Treasury system

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As treasury system refers to a specially tailored software with which the financial management associated with departments such as Front Office , processing ( back office ) and middle office of a company or financial institution financial transactions such as options , overnight and term money transactions , forward rate agreements , interest rate swaps detect, evaluate and transact. For some companies, in addition to recording the transactions, recording the exposure is one of the requirements for such a system.

While the use of such systems is a matter of course at financial institutions, treasury systems have increasingly been established in companies since the 1990s. This is due to the fact that, on the one hand, the complexity of the completed transactions increased and, on the other hand, auditors made demands that companies be able to independently evaluate the contracts they have concluded. The systems used by companies are generally somewhat smaller and tailored to be used by a few, specially trained users. They usually use methods such as the Black-Scholes model for assessment . Valuation methods such as Monte Carlo simulations are mostly reserved for the banking system.