INTERBANK SCREEN (GREY SCREEN) INSTRUMENTS
"Grey Screen" Cash or Credit Instruments are normally funds, or assets derived from funds, that are "restricted" by reference to their history and origin etc. In many cases they are arise from "assets" that are controlled or supervised by, for example, the Central Bank of a Country, the International Monetary Fund, the Federal Reserve, the ECB, etc. or are derived from previous Placement or Trading profits or have been "restricted" or "de-monetised" i.e: removed from normal use because of their historic origins or ownership etc.In other cases "Inter Bank Screen" or "Grey Screen" Cash/Instruments arise because assets or funds have been placed on long term deposit within Banking Institutions or Central Banks and the Investor & Institution have agreed a basis for allowing the funds or assets based on these funds/assets to be utilized by others for credit purposes for a limited period and under controlled conditions.
The practical position is that in general these funds or assets are only verifiable under certain "Screen based inter bank procedures" and not in other and rather more normal ways and additionally can normally only be "blocked" for transactions by "Screen based inter bank procedures" etc. These types of procedures are not available to the majority of Traders and also not popular with those that are capable of carrying out the necessary procedures and in most cases are declined for a variety of reasons related either to the Asset, the Beneficiary, the control over the asset, or the fact that co-operation and commitments are required from the Asset Owner, the Beneficiary, The Deposit Bank and possibly others that may not be readily forthcoming.
It is not mandatory that large transactions have to go through SWIFT. If the two banks have a direct (trusted) relationship or one even through a correspondent bank (that is trusted), they can settle with each other directly. Whilst SWIFT is used a lot, there are method of transacting with each other directly. Unbeknownst to many, SWIFT doesn't actually move funds. Just instructions that all member banks adhere to.
Certain "Grey Screen" assets cannot be traded at all because of the reasons for the assets being "on screen" and the levels of authorizations required to trade them or because no authorizations are available. Certain other "Grey Screen" assets may only be traded with certain high level approvals by traders with special clearances. Other Inter Bank Screen assets may be considered as referred to above. In all cases a full and detailed file will normally be required before any indications can be given.
As indicated above in most cases the Screen Beneficiary of the Asset is rarely the Legal Owner of the underlying Assets and is often rarely able to supply all of the background information required and in many cases is unable to "control" the asset or ensure that the controller of the asset co-operates fully with the trader's requirements to actually engage the asset.
The grey screen transaction is actual called Inter-Bank-Grey-Screen Transaction. This is the easy way for the banks and large institution and the governments to send money, bank instruments. "Bank A" puts all the information on the screen and generates special code for "Bank B" to log into the screen with the special codes and then download the information. It is all done electronically.