5.3.1 DCF Flat Unrealized Liquidation

DCF flat realized components are settled during trade/ticket settlement to settle the trade portion of interest / fee payment amount. If interest / fee payment is processed in LB module after the trade is settled then the corresponding payment amount can be settled from the screen DCF Flat Unrealized Liquidation.

To capture details of DCF flat unrealized liquidation screen

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

1. On the homepage, type TLDDCFLQ and click next arrow.
   The DCF Flat Unrealized Liquidation screen is displayed.

   Note:

   The fields which are marked in asterisk red are mandatory fields.

   Figure 5-11 DCF Flat Unrealized Liquidation

   
   

   
   Description of "Figure 5-11 DCF Flat Unrealized Liquidation"

   
   
2. You can perform payment for the trade counterparty under tranche reference number for cash fee payment and under drawdown reference number for cash interest payment.
3. You can enter the following details in DCF Flat Unrealized Liquidation screen. For information on fields, refer to the field description table.

   Table 5-10 DCF Flat Unrealized Liquidation

   Field	Description
   Agency Ref No	Specify the drawdown or Tranche reference number from the adjacent list of values.
   Payment Date	Specify the payment value date.
   Counterparty	Select the counterparty from the adjacent list of values.
   SSI Mnemonic	Select the SSI from the adjacent list of values.

   On click of Populate button, the system generates the Liquidation reference number which is unique for the combination of contract reference number (drawdown/tranche reference) and counterparty. The system defaults the same liquidation reference number if payment is performed multiple times for the same combination of agency reference number and counterparty. The system displays all the settled trades for the combination of Drawdown/ Tranche CUSIP and trade counterparty.

   Component(s) gets defaulted with outstanding interest / fee accrued (amount due) in the Component Details section.

   You can choose the components for which the payment to be processed by selecting the check box against each component. It is not mandatory to settle all the components together but at least one component should be selected for payment. By default, the check box are not selected while populating the components.

   You can specify the amount paid for each component which should be lesser than or equal to amount due. Amount paid can be zero for the components which are not selected for the liquidation. Liquidation of DCF flat unrealized components can be partial or full.

   Click Sum button to sum up the amount paid across all the components and currency and populate the total amount payable.

   Payment message gets generated under liquidation reference number for the total amount payable (if bank have to pay to the counterparty). To compute total amount payable, paid amount is considered positive for sell trade and negative for buy trade. If total amount payable is negative then bank receives the payment else bank pays the amount to counterparty.

   During DCF flat unrealized liquidation for drawdowns, If trade currency is different than the drawdown currency then accounting entries for trade are posted by appending currency with amount tag (only in case of foreign currency Drawdowns).

   Settlement pick is based on counterparty and currency combination and the settlement instructions are used to post accounting entries for trade reference number.

   You can suppress the advice in Advice Details sub-screen that is launched on click of Advice button.

   Deletion of DCF flat liquidation deletes the DCLQ event and accounting entries for the trade reference number.