15.11.2 Syndicated Loan Trade Allocation Message

The Syndicated Loan Trade Allocation message is sent if any secondary trade is allocated to multiple counterparties. This message is sent only after the Trade Match Notice message is sent since this message carries the Parent Trade information.

Each Syndicated Loan Trade Allocation message consists of the following details.

• Markit Trade ID - Unique Identifier for the Trade
• LQT Ticket ID - LQT Ticket ID of the Parent Trade
• Allocation ID - Unique Id for each of the Allocation
• Allocating and Allocated party Details
• Allocation Details of multiple tranches

The primary details in this message are summarized below.

Table 15-5 Markit Fields from XML Message

Markit Fields from XML Message	Description
Notice Date	Message generation Date
Party Details	Allocated / Allocating Party MEI Code values
TradeID	Unique Trade Id for each Markit trade. Consists of two Id’s, Markit Trade Id and LQT Ticket Id which will be the Ticket Id of the SLT trade.
AllocatingParty	Identifies the party allocating the trade as a reference. This will be the Trade Counterparty of Parent Trade.
AllocationID	Unique Allocation id for each allocation. Each Allocation message can have more than one Allocation ID.
AllocatedParty	Trade counterparty of the allocated Trade
MultiFacilityTradeDetails	Wrapper Element. This will contain the details of the traded amount for each Tranche. Contains the facilityTradeDetails element that occurs multiple times, for each of the tranche under the Markit trade id.
FacilityTradeDetails	Wrapper Element and is repeated for every tranche under the Markit trade id.
FacilitySummary	Wrapper Element. It consist of instrument d and original commitment(tranche) amount with currency.
multiFacilityTradeDetails-> facilityTradeDetails-> facilitySummary -> instrumentId	CUSIP/ISIN of the tranche, based on which the Tranche is identified in Oracle Banking Corporate Lending.
multiFacilityTradeDetails - > facilityTradeDetails -> tradedCommitmentAmount	Trade amount with currency
TradePrice	Trade Price

Oracle Banking Corporate Lending does the necessary validation and matching by resolving the details from Markit SLT Interface Browser and then Trade details are populated in the Markit Trade Settlement queue. For each allocation from Markit, the details of the trades are resolved and detailed validations are done based on the following:

• This message is processed only if the corresponding processed Trade Match Notice message exists in the system. Else all the trades under this message are marked as Rejected in Markit SLT interface Browser and also in Markit Trade Settlement queue with the appropriate exception details.
• For every allocation message, the parent trade is identified using the Markit Trade ID and LQT Ticket ID. The Markit Trade ID and LQT Ticket ID remain the same for the parent and allocated trades.
• Each message has a unique Allocation ID for each of the allocations under the Markit Trade ID.
• All the allocations for a Markit Trade ID are sent for each of the Allocated Party with the underlying tranche details.
• Buyer and Seller of the trades are resolved based on allocating party and allocated party MEI code UDF values.
• Allocating Party will be one of the Trade counterparties of the Parent Trade.
• Allocation message can be sent multiple times from Markit for a Markit Trade if the allocation is revised in Markit. The revised allocation message details will be used to populate the Markit trade settlement queue for the Markit Trade id.
• The combination of Markit Trade id, LQT Ticket ID, Allocating party, Allocated party, CUSIP/ISIN and allocation id are considered as one Allocated Trade which is compared with system’s SLT Trade to resolve the Trade reference number.
• There is no validation in the system to check that the sum of all Allocated Trade amount is equal to the Trade amount of Parent Trade.
• Allocation message is rejected if allocating party is not one of the trade counterparties of the Parent Trade in the latest Trade Match Notice message received.
• Each tranche/CUSIP for an allocation ID ise populated as a record in the trade settlement queue with the appropriate status, based on the allocation message from the Markit SLT interface Browser. The status is updated accordingly in the Markit SLT Interface Browser also.
• If validation for an allocation/CUSIP is not met and the trade is rejected, then all the allocations/CUSIP’s under the Markit Trade Id are rejected and appropriate exception is logged to indicate the allocation/CUSIP that has failed. Message status in the Markit SLT interface Browser and Markit Trade Settlement queue (for all the allocations/ CUSIPs) is updated as Rejected.
• If all the validations are met, then the message status is marked as Processed in Markit Trade Settlement queue for all the trades under the Markit Trade Id. Markit SLT interface Browser is updated with the message status as Processed for the Markit Trade id, which indicates that system has successfully processed all the trades under the Syndicated Loan Trade Allocation message.
• If all validations are met and matching is not successful, then the message status will still be Processed for all the allocated Trades but Match status for all the unmatched trades will remain as Unmatched.
• This message can be received multiple times from Markit Hence if any subsequent messages are received for an existing Trade Id/Allocation Id, then all the validations/ resolutions are re-done and status is updated accordingly with the new data received.