Inter Bank Market Foreign Exchange Net Settlement System Research And Implementation

Foreign exchange is the exchange between a national currency and another. It can beachieved through bank, enterprise and individual electronic network. There is risk when youdeal with foreign exchange, both in the settlement, clearing foreign debts associated withexchange rate fluctuations. At present, China has become the key point of the global foreignexchange market system. The fluctuation of RMB is becoming more and greater, while theRMB exchange rate formation mechanism is more and more elastic. We must pay attention tothe risk that associated with exchange rate volatility.The current trading between banks have the characteristics of high risk, liquidityrequirements, not controllable characteristics. At first the individuals finish their trading andclearing business, rather than the central counterparty take part in the transaction. The foreignexchange market and regulatory agencies are difficult to obtain accurate financial accountinginformation. Once the sharp exchange rate fluctuations happened, it will result in somecommercial banks hold the loss and the risk of payment, and impact the Chinese financialmarket stability.In order to solve these problems, the State Administration of Foreign Exchange approvedthat the China Foreign Exchange Trading System perform as a foreign exchange centralcounterparty, open inter-bank market foreign exchange net liquidation business. ChinaForeign Exchange Trading System is responsible for the transaction settlement rights andobligations of both parties, it also control of the commercial banks with foreign exchangequota. Then, both of the parties will no longer need to consider each other’s credit risk andcredit limit.This paper combines the above background demands. It also research and implement ofinterbank market foreign exchange net settlement system. The system is designed accordingto the business rules and conventions between commercial banks and foreign exchangetrading center. It realizes the bank side of the registration of foreign exchange transactionprocessing and generates reports. Then it meets the needs of the business in the inter-bankmarket smoothly needs. The main research results are based on the B/S infrastructure mode,using the Oracle10g database, WAS V7ND edition based development platform, CTP core trading platform, IBM RAD integrated development environment, and depends on the use ofJava and PLSQL related technologies. It developed the service required the bank side of thetransaction details and the results of data receiving, checking, financial clearing andmaintenance function, and then met the relevant regulatory requirements. This system can beused as capital business foundation platform, providing a strong technical support for thebusiness development.The introduction of the system makes the interbank foreign exchange net liquidationbusiness smoothly, and effectively enlarges the volume of foreign exchange transactions. Italso increases foreign exchange market activity and mobility, and facilitates the marketexchange rate. It indicates that that bilateral net settlement based on clearing counterpartyservices in foreign exchange market was officially launched in China. It is a significant moveto improve China’s interbank foreign exchange market. It also marks China’s inter-bankforeign exchange market built effectively network platform of guard against the risk,improving the capital clearing efficiency and also a safety monitoring platform. It is animportant significance for China’s interbank foreign exchange market steady development.Involves the main content includes:(1) A detailed introduction associated with the technologies with which we achieve thesystem required. It mainly includes the development of technology and test technology of twobig modules. In the technology part, we introduced the B/S architecture and Java developmentlanguage with which we develop the system. As well as the development process used in theOracle10g database, the PLSQL Developer database development tool, WAS V7ND editionbased development platform, IBM RAD integrated development tools, CTP core tradingplatform, and VSS version management tools. In the test techniques part, I mainly introducesthe definition, classification, testing purpose and steps, and the test cases and errorclassification described, to pave the way of the follow practical work.(2) I analyzed and designed the realization mode of the inter-bank market foreignexchange market net liquidation business in the bank side. Through the system design, datastructure design, interface design and usability design and other aspects of the job, Iestablished the system to achieve the basic logic and way. In this part of the system with threekey data structure and a two interface design process, I discussed in detail the design work,laying the foundation for the development of the follow work.(3) I realized the inter-bank market foreign exchange net settlement system, basing onthe results and present the development of sophisticated technology platform. At first, theenvironmental structures were introduced in detail. Then I described the system development process involved in the work, combining with the data loading and data management in tworepresentative functions. Finally, it realized the seven modules, the system data loading, datachecking, inquiry reporting, clearing, manual processing, parameter management, and accountmanagement. On the base of the safety, and reliable, I improved the system fault tolerance andexpansibility, and enhanced the system in use process user experience, finally achieved theultimate realization of the system.(4) Testing is the indispensable link in the process of implementation of the system. Thesystem testing after the completion of related work was described in the last of this thesis. Itincludes test tools, test plan, test, test the implementation of access to the final test reportsubmission. It elaborated the system testing involves the content, with the detailed elaboration,statements and data. Finally, I achieved the system.(5) At last, I discussed the implementation effect in the thesis. As I have fully consideredthe functional expansibility in the system. Similar transactions can be incorporated into theplatform for processing, along with the developing of foreign exchange businesses. Thereby itimproves the level of capital business automation. As a result, its application prospect inindustry is very broad.