4. Processing an MM Deal

A ‘product’ is a specific service that you offer your customers.

For example, amongst other financial services, you may offer an ‘overnight borrowing’ facility to your customers. By defining the overnight borrowing facility as a product − with certain attributes − you can categorize all overnight borrowings, which share the attributes, defined for the product.

The other advantage of defining a product is that you can define certain general attributes for a product that will default to all contracts (placements or borrowings) involving it.

Note

When you enter into a deal with a customer, you enter into a ‘contract’. Contracts are cus­tomer specific.

Deals (contracts) inherit the attributes of the product by default. This means you will not have to define these general attributes each time you input a deal involving the product. These general attributes, however, can be changed at the time of processing a deal.

Besides, these general attributes which a deal inherits from a product - and which can be changed for it − there are the specific attributes which you have to define for the deal:

This chapter contains the following sections:

4.1 Capturing Deal Details

This section contains the following topics:

You can invoke the Contract Details screen from the Application Browser by typing ‘MMDTRONL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

Once in the Contract Details screen, you will see four other sections, each representing a screen:

Section

Screen

Preferences

Contract Preferences screen

Schedules

Contract Schedule Definition screen

Rollover

Contract Rollover screen

4.1.1 Features of the Contract Details screen

Every product that is created in your bank is endowed with certain general attributes. A deal that you enter into acquires the general attributes defined for the product it involves. To recall, a product is endowed with the following general attributes:

At the time of saving a money market contract, the system will pass a certain information about the money market contract to the FATCA accounts and obligations maintenance for the customer. This is done if the beneficiary account’s customer has a reportable FATCA classification and if the money market product used to book the contract is present in the FATCA Products, account class and Instruments maintenance.

If the MM contract is closed or liquidated completely, then the corresponding row in FATCA accounts and obligations maintenance will be archived. If you delete the MM contract before authorization, then you should also delete the corresponding entry in FATCA accounts and obligations maintenance.

A deal that you enter into acquires the details specified for the product. However, you also need to enter information that is specific to the contract. You can enter details specific to a contract in the Contract Details screen. You can invoke the ‘Money Market Contract Input’ screen by typing ‘MMDTRONL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button

You need to enter the following information:

The following details are displayed. They cannot be changed:

This section contains the following details:

4.1.2 Entering Deal Details

Enter values into all the mandatory fields and save the deal details.

Product Code

Every deal that you enter into would involve a specific service that you offer (which you have defined as a product). When processing a deal that you enter into, you should specify the product that it involves.

All the attributes of the product that you specify will apply to the deal. However, you can change some of these attributes while entering the details of the contract. When you specify the product, the product type - placement or borrowing - will be displayed.

Source

You have to indicate the source from which contracts have to be uploaded.

If this value is left null, then you will not be able to amend the contract. Amendment for the contract can be uploaded only through the same source as that used for creation.

Contract Reference number

The Contract Reference Number identifies the deal. It is automatically generated by the system for each deal. It is a combination of the branch code, the product code, the date on which the deal is booked (in Julian format) and a running serial number for the booking date.

The Reference Number consists of a three-digit branch code, a four-character product code, a five-digit Julian Date and a four-digit serial number.

The Julian Date has the following format:

“YYDDD”

Here, YY stands for the last two digits of the year and DDD for the number of day(s) that has/have elapsed in the year.

For example, 31 January 1998 translates into the Julian Date: 98031. Similarly, 5 February 1998 becomes 98036 in the Julian format. Here, 036 is arrived at by adding the number of days elapsed in January with those that elapsed in February (31+5=36).

User Reference Number

You can enter any reference number for a deal that you enter into. The deal will be identified through this number in addition to the Contract Reference Number generated by the system. No two deals can have the same User Reference Number. By default, the Contract Reference Number generated by the system will be taken as the User Reference Number. You can use this number, besides the deal Reference Number, to retrieve information relating to a deal.

External Reference

If the transaction is being uploaded from an external source, you can specify the identification for the transaction in the external source, as the external reference number. You cannot amend this value post contact save.

In a scenario where your customer is tracking a deal in her system, she would probably assign it a unique reference number. If she offers the number for reference purposes, it can be recorded in this screen. This reference number will be printed on the advices sent to the customer to enable her to identify, and track, the deal with ease.

Reversal Reference Number

The reference number of the contract that is being reversed and rebooked is displayed here. To enable amendment of MM Contract details Oracle FLEXCUBE will reverse the old contract and rebook a new contract with the old user reference number and external reference number. The old contract is reversed and a new contract is booked with Reversed FCC ref as the parent contract.

For further details on reversing and rebooking of a contract, refer the section titled 'Reversing and Rebooking a Contract' of this user manual.

Outstanding Amount

The system displays the total amount due as of the value date.

Settlement Status

The system displays the settlement account status. If the fund in settlement account are found insufficient after verification, then the settlement status is displayed as ‘Pending’.

