Lifecycle of a Trade – Foreign Exchange

This program introduces participants to the trade lifecycle for foreign exchange trades. Participants follow the sequence of activity that occurs “behind the scenes” on trade date once an FX trade is executed through the final exchange of currencies on settlement date.

Course Objectives

By the end of the course, participants will be able to:

• Recognize how FX trades are executed among brokers, dealers, their customers and inter-dealer brokers. Spot, Options, Swaps, Futures and Forwards are included.
• Identify the critical functional areas related to moving FX trades forward to settlement, including confirmation and clearance
• Identify services provided by CLS Clearing and SWIFT messaging
• Distinguish types of operational risks related to FX trades that have a potential impact on the bank and its’ customers, as well as the industry as a whole
• Examine specific post-execution processes related to FX trade lifecycle activity, including Nostro account management and reconciliation

Suggested Prerequisites:

• Foreign Exchange or equivalent knowledge

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7