2.8 Master Agreement

This topic describes the master agreement process such as master agreement maintenance, collateral preferences, and view the summary details of master agreement.

Master Agreements can be defined with default preferences for Collateral Margining and Settlement Netting using ‘Treasury Master Agreement Maintenance’ function. These preferences defined for a master agreement is applied by default on all transactions linked to the same agreement.

The advantage of defining a master agreement is that it allows to create a broad framework for margining and netting for all transactions with a counter party.

The details that can be captured for Master Agreements include,

• A unique code and a brief description for the Product
• Basic details about the agreement party, type of the agreement and purposes for which the agreement can be used, etc.
• Details about the linked sub agreements, document type and version used, validity, exchange rate to be used, etc.
• Configuring margin codes for different margin types applicable for the agreement with specific preferences for collateral types allowed, calculation, settlement, securities eligible, etc. for each margin code
• Specific preferences for settlement netting purposes

Master Agreement can be defined at the HO branch as well as specific to any branch.

• All the modifications to the master agreement is logged for audit trail purposes
• Auto authorization can be enabled for this function

This topic contains the following sub-topics:

• Master Agreement Maintenance screen
  
• Treasury Master Agreement Maintenance - Main
  
• Agreement Details
  
• Collateral Preferences
  
• Collateral – Calculation Preferences
  
• Collateral – Settlement Preferences
  
• Collateral – Eligible Securities
  
• Netting Preferences
  
• Fields
  
• Treasury Master Agreement Summary
  
• Treasury Master Agreement Summary screen