4.27.1.1 Elevating Sell Participation - Bank as Lead agent

Elevation is the process where a silent participant becomes a normal participant in a trade with the agency. The following steps are involved in the elevation of a silent sell participant to normal status:

1. Loans QT send the trade amendment for elevation from Participation to Assignment.
2. The system considers this amendment as an exception and initiates the trade cancellation event, to cancel the participation positions.
3. Amendment of the trade happens for changing the deal type, followed by the elevation event which marks the elevation of the trade. If the bank as Lead agent, the trade elevation event for the origination line trade is handed off to LB module.
4. The system, internally, books assignment type of sell deals with the counterparties involved. Funding memo or trade settlements are not applicable for such trades.

You cannot perform any further operations on these trades.

If the bank is Lead agent, as part of agency handoff, the Silent participant position is reduced to the extent of the sell Participation amount and actual external party are added to the main agency contract. PRAM is triggered to indicate the participant transfer between the silent participant and the actual external participant.

If the bank is non - lead agent, on elevation of Participation trade, a negative NPVAMI is triggered on non - lead agency wrapper contract to the extent of the participant position and the participant pro-rata share are changed.