1.6 Liquidity Management

Drain Pool:

New API has been introduced that enables corporations to sweep out funds from notional pools.

Introduction - Pools are typically created to notionally combine balances across accounts and earn higher interest rates. With drain pool functionality, money can be swept out of such notional pools to accounts where money is needed and achieve better liquidity management.

Drain pool will be available in the application as a variant of Hybrid structure. During structure creation, user has to opt for Drain Pool flag as Yes in the structure details. Further, during a drain pool structure creation user is given the option to start the structure either with a pool or sweep structure. Apart from adding regular sweep or pool accounts, at appropriate places in the structure an entire pool structure can be added which will be represented by the notional header node.

To achieve sweeps from this pool, which is part of a drain pool structure, user can select one of the accounts as “Nominated Account” in which sweep will happen. Rest of the hybrid structure behaviour during view, edit etc. remains unchanged for a drain pool structure.

Credit First Sweeps:

Credit First sweep API is an enhancement done to the existing sweep structure functionality. Currently when a sweep structure is executed (during EOD/Intraday/Ad hoc), when the parent account has multiple children, the sweeps happen in based on sweep priority. With credit first sweep API enhancement,

• System will first perform the upward/one-way sweeps before performing the downward/two-way sweeps at each parent level.
• The priority maintained for sweeps will only be considered during the downward/ two-way sweeps- when child account is being funded.
• The priority should be ignored during the upward/one-way sweeps being performed from child to parent.