Front office
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The part of the treasury function that executes transactions for the cash investment, funding, foreign exchange and risk hedging requirements of the company.
The front office is the unit of the treasury which interfaces with the group’s entities or subsidiaries and provides treasury services to, and which interacts most with, the company’s lenders and other financial counterparties.
- Segregation of duties - dealing, settlement and reporting
- “The front office does the deal, but doesn’t settle the money.
- The back office settles the money, but doesn’t do the deal.
- Historically, the middle office is a control function that does the reporting and ensures that system controls are enforced."
- Naresh Aggarwal, associate policy and technical director, Association of Corporate Treasurers, May 2022.