Confirmation Status

The system displays the status of MM contract confirmation on confirming the MM deal manually or automatically. Confirmation Status can be Confirmed, Unconfirmed or Waived. If a completely matched deal is unconfirmed manually from ‘Manual Matching’ screen, then the confirmation message will be changed to ‘Unconfirmed’.

Contract Tab

The contract details like the customer, currency, amount etc are maintained as Contract Details. The Contract Details are entered in the ‘Contract’ tab.

Customer Number

When entering the details of a deal, you should specify the customer (counterparty) involved in the deal. The category of customers (or the customers themselves) that can be counterparty to a deal is defined for the product. Specify the code of an authorized customer who falls into a category allowed for the product.

Customer Name

The system displays the name of the specified customer ID based on the details maintained at ‘Customer Maintenance’ level.

Currency

When processing a deal, you should specify the currency of the deal. You can select any currency that is allowed for the product, which the deal involves. Amendment to this field will be considered a financial amendment.

Amount

If a product has bearing or discounted type of interest, you should enter the principal of the deal in this screen. For a deal involving a true discounted product, you should enter the face value (nominal) of the deal. You can enter “T” or “M” to indicate thousands or millions, respectively. For example, 10T means 10,000 and 10M means 10 million. Amendment to this field will be considered a financial amendment.

Note that the amount, which you enter, would be taken to be in the currency that you specify as the deal currency.

On saving the transaction after entering all the required details in the system, the system validates the value of the contract amount against the following:

If the transaction currency and the limit currency are different, then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit. If this holds true, the system indicates the same with below override/error messages:

Local Currency Amount

If the deal amount is in foreign currency, the system displays the equivalent local currency amount.

Line

By default, you will view the placement credit line defined for the customer. You can change over to another authorized credit line if you want to track the placement under a different line.

During an upload, the credit lines for the given Counterparty, Product, Branch, Currency combination are fetched by the system. If there is only one credit line available, the system will display it here. If there are multiple lines found, the field will be left blank.

Interest Period Basis

You need to indicate how the system must consider the tenor basis upon which interest is computed over a schedule or interest period, in respect of the contract.

You can choose any of the following options:

Payment Method

The payment method defined for the main interest for the product (whether bearing, discounted or true discounted) applies to the contract as well. The method defined for the product is displayed here.

Schedule Type

If you have defined repayment schedules for a product, they will be applied to a deal involving the product, automatically. However, you can change the schedules while processing a deal under the product.

When a deal for which the repayment schedules were changed is rolled over, the new deal can have the repayment schedules defined for the product, or the schedules for the deal.

Tax Scheme

The tax scheme, which has been specified for the product, will be displayed in this screen. The tax scheme cannot be changed at the time of deal processing.

Contract Derived Status

The "status" of a placement is indicative of the status of repayments on it. If you have specified automatic status movement for the placement, it will be moved automatically to the status, as per your definition. However, if you indicated that the status change will be made manually on the placement, you can change the status manually in this screen. Even if you have defined a placement with automatic status movement, you can still change the status manually before the automatic status change is due.

There is yet another scenario, where you have defined a placement with automatic status movement forward, but manual status movement in the reverse direction. That is, when the conditions for a placement being in a particular status no longer exist, if you have specified manual reverse movement, then you will have to manually move the placement to the appropriate status.

A placement on which the latest repayment has been made will be in the Active status. If a payment is outstanding on a placement, its status can be changed, based on your requirements of reporting placements with outstanding payments. The different status codes applicable for a placement are defined for a product and it applies to the placement, by default. However, you can change the status for the contract through this screen.

When you are capturing placement details, the system allots the status of "Active" by default. You may change it to any of the status codes as per your requirement. While doing manual status changes, ensure that you change the status in the order they are defined. For example, the status codes are defined as follows, in that order:

  1. Active
  2. Past Due
  3. Non-accrual
  4. Write-off

You cannot change the status of a placement from Active to Non-accrual, by passing Past Due. If the requirement is that the placement has to be put in the Non-accrual status from the Active status, you should first change the status to Past Due, store and authorize this status change and then change it to the Non-accrual status. If a status change has been defined with a change in the GL, the entries will be passed for the GL movement.

Remarks

You can enter information describing the deal that you are processing. This will be available when you retrieve information on the deal. However, this information will not be printed on any advice printed for the customer's benefit. This information will be displayed whenever you retrieve information on the deal either as a display or in print.

Settlement Details

Debit Branch

When selecting the settlement details of a deal, you should specify the debit account Branch.

Debit Account

Specify the account to be debited for the money market deal.

Debit Account Description

The system displays the description of the specified debit account number based on the details maintained at 'Customer Account Maintenance' level.

Credit Branch

When selecting the settlement details of a deal, you should specify the credit account branch.

Credit Account

Specify the account to be credited for the money market deal.

Credit Account Description

The system displays the description of the specified credit account number based on the details maintained at 'Customer Account Maintenance' level.

Liquidation

When setting up a product you specify the mode of liquidation, whether automatic or manual, for the different components of a deal. By default, all deals involving the product will inherit this definition. However, you can change the mode of liquidation, from automatic to manual, or vice versa, while processing a deal.

Verify Funds Before Auto Liquidation

The system defaults the product preferences for ‘Verify Funds Before Auto Liquidation’ during MM contract booking. However you can modify it.

During auto liquidation if ‘Verify Funds Before Auto Liquidation’ is checked at contract level, the system checks the available balance in the settlement account.

The available balance is calculated as available balance in the account + available limits + overdraft limits of the account. This validation is not applicable during manual liquidation.

If settlement account available balance is less than amount due, then the system will update contract settlement status as 'Pending' and park it in Contract Exceptions data store.

If there is sufficient balance in the settlement account, the system will proceed with auto liquidation.

Rollover Allowed

While setting up a product, if you specified that deals involving the product should be automatically rolled over, all deals involving the product will be rolled over on their respective Maturity Dates, if they are not liquidated. This feature is called "auto" rollover. If auto rollover is specified for the product the deal involves, it will be indicated on this screen.

However, if you do not want the deal (whose details are being captured) to be rolled over, you can disallow rollover for the deal. If rollover has been disallowed for a product, you cannot rollover deals involving the product.

Note

For rollover to be applicable for the deal, it has to be defined for the product.

Dates and Maturity Trade Date

This is the date on which the deal is agreed with the counterparty. trade date cannot be modified once authorized.

The system will display error messages under the following conditions:

Original Start Date

For a deal that has been rolled over, this is the date on which the deal was originally initiated. If a deal has been rolled over more than once, this will be the date on which the first deal was initiated.

If you are entering a deal that has already been initiated, you should enter the date on which the deal began. In this case, the date will be for information purposes only and for all accounting purposes the Value Date will be considered as the date on which the deal was initiated.

Booking Date

The date on which the deal details are entered would be displayed in this screen. This defaults to the system date (today’s date). This date is for information purposes only. The accounting entries are passed as of the Value Date of the deal (initiation date of the deal). Amendment to this field will be considered a financial amendment.

Value Date

This is the date on which a deal takes effect. The accounting entries for the initiation of the deal will be passed as of this date. The tenor of the deal will begin from this date and all calculations for interest and all the other components based on tenor will be made from this date onwards.

The system defaults to today’s date. You can enter a Value Date of your choice here. The date that you enter can be any one of the following:

The Value Date should not be earlier than the Start Date or later than the End Date defined for the product involved in the deal. In case of a child rolled over contract, this value will be the same as the maturity date of the parent contract.

If the liquidation date for any component falls before today’s date, the liquidation entries (as defined by you for the product) will be passed if you have so specified for the product. If the Maturity Date of a deal is earlier than today, maturity entries will also be passed.

Once the deal details have been stored and authorized, this date can be amended only if the deposit has bearing type of interest and NO schedule has been liquidated. Modification to this field will be considered as a financial amendment.

An override will be sought if the Value Date falls on a holiday, in the country of the deal currency.

User Maturity Date

If you want to change the maturity date of the deal, enter the new maturity date here.

Maturity Date

If the Maturity Type is fixed (that is, the Maturity Date of the deal is known when the deal is initiated) specify the Maturity Date. This date should be later than the Start Date of the product. If the product has a Default Tenor, this date will be defaulted based on the tenor and the From Date of the contract. If you change this date, you should give an override when you save the deal.

For a deal with Call or Notice type of maturity, the Maturity Date is not entered at the time of deal booking. You can get this date updated through value dated amendment. This date should be later than the Start Date of the product.

If the product has a Default Tenor, this date will be defaulted based on the tenor and the From Date of the contract. If you have specified auto liquidation for the deal, liquidation will be done automatically on that date. If manual liquidation has been specified, you will have to manually liquidate the deal through the Manual Liquidation function.

For a deal with Fixed Maturity Type, this date can either be extended or brought backward through the Value Dated Changes function, once the deal has been initiated.

Notice Days

For a contract maturing at notice, you should enter the notice period (in days). This is for information purposes only. When the notice to repay is issued to the counterparty, you should indicate the Maturity Date of the deal using value dated amendment screen.

Intra Day Deal Date

For intra-day deals, the system populates the intra-day deal date in this field. The intra-day deal date is populated as value date +1.You can only enter intra-day deals using a product meant for intra-day deals (as set in the Product Preferences).

Tenor

If the product has a Default Tenor, this tenor will be defaulted based on the tenor. On overriding this maturity date will get adjusted.

Reporting Details

Reporting Currency

Select the reporting currency from the option list.

Reporting Amount

The system displays the amount.

Outstanding Balance

The system displays the total amount due as of the value date.

Settlement Instruction Pickup

Settlement Sequence Number

Choose a settlement instruction by specifying a settlement sequence number. You can skip this field if any default settlement instruction is already specified.

Note

At the time of specifying settlement instructions, it is now possible to choose from multiple instructions that are maintained for the same branch, customer, currency, module and product combinations. You can choose any settlement instruction from a list of values. The list of values displays the Settlement Sequence Number and Settlement Instruction De­scription.

Settlement Instruction Description

Specifies the description of the selected settlement instruction.

4.1.2.1 Interest Rates/Amounts

Rate Type

The rate type applicable for the selected product will be displayed. It can be one of the following:

You cannot modify the displayed value.

Rate Code

For Floating Rate, the rate code will be displayed. You cannot modify it.

Rate

The Rate applicable for the selected product will be displayed. You cannot modify it.

Max Rate & Minimum Rate

The maximum and minimum rate allowed for the selected product will be displayed. You cannot modify it.

Customer Margin

The margin specified at customer level will be displayed here. You cannot modify it.

Interest Amount

The interest amount for the selected product will be displayed. You cannot modify it.

Interest Margin/Spread

Margin

Margin provided at the product level will be defaulted here. You cannot modify it.

Spread

The spread value for the selected product will be displayed as specified in the product level. You cannot modify it.

Minimum Spread & Maximum Spread

The maximum and minimum spread that can be applied for the selected product will be displayed. You cannot modify it.

Note

This Spread should be greater than or equal to the Minimum Spread and less than or equal to the Maximum Spread defined for the product involved in the deal. If the spread you ap­ply happens to be greater than the Maximum Spread, then the Maximum Spread will be applied on the rate. On the other hand, if it is less than the Minimum Spread defined for the product, the Minimum Spread will be picked up. For a floating rate, the spread will be applied over the market rate applicable for the day.

Negative Interest Rates

Negative fixed rates or resolved rates will be allowed in MM contract or amendment only if negative interest is allowed for the main interest component. You can maintain the contract interest rate (negative or positive) against main interest component only.

If the effective interest rate is negative, then it will be internally assigned to negative interest component and you have to set up accrual and liquidation entries for the negative interest component.

Special interest amount and negative interest amount will not be allowed in Interest Amount and Acquired Amount fields of ICCF screen respectively.

If negative interest is not allowed for a product and if the effective rate becomes negative during batch rate revision, then the rate revision is skipped for the contract and exception will be logged.

4.1.3 Schedules Tab

The contract inherits the schedule details from the associated product. However, you can change at the contract level. Click ‘Schedule’ to view/modify the details.

Click ‘Explode’ button in this screen to invoke ‘Payment Schedule Details’ screen. This screen provides the payment schedule break-up. You can view the following details:

Schedule Summary

Schedule Details

Amount Settled

Refer to the chapter the ‘Processing Repayment’ in this User Manual for details.

4.1.4 Rollover Tab

The rollover details are maintained at the product level. You can however modify them at the time of entering a deal. Click ‘Rollover’ to view/change the rollover details.

The process of rolling over of contracts is explained in detail in the ‘Rolling Over a Deal’ chapter.

4.1.5 Preferences Tab

Preferences are options. For instance, for a product, you have the option of:

Click ‘Preferences’ to view the preferences.

The contract inherits preferences from the associated product.

Refer to the chapter ‘Defining the attributes of a Money Market Product’ for detailed explanations on the preferences.

The preferences that are available at the time of entering the contract details are explained below:

Holiday Treatment

Ignoring Holidays

If you check this box the schedule dates will be calculated ignoring the holiday. The automatic processing of the schedule that falls due on a holiday, however, will be determined by your holiday specifications for the product. If you indicated, for example, that the processing should be done till the day before the next working day, the schedule will be liquidated during the end-of-day run of the Automatic Contract Update function. If you specified, though, that processing should be done only till the System Date, then the schedule falling on the holiday will be processed during the beginning-of-day run of the Automatic Contract Update function on the next working day.

Consider Branch Holidays

Check this box for the system to consider branch holidays for holiday treatment.

Cascading schedules

If you check this box then if one schedule is moved backward or forward in view of a holiday, the other schedules will be accordingly shifted. If you do not want to cascade schedules, then, only the schedule, which falls on a holiday, will be shifted as specified and the others will remain as they were.

Move Across Months

If you check this box, then if you move a schedule falling due on a holiday either forward or backward to the next or previous working day and it crosses over into a different month, then system moves the schedule date. If not, the schedule date will be kept in the same month, on the last or first working day of the month, depending on whether the schedule is over the month-end or the beginning of the month.

Holiday Currency

You can specify the currency for which the holiday table should be checked before drawing the payment schedules related to the deal. In case a schedule falls on a holiday and you have specified that the schedule be moved forward or backward, the movement happens according to the holidays in this country. By default, the currency to be checked is the deal currency. If a currency other than this is specified, the holiday table will be checked for both the currencies.

Others

Liquidate Back Valued Schedules

If you have specified, while defining the product, that a back-dated deal with repayment schedules prior to today's date, the schedules will be liquidated when the deal is initiated, the same will apply to the deal you are entering. However, through this, you can choose not to liquidate back valued schedules.

Payment on Confirmation

Check this box to send the payment messages during the confirmation status ‘Confirmed’ or ‘Waived’.

Payment message will be send on contract confirmation and not during contract booking.

External Interface Details

External Reference Number

Indicate whether the system must accept external reference numbers or a user-entered reference number, for contracts entered at the branch. If you choose this option for a contract, the system will not generate the custom reference number for this deal, but will either accept an external custom reference number or a user-entered custom reference number.

Parent Ref No

Specify the contract reference number of the parent MM contract to which this child contract needs to be linked. This field is applicable only if the contract you are capturing is a child contract created as a result of the parent contract’s rollover. In this case, the following details will be same as the parent contract:

Track Receivables

Manual Liquidation

Select this option to track receivables during manual liquidation. In case of manual payments, the system will display an override if sufficient funds are not available in the settlement account. If you say ‘Yes’ to the override, the system will mark the fund as a receivable amount. 

Partial Manual Liquidation

During manual liquidation, if sufficient funds are not available in the settlement account of the contract, you can opt to do a partial payment. In this case, the deal will be liquidated to the extent of the amount available in the account. The balance due will be tracked as a receivable amount. During EOD processing of the contracts, based on the availability of funds, the deal will be liquidated. This process will continue till the deal is recovered fully. The deal will be in the active status till full liquidation happens. If you do not choose to do a partial payment, then the entire amount that is being manually paid will be tracked as a receivable against the settlement account.

Automatic Liquidation

Select this option if you want to track receivables during automatic liquidation.

SGEN Required

You need to indicate whether the SGEN has to be issued for the deal. You need to opt for ‘Settlement Required’ option if you check this box. If not checked, the payment message will not be generated for the contract.

4.1.6 Modifying a Placement or a Borrowing

There are two types of modifications that you can make on a contract:

(“Financial details” include the accounting entries that have already been passed or the advices that have already been generated).

For example, the changes made to the User Reference Number, Auto Rollover and Auto Liquidation flags, do not result in changes to the accounting entries that have been passed.

However, the inputs to some fields that contain financial information can be changed only under specific circumstances. This is done through the Value Dated Changes function. For example, the changes in the interest rate, increase in the principal etc., can be made only through the Value Dated Changes function.

A deal on which the previous activity has been saved but not been authorized, can be modified. For example, you have captured the details of a deal. The details have been saved but not yet authorized when you realize that some of the details have been wrongly entered. You can unlock the contract make the modifications and Save it. The uploaded contracts can be amended by any valid user – the contract maker or others.

Note

Any type of change, however, has to be authorized, before it takes effect.

4.1.7 Viewing Money Market Contract Details

You can view the MM contract details maintained in the ‘Money Market Contract Details’ screen using the ‘Money Market Contract Summary’ screen. You can invoke this screen by typing ‘MMSTRONL’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

In the above screen, you can base your queries on any or all of the following parameters and fetch records:

Recommended Fields

Optional Fields

Select any or all of the above parameters for a query and click ‘Search’ button. The following records meeting the selected criteria are displayed.

4.2 Financial Details that can be Changed

Inputs to the following fields can be changed through the contract processing function:

Note

The changes listed do not trigger any accounting entries or the generation of any advices.

4.3 Viewing the Other Details of a Deal

Using the buttons that are displayed in the ‘Contract Online’ screens you can view the following details of a deal:

4.4 Advices for Deal Initiation

The advices that have to be generated for any event are specified for the product involved in the deal and are generated after the product is authorized at product level. For example, you may have specified the following advices for the product:

In the Advices screen you can make these changes.

Suppress

By default, all the advices that have been defined for a product will be generated for a deal. However, you can suppress the generation of an advice for a deal by specifying so in this screen.

Priority

Priority applies to payment messages that have to be sent over S.W.I.F.T. By default, such advices will be sent on a Normal priority. You can change it to Urgent.

4.5 Viewing Event Details

You can view all the events that have take place on a Money Market deal through the View Events screen. You can access this screen by clicking on the view events button in any of the Contract On-line screens. All the events that have taken place on the deal so far will be listed in this screen according to the sequence in which they have taken place. The Date on which the event took place will also be displayed.

For example, this list contains events like Booking, Initiation, Interest Accrual, etc.

4.6 Viewing Accounting Entries for Deal Initiation

To view the accounting entries passed for a specific event, select the event and click ‘Accounting Entries’ button on the ‘Event Details’ screen. The accounting entries and overrides for that event will be displayed.

4.7 Viewing the Different Versions of a Deal

When a deal is input, it is assigned a version number of 1. From then on, each amendment of the deal results in its next version. When you come to the Detailed View Screen for a deal, the latest version will be displayed.

To see the previous version, click previous icon from a previous version, clicking next icon displays the next version.

4.8 Initiating a Future Value Dated Deal

A “future-dated” deal is one that has a Value Date that is later than the date on which it is booked. The Automatic Contract Update function will initiate the deal on the Value Date of the deal.

A future Value Date falling on a holiday will be initiated either on the previous working day or the next, depending on your definition for automatic processing at your branch.

All the initiation related entries specified for the product involved in the deal will be passed automatically. If currency conversions are involved, the conversion rates as of the date on which the deal is initiated will be picked up from the Currency Table. To recall, the rates that are applicable for a deal are defined for the product involved in the deal.

If there is a rate revision applicable for the future dated deal on the day it is initiated (that is, on the future Value Date), the rate revision will also be applied on the deal. This rate revision could either be due a Floating Rate change or a Value Dated Change.

4.8.1 Initiating Future Dated MM deals Manually

In a situation where the Initiation event for an MM deal has not been triggered during the BOD processes, you can choose to trigger it manually using the Reopen option in the Toolbar or from the Actions Menu. A typical instance when the system does not trigger the initiation event is due to insufficient funds.

You can manually trigger the Initiation event for all uninitiated MM deals with value date less than or equal to the system date.

Note

If your user profile has been granted the Auto-Auth privilege, such a deal gets authorized automatically after initiation. Otherwise it has to be authorized by a different user from the MM contract online screen.

4.9 MM Confirmation Rule Maintenance

This section contains the following topics:

4.9.1 Invoking MM Confirmation Rule Maintenance Screen

You can maintain confirmation rules for MM deals in ‘MM Confirmation Rule Maintenance’ screen. The auto matching of confirmation messages will be based on these confirmation rules maintained in this screen. To invoke this screen type ‘MMDCNFMT’ in the field at the top right corner of the Application tool bar and click the adjoining arrow button.

You can maintain the following details in this screen:

Rule ID

Specify a unique rule ID for the rule.

Rule Description

Specify a brief description of the rule ID.

Sequence Number

Specify the sequence number for the rule. If there are multiple rules, then auto matching of the messages will be processed based on the sequence number in an ascending order.

Full Match

Check this box to indicate that the confirmation rule maintained is a full match rule.

You have to check the following fields if the rule should be maintained as full match:

Note

You can maintain more than one rule as full match.

Fields to be Matched

You can enable the following fields to match the details of an incoming SWIFT confirmation message MT320/ MT330 with an existing deal in Oracle FLEXCUBE.

If the Full Match Rule is satisfied with a single deal, then the message will be marked as ‘Completely Matched’ and the deal will be marked as confirmed.

If multiple contracts are matched then the message is marked as ‘Partially Matched’.

4.9.2 Viewing MM Confirmation Rule Maintenance Details

You can view MM confirmation rule details in ‘MM Confirmation Rule Maintenance Summary’ screen. You can invoke this screen by typing ‘MMSCNFMT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

In the above screen, you can base your queries on any or all of the following parameters and fetch records:

Select any or all of the above parameters for a query and click ‘Search’ button. The following records are displayed.:

4.9.3 Processing MM Confirmation Message Intraday Batch

An intraday batch MMCNFRM is run to auto match MM Confirmation Messages. The messages MM320 and MM330 are parsed and uploaded into an internal upload table to confirm the format of the messages. On confirming the format, the incoming message browser updates the message as ‘Processed’. The auto confirmation batch will use the data in the incoming message and processes the matching based on Confirmation Rule maintained.

While processing auto match, if the details of an incoming message are matched with a single existing deal in the system based on a Full Match rule, then confirmation will be marked for the deal by triggering CONF event. If multiple contracts are matched with a single message while processing a Full Match Rule, then the message will be marked as Partially Matched. You can manually match the ‘Partially Matched’ deals from the ‘Manual Matching’ screen. While doing an auto matching system will match an incoming message with details of latest outgoing confirmation message details of a contract.

The following fields of MM deals are matched against the message field values:

MT 320/330 MM Confirmation Message field

MM Contract field

17R

Product type

82A

Counterparty BIC

30T

Trade Date

22A

Events

30V

Value Date

32B

Currency

32B

Principal Amount

30P(MT320)

Maturity Date (For Fixed maturity contracts)

38A(MT330)

Notice Days for Notice Con­tracts

37G

Interest Rate

14D

Interest Basis

34E

Interest Amount Currency

34E

Interest Amount

57a Settlement for Bought Leg

Settlement for Sold Leg

57a Settlement for Sold Leg

Settlement for Bought Leg

57a Account With Institution for Bought Leg

Account With Institution for Sold Leg

57a Account With Institution for Sold Leg

Account With Institution for Bought Leg

58a Beneficiary Institution Sold Leg

Branch BIC

22C

Common Reference

56A Intermediary Bought Leg

Intermediary Sold Leg

56A Intermediary Sold Leg

Intermediary Bought Leg

The list of contracts against a message, in case of full and partial matches, can be viewed from the ‘Manual Matching of Confirmation Messages’ screen.

4.10 MM Confirmation Message Matching

This section contains the following topics:

4.10.1 Invoking MM Confirmation Message Matching Screen

All the partially matched and unmatched SWIFT confirmation messages can be fetched in ‘Confirmation Message Matching’ screen. You can link an unconfirmed MM deal with a confirmation message which is not yet matched and initiate the confirmation process in this screen. You can invoke this screen by typing ‘MMDMATCH’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can specify the following in this screen:

Module

The system displays the name of the module.

Message Reference

Specify the message reference number. The system displays the Message DCN as the message reference number based on the message details maintained.

Match Reference

The system displays the match reference number.

Contract Reference

Specify the contract reference number. The system displays the MM contract number based on the contract chosen from contract details screen.

Message Details

You can fetch all the message details based on the following message detail criteria selected:

Match Status

Select the match status from the drop-down list. Following are the options available:

DCN

Specify the message DCN. Alternatively, you can select the ‘DCN’ from the option list.

Sender BIC

The system displays the sender BIC.

External Reference

Specify the external reference number. Alternatively, you can select the external reference number from the option list.

Matching Status

The system displays the matching status of the message.

Message DCN

The system displays the message DCN.

External Reference

The system displays the external reference number.

Contract Reference

Specify the contract reference number. Alternatively, you can select the contract reference number from the option list.

Confirmation Date

The system displays the confirmation date.

If a message is selected from the message detail block, then the message DCN will be defaulted in the ‘Message Reference’ field.

Partial Match

You can view the following partially matched message details:

Contract Reference

The system displays the contract reference number of the partially matched messages.

Confirmation Rule ID

The system displays the confirmation rule ID.

Rule Description

The system displays the description maintained for the rule.

If a partially matched message is selected in the partial match block, then the corresponding contract reference number will get defaulted in the ‘Contract Reference’ field.

The manual match of the messages will be done based on the Message Reference and Contract Reference displayed in this screen.

4.10.2 View Match Details Button

Click ‘View Match Details’ button in MM Confirmation Message Matching screen to view message match details based on the message and contract reference numbers.

4.10.3 Contract Button

Click ‘Contract’ button in MM Confirmation Message Matching screen to view the contract details.

4.10.4 View Message Button

Click ‘View Message’ button to view the details of a selected message.

4.10.5 Viewing MM Confirmation Message Matching Details

You can view MM confirmation message matching details in ‘Confirmation Message Matching Summary’ screen. You can invoke this screen by typing ‘ MMSMATCH’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

In the above screen, you can base your queries on any or all of the following parameters and fetch records:

Select any or all of the above parameters for a query and click ‘Search’ button. The following records are displayed.:

4.10.6 Processing Manual Match of the Messages

For manual match of the messages, the system fetches all the partially matched and unmatched messages based on the criteria selected in manual matching screen. You can match the partially matched record from the message details screen with a selected partially matched message. The manually matched records will be updated as Active and ‘Match in Progress’. You cannot fetch this message record for another manual matching process. Once the manually matched deals are authorized, the message will be marked as ‘Completely Matched’ and for the related MM contract CONF even is triggered.

If there are any partially matched details that are not considered for matching the message , you can fetch the unconfirmed deal records in the Contract Detail sub screen.

4.10.6.1 Un-matching Matched Messages

You can un-match a matched record from MM Confirmation Message Matching Summary screen. To unauthorize and close a completely matched record, select the matched record and click Close button in the detailed screen. The system then triggers unconfirm event UCNF for the related MM contract. You cannot reopen or process the closed match records, but you can fetch the unmatched messages to initiate a new manual match process.

4.11 MM Affirmation Input

This section contains the following topic:

4.11.1 Invoking MM Affirmation Input Screen

You can affirm or un-affirm, waive or un-waive a deal from ‘MM Affirmation Input’ screen. You can invoke this screen by typing ‘ MMDAFFRM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can maintain only one MM contract record in ‘MM Affirmation Input’ screen.The system displays the following fields in this screen:

Affirmation Status

Select the affirmation status of the MM deal. The options available are as follows:

If the affirmation status is changed from unaffirmed to affirmed and the affirmation type or affirmation reference number is not specified then the system displays an error message.

Confirmation Waiver Status

Select the MM deal confirmation waiver status. The options available are as follows:

You can modify either ‘Affirmation Status’ or ‘Confirmation Waiver Status’ at a time.

Affirmation Details

Affirmation Type

Specify the affirmation type. Alternatively, you can select the affirmation type from the option list.

Affirmation Type Description

Give a brief description on the affirmation type.

Affirmation Reference Number

Specify the affirmation reference number.

Affirmation Reference Date

Select the affirmation reference date from the adjoining calendar.

Remarks

Specify remarks, if any.

4.12 Authorizing a Contract

You have to save a contract after entering all the required details in the system. Click Save icon on the Toolbar or choose ‘Save’ from the Actions menu to save an account. The system updates this as an unauthorized contract. To authorize an account, click ‘Authorize’ icon on the Application toolbar.

Note

You cannot authorise a contract from the ‘Money Market Contract Input’ screen in the fol­lowing cases:

4.13 Multilevel Authorization of a Contract

High value contracts may require multilevel of authorization. The levels of authorizations are defined in the ‘Product Transaction Limits’ screen. You can use the ‘Multilevel Authorization Detailed’ screen for authoring a contract n-1 times. However, final authorization can take place only in the contract screen.

For more details, refer the ‘Multilevel Authorization of Contract’ section in the ‘Procedures’ User Manual.

4.14 Authorizing Bulk MM contracts

Money market deals must be authorized in the respective Contract Online screens. This method of authorizing the deals can be quite cumbersome, especially if the volume of transactions is large. In view of that, Oracle FLEXCUBE allows bulk authorization of all unauthorized money market deals from the ‘Unauthorized Contracts’ screen. Invoke this screen from the Application Browser.

In the ‘Unauthorized Contracts’ screen, you can indicate the following parameters:

For example, if the maturity date of a contract is 30th December 2001 and is a holiday for your bank, system will display an override:

“30-DEC-2001 is a holiday”.

However, you can opt to ignore such overrides by checking against ‘Ignore Overrides’.

On authorization of a contract, the messages associated with the deal will be generated. To generate the messages, check against ‘Generate Messages’.

This section contains the following sections:

4.14.1 Authorizing the Deals

You can either opt to authorize all the deal that are displayed or choose only certain contracts for authorization.

After selecting the deals, click ‘Authorize’ to authorize the deals.

4.14.2 Viewing the Errors

If the system encounters any errors during the authorization of a particular deal, it will record the error and move on to the next contract.

Among the deals selected for authorization, there may be certain deals, which are created by the user who is authorizing. As the maker and checker cannot be same, system will record an error, as it cannot authorize the deal.

Click ‘View Error’ to view the details of the errors recorded. In this screen, system will display the reference number of the deals, which could not be authorized and the reason for the failure of deal authorization.

4.14.3 Viewing the Settlement Details

The settlement account details of each deal will be displayed in the ‘Settlement Instructions’ screen. Click on the contract for which you want to view the settlement details and it will be displayed in the ‘Settlement Instructions’ section. For each amount tag, the following settlement details are displayed:

Note

The settlement details for the latest event of the deal will be displayed.

4.14.4 Viewing the Details of the Deal

The details of the unauthorized deals can be viewed by double clicking on the deal reference number in this screen.

In case of money market deals, the screen that is displayed on double clicking a deal depends on the stage of the deal that is unauthorized.

4.15 Reassigning a Contract to Another User

Normally, an unauthorized contract can be deleted only by the user who has created it. If a contract has to be deleted and the user who has created it is not around to do it, then you may reassign the contract to another user. The newly assigned user can delete the contract. Typically, this situation may arise during End of Day operations when an unauthorized contract has to be deleted and the user who created it has left the office for the day. You can reassign a contract only if you have sufficient access rights to do it.

You can reassign a contract through the 'Reassign User Prior to Authorization' screen. You can invoke this screen by typing 'MMDCONRE' in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. The screen is displayed below.

Specify the following details:

Product Code

Specify the product code associated with the contract that you want to reassign to a different user. Select the product code from the adjoining option list.

Contract Reference Number

Specify the reference number of the contract that you need to reassign. Select the appropriate one from the adjoining option list.

Current User

The user ID of the person who has created the contract is displayed in this field.

New User Id

Specify the user ID of the person to whom you need to reassign the contract.

Click 'Ok' button to save the details you entered. The system will reassign the contract to the new user. Click 'Exit' button if you do not want to save the details.

4.16 Amending Money Market Transactions

Once a MM contract is authorized, changes to this can be done through the ‘Money Market Value Dated Changes Input’ screen. You can invoke this screen by typing ‘MMDVAMIN’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

For more details on the field explanation of each tab, refer section ‘Features of the Contract Details screen’ section of this User Manual.

4.16.1 Authorizing Money Market Contracts

You cannot authorise a contract from the ‘Money Market Contract Input’ screen in the following cases:

4.17 MM Settlement Exception

This section contains the following topics:

4.17.1 Processing MM Settlement Exception

You can view and process MM placement deals for which the settlement status is pending. If the fund in the settlement account is less than the due amount, then the system updates the contract settlement status as pending. These pending transactions can be viewed and processed through ‘MM Settlement Exception Processing’ screen. You can invoke this screen by typing ‘MMDEXCEP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button. You are allowed to Create, Save, Authorize, Delete and Enter Query in this screen.

In this screen you can query all MM deals pending for settlement.

Reference Number

The system displays the reference number.

Customer

Specify the customer number. Alternatively, you can select the customer number from the option list. The list displays all valid customer numbers.

Force Liquidate

Check this box if the customer account should be force debited.

Click ‘Fetch Records’. The system displays the following information: