FRA – forward rate agreement

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.