2.8.7 Collateral – Eligible Securities

User can define the preferences for securities eligible to be provided as collateral for each margin code defined for the agreement.

These preferences need to be defined only if “Securities” collateral is allowed for the selected margin code.

• Can define multiple combinations of criteria to identify the securities that can be provided as collateral for the selected margin code by clicking ‘+’ button
• A combination defined earlier cannot be removed after subsequent authorization. However, can be omitted by unchecking ‘Approved’ field for that record.

Click the Securities button at the bottom of the Collateral tab in the Treasury Master Agreement Maintenance screen to open this screen.

Figure 2-25 Eligible Securities

Description of "Figure 2-25 Eligible Securities "

The following table describes the fields captured for collateral eligible securities for the agreement.

* indicates mandatory fields.

Table 2-14 Treasury Master Agreement Maintenance – Eligible Securities

Field	Description
Agreement Code	Displays the code of the Agreement selected.
Margin Type	Displays the margin type of the Margin code selected.
Margin Code	Displays the Margin code selected.
Security Type	Select the Type of the Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that all types of securities can be provided as collateral If specific type is selected, all securities of the selected type is considered as eligible for transferring as collateral
Security Group	Select the Group of the Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that all groups of securities can be provided as collateral If specific group is selected, all securities classified to belong to the selected group is considered as eligible for transferring as collateral
Instrument Product	Select the Product of the Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that all securities defined with any instrument product but belonging to the selected type, group, issuer, rating, and currency can be provided as collateral If specific product is selected, all securities defined with the selected product is considered as eligible for transferring as collateral
Issuer Code	Select the Issuer of the Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that all securities issued by any issuer but belonging to the selected type, group, product, rating, and currency can be provided as collateral If specific issuer is selected, all securities issued by the selected issuer is considered as eligible for transferring as collateral
Quality Rating	Select the Rating of the Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that all securities with any rating but belonging to the selected type, group, product, issuer, and currency can be provided as collateral If specific rating is selected, all securities having a rating above the selected rating is considered as eligible for transferring as collateral
Security Currency	Select the Currency of the Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that all securities issued with any currency but belonging to the selected type, group, product, issuer, and rating can be provided as collateral If specific currency is selected, all securities issued with the selected currency is considered as eligible for transferring as collateral
Security Id	Select specific Security instrument that can be provided as collateral, for this margin code. If not specified, ‘ALL’ is set by default indicating that any security belonging to the selected type, group, product, issuer, rating, and currency can be provided as collateral
Security Description	Displays description of the specific security instrument selected. Displays ‘ALL’, if ‘ALL’ is selected for Security Id
Haircut %	Enter the Haircut applicable for the selected security or securities belonging to the criteria selected, for this margin code. This is the % of the total value of the security transferred, that can be considered for the purposes of calculating the value of collateral transferred Can be >= 0 and < 100 Collateral Value (of the security) = Total Value * (100-Haircut%)/100 Total Value (of the security) = Market Value + Accrued Interest (if applicable) If not specified, is set to ‘0’ by default indicating that Total Value of the security is considered as Collateral Value
Concentration %	Enter the Concentration applicable for the selected security or securities belonging to the criteria selected, for this margin code. This is the maximum limit as % of the total collateral value, that can be contributed by each distinct security provided as collateral Can be > 0 and <= 100 Maximum Collateral Value (of the security) = Total Collateral Required * Concentration% / 100 If not specified, is set to ‘100’ by default indicating that only one security can be provided for 100% of the total collateral value
Approved	Indicate whether the selected security or securities belonging to the criteria selected are eligible to be provided as collateral, for this margin code. If checked, then eligible to be provided as collateral If unchecked, then not eligible to be provided as collateral any more Any securities, belonging to the selected criteria, that are already transferred as collateral would not be automatically returned by the system and should be operationally handled