15.17.11 Letter of Credit Issuance Notice

Incoming messages with Message Name as LC Issuance Notice is placed in the Incoming Browser with Processing Status as Pending.

Specify the User ID and Password, logim to Homepage.

From the Homepage, navigate to Markit Incoming Interface Browser screen.

1. From the Markit Incoming Interface Browser screen, click Drawdown Details.
   The Drawdown Details screen is displayed.

   Figure 15-10 Drawdown Details

   
   

   
   Description of "Figure 15-10 Drawdown Details"

   
   
2. If the External CUSIP/ ISIN in the message is an active Borrower Tranche, the fields in the Incoming Browser are populated with data from the message/tranche contract. If the Message ID is not already processed and if the Agent Ref No. in the message is not found for any active LC drawdown contract in the system, then it proceeds with the creation of a new LC drawdown as follows:
   • System checks tranche availability based on LC currency and LC amount from the message.
   • System identifies the LC drawdown product maintained for the tranche.
   • Settlement pickup for borrower happens based on the LC currency and borrower Standard Settlement Instruction mnemonic defaulted from tranche.
   • Settlement pickup for participant happens based on the LC currency and participant mnemonic defaulted from tranche.
   • MIS pickup happens based on the tranche MIS maintenance.
   • If the event date and effective date (drawdown value date) are the same as application date system creates a LC drawdown contract and mark the Processing Status as Processed.
   • If the event date is same as application date and effective date (drawdown value date) is greater than application date then system creates an uninitiated LC drawdown contract and mark the Processing Status as Processed. The contract is automatically initiated on the value date as per existing functionality.
   • The new LC drawdown contract have the events BOOK, INIT, DNOT, EXFX (If drawdown currency is different from tranche currency) triggered and fax messages attached for DNOT, EXFX are generated based on the product set up.
   • Start date of the LC Drawdown is the value date and end date is the maturity date.

   The following fields can be enriched by clicking on the Enrich button.

   • Product Code
   • Borrower MEI
   • Borrower
   • Value Date
   • Maturity Date

   During processing, the system logs the following exceptions.

   • If the Agent Ref No. exists in the system then the processing status is updated as Failed by logging an exception – Agent Ref No already exists.
   • If the matching participant/borrower is not found at the tranche level, then system marks the Processing Status as Failed by logging an exception Participant/Borrower not found at the tranche.
   • If the matching external CUSIP/ ISIN is not found in the system, then the Processing Status is updated as Failed and an exception message is logged.
   • If the availability is insufficient at tranche then system marks the Processing status as Failed by logging an exception No Availability at Tranche.
   • If there is more than one LC Drawdown product linked to the tranche then system marks the Processing status as Enrich by logging an exception -Product code resolution is failed.

   System checks for exchange rate details. If the drawdown currency is different from the tranche currency and if the exchange rate is not present, then the system marks the Processing Status as Failed by logging an exception -Exchange rate is not presentYou need to go to Detail sub-screen of the Incoming Browser and select the appropriate product. Products linked to the tranche is available for selection. Then, you can change the Processing Status to Pending and system re-picks up the message for processing.

   If the borrower mnemonics at tranche is maintained as ALL type (Product, Branch, Currency, module), then system marks the Processing status as Enrich and you need to modify the mnemonics for the tranche and resubmit the message for processing by changing the Processing Status as Pending.

   If the event date is greater than application date, the system considers the message as intent and marks the Processing Status as Hold. It retains the message in the Incoming Browser till the event date and on event date during batch processing system updates the Processing Status as Pending so that the message can be picked for re-processing.

   If the event date is earlier than application date, then the system does not process the contract/event in the system and marks the Processing Status of the Incoming Message as Pending Authentication. You need to change the Processing Status to Pending or Processed.