🔹 Main Functions of the Treasury Department in a Securities Firm
1. Funding and Investment Operations
Funding: Raise short- to medium-term capital to meet daily liquidity needs through instruments such as call money, repurchase agreements (RPs), and corporate bonds.

Investment: Invest surplus funds in safe and short-term assets (e.g., deposits, government bonds, corporate bonds) to generate returns.

2. Liquidity Management
Monitor daily cash flows to ensure the firm can meet its obligations.

Manage liquidity to support settlements related to client trading activities.

3. Interest Rate and FX Risk Management
Manage interest rate and foreign exchange risks arising from positions or foreign currency exposures.

Execute hedging strategies using derivatives such as interest rate swaps or forward contracts.

4. Bond Trading and Market Making (in some cases)
In some firms, the Treasury department handles bond trading and acts as a market maker.

Responsibilities include bond dealing, providing market liquidity, and managing bid-ask spreads.

5. Internal Funds Transfer Pricing (FTP)
Set and manage Funds Transfer Pricing (FTP) to evaluate the profitability of different business units.

Apply appropriate internal interest rates to fund usage to ensure fair performance assessment.

6. Regulatory Reporting and Compliance
Report funding structures, liquidity ratios, and maturity profiles to regulatory authorities such as the financial supervisory services, central bank, and stock exchange.