6.8.3 Viewing the Funding Memo Reconciliation Details

You can view the funding memo details of Markit and Oracle Banking Corporate Lending for manual reconciliation using the Automated Settlement Queue screen.

Specify the User ID and Password, and login to Homepage.

From the Homepage, navigate to Automated Settlement Queue screen.

To capture details of funding memo reconciliation

1. In the Automated Settlement Queue screen, click Fmemo Reconciliation tab.
   The Fmemo Reconciliation details are displayed.

   Figure 6-22 Fmemo Reconciliation

   
   Description of "Figure 6-22 Fmemo Reconciliation"
2. You can view the following details in Fmemo Reconciliation screen.

   Table 6-6 Fmemo Reconciliation

   Field	Description
   Tranche Amount Details	All the borrower currencies applicable for the tranche are displayed.
   Fee Amount Details	Both the Markit and Oracle Banking Corporate Lending values currency wise for the fee components are displayed in this section.

   Trade reference number is the primary field under which the following details are provided:

   Table 6-7 Markit Details

   Oracle Banking Corporate Lending	Markit
   Commitment reduction amount	The difference between TradedCommitmentAmount and RevisedCommitmentAmount under MultiFacilitySettlementDetails--> facilitySettlementDetails. This is trade portion of commitment reduction amount.
   Buyer’s share of Funded amount for each drawdown	Traded portion of the funded amount sent from Markit in contract -> participationAmount -> shareAmount.
   DCF amount for each drawdown	As summarized in DCF reconciliation table

   The following DCF reconciliation table given below provides the details of the various Fee Categories associated with Delayed Compensation Fee and the resolution process in Oracle Banking Corporate Lending for each category:

   Table 6-8 DCF Reconciliation

   DCF Computation	Category	Description	Settlement	OBCL resolution from Markit message
   DCF Computation on interest type category	Margin Rate for Fixed type Drawdowns	Margin Rate is applied on the Drawdown(amt) which has Fixed interest.	Seller to Buyer	The expected business process is that there is always be one funded DCF category for each drawdown. So Markit match can be done one to one, based on the Contract Id and Oracle Banking Corporate Lending Drawdown Ref match.
   	All-in-rate interest for Fixed type Drawdowns	All-in-Rate is applied on the Drawdown(amt) which has Fixed interest.	Seller to Buyer	The expected business process is that there is always be one funded DCF category for each drawdown. So Markit match can be done one to one, based on the Contract Id and Oracle Banking Corporate Lending Drawdown Ref match.
   	All-in-rate interest for Floating type Drawdowns	All-in-Rate is applied on the Drawdown(amt) which has floating interest.	Seller to Buyer	The expected business process is that there is always be one funded DCF category for each drawdown. So Markit match can be done one to one, based on the Contract Id and Oracle Banking Corporate Lending Drawdown Ref match. The expected business process is that there is always be one funded DCF category for each drawdown. So Markit match can be done one to one, based on the Contract Id and Oracle Banking Corporate Lending Drawdown Ref match.
   	DCF Cost of Funds for Floating type Drawdowns	Average Libor Rate is applied on the Drawdown which has floating interest.	Buyer to Seller	The expected business process is that there is always be one funded DCF category for each drawdown. So Markit match can be done one to one, based on the Contract Id and Oracle Banking Corporate Lending Drawdown Ref match.
   DCF Computation on both Funded/ unfunded Amount	DCF for Cost of Carry	The computation is based on Rule of 25.	-	This is not reconciled, as its applicable only for Distressed, and Markit scope is for PAR & TRS only.
   Others	Commitment Fee	Commitment Fee Rate applied on unutilized Commitment amount.	Seller to Buyer	Sum of all these four fees for the tranche is compared with the DCF fee amount received for the contractid that Oracle Banking Corporate Lending had sent in the ongoing fee msg as part of the agency messages, based on the Contract Id and Oracle Banking Corporate Lending Drawdown Ref match.
   	Utilization Fee	Utilization Fee Rate applied on Total outstanding amount.	Seller to Buyer
   	Facility Fee	Facility Fee Rate applied on the Transfer_avl(available+outstanding) balance for a tranche.	Seller to Buyer
   	Letter of Credit (LC) Fee	LC Fee Rate applied on LC outstanding.	Seller to Buyer

   Markit can send a record for a contract Id with the total DCF fees (for all the 4 fee type DCF categories and any of the Interest type DCF categories), since Oracle Banking Corporate Lending sends that contract Id in the ongoing fee notice. In this case, the amount of all the 4 fee type of DCF categories and any of the 4 interest type DCF categories are summed up and reconciled with the amount sent from Markit.

   The fee types given below are not be part of the Funding Memo Reconciliation as Markit does not send these fee details in the Settlement Details Notice message:

   Table 6-9 Fee Types

   Fee Type	LQT Sent	OBCL Computed
   Adhoc Fees	Yes	No
   Amendment Fee	Yes	No
   Assignment Fee	Yes	No
   Broker Fee	Yes	No
   Waiver Fee	Yes	No
   Break-Funding Fee	No	Yes
   Upfront Fee	No	Yes
   Benefit of Commitment Reduction Fee(BCR Fee)	No	Yes

   For a combination of payment type, payment amount currency, payer and receiver, Markit sends the settlementAmount. The settlementAmount from Markit is at a Markit Trade Id level; therefore it is the sum of settlement amounts of all underlying Tranche/CUSIP/ISIN’s of the Trade Id. Details are displayed by arriving at the sum of all the settlement amounts, excluding fee, for all underlying SLT Trades for the trade id/allocation id and displayed with Markit’s settlement amount for the Trade Id.

   The settlementAmount  paymentAmount received from Markit are displayed along with each of the currency settlement details against the Oracle Banking Corporate Lending settlement amount.

   The funding Memo reconciliation is a manual process done by the user. System only displays the funding memo details of Oracle Banking Corporate Lending and Markit in this screen.

   Markit can also send the origination trade (CLP trades) which is the PO trade (Par settling to the counterparty). System identifies the associated line trades under the CUSIP/ticket id. On manual initiation of settlement, system settles all the three trades on the settlement of the PO trade. System validations ensure that the PL/OL trades are in place and the amounts for each match, is done prior to initiating the settlement.

   The buyer’s share of funded amount for each drawdown is processed as follows:

   • Markit sends the DCF computation details including fee amount for each drawdown under a tranche.
   • Each drawdown (contract) in the message has the contract id as the reference number that was sent from Oracle Banking Corporate Lending to Markit as part of the message from the agency module.
   • Oracle Banking Corporate Lending displays the Buyer’s Share of Oracle Banking Corporate Lending and Markit funded amount under the drawdown based on this reference number.
   • Buyer’s Share in Oracle Banking Corporate Lending is equal to the buyer’s share of each drawdown multiplied by the trade price.
   • DCF Reconciliation on funded tranche amount is derived as follows:
     • Each drawdown, irrespective of the Prime or LIBOR, is associated with only one type of DCF Category.
     • Hence, the display of funded delayed compensation fee is always for each drawdown.