Forex Dealing Operaitons|Dealing Room|Mid Office|Back Office

There are following objective of Forex dealing room.

• Buying and Selling of Foreign currency
• Control Assets and Liabilities of Foreign currency
• Manage Nostro Accounts

Dealing Room Positions: Dealer who are involving in buying and selling of Foreign currency maintain two positions.

1. Fund Positions:- Maintain the position of Inflow and outflow funds in Nostro account. Fund positions arises interest rate in Nostro account, there is deficit in Nostro account, creates liabilities of interest on overdraft of Nostro account, while excess funds in Nostro account cease interest income for bank.
2. Currency Positions:- In dealing room,there is a lot of transactions between merchants, and inter-bank. Dealing room needs to maintain net positions foreign currency to meet forward buying and selling. Every dealing room have certain limit which is set by management.

Mid Office:- After Dealing Room, there is mid office which have following responsibilities

1. Deals with risk management
2. Parameterize of risks involved of risk in dealing room operations
3. compliance of instructions and guidelines

Back Office:- As usual, there is always a head boss, which have sole control in all system and procedures,

• Processing of deal
• Accounts Reconciliation
• Watchdog on dealers and reporting provided by dealers