Counterparties and Accounts

Treasury deals with a short list of banks, custodians and broker-dealers. Each counterparty is recorded with a code, contact, address, an eligibility note and an active flag, under the legal entity that uses it. The eligibility note records what the counterparty is approved for, such as primary dealer for auction purchases or custody of government securities only.

Each financial account is a custody or settlement account held with a provider: its account code, the provider, the external account ID, the currency, the active flag and the counterparty that holds it. Instructions draw their debit and credit lines from these accounts.

• Legal entities. Each organization is a legal entity with its own time zone and currency, so subsidiaries keep their own counterparties and accounts.
• Eligibility in writing. The eligibility note is visible to the approver when deciding an instruction.
• Inactive means withdrawn. Mark a counterparty or account inactive when its approval is withdrawn, so preparers stop choosing it and approvers can see why.

List the counterparties approved by your treasury policy and what each is approved for. List every custody and settlement account with its external ID and currency. Agree who may add or deactivate a counterparty or account, and how changes are approved. Add treasury staff as team members linked to platform users.

Treasury adds a second custodian for diversification. Admin records the custodian with its contact and an eligibility note saying it holds government securities only, then adds the custody account with its external ID in US dollars. The first instruction to move bills into the new account names the custodian as counterparty and the new account on the credit line.

Months later the board withdraws approval from a broker-dealer. Admin marks it inactive. When a preparer’s earlier draft naming that broker reaches review, the approver sees the inactive status on the counterparty record and returns it.

• Financial Accounts Roster — Active custody and settlement accounts with provider, external ID and currency.
• All Bank Instructions — Every instruction with its counterparty, for checking how each counterparty is used.

• Instruction to settlement: See where counterparty eligibility is checked.
• Bank statement reconciliation: Reconcile each account.

Map your counterparties and accounts before import.