Bank Instructions

Buying a treasury bill at auction, settling a bond purchase through a broker-dealer or moving cash between settlement accounts each starts as a banking instruction. The instruction records a record number, subject, counterparty, amount in US dollars, value date and the preparer who owns it. Its account lines say which accounts are debited and credited, and the debits and credits must balance.

An instruction moves through a fixed lifecycle. It is Draft while prepared and Review once submitted. It becomes Authorized after an independent approval, Submitted when sent to the provider and Pending while the provider processes it. It is Confirmed when verified evidence matches its amount and value date, or ends Rejected.

• Balanced account scope. Every instruction carries debit and credit lines against named accounts, and the totals must agree before approval.
• Eligible counterparties only. The counterparty is a bank, custodian or broker-dealer on the approved list with its eligibility note.
• Version numbers on every change. Each saved change raises the version. Approval and submission apply to the version they were made on.

Agree the instruction types you use, such as auction purchase, secondary purchase, sale, maturity sweep and internal transfer, and how each is named in the subject. List the accounts each type may debit and credit. Agree who prepares instructions and who approves them, and any value date cut-offs with your banks.

Treasury decides to buy $5,000,000 face value of a 26-week bill at Monday’s auction. The Treasury Preparer drafts an instruction to the custodian with an amount of $4,880,000, a value date of Thursday, a debit line on the operating account and a credit line on the custody account for the same amount. She attaches the auction confirmation and submits it.

The Treasury Approver approves the submitted version. The Settlement Analyst submits it to the custodian, which acknowledges it with its instruction ID. On Thursday the custodian’s settlement evidence shows $4,880,000 on the value date. The analyst verifies it and the instruction is Confirmed.

• Awaiting Action — Instructions in review, authorized, submitted or pending, with owner, counterparty, amount and value date.
• My Instructions — The instructions the signed-in preparer owns.
• Bank Instructions by Status — Every instruction grouped by status.

The Operations Overview page brings instructions, verified evidence, review decisions and provider exceptions together.

• Instruction to settlement: Draft, authorize, submit and confirm an instruction.
• Correction and receipt reconciliation: Correct or cancel an instruction safely.

Review the implementation plan and the data model before importing open instructions.