Product Family:

Treasury/Private Operations    

Product Requirements    

       

Requirements Clarifications

     1 Name of the Product At par Treasury Bond-HTM  2 Line of Business Treasury  3 Department Securities  

4Balance Sheet Classification  HTM-T Bond  

5 Brief Description

Buying of treasury bonds in auction from the central bank and then selling in the secondary market to other banks and clients  

6Business Requirements SLR/Liquidity Mgmt   

6.1 Limit Fixing nil  6.1.1 Dealer YES  6.1.2 Customer YES  6.1.3 Broker YES  6.1.4 Counter-Party YES  

6.2Trading Units ( For each security) Min 10 lacs(optional)  

6.3Settlement - Actual / Contractual Actual  

6.4

Transaction settlement - Manual / Swift Manual  

6.5 Currency BDT  

6.6Charges, Commissions & Fees YES  

6.7

Relation/Dependency to/on other Products/Service/Interface NIL  

6.8 Taxation/VAT YES  

6.9Risks Identified and Control mechanism    

6.9.1 Risks Identified    

6.9.2 Control requirements    

6.9.3Verification requirements    

6.10 Roles involved    

6.10.1

Roles that are allowed to only input/create/operate/modify

Front office has the authority to input and create.No modification is permitted once the deal is moved to back office.  

6.10.2

Roles that are Allowed to verify and authorize Front office  

6.10.3Roles that are allowed to only view

Once the deal is authorized the front officer user can only view.  

6.10.4

Roles that are allowed to view all verification requirements Back office user  

6.11History & archival requirements Required  

6.12

Type of Customer (Domestic - Individual/ Institution /Non-Resident/ Foreign Institution)/In ALL  

6.13Own Book / Client Book Own Book  

6.14 Margin Trading (Y/N) NO  7 Amortization NO  

7.1 Frequency NA  8 Revaluation NO  

  Frequency NA         Process Requirements

PROCESS REQUIREMENTS

    

     Business Process

ActivitiesRoles

Accounting Entries

Purchase Receipt of order from clients

Front office  Dr. treasury Bill- HTMCr. Balance with 

Bangladesh bank

ON maturity

Dr. Balance with Bangladesh bakCr. Interest on treasury BillCr. Treasury Bill-HTM

 Check Balance available Front office  

  Block Margin no  

 Enter Order / Pass on to Broker Front office  

 Receipt of Trade confirmations Back office  

  Reconcile / check Back office    Execution of Order Back office  

 Send confirmation to client Back office  

  Debit client account Back office    Security Settlement Back office    Advise depository Back office  

 Recover charges / Tax Back office  

  Transaction Creation Back office  

SaleReceipt of order from clients Front office  

 Check security availability Front office  

 Enter Order / Pass on to Broker Front office  

 Receipt of Trade confirmations Back office  

  Reconcile / check Back office    Execution of Order Back office  

 Send confirmation to client Back office  

  Security Settlement Back office    Credit client account Back office  

  Advise depository Back office  

 Recover charges / Tax Back office  

  Transaction Creation Back office  Modification of Order

Check  order execution Front office  

  Modify order Back office  

 Other activities as in PUR/SAL Back office  

  Recover charges Front office  Reverse Order

Check order execution Back office  

  Reverse Order Front office    Recover charges Front office