Back office and Front loading: Difference between pages

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1. ''Corporate treasury''
Front loading as applied to derivatives is a term that describes the obligation to clear centrally an [[OTC]] [[derivative instrument]] or contract that is applied retrospectively.


The part of the treasury organisation that administers and supports the trading activities of the treasury front office.  
It arises because there is a gap between the time that a [[CCP]] is authorised under [[EMIR]] and [[ESMA]]’s decision to mandate [[central clearing]] of certain derivatives.  During the early implementation stages of EMIR and the clearing obligation it may not be known at the time of executing a derivative trade whether it ultimately will be subject to frontloading or not.


The back office’s main functions are to process, confirm, verify, settle, reconcile and record financial market transactions.  
It is not known at the outset whether to price the transaction on the assumption that it will, or will not, be subject to central clearing during the life of the transaction.  


The back office is also responsible for ensuring that the organisation’s treasury management policy and controls are followed, as well as ensuring general compliance with rules and regulations. 


In a more general sense, the term refers to all administrative functions that support an organisation and includes areas such as payroll and expenses, accounts payable, accounts receivable and accounting.
==See also==
*[[Central clearing]]
*[[Central counterparty]]  (CCP)
*[[Derivative instrument]]
*[[EMIR]]
*[[ESMA]]
* [[Over the counter]]  (OTC)




2.  
==External link==
[http://regtechfs.com/clearing-and-present-danger-nasdaq-omxs-emir-ccp-authorisation/ Clear(ing) and present danger] ''www.regtechfs.com''


The parts of organisation which administer and support its customer-facing activities ('front office').
[[Category:Financial_products_and_markets]]
 
Back office activities include administration, record-keeping, payments and receipts, and accounting.
 
 
== See also ==
* [[Front office]]
* [[Middle office]]
 
 
==External links==
[http://www.treasurers.org/node/8446  Masterclass: Segregation of duties, Sarah Boyce, The Treasurer]
 
[[Category:Treasury_operations_infrastructure]]

Revision as of 16:11, 24 June 2022

Front loading as applied to derivatives is a term that describes the obligation to clear centrally an OTC derivative instrument or contract that is applied retrospectively.

It arises because there is a gap between the time that a CCP is authorised under EMIR and ESMA’s decision to mandate central clearing of certain derivatives. During the early implementation stages of EMIR and the clearing obligation it may not be known at the time of executing a derivative trade whether it ultimately will be subject to frontloading or not.

It is not known at the outset whether to price the transaction on the assumption that it will, or will not, be subject to central clearing during the life of the transaction.


See also


External link

Clear(ing) and present danger www.regtechfs.com

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