4.26 Amending an SLT Contract
You can amend the details of a trade contract in the Secondary Loan Trading - Draft Trade screen. You need to select Modify from the menu.
You also need to select the contract reference number of the trade contract you want to modify.
Click Ok to save the details and display the Secondary Loan Trading – Draft Trade (TLDTDUPL) screen.
In this screen, you can make the necessary modifications to the contract details. You need to select Submit option to save the modifications and process the record further.
You can make amendments on a trade, only before the trade gets settled. For trade amendments that happen before trade settlement, if the funding memo is already generated, then the funding memo gets regenerated after the amendment.
For amendments being carried out in Loans QT, any of the following actions can happen in
Oracle Banking Corporate Lending, based on the nature of the amendment:
- Normal Trade Amendment (TAMD) - this type of amendment is carried out if the amendments in Loans QT do not impact the position, WAC, PNL, or trade settlement.
- Cancellation of the existing position and booking new position (TCNC and TAMD) - this type of amendment is carried out if the amendments in Loans QT impact the position, WAC, PNL or trade settlements, but with no changes to the Trade product, CUSIP, Ticket Id and Position Identifier
- Cancellation (TCNC) and reversal of the existing trade and rebooking the trade (TREV and TBOK) - this type of amendment is carried out if the amendments in Loans QT impact the position, WAC, PNL, trade settlements, Trade product, CUSIP, Ticket Id or Position Identifier.
If the trade amount amendment in Loans QT happens due to commitment reduction/increase or PIK, the new trade amount gets saved as a new version of the trade contract.
The following table lists the fields that can be received as amendment from Loans QT and
the corresponding action that takes place in Oracle Banking Corporate Lending:
The fields with Amendment Allowed Through Draft Trade
value specified as Yes can be amended in the Draft
Trade screen. For the other fields, you need to reverse the trade and
re-book a new trade.
| OBCL Field | Corresponding Loans QT Field | Remarks | Amendment Allowed Through Draft Trade | OBCL Process |
|---|---|---|---|---|
| External Ref No | TradeI | Should come from LQT, however in the absence of the Interface, Users will key in the unique value | NO | Reverse the existing trade and rebook the new trade |
| Contract Ref No | Oracle Banking Corporate Lending Generated Ref No | NO | Reverse the existing trade and rebook the new trade | |
| User Ref No | User Input Ref No in Oracle Banking Corporate Lending | NO | Reverse the existing trade and rebook the new trade | |
| Custom Ref No | Populated in Oracle Banking Corporate Lending | NO | Reverse the existing trade and rebook the new trade | |
| Version | Oracle Banking Corporate Lending Version | |||
| Ticket ID | TicketI | NO | Reverse the existing trade and rebook the new trade | |
| Desk | DeskC | NO | Reverse the existing trade and rebook the new trade | |
| Legal Vehicle | LegalVehicleI | NO | Reverse the existing trade and rebook the new trade | |
| Expense Code | FirmAcctI | Expense Code | YES | Reverse the existing trade and rebook the new trade |
| CUSIP | MIAltI/Loan- DealI | YES | Reverse the existing trade and rebook the new trade | |
| Position identifier | YES | |||
| Firm Account Mnemonic | YES | |||
| Trade Product | Populates in Oracle Banking Corporate Lending | NO | Reverse the existing trade and rebook the new trade | |
| Deal Type | DistributionC | Assignment/ Participation | YES | Reverse the existing trade and rebook the new trade |
| Trade Type | TradeTypeC | CUST/ACCM | YES | Cancellation of existing position and Trade amendment if the trade amended from CUST to ACCM. It Reverse the existing trade and rebook the new trade in case amended from ACCM to CUST. |
| Buy Sell indicator | TransTypeC | Buy or Sell | YES | Cancellation of existing position and Trade amendment |
| Counterparty | CptyAcctI | YES | Trade Amendment | |
| TradeAmount | ProductQty | YES | Trade Amendment | |
| Trade Currency | SettleCurrC | YES | Cancellation of existing position and Trade amendment | |
| Trade Price | TradeProdPriceA | YES | Cancellation of existing position and Trade amendment | |
| Booking Date | Oracle Banking Corporate Lending System Date | No | ||
| Trade Date | TradeD | YES | Cancellation of existing position and Trade amendment | |
| Expected Settlement Date | ExpectedSettleD | YES | Trade Amendment | |
| Settlement Date | Oracle Banking Corporate Lending will update it on actual Settlement | No | Actual Settlement date to be keyed in only during the funding memo generation / Trade settlement | |
| BrokerID | SalesID | YES | Trade Amendment | |
| Broker Fee Rate | Rate will be accepted for Brokerage Fee and Line Accomodation Fees. | YES | Trade Amendment or Fee Amendment | |
| Swap ID | Details of SWAP upload table is provided later | YES | Cancellation of existing position and Trade amendment | |
| Fee Type | FeeTypeC | ASSN/LINE. One instance of each fee is allowed. DCF does not come from LQT andit is populated during Trade upload based on the Prod Maintenance | YES | Trade Amendment or Fee Amendment |
| Assignment Fee Type | Assignment- FeeC | YES | Trade Amendment or Fee Amendment | |
| Assignment Fee Remitter | Needs to come from LQT | YES | Trade Amendment | |
| Fee Amount | YES | Trade Amendment or Fee Amendment | ||
| Agency ID | YES | Trade Amendment | ||
| Quotation | InterestC | FLAT/SWOA. No processing diff b/n FLAT & SWOA except for the DCF applicability | YES | Trade Amendment until expected settlement date |
| Settlement Mnemonic details | YES | Trade Amendment | ||
| Remarks | Comments | YES | Trade Amendment |
Any amendment which results in the change of position/ PnL/ WAC reverses and rebook the
trade and system triggers the following events:
- TCNC – to cancel the position of the current version of the trade.
- TREV – to reverse the existing trade with current reference number.
- TBOK – to book the same trade again (with modifications) and a new reference number with the revised fields.
The steps for the amendment of CUSIP/ ISIN and Firm Account
Mnemonic are as follows:
- Cancellation of position,
- System calculates the total commitment reduction applied on the trade and this impact is negated by internal amendment.
- The total PIK amount applied on the trade is identified and its impact is negated by internal amendment.
- After this, system triggers the TCNC event to cancel the position.
- Reversal of the trade,
- System triggers the TREV event to reverse the trade with the old reference number.
- Rebook of the trade,
- System triggers the TBOK event to reverse the trade with the old reference number. The new trade is created with the amended fields.
- The commitment reduction amount and the PIK amount previously the applied on the trade is re-applied on the new trade by internal amendment.
Note:
- You can change multiple fields as part of one amendment.
- Trade amendment is not allowed on the reversed trade after trade settlement.
The following fields are sent as the trade settlement acknowledgement message to Loans QT
as a tilde (~) separated list:
| Field | Desscription |
|---|---|
| TransType | Default value SETTLEMENT |
| TransID | LQT Transaction ID |
| TransActionCode | Default value ORIG |
| OrigSys | Default value Oracle Banking Corporate Lending |
| DestSys | Default value LQT |
| Ticket | LQT Ticket ID |
| SettledDate | Actual settlement Date |
| UserID | User ID who settled the trade |
| UserSettledTimeStamp | Actual settlement Date & Timestamp |
| FlexSettledFlag | Default value P |
| TradeID | LQT Trade ID |
| CUSIP | Internal CUSIP |
| FundMnemonic | LQT Counterparty mnemonic |
This topic contains following sub-topics: