The forward rate agreement is a contract between clients, that ensures an agreed forward interest rate for the leasing or placing of a specified, hypothetical amount of funds for a specified time period in the future. The forward rate agreement does not include an actual lease or placement of a specified amount of money on the money market. It is only an agreement on beforehand determined interest rates.
Software support enables:
- contracting of transactions with banks or legal persons,
- supported creation of MT340 and MT341 messages,
- authorization of master data (possibility of four eyes control),
- settlement supported by direct bookkeeping into current account transactions (premium and execution) through domestic payment transactions; for other cases reconciliation of claims and liabilities with bookkeeping into / from transitional account is enabled,
- bookkeeping of exchange rate differences for transactions in foreign currencies and transactions with a currency clause,
- monthly evaluation at a fair value is executed outside of HIBIS,
- only evaluation values are inputted into the latter,
- calculation of settlement amount with discount or standard method,
- automatic bookkeeping of business events within daily processing.