3.2.2 Netting Agreement preferences

User can override some of the specific preferences for the Netting Agreement(s) at the contract level.

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

Figure 3-3 Netting Agreement preferences

Description of "Figure 3-3 Netting Agreement preferences"

The following table describes the fields captured for Netting agreement preferences for a Contract.

* Indicates mandatory fields.

Table 3-4 Netting Agreement preferences

Field	Description
Module	Displays Treasury Module of the contract.
User Reference	Displays User Reference number of the Contract for which the Collateral-Netting preferences are being captured.
Version	Displays current Version of the contract.
Deal Product	Displays the Product selected for the contract.
Deal Type	Displays the Deal Type selected for the contract.
Portfolio	Displays the Portfolio selected for the contract.
Agreement	Displays the selected Agreement.
Netting Party	Displays the contract party of the agreement.
Contract Currency	Displays the booking currency of the Contract.
Securities Netting	Group of fields to capture the contract level overrides for the preferences to be used for netting securities.
Net Securities	Select the preference for netting securities for the contract. This field cannot be amended after first authorization of the contract Defaulted to the value selected for this preference in the agreement If ‘Net’ is selected, then both securities delivered and received are netted together, across multiple transactions linked to the same agreement If ‘Aggregate’ is selected, then securities delivered are netted and securities received are netted separately, across multiple transactions linked to the same agreement If not selected (‘’), then securities for the contract are not netted
Netting Tenor	Select the preference for netting securities for the contract with other transactions linked to the same agreement, having any tenor or same tenor. Applicable only if Net Securities selected is ‘Net’ or ‘Aggregate’ Defaulted to the value selected for this preference in the agreement If ‘All’ is selected, then securities for this contract are netted with transactions having any tenor If ‘Same Tenor’ is selected, then securities for this contract are netted only with transactions having same tenor If ‘Same Deal’ is selected, then only securities for this contract are netted ‘All’ is set by default, if not specified
Netting Level	Select the preference for netting securities for the contract with other transactions linked to the same agreement, having same SK Location, Clearing House or Position/Basket. Applicable only if Net Securities selected is ‘Net’ or ‘Aggregate’ Defaulted to the value selected for this preference in the agreement If ‘SK Location’ is selected, then securities for this contract are netted with transactions settled through the same SK Location If ‘Clearing House’ is selected, then securities for this contract are netted with transactions settled through the same Clearing House If ‘Position/Basket’ is selected, then securities for this contract are netted only with transactions belonging to the same Position or Basket ‘SK Location’ is set by default, if not specified
Cash Netting	Group of fields to capture the contract level overrides for the preferences to be used for netting cash components.
Net Cash	Select the preference for netting cash components of the contract. This field cannot be amended after first authorization of the contract Defaulted to the value selected for this preference in the agreement If ‘Net’ is selected, then both cashflows paid and received are netted together, for the same component across multiple transactions linked to the same cash netting scheme If ‘Aggregate’ is selected, then cashflows paid are netted and cashflows received are netted separately, for the same component across multiple transactions linked to the same cash netting scheme If not selected (‘’), then cashflows of the contract are not netted for the components linked to the agreement
FX Netting Type	Select the preference for netting cash components of the contract with other transactions linked to the same agreement, Pair-wise or Currency-wise. Applicable only if the contract is a FX contract and Net Cash selected is ‘Net’ or ‘Aggregate’ Defaulted to the value selected for this preference in the agreement If ‘Pair-Wise’ is selected, then cash flows of this contract are netted with only those FX transactions, linked to this agreement and traded with the same currency pair If ‘Currency-Wise’ is selected, then cash flows of this contract are netted with cash flows in the same currency for other FX transactions linked to this agreement, even if they are not booked with the same currency pair For transactions belonging to other modules. ‘Currency-Wise’ is set by default and cannot be changed
Cash Netting Schemes	Select the list of settlement schemes to be used for netting cash components of this contract. Defaulted from the agreement for the currencies and component types of the cashflows of this contract Schemes can be defined for different cash component types and currencies At least one default scheme should be defined separately with the criteria selected as ‘ALL’
Settlement Currency	Select the currency of the cash flow component(s) of the contract to be netted. This field cannot be amended after first authorization of the contract Can be defined for each cashflow currency individually If not specified, ‘ALL’ is set by default indicating that all cash components are netted together, irrespective of the currency and settled through the same netting scheme in the scheme currency
Component Type	Select the type of the cash flow component of the contract to be netted. If not specified, ‘ALL’ is set by default indicating that all types of components are netted together
Component	Select the cash flow component of the contract to be netted. If not specified, ‘ALL’ is set by default indicating that all cashflow components are netted together
Settlement Scheme	Select the scheme through which the selected cash component(s) in the selected settlement currency, are net settled. All cashflows across contracts linked to the same settlement scheme are netted together, based on Net Cash, Netting Tenor and FX Netting Type preferences
Scheme Description	Displays the description of the Settlement scheme.
Scheme Currency	Displays the currency of the settlement scheme, in which the settlement happens. If the Scheme Currency is different from the Settlement Currency, then the component amount to be settled is converted into Scheme Currency equivalent, using the prevailing FX rates, as configured for the Settlement Scheme

Click the Default button to populate the Cash Netting Schemes in the selected agreement for the currencies and component types of the cashflows of this contract.