4. Processing Margin Transactions

Margin Settlement transactions for topping-up or refunding from the schemes can be processed through the ‘Margin Settlement processing’ screen. This screen is available under the Transaction tab in the Oracle FLEXCUBE browser.

In this screen, firstly you have to specify the ID of the margin scheme that is to be linked with the margin transaction. The other details about the Margin Scheme such as:

• The Currency of the scheme
• The Customer (Broker/Portfolio Customer) associated with it
• The Settlement Account and the Branch in which it resides

will be defaulted in the respective fields. You can choose to maintain a different settlement account (in a different branch) other than the one that is defaulted. You also have to indicate the amount that needs to be settled while processing the margin settlement transaction.

The system date will be displayed in the Transaction Date and Value Date fields respectively. While you cannot change the Transaction Date, you can choose to change the Value Date.

Additionally, you will also have to indicate whether a Top-Up event or a Refund event has to be done in the scheme by choosing one of the options available below:

• Top Up
• Refund

This chapter contains the following topics:

• Section 4.1, "Settlement Instructions for a Margin Transaction"

4.1 Settlement Instructions for a Margin Transaction

This section contains the following topics:

• Section 4.1.1, "Specifying the Settlement Instructions for a Margin Transaction"
• Section 4.1.2, "Viewing Accounting Details"
• Section 4.1.3, "Generating the Advices for an Event"

 

4.1.1 Specifying the Settlement Instructions for a Margin Transaction

So far, we have discussed the basic information that is captured through the Margin Settlement screen. To recall, along with other details of a margin settlement transaction, you have also specified the settlement account and the branch where the account resides.

Apart from the details of this account, you may have to capture the following details to effect a margin settlement transaction successfully:

• The accounts to be debited/credited for Payable/receivable amounts
• The method in which the margin settlement is to be settled -- whether it is an instrument or a Message (as in a SWIFT or TELEX message)
• Details about the route through which the money settlement should take place

4.1.2 Viewing Accounting Details

Click the Accounting button, to view the accounting entries and overrides for the settlement transactions.

The following accounting entry and override information is provided for each transaction:

• Branch
• Account
• The currency of the Account
• The amount tag
• The transaction code
• Dr/Cr indicator
• Value Date
• The Amount in the Currency of the Account, when the currency is a foreign currency
• The exchange rate that was used for the conversion, if the Account is a foreign currency account
• Amount in local currency
• All the overrides that were encountered for the event will also be displayed
• The date and time on which the entry was entered in Oracle FLEXCUBE

4.1.3 Generating the Advices for an Event

From the Margin Settlement screen, click the Advices button. The Advices screen is displayed. The advices that can be generated for the events that occur during margin settlement processing are defined for the product to which the margin scheme is associated.

The party type to whom a specific advice should be sent is picked up automatically based on the type of margin settlement you are entering and the parties involved in the transaction.