A step-by-step guide on how to use 360T multi-bank, multi-asset trading platform with ZenTreasury

A step-by-step guide on how to use 360T multi-bank, multi-asset trading platform with ZenTreasury

Back when I used to work as a treasury dealer, my colleague and I had to call banks if we wanted to make an fx deal (foreign exchange spots, forwards, or swaps). Usually, both of us would call a couple of banks and request a price quote for a transaction. The bank that gave us the best price (also taking into consideration any possible payment fees) would then win the deal with us. I enjoyed the personal touch and how I used to talk about the premier league with London bankers. I remember that I even won their fantasy football competitions back then. Good times!

Benefits of an e-dealing platform

With time, there was more pressure on getting things done more efficiently, and multi-bank e-dealing platforms started to emerge. The most significant benefit for me was that with only one treasury dealer, you could request quotes from as many banks as you wanted and get your positions hedged much faster than before.  It automatically arranges the price quotes from best to worse, so it’s easy to choose the best price with ever-changing prices. You could then import them directly into your TMS, so there was less room for operational errors (fat finger syndrome).

360T a multi-bank, multi-asset trading platform for OTC-based financial instruments

I have used 360T e-dealing platform in two treasuries and warmly recommend it. It’s one of the best I have used. This is the reason we have implemented 360T to ZenTreasury.

There are a few things to consider when setting up 360T in ZenTreasury.  

Portfolios

All FX agreements in ZenTreasury need to be linked to a portfolio.

All FX agreements in ZenTreasury need to be linked to a portfolio.

Portfolios are used for categorizing agreements in reporting or routing postings into different accounts in accounting. One example of portfolio usage is when you need to split instruments between hedge accounting and non-hedge accounting items. You need to define a default portfolio to be used when you import transactions. Following this step, the imported transaction will be assigned for this portfolio by default. You can then go and change the portfolio for a different one after the import. This can also be useful if you or someone else in your team needs to check the transactions after import. Settings-> Portfolios ->Add new

 Alias 360T

An “Alias” is used to correctly identify the transactional parties in the 360T transaction file to the corresponding company in ZenTreasury.

An “Alias” is used to correctly identify the transactional parties in the 360T transaction file to the corresponding company in ZenTreasury.

You need to get this information from 360T and enter it to the correct company in Settings-> Companies -> edit the corresponding company -> Additional tab -> Alias 360T 

SSI

Standard Settlement Instructions (SSI) are market participant’s default instructions for payments.

Standard Settlement Instructions (SSI) are market participant’s default instructions for payments.

In ZenTreasury, there are two uses for the SSI feature. Firstly, you can create your SSI and send it to your bank. Secondly, ZenTreasury uses it to route the imported deals to correct bank accounts. Every entity & currency combination needs to have at least one SSI rule.

The easiest way to manage it is to create one default SSI for all currencies. Settings-> SSIs ->Add new

The easiest way to manage it is to create one default SSI for all currencies. Settings-> SSIs ->Add new

 

  • Entity: This is the entity behind the agreement.
  • SSI counterparty:This is the counterparty that you are dealing with, in general, the bank.
  • Currency: Dealing currency.
  •  Account: The bank account where the transaction should happen.
  • Use this rule as default for SSI counterparties - tab: Regardless of entity type, all transactions happen in the same bank account, meaning that you can put this tab on active mode.

Importing

After this, you can start importing 360T deals from your computer into ZenTreasury. Go to Foreign Exchange -> Register -> Import 360T -> Chose files -> Check and Import

Reporting and accounting

Reporting or accounting can be done using the ZenTreasury standard reporting or by using the accounting module.

 Please note that if you want the system to calculate the right valuation (unrealized result) for your forwards and swaps in closing, you need to have - on top of currency fixing rates - forward points in ZenTreasury. You can add them manually or via a third-party rate provider. Currently, you can only bring the data using the API from the Databond rate provider automatically. Read more: https://web.databond.fi/