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Course List
Introduction to the Securities Industry
Introduction to the Securities Industry
Introduction to U.S. Securities Processing
Securities Lending and Borrowing : An Operations Perspective
Foundations of Investment Management and Buyside Operations
Dealing with Change in the Financial Markets
Collateral Management: An Operations Perspective
International Issues
International Securities Operations
International Portfolio Accounting
Foreign Currency: Markets, Clearance, Settlement & Accounting
Foreign Exchange: Lifecycle of a Trade
Corporate Actions
U.S. Domestic Corporate Actions
Global Corporate Actions
Capital Markets
Capital Markets Overview
Capital Market Economics - Investigating the Linkages Between the Real Economy and the Financial Markets
Portfolio Management
Portfolio Management
Securities Analysis
Managing Risk
Risk in a Global Market - Management and Operational Challenges Looking Forward
Financial Management
Financial Accounting and Financial Mathematics
Financial Statement Analysis
Fixed Income Securities
Bond Math: Mathematics of the Fixed Income Market
Structured Securities: MBS, ABS, CDOs
Introduction to Fixed Income Products
Accounting for Fixed Income Securities and Derivatives
Mortgage-Backed Securities
Collateralized Debt Obligations and Credit Default Swaps (CDOs and CDS)
Fixed Income Analytics
Interest Rate Swaps and Credit Default Swaps
Fixed Income Securities Trade Processing and Operations
Accounting, Regulatory & Management
Stock Brokerage Accounting & Securities Regulations
Introduction to Private Equity Markets
Trading After the Volcker Rule
Dodd-Frank for Non-US Derivatives Users
Complying with the MiFID II/MAR Rules
Introduction to Derivative Products
Derivatives: Markets, Operations, Accounting & Control
Derivative Products: Risk Management and Valuation
Option Valuation and Trading
Equity Derivatives: Futures and Swaps
Interest Rate Futures and Swaps
Introduction to Options: Products, Trading & Processing
Swaps Processing and Operations
Commodity Futures: Energy, Metals and Agricultural
Equity Options: Strategies, Accounting and Operations
Mutual Funds
Introduction to Mutual Funds
Mutual Fund Operations

Course Description
Foreign Exchange: Lifecycle of a Trade
Available Dates:
October 24, 2018, New York
Course Code: 232
Duration: 1 day
Level: Basic
Fee: $795.00
Instructor: Charlotte Scott
CPE Credits: 6
Prerequisite: No Prerequisite Required

This one-day course introduces participants to the lifecycle of a foreign exchange trade. Participants follow the sequence of functional activity that occurs prior to the execution of a trade through settlement and Nostro account bank reconciliations.

After attending this course, participants will be able to:

  • Identify the critical functional areas related to the lifecycle of a foreign exchange trade in the global OTC markets for currencies, including spot, forward, option and swaps
  • Distinguish types of operational risks that have a potential impact on the firm, foreign exchange traders and their customers
  • Analyze the source of costs per trade and its relationship to trading profitability
  • Understand "best practices" models for the support of lifecycle functions

Topics For Discussion Include:

Product Description

  • FX Market Place Structure and Participants
  • Products: Spot, Forwards/Futures, Options, Swaps

Pre-Trade Preparation and Documentation

  • Customer Account Set-up
  • "Know Your Customer" considerations for Patriot Act regulation
  • Non-disclosure agreements
  • Documentation of any special arrangements (e.g., credit lines, prime broker trades)
  • Capture of Standing Settlement Instructions (SSIs)
  • Product Set-up of reference and static information

Order Entry and Trade Execution

  • Origination of Customer Orders
  • Media used to communicate customer orders
  • Electronic dealing and trading systems such as Reuters and FXall
  • Verbal communication and electronic links
  • Trade Entry
  • Trade Edit and Validation Criteria
  • Trade Amendments
  • Credit Monitoring


  • Bilateral confirmations: Verbal and Hard-copy
  • Trade matching criteria
  • Affirmation of trade details
  • SWIFT MT 300s and other industry solutions for trade confirmations
  • Confirmation for block trades and split allocations
  • Exception processing: Unconfirmed or disputed deals


  • Establishment of netting agreements
  • Bilateral payment netting
  • Multilateral payment netting
  • Confirmation of final netted amounts


  • Forecasting of liquidity needs
  • Real-time balance projections
  • DVP settlement risk and exposure
  • Exchange of payments on value date
  • Impact of time zone differences
  • Communication of payment instructions and expected receipts to banks
  • Mapping of SWIFT messages to the FX lifecycle
  • Impact of settlement failure

Nostro Reconciliations

  • Nostro account reconciliations with banks
  • Identification of non-receipt of payments
  • Follow-up and error resolution processes

Accounting/Financial Control

  • Updates to General Ledger
  • Calculation of P&L: Realized and Unrealized
  • Position Valuations (Mark-to-Market)

CLS Bank

  • Background on why CLS was created and how it evolved
  • Herstatt risk
  • Currencies supported by CLS
  • Role of the Central Banks in CLS 
  • CLS membership: Settlement members, users and third parties
  • Trade flow through CLS
  • Plans for future development