2.1.3 Maintain Limit Tracking (Other Exposure) Details

Limits tracking is done only for Purchased options. Limits are always tracked at the contract level for the sum of the Current Value of the option, Interest exposure, and exposure due to the FX movement.

On Inception of the contract, you can specify the Line, the Master Agreement Code, the marked-to-market value of the option, exposure to be tracked due to interest rate fluctuation, and exchange rate movements. After the booking of the contract, you can specify the various exposures through the Options Other Exposure Maintenance screen.

1. