15.8.4 Processing of Trade Update Notice Message in SLT Module

When any Trade Update Notice message with Suspended status is processed for a Markit trade id, the trade is enabled and you can process it further.

After receiving a trade with status as ‘Suspended’, system does not reject but consumes and processes the following messages.

• Trade Match Notice
• Syndicated Loan Trade Allocation
• Settlement Details Notice
• Trade Closed Notice

For unallocated trades, Markit always sends Trade Match Notice and Settlement Details Notice messages together. After processing this Settlement Details Notice message, Trade Match Notice message can be received again. System consumes the Trade Match Notice messages without rejection, and processes them again for the same trade any number of times before Trade Closed Notice or Trade Update Notice is received with Cancelled or Removed status.

For allocated trades, Markit sends Trade Match Notice and Settlement Details Notice messages together for the parent trade, before the actual allocation. After allocation, Markit sends Settlement Details Notice for the allocated trades after Syndicated Loan Trade Allocation message.

For allocated trades, the following processing takes place.

• If any allocation is closed or settled, Markit does not send Trade Update Notice message with Cancelled/Removed status. After an allocation is closed in the system, system rejects the message if Trade Update Notice is received with Cancelled/ Removed status.
• If the Trade Update Notice with the status as Suspended is processed in the system after the allocation is closed, then there is no impact on the closed allocation. However, the remaining open allocations are suspended.
• If the Syndicated Loan Trade Allocation message is processed in the system after the allocation is closed, then the revised allocations are processed without impacting the closed allocations.

If a new Trade Match Notice is received with replacedTradeIdentifier, then the trade mentioned in replacedTradeIdentifier is marked as Cancelled and the trade received as part of the Trade Match Notice is treated as a new trade. If any allocation is closed under a trade, then there is no impact on the closed trade as part of new trade processing.

If Trade Match Notice is received again for an existing Markit trade Id, then the old allocations are removed from the system and closed allocation(s), if any, are retained. New allocation received as part of Syndicated Loan Trade Allocation is used for further processing. If any of the allocation is closed, then new allocation message should also contain details of closed allocation along with new allocation.

After an allocation is closed under a trade, if Markit sends Trade Match Notice with replacedTradeIdentifier and Syndicated Loan Trade Allocation with new allocations, then:

• Markit Trade Status for Closed allocation of old trade remains as Settled.
• System does not process closed allocations received as part of the new trade. However, the new allocation which is closed is marked as Settled and linkage details are logged against the new allocation in the Exception screen.

After receiving new Syndicated Loan Trade Allocation message for SLT, new Syndicated Loan Trade Notice Agent should be sent again for agency. Settlement is not done in LB until the matched Markit trade is settled in SLT.

Trade Update Notice is received at Markit trade id level and not at individual allocation level. System does not validate the allocation ids sent by Markit in the Trade Update Notification but marks all allocations (for allocated trades) under the Markit Trade Id as Suspended/ Cancelled/Removed.

Trade Update Notice message with status as Suspended can be received multiple times before Trade Closure.

Trade Update Notice with status as Cancelled or Removed can be received after receiving Trade Update Notice with status as Suspended.