The Presidents/ Chief Executives
All Commercial Banks

Dear Sir / Madam,

 

Standardization of FX Interbank Confirmations

As per existing practice, Commercial Banks provide FX trade confirmations in hard copy to SBP Treasury Operations Department followed by SWIFT confirmation messages. It has, however, been noted that such hard copy confirmations are not standardized. This poses special difficulty in locating and sequencing the necessary information such as value date, currency bought/sold, exchange rate, Nostro correspondents etc.

Further, this department needs to maintain a list of authorized signatories of domestic counterparts to avoid any risk of unauthorized settlement.

In view of above, all Commercial Banks are advised to use the attached standardized hard copy trade confirmations as per respective formats at annexure ‘A’ for FX Outright trades and annexure ‘B’ for FX SWAP trades.

They are also advised to provide this department with their list of authorized signatories, along with contact details, for signing the said hard copy trade confirmations by 15th November, 2012. In case of any future changes of authorized person(s), this department will be immediately notified of such changes.

All Commercial Banks are advised to abandon their existing confirmation formats and use the attached confirmation formats after 15th November, 2012 deadline.