5.1 Cash-Margin Netting Initiation

This topic describes the cash-margin netting initiation process to initiate a new transaction, query and view details of an existing transaction, modifying an existing transaction, discard, reverse, and print transactions.

Net settlement of Cash components can be initiated by performing pre-netting for all transactions linked to an Agreement or Portfolio, using ‘Cash-Margin Netting Initiation’ function.

All uninitiated cash margin transfers and unsettled deal cashflows of the contracts linked to the same Agreement or Portfolio are eligible for pre-netting can be netted based on the applicable preferences configured for the respective Agreement or Portfolio. Pre-netting operations can be initiated for,

• Initial Margin to be provided for the net margin required for all the deals with the Initial Margin accounts linked to the selected scheme
• Variation Margin to be provided for the net profit loss to be settled from all the deals with the Variation Margin accounts linked to the selected scheme
• Deal cashflows to be settled for the net amount of the Cash components for all the deals linked to the selected scheme

The details that can be captured for Cash-Margin Netting Initiation include,

• Party, Settlement Scheme, Currency, Module and Agreement or Portfolio for which pre-netting would be initiated
• Type of operation as pre-netting for Deal cashflows, Initial or Variation Margin
• Margin Type and Margin Account for cash margin transfer
• Component type and Due date for deal cashflows
• Settlement Amount to be net settled
• User Defined Fields configured for cash-margin netting initiation process

User can view the details for,

• List of deals, linked to the Agreement or Portfolio selected, that are available for pre-netting for the selected operation
• Events triggered for the pre-netting transaction along with accounting entries posted and advice(s) generated for each event

Cash-Margin pre-netting transactions can be initiated only for the branch to which user has access.

This topic contians the following sub-topics:

• Process to initiate a new transaction
  
• Process to query and view the details of an existing transaction
  
• Modifying an existing transaction
  
• Discard, reverse and print transactions
  
• Cash-Margin Netting Initiation Process screen
  
• Pre-Netting for Initial Margin
  
• Pre-Netting for Variation Margin
  
• Pre-Netting for Deal Cashflows
  
• Events
  
• Fields
  
• Authorization
  
• Cash-Margin Netting Initiation Summary