15.11.1 Trade Match Notice

Trade Match Notice message is the first message received from Markit to initiate SLT trade settlement process in Oracle Banking Corporate Lending.

Each Trade Match Notice message consists of the following primary details.

• Markit Trade ID - Unique Identifier for the trade.
• LQT Ticket ID - Ticket Id sent by Loans QT while booking SLT trade in the system. Multiple SLT trades can be booked in one Ticket Id.
• Trade details - Trade Type, Document Type, Trade counterparties, and assignment Fee details.
• Facility details

Each message from Markit can have trade details of multiple trades under one facility. The following details are the same across all the trades (CUSIP/ISINs) under the message.

• LQT Ticket ID
• Trading counterparties, buyer and seller
• Trade Date, Expected Settlement Date
• Trade Type – Primary / Secondary
• Assignment Fee Details
• Trading Association – LSTA / LMA
• DocumentationType – Par / Distressed
• FormOfPurchase – Assignment, Assignment-Only
• AccrualSettlementType – Flat / SWOA

The following primary details are sent from Markit to Oracle Banking Corporate Lending as part of Trade Match Notice message.

Markit Fields	Description
Party	MEI code of the buyer and seller.
Approval	Approval Type, status and approver details. These are used by the system for user information only. No processing impact.
replacedTradeIdentifier	This indicates the old Markit trade that is being replaced by the current Markit trade. The replaced Trade Identifier should be a valid Markit Trade ID that was previously consumed by Oracle Banking Corporate Lending.
Product Type	It is always SyndicatedLoanTradeNotice.
TradeID	Unique Trade Id for each Markit trade. It consists of two Ids, Markit Trade Id and LQT Ticket Id which is the Ticket Id of the SLT trade.
SellerTradingParty	Reference to the Party who sells the position.
BuyerTradingParty	Reference to the Party who buys the position.
TradeDate	Trade Date
ExpectedSettlementDate	Expected Settlement Date of all the trades under this Markit Trade ID.
TradingAssociation	LSTA / LMA. Applicable for all the Trades under a Markit TradeID.
DocumentationType	Par/ Distressed. Applicable for all the Trades under a Markit TradeID.
FormOfPurchase	Assignment or Assignment-Only Applicable for all the Trades under a Markit TradeID. Any other type of FormOfPurchase results in the trade being in unmatched status in Oracle Banking Corporate Lending. Participation trades are out of scope of this FS.
AccrualSettlementType	Flat or SWOA. Applicable for all the Trades under a Markit TradeID. Any other type of AccrualSettlement- Type results in the trade being in rejected in Oracle Banking Corporate Lending.
TradeType	Primary/Secondary. Applicable for all the Trades under a Markit TradeID.
AssignmentFeeDetails	Wrapper Element. Assignment Fee Remitter and Assignment Fee Paid By. Applicable for all the Trades under a Markit TradeID.
Deal Summary	Wrapper Element. Includes CUSIP/ISIN and Value Date of the facility. Facility can be unique for all the Tranches in TradeMatchNotice.
MultiFacilityTradeDetails	Wrapper Element. Contains the details of the traded amount for each Tranche. Contain 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. Consists of instrumentid 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

System resolves the details from Markit SLT interface Browser and populates the details in the Markit Trade Settlement queue. For each trade from Markit, the details of the trades are resolved and detailed validations are done based on the following:

• Counterparty from Markit trade, that is,. Buyer/Seller in Oracle Banking Corporate Lending are identified by matching the Markit details with the MEICODE UDF of the customers in the Oracle Banking Corporate Lending.
  • The trade is rejected if MEICODE UDF is not found in the system.
  • Trade is Unmatched if MEICODE UDF is found and Buyer /Seller is resolved. However, the trade matching fails.
  • Counterparty is treated as external participant if there is a unique MEICODE UDF found and there is no position identifier maintained.
  • The trade is rejected if there is no position identifier maintained for both buyer and seller. Markit trade should have minimum one bank counterparty in all the messages associated with SLT trade settlement.
  • The trade is rejected if both buyer and seller are bank counterparties
• All bank counterparties for the same legal entity have the same MEICODE UDF value Hence the resolution is done by considering the counterparty with the MEICODE UDF value sent from Markit, for which a Position Identifier for the tranche branch is maintained in the system as the counterparty for buyer/seller.
• Since each Markit message comprises of multiple tranches, the validations for resolution of the trade are done for each tranche.
• If the validations for any one tranche under a Markit Trade ID are not met, then the complete trade is rejected, including the trades for all the other tranches under the Markit Trade ID.
• If matching process is successful and the trade reference number is resolved, then Match Status is updated as Matched.
• If validations are met, but matching is unsuccessful, then the message status is still be Processed, while the Match Status is Unmatched.
• After all the validations are done, trades are populated in the Markit Trade Settlement Queue with the appropriate status. System updates the status accordingly in the Markit Agency Interface Browser as well.
• If all validations are met, then the message status is marked as Processed in Markit Trade Settlement Queue and in the Markit SLT Interface Browser. This indicates that system has processed all the trades under the Trade Match Notice message successfully.
• If validation for one CUSIP/ISIN is not met and the trade is rejected, then all the CUSIP/ ISINs under the Markit Trade Id are rejected and appropriate exception is logged to indicate the reason and the CUSIP/ISIN that has failed. Message status in Markit Trade Settlement Queue and Markit SLT Interface Browser are updated as rejected.
• Since this message can be received multiple times from Markit, if any subsequent messages are received for an existing Trade Id, then all the validations/resolutions are re-done and the status is updated accordingly with the new data received.
• If the Trade Match Notice has a replacedTradeIdentifier, then the Trade Id of the replaced Trade Identifier is marked as Cancelled and the new trade id received as part of this Trade Match Notice message is treated as a new trade without any impact of the replaced Trade.
• If the current trade being processed is with replaced the trade identifier and the trades under the replaced trade identifier are is settled in the system, then the current trade is rejected.