3.2.5 Collateral Eligible Securities for the Contract

User can define the preferences for the securities that can be provided as collateral for the contract.

• Applicable only if collateral required is checked, collateral party is selected, collateral agreement is not used, and securities collateral is allowed for the contract
• If specific preferences were not defined, all securities are assumed to be eligible to be provided as collateral for this contract

Click the Eligible Securities button at the bottom of the Collateral-Netting screen to open this screen.

Figure 3-5 Collateral Eligible Securities

Description of "Figure 3-5 Collateral Eligible Securities"

The following table describes the fields captured for Collateral eligible securities for a Contract.

* Indicates mandatory fields.

Table 3-7 Collateral Eligible Securities

Field	Description
Contract Reference	Displays Reference number of the Contract for which the Collateral-Netting preferences are being captured.
Contract Currency	Displays the booking currency of the Contract.
Security Type	Select the Type of the Security instrument that can be provided as collateral. Can select ‘ALL’ if all types of securities can be provided as collateral.
Security Group	Select the Group of the Security instrument that can be provided as collateral. Can select ‘ALL’ if all groups of securities can be provided as collateral. If a specific group is selected, all securities classified to belong to the selected group are considered eligible for transfer as collateral.
Instrument Product	Select the Product of the Security instrument that can be provided as collateral. Can select ‘ALL’ if securities defined with any instrument product can be provided as collateral. If a specific product is selected, all securities defined with the selected product are considered eligible for transfer as collateral.
Issuer Code	Select the Issuer of the Security instrument that can be provided as collateral. Can select ‘ALL’ if all securities issued by any issuer can be provided as collateral. If a specific issuer is selected, all securities issued by that issuer are considered eligible for transfer as collateral.
Quality Rating	Select the Rating of the Security instrument that can be provided as collateral. Can select ‘ALL’ if all securities with any rating can be provided as collateral. If specific rating is selected, all securities having a rating above the selected rating are considered eligible for transfer as collateral
Security Currency	Select the Currency of the Security instrument that can be provided as collateral. Can select ‘ALL’ if all securities issued with any currency can be provided as collateral. If a specific currency is chosen, all securities issued in that currency are considered transferable as collateral.
Security Id	Select specific Security instrument that can be provided as collateral. Can select ‘ALL’, if any security belonging to the selected type, group, product, issuer, rating, and currency can be provided as collateral
Security Description	Displays description of the Security if selected.
Haircut%	Enter the Haircut applicable for the selected security or securities belonging to the criteria selected. Applicable only if “Approved” flag is checked Can be >= 0 and < 100 Collateral Value = Total Amount * (100-Haircut%)/100 Total Amount = Market Value + Accrued Interest (if applicable)
Concentration%	Enter the Concentration applicable for the selected security or securities belonging to the criteria selected. Applicable only if “Approved” flag is checked Can be > 0 and <= 100 Maximum Collateral Value (of the security) = Total Collateral Required * Concentration% / 100
Approved	Indicate whether the selected security or securities belonging to the criteria selected are eligible to be provided as collateral If checked, then eligible to be provided as collateral If unchecked, then not eligible to be provided as collateral