14.9 Impact of Markit Trades on Tranches and Drawdowns in LB

Since the Position Update message is sent to Markit before the Participant Transfer is actually processed in LB Tranche, there is an impact on processing of events in the LB module. When the actual Participant Transfer is triggered in LB tranche as a result of message from Markit, the generation of Position Update message is suppressed during participant transfer.

For the tranches for which Markit messages have been received for trade processing and the Position Update message has been handed off to Markit, system does not allow processing of any events which could send FpML messages to Markit (based on the product event advice setup) till the actual Participant Transfer is done on the tranche. The following table lists the screens where this validation is done and processing is blocked.

Sl. No	Screen Name	Blocking events
1	Borrower Tranche Input	To block Reversal
2	Messaging Processes- FpML Adhoc Message	To block the generation of position update message for the external CUSIP/ISIN
3	Borrower Drawdown Input	To block new Drawdown booking /Reversal
4	Fee Liquidation	To Block new FLIQ
5	Fee Amendment	To Block FAMD
6	Fee Rule Maintenance	To block Fee rule maintenance
7	Interest Rate Fixing	To block IRAM(Interest Rate Amendment)
8	Participant Transfer	To block Any new participant Transfer
9	Value Dated Amendment	To block any amendment and also reversal
10	Repricing	To block new Repricing for a contract
11	Draft Transfer	To block any new participant transfer for the contract
12	Manual Payment	To block new payment and payment reversal
13	Consol Rollver Input	To block rollover for a contract
14	Trade Settlement	To block any settlement which will change the participant ratio for the corresponding external CUSIP
15	Ticket Settlement	To block any settlement which will change the participant ratio for the corresponding external CUSIP

In scenarios, where there is a necessity to process a particular event on a tranche or on its underlying Drawdowns and the actual automatic participant transfer (assignment) is still pending processing, the processing of Participant Transfer can be done manually from the Pending Trade Processing Queue for the tranche.