4.4 Automatic Rollover of a Contract
This topic describes the automatic rollover feature of a contract and validation of automatic rollover.
All contracts that have been specified for automatic rollover will be rolled over when you run the Automatic Rollover process. The auto rollover process is invoked when you run the auto liquidation process.
The validations
When you run the auto rollover process at the Beginning of Day, a contract will be rolled over if:
- It is marked for auto rollover
- It is authorized
- The Value Date of the contract is less than or equal to the current system date.
In case a holiday precedes the next working day, those contracts that mature on the holiday (and marked for rollover) will also be rolled over. That is, when you run this function, all contracts with a Value Date between today and the next working day will be rolled over.
Since the new contract (after rollover) is initiated automatically, it will be authorized automatically. The Maker and Authorizer fields of the new contract displays the SYSTEM. The original and rolled over details is maintained as different versions of the same contract.
The restrictions that you specify for the product will apply to all rolled over contracts linked to it. Also, the settlement instructions that you entered for the original contract will apply to the rolled over contract. This means that the accounting entries that are generated is passed to the accounts that you specified for the original contract.