Foreign exchange documentation and operations (using authentic/primary sources)

78 topics across 7 chapters

Chapter 1

FX fundamentals, instruments, and market conventions

Core FX terminology and conventions (pairs, base/terms, points, value date)

FX products overview: spot, forward, swap, and NDF

2 subtopics

Deliverable vs non-deliverable settlement (NDF fixing, cash-settlement logic)

Vanilla FX options overview (what ops must capture and confirm)

Pricing and quote mechanics (pip conventions, forward points, bid/ask, markups)

Calendars, cutoffs, and holiday conventions (T+2, modified following, etc.)

Reference rates and benchmarks (what they are used for operationally)

Chapter 2

FX trade lifecycle operations (front-to-back)

Pre-trade setup (controls that must exist before trading)

4 subtopics

KYC/onboarding prerequisites relevant to FX operations (client due diligence basics)

Credit limits and line checks (pre-trade risk gating for FX)

Static data and Standing Settlement Instructions (SSI): setup and maintenance

Pre-trade checklist and controls (what must be verified before first trade)

Trade capture and booking (systems, product templates, lifecycle states)

3 subtopics

Front-to-back systems and booking models (trade store, risk, accounting touchpoints)

Booking templates by product (spot/forward/swap/NDF) and required economic fields

Trade date vs value date vs settlement date: operational impacts and validations

Confirmation/affirmation and exception management

3 subtopics

Matching platforms and workflow (affirmation, matching rules, break categories)

Breaks/disputes playbooks (tolerance, escalation, documentation of resolution)

Record retention for confirmations and trade evidence (what to keep and why)

Netting, compression, and portfolio maintenance (operational view)

Post-trade events: amendments, novations, early terminations (ops handling)

Operational metrics and SLAs (STP rate, breaks aging, settlement fails)

Chapter 3

Documentation and legal framework for FX

Master agreements and netting (what ops should know, what legal owns)

3 subtopics

ISDA Master Agreement structure and key clauses (events of default, close-out, netting)

Local law and netting enforceability (why opinions matter operationally)

Schedule negotiation checklist (ops-relevant elections: settlement, notices, close-out)

Collateral documentation and margin terms (CSA/credit support essentials)

2 subtopics

Credit Support Annex (CSA) mechanics (thresholds, MTA, IA/VM concepts)

Collateral eligibility, haircuts, and dispute handling (operational interpretation)

Confirmations, definitions, and product terms (how to read them accurately)

2 subtopics

ISDA FX Definitions / product definitions: reading guide for ops and confirmations

Confirmation templates (short-form vs long-form) and annexes (what to validate)

Operational procedures (SOPs) for FX operations (runbooks, checklists, handoffs)

Document governance (version control, approvals, exceptions, audit trail)

Chapter 4

Messaging, confirmations, and data standards

Identifiers and reference data (LEI, UTI/USI concepts, product/party data hygiene)

SWIFT messaging for FX and payments (MT and ISO 20022 concepts)

3 subtopics

Key SWIFT MT messages for FX confirmations (e.g., MT300/MT320/MT330 families)

ISO 20022 payment messages overview (pacs/camt: what they represent operationally)

Messaging security and controls (permissions, monitoring, segregation of duties)

FIX and electronic execution protocol basics (what ops needs to reconcile)

FpML / ISO 20022 representation for FX derivatives (data fields and mappings)

Data quality controls and message validation (mandatory fields, tolerances, STP)

Chapter 5

Settlement, payments, and infrastructure

CLS and Payment-versus-Payment (PvP) settlement: how it reduces settlement risk

Non-CLS settlement and correspondent banking (nostro flows, agent banks, risks)

Payment instruction workflow (creation, validation, release, repair)

3 subtopics

↗ Static data and Standing Settlement Instructions (SSI): setup and maintenance (see Chapter 2)

SSI validation and payee controls (call-backs, attestations, change controls)

Funding, cutoffs, and dual-control release (time-zone risk and approval design)

Nostro/vostro accounts and cash management basics (why breaks happen)

Failed payments, investigations, and repairs (root-cause taxonomy and playbooks)

Chapter 6

Risk management, controls, and reconciliations in FX operations

Operational risk in FX (common failure modes and preventative controls)

Reconciliations (trade, cash, and positions): design and daily cadence

3 subtopics

Nostro reconciliation (intraday/EOD, aging breaks, and evidence standards)

Trade breaks management (triage, assignment, remediation, and closure evidence)

Position/exposure reconciliation (risk vs booking vs accounting alignment)

Valuation and P&L control touchpoints (independent price verification basics)

Margining and collateral operations workflow (calls, settlements, reporting)

2 subtopics

Margin call workflow (call issuance, dispute resolution, settlement confirmation)

Interest, collateral movements, and reporting (what must be booked and evidenced)

Business continuity and incident management for FX ops (resilience and recovery)

Chapter 7

Regulation, compliance, and reporting (primary-source oriented)

↗ KYC/onboarding prerequisites relevant to FX operations (client due diligence basics) (see Chapter 2)

Sanctions and AML controls in FX and cross-border payments

2 subtopics

Sanctions screening concepts (OFAC/UN/EU basics, name matching, false positives)

Payment message red flags and investigations workflow (alerts, holds, dispositions)

Trade reporting regimes for FX (what gets reported and operational controls)

3 subtopics

↗ Identifiers and reference data (LEI, UTI/USI concepts, product/party data hygiene) (see Chapter 4)

Reportable fields, validation rules, and reconciliation (source-of-truth and controls)

Reporting timelines, delegation models, and controls (submissions, corrections, attestations)

Market conduct expectations (FX Global Code) and surveillance basics

2 subtopics

FX Global Code principles (documentation, disclosures, and governance expectations)

Communications monitoring basics (voice/eComms retention and surveillance concepts)

↗ Record retention for confirmations and trade evidence (what to keep and why) (see Chapter 2)

Finding and using authentic sources (regulators, central banks, standards bodies, industry associations)