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The Bank of New York offers a comprehensive array of foreign exchange (FX) services designed to support a client’s Global Custody activity. These services accommodate all dealing styles and include: Standing Instructions, Embedded Instructions, the iFX Manager^SM e-commerce platform and Direct Dealing with the Bank’s FX Desk.

FX Standing Instructions:
A Simple, Flexible and Complete Automated Solution

To meet fast evolving FX requirements and to help clients focus on their core competencies, The Bank of New York provides FX Standing Instructions capabilities via INFORM Instruction Capture (IIC). This service automates all types of custody-related foreign exchange, including securities trade settlement, income conversions, corporate actions, tax reclaims, interest postings and residual balances. For instance, it enables clients to automatically:

• Repatriate securities sales proceeds in all markets
• Fund securities purchases in restricted markets
• Repatriate cash dividends and income proceeds in all markets
• Convert interest in multi-currency cash accounts to the base currency
• Repatriate Tax reclaims proceeds.

FX Standing Instructions is operationally simple, free of charge and integrated with the client's activity on the various securities markets; it also offers flexible options and allows back office cost reductions.

FX Embedded Instructions:
FX Managed By The Client

Clients that prefer to manage foreign exchange related to individual securities trades may use INFORM’s IIC features to embed FX requests into securities settlement instructions, and also benefit from The Bank of New York’s automated FX execution capabilities.

Foreign Exchange Activity Reports:
INFORM Offers Flexibility

Regardless of the method used to initiate foreign exchange, INFORM offers a variety of reporting tools to assist Global Custody clients. Through INFORM, clients can manage intra-day foreign exchange exposure by using pending, future and failed transaction reports by type of activity. Sample reports include:

• Pending DDA Cash Transactions 
  Detailed list of all DDA cash transactions in a pending status, and presented by account in currency order
• Future Foreign Exchange Transactions 
  Detailed list of all future foreign exchange transactions
• Future Pending Trades by Currency 
  Detailed list of all pending securities transactions (purchases and sales) with a contractual settlement date equal to current day and beyond
• Pending Trades by Currency with FX Detail 
  Detailed list of all securities transactions by account in currency order with FX details attached
• Pending Maturities by Currency
  Detailed list of all pending maturities and redemptions by account in currency order
• Projected Income Report by Currency
  Detailed list of projected income

iFX Manager^SM E-Commerce Platform:
Internet-Based Electronic Trading

iFX Manager^SM, BNY’s award-winning FX trade order management and execution system gives clients both the flexibility and control they need to manage the entire FX trading process: from preparation of trade requirements, to order management, to trade execution, to post-trade messaging, all available via Internet. It is the cornerstone of BNY’s multiple offerings for on-line FX trading, which also include iFX Express, a web-based ‘two-click’ electronic trading system with real-time quotes and charts.

iFX Manager^SM integrates all elements of straight-through processing (STP) to help clients eliminate some of the time, cost and risks associated with FX trading. Key to this is iFX Manager’s focus on comprehensive order management, allowing clients to manage trade execution activities with all their counterparty banks, not just those with BNY.

Direct Dealing with FX Desk:
Consultative Involvement of a Foreign Exchange Professional

Clients may elect to deal directly with the trading desks in New York, London, Brussels, Tokyo, Hong Kong, Seoul and Taipei.