15.9 Impact of Markit Trades on Tranches and Drawdowns in LB
Since the Position Update message is sent to Markit before the Participant Transfer is actually processed in LB Tranche, there is an impact on processing of events in the LB module. When the actual Participant Transfer is triggered in LB tranche as a result of message from Markit, the generation of Position Update message is suppressed during participant transfer.
For the tranches for which Markit messages have been received for trade processing and the Position Update message has been handed off to Markit, system does not allow processing of any events which could send FpML messages to Markit (based on the product event advice setup) till the actual Participant Transfer is done on the tranche. The following table lists the screens where this validation is done and processing is blocked.
Sl. No | Screen Name | Blocking events |
---|---|---|
1 | Borrower Tranche Input | To block Reversal |
2 | Messaging Processes- FpML Adhoc Message | To block the generation of position update message for the external CUSIP/ISIN |
3 | Borrower Drawdown Input | To block new Drawdown booking /Reversal |
4 | Fee Liquidation | To Block new FLIQ |
5 | Fee Amendment | To Block FAMD |
6 | Fee Rule Maintenance | To block Fee rule maintenance |
7 | Interest Rate Fixing | To block IRAM(Interest Rate Amendment) |
8 | Participant Transfer | To block Any new participant Transfer |
9 | Value Dated Amendment | To block any amendment and also reversal |
10 | Repricing | To block new Repricing for a contract |
11 | Draft Transfer | To block any new participant transfer for the contract |
12 | Manual Payment | To block new payment and payment reversal |
13 | Consol Rollver Input | To block rollover for a contract |
14 | Trade Settlement | To block any settlement which will change the participant ratio for the corresponding external CUSIP |
15 | Ticket Settlement | To block any settlement which will change the participant ratio for the corresponding external CUSIP |
In scenarios, where there is a necessity to process a particular event on a tranche or on its underlying Drawdowns and the actual automatic participant transfer (assignment) is still pending processing, the processing of Participant Transfer can be done manually from the Pending Trade Processing Queue for the tranche.
Parent topic: FpML Messaging