Acts as counterparty to each buyer and seller

Is responsible for market making

Requires members to cover their commitments on a week-to-week basis

Does not regulate trader’s activities

No special requirements need to be considered

The receiver has to approve the transfer

Interest has to be paid to the receiver

The receiver is required to accept the payment amount

The level of short-term EUR interest rates

The level of medium-term EUR interest rates

The slope of EUR yield curve

The level of long-term EUR interest rates

Never remunerated

Remunerated at the EONIA rate

Remunerated at the rate of the deposit facility

Remunerated at the main refinancing rate

Is higher than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date

Is higher than its face value if, and only if, its coupon rate is lower than its yield to maturity on the coupon date

Is lower than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date

Is always higher than its face value

MTn99

MT300

MT370

MT670/671

Both currencies (USD and TWO) are exchanged

The notional amount is paid out in USD

A cash settlement is paid out in TVVD

A cash settlement is paid out in USD

Trades are executed in nominal amounts

Derivates are bought and sold only over the counter (OTC)

The final settlement of a derivates trade can only be made by physical delivery

The accounting for derivative instruments is off balance sheet

There is no need to note this separately as payments via TARGET2 are made only in EUR.

The code word "viaTARGET2" is used in field 72 - "Bank to Bank Information".

7/RT" is indicated once in the optional account number field 56A, 57A or 58A.

The code word "TARGET2" is used in the "Pay To Bank" field.

EURIBOR

SONIA

EONIA

EURONIA

The face value of 5,000,000.00

More than 5,000,000.00

Less than 5,000,000.00

Cannot decide based on the information supplied

Short EUR 2,450,000.00 at 1.3528

Long EUR 2,450,000.00 at 1.3528

Long EUR 2,000,000.00 at 1.3532

Long EUR 2,450,000.00 at 1.3525

Only market risk

Only credit risk

Market risk and credit risk

Market risk, credit risk and delivery risk

30/360

ACT/365

ACT/ACT

ACT/360

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.

If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.

Settlement risk

Translation risk

Replacement risk

Operational risk

a 270-day tenor

a 360-day tenor

a 365-day tenor

a 366-day tenor

Sales / trading staff

Operations staff

Nostro staff

Front office staff

An AAA-rated security in payment default

A sub-investment grade instrument

An OECD Government bond

A bond typically paying lower yields than an investment grade instrument

At the beginning of the forward period

On the trade date

On the maturity (final) date

At any time before the contract’s maturity date

3.20%

3.21%

3.23%

3.30%

The matching of confirmations

The dealing and archiving of payment orders

Reconciliation and correspondent banking

The transfer of information and settlement

No action is required. The credit interest earned on the credit balance will offset the debit interest incurred on the short balance

You should borrow USD 5,000,000.00 to cover the short balance and leave the long balance as it is

You should lend the surplus USD 5,000,000.00 in order to compensate the overdraft charges on the short balance with the interest earned on the loan

You should instruct the bank with the long balance to transfer USD 5,000,000.00 to your nostro account at the other bank

You agree and pay back to the customer the capital plus 2.00% interest calculated on 30 days

You agree and pay back to the customer the capital plus 2.00% interest on 30 days less your refinancing costs of 0.20% calculated on 30 days

You agree and pay back to the customer the capital plus 2.00% interest on 30 days less your refinancing costs of 0.10% calculated on 60 days

You agree and pay back to the customer the capital plus 2.00% interest on 90 days minus the actualization of this amount at 2.20% calculated over 60 days

The counterparty does not need to be notified about any alterations to original payment instructions or SSIs.

Any alterations to original payment instructions or SSIs are to be agreed to by the relevant parties involved either by fax or e-mail.

Alterations must be agreed to by the parties involved via a written legally binding document or an authenticated confirmation message.

Alterations need to be agreed to by the relevant parties involved and must be verbally confirmed.

Integration, layering, placement

Integration, placement, layering

Placement, layering, integration

Layering, integration, placement

Spot FX

Repo

Forward FX

FRAs

USD 1,000,000.00

USD 998,104.17

USD 992,500.00

USD 998,130.14

The issuer of a payment for the relevant trade distinct from the counterparty

The issuer of a payment for the relevant trade identical to the counterparty

The recipient of a payment for the relevant trade distinct from the counterparty

The recipient of a payment for the relevant trade identical to the counterparty

A purchase of a cap and a sale of a cap at higher reference rate

A purchase of a floor and a sale of a cap or vice versa

A purchase of a cap and a purchase of a floor

A purchase of a step-up cap and a sale of a step-down floor

The rate

The amount

The swap points

Settlement information

A FX Swap

A repurchase agreement

An interest rate swap (IRS)

A dual swaption

The date by which the interest payment on an operation must be made

The last date by which the minimum reserve amount can be paid to the central bank

The date, on which settlement must be made on the contracted amount or the differential amount of an operation

The date a deal is processed

31 July

1 August

2 August

3 August

The FX spot and forward dealing input and processing module

Standard back office features

The money market dealing and processing module

The securities trading and processing module

16:00 (4:00 p.m.) Central European Time (CET)

17:00 (5:00 p.m.) Central European Time (CET)

18:00 (6:00 p.m.) Central European Time (CET)

18:30 (6:30 p.m.) Central European Time (CET)

When the deal was processed is a good indication of the amounts to be reconciled

Each deal is registered according to a unique reference which helps in reconciling the items

The BIC-address helps you to reconcile the open items

None of the above. You should telephone your counterparties to request more information

Keep the information to yourself

Tell your supervisor

Tell your work-mates but not your supervisor

Talk to the colleague in question

Pay AUD 2,447.65

Receive AUD 2,500.00

Pay AUD 2,481.39

Receive AUD 2,481.39

T+3, meaning that settlement is due three days after the deal date

T+4, meaning that settlement is due four days after the deal date

T+1, meaning that settlement is due one day after the deal date

T+2, meaning that settlement is due two days after the deal date

can be used to show the counterparty the amounts it has to pay

can be used as the basis of reporting the bank’s position to the relevant central bank of the country concerned, against the limit granted for the bank

can be used as the basis of reporting the bank’s position to the relevant tax regulations office of the country concerned

can be used to adjust the country limits

Confirmation of the exact processing time of the payment order with the central bank of your counterparty

The strict adherence to the cut-off times of your domestic payment system

Confirmation of the time of processing of the payment order with your own central bank

The strict adherence to the cut-off times for payments made worldwide

It is only permissible in derivatives markets

Both parties of a trade should send confirmations

It is recommended

It is only permissible when dealing value today

The loss of the entire principal amount of the deal

The “replacement risk”, also known as “replacement-cost risk”

The loss of the negative mark-to-market value of the deal

As the deal is in the future, there is no impact on P&L

The settlement amount is the sum of the redemption value plus all coupons paid by the issuer.

If the yield and the coupon are exactly the same, the settlement amount and the face value will be identical.

The settlement amount is always calculated using the redemption price.

On a coupon date, if the bond quotes at par, the settlement amount and the face value will be identical.

An internet-based input system

A SWIFT-based input system

A TARGET-based input system

A screen-based input system

EUR/USD, USD/JPY, USD/GBP, USD/CHF, USD/CAD, USD/AUD

EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD

EUR/USD, USD/JPY, GBP/USD, USD/CHF, CAD/USD, AUD/USD

EUR/USD, USD/JPY, GBP/USD, USD/CHF, CAD/USD, USD/AUD

Transaction irregularities

Confirmation discrepancies

CIS mismatches

Settlement discrepancies

Confirmation procedures

Cut-off times

Procedures for confirming bilateral net amounts

Alternative procedures in case netting cannot be performed

Front office and back office should have different management reporting lines

Confirmation discrepancies should be investigated within 48 hours

Confirmations need only be exchanged if the amount involved is higher than USD 1,000,000.00 or equivalent

Money market and FX dealers should have different management reporting lines

EUR per USD

USD per EUR

The interest rate differential between EUR and USD

The fact that one USD is worth more than one EUR

An exposure in Singapore Dollar (SGD)

An exposure in Thai Baht (THB)

An exposure in Philippine Peso (PHP)

An exposure in Hong Kong Dollar (HKD)

Official prices calculated by the exchange at the close of trading for the purpose of making margin calculations

Official prices calculated by a panel of central banks

Official prices calculated by the central bank where the stock exchange is located

Never used

By the end of the trading day

On the next business day

On the value date

As soon as they become apparent