Counterparties and accounts

Every instruction and deal names a counterparty, so the counterparty register comes first. Each bank, dealer or fund counterparty has a name, a code, a contact person, an address and an eligibility note that says what the desk may do with it, such as “FX spot and forwards up to one year” or “overnight deposits only”. An active marker shows whether the counterparty can be used today. Counterparties belong to a legal entity, so each entity keeps its own approved list.

Treasury accounts are the accounts held at those providers. Each has an internal account code, the provider’s name, the provider’s own account identifier and the account currency. The account’s owner is the bank or custodian that holds it. Instruction legs point to these accounts, and balance snapshots and provider entries arrive against them.

• One entity, one approved list. Each legal entity carries its own counterparties and team members, with its own time zone and base currency.
• Eligibility in writing. The eligibility note states the products and limits the desk has agreed for that counterparty. Preparers and approvers read it before raising or approving an instruction.
• Accounts with external identity. Every account carries the provider’s account identifier, so evidence and reconciliation entries can be matched to the right account without guessing.

Agree counterparty codes and use the same code in the bank’s own reference data. Agree the wording of eligibility notes, including product scope and any tenor or size limits the desk applies. Decide who may add or deactivate a counterparty; the Treasury Manager owns this in the standard setup, with Admin controlling access. Collect the provider’s account identifier and currency for every account before go-live, and agree how a closed account is marked inactive.

The desk opens a new money market relationship with a regional bank. The Treasury Manager adds the bank with code RB-LON, the relationship manager as contact and the eligibility note “overnight and one-week deposits, USD only”. She adds the desk’s new deposit account at that bank with its external account identifier and USD currency.

A preparer raises a one-week deposit instruction to RB-LON the next morning. The approver checks the eligibility note before approving. Three months later the bank is downgraded and the manager marks it inactive. It drops off Approved Counterparties and no new instructions name it, while past deposits and their evidence stay readable.

• Approved Counterparties — Active counterparties with contact, address and eligibility note, read before any instruction is raised.
• Account Register — Active treasury accounts with provider, external account identifier, currency and owning bank.

• Instruction to authorization: Raise an instruction against an approved counterparty and account.
• Statement to reconciled account: Match provider entries to the right account.

Review the data model before loading counterparties and accounts.