Back-office Validation

The back-office validation of a transaction can be automatic or manual.

It is automatic when the cash flow associated with the FX transaction gets the "Actual" status.

The back-office validation of transactions can be manual either transaction by transaction, or by transaction batch. A BO-validated transaction cannot be deleted.

A transaction must be BO-validated before being carried forward, early exercised or settled. Every entered financial transaction can be validated twice:

The first validation occurs when, after the transaction entry, you click the OK or Apply button. This validation is usually performed by the user who entered the transaction. It corresponds to a front-office validation.
The second validation is the back-office validation. It takes place during the reconciliation between the dealing ticket edited in FX and the written or phone confirmation from the counterparty. To ensure maximum security, this validation is supposed to be performed by members of the back-office department, in order to separate the front-office from the back-office functions.

The date and time of the back-office validation are displayed in the Validation area of the Back-Office tab in the management pages for transactions.

If the automatic reporting of confirmation letters was enabled, a confirmation is automatically edited after the back-office validation. For more information on the setup of Automatic Reports, see topic Automatic Reports.

Validating Transaction Pairs

The back-office validation of one leg for a settled or carried forward transaction or one leg of a swap transaction involves the automatic back-office validation of the other transaction leg.

Back-Office Validation of Swap Transactions

You can back-office validate Swap Transactions through the management pages for Swap Transactions or Spot and Forward Exchange Transactions. After the back-office validation, the swap transaction can be modified only in the Swap management pages. After the back-office validation, both swap legs must be separately modified through the management pages for FX Transactions.

Validating Transactions

Two options are available to validate a transaction individually:

to enable the corresponding option in the Process menu of the transaction management pages,
to enable the corresponding option in the Back office tab of the detailed page for the transaction.

Validating Transactions from Back Office Tab in the Detailed Page

Info

The screenshots show the procedure for Swap Spot/Forward Transactions.

In the management page for FX Transactions (forward, spot exchange or swap), for Currency Borrowings or for Currency Loans, double-click the line corresponding to the transaction to select.

For more information on:

managing Spot Exchange Transactions, see topic Spot Exchange,
managing Forward Exchange Transactions, see topic Forward exchange,
managing Swap Transactions, see topic Swap.

The modification page for the transaction is displayed.

Click on the Back Office tab.

In the Back Office area, select the BO Validate option.
In the actions toolbar at the top of the page, click the OK button to save the action.

The selected transaction is back-office validated.

The transactions table is updated, a tick in the BOV column indicates that the transaction of the selected line is BO-validated.

Validate by Batch

This function enables you to perform a simultaneous back-office validation for a selection of transactions.