Entering Foreign Exchange Data
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      3. Entering Foreign Exchange Data

      How to Enter a TARF

      A quick guide on how to enter a TARF into CNS

      Entering a Target Redemption Forward (TARF) Trade

      Step 1: Access the Data Entry Screen

      1. In the left-hand menu, expand FX.
      2. Navigate to FX Enter Data → Add Currency Deals → TARF.

      TARF Data Entry Screen

      Step 2: Enter General Trade Details

      Fill in the following information:

      1. Deal Date – The date the TARF trade is agreed upon.
      2. Provider – The counterparty providing the TARF.
      3. Business Unit (Optional) – Assign to a business unit if applicable.
      4. Note / Reference (Optional) – Add any internal references.

      Step 3: Enter TARF Trade Parameters

      1. Provider Ref – Reference number from the counterparty.
      2. Buy/Sell – Direction of the hedge (buying or selling the notional currency).
      3. Currency 1 Amount – The notional amount (auto-filled, disabled field).
      4. Currency 1 – The currency being bought or sold.
      5. Put/Call – Select whether this is a put or a call option.
      6. Currency 2 – The counter currency in the trade.
      7. Premium Date – The date when the premium is paid.
      8. Premium Amount – The cost of the option premium.
      9. Premium Currency – The currency in which the premium is paid.
      10. Target – The accumulated profit threshold that triggers early termination.
      11. Leverage – The multiplier effect applied to the trade.
      12. Payout – Choose the payout structure:
      • No Gain
      • Part Gain
      • Full Gain

      Step 4: Generate Schedule

      1. Periods – Enter the number of fixing periods.
      2. Amount – Enter the notional amount per period.
      3. Interval – Select how often fixings occur:
        • Daily
        • Weekly
        • Monthly
        • Annually
      4. Strike – Enter the strike rate for each fixing.
      5. Convention – Select the date adjustment rule:
        • No Move
        • Modify Following
        • Modify Following Within Month
        • Move to Preceding Workday
        • Modify Following - Last Working Day
      6. Starts On – Select the start date for the fixing schedule.

      Final Steps

      1. Click Calculate to verify trade details.
      2. Click Save to complete the TARF entry.
      3. Click Cancel if you want to exit without saving.