that period end accounting for forex transactions is done easily. If required the integration can be real time.

10. REPORTING
               Standard reporting in FX-Manager includes statistical reports for Management, Accounting reports and Operations reports. Additional reports will be written to user requirements on a quote basis.

11. NETWORKING
               FX-Manager is available as a stand alone or networked system within a LAN environment.