Foreign Exchange – Spot, Forwards, Swaps, NDFs, Time Options, Block Trades

TwoFour supports spot, forward and swap foreign exchange transactions,
including non-deliverable forwards (NDF’s), block trades and back-to-back
transactions for all currency pairs.

Cross currency transactions can be disaggregated against a base currency or a
third currency, with positions and associated P/L automatically assigned to
designated traders and sales people.

Forward trades can include a ‘window’ start date to allow a range of
settlement dates, and TwoFour processes forward/forward swaps and can
accommodate uneven swaps and different customers on the near and far legs
of a swap.

Block trades can be divided by predefined percentage allocation or manually
allocated. Internal position transfers from one trader and/or portfolio to
another are easily completed.

Trades can be manually entered or automatically interfaced into the system,
and can be netted for settlement. TwoFour also supports split value date
settlement.

Money Markets – Deposits, Loans, Certificates of Deposit, Commercial Paper,
Federal Funds, Banker’s Acceptances

TwoFour supports trading of fixed, variable and discounted money market
instruments, as well as a wide range of cash instruments, including loans,
deposits, certificates of deposit, and commercial paper.

Money market instruments can be traded in any currency. TwoFour supports
specific schedules for principal, interest, and principal plus interest payments,
and enables traders to enter pending and ‘what if’ transactions.
 

Internal Arbitrage – Swaps, Swap/Hedges

TwoFour support covered interest arbitrage trades to fund FX positions via
money market transactions or to fund trading activity from foreign currency
loans and deposits via FX. Trades can cover principal only, or principal plus
interest. These transactions do not result in external cash flows or settlements.
 

Cash Management – Call and Notice Accounts, Demand Deposits, Nostro
Management, Income and Expense Adjustments, Accounts Payable/Accounts
Receivable

TwoFour’s cash management tools are designed to improve forecasting, cash
movement administration, monitoring activities, enabling precise control of
daily cash, foreign currency positions, and liquidity management, both short
and long term.

TwoFour’s cash management functionality offers real-time management of
banking and inter-company movement, and provides a comprehensive global
view on all currency holding, making it easy to manage FX risk exposure.
 

Financial Futures – Currency, Bond, Interest Rate, Metals

TwoFour supports financial futures, including currency, bond and interest
rate and metals contracts. Futures used to hedge foreign exchange positions
can be viewed together in real-time blotters, providing a more complete view
on market risk, exposure and profitability.
 

Exchange Traded Options – Currency, Bond, Interest Rate

TwoFour supports exchange traded options, including currency, bond and
interest rate derivative products. TwoFour processes American and
European puts and calls for contracts on a wide selection of exchanges.
Options can have clearing and executing brokers, and may be linked to an
underlying instrument or contract.
 

OTC Options – Vanilla and Exotic Currency Options

TwoFour supports both American and European style options, including
vanilla, knockin, knockout, double knockin, double knockout, no touch, one
touch, double no touch, double one touch, reverse knockin, reverse knockout,
and Asian (average rate) options. TwoFour integrates seamlessly with
external sources of option pricing and volatility data, or data can be manually
entered.

TwoFour generates real-time FX delta hedge and Greek statistical information
based on OTC FX activity, and consolidates all option and FX positions data
into a common blotter, enabling traders to effectively manage total currency
exposure.
 

Unallocated Metals

TwoFour supports trade processing for metal contracts on futures exchanges
and for unallocated metals against any currency. Metal activities can be
incorporated into cash businesses, and viewed either individually (as metal
trading) or intermixed with other financial products.
 

Fixed Income – G-20 Government Bonds, Discounted Bonds, Zero Coupon Bonds

TwoFour supports trade processing for fixed income securities, including
discounted bonds, zero coupon bonds and government bonds from Australia,
Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland,
Italy, Japan, Netherlands, Sweden, Switzerland, Spain, United States and the
United Kingdom.
 

Interest Rate Swaps – Vanilla and Cross Currency

TwoFour supports vanilla interest rate swaps, where fixed and floating
interest rate cashflows are exchanged against a notional principal amount,
and cross currency swaps, where the actual principal amounts of two
different currencies are exchanged.

All asset classes leverage the core functionality of TwoFour, including
immediate inquiry of activity, realtime updates of position blotters, P/L,
interest rate refixing, payment schedules, settlement instructions, netting,
confirmations, and accounting.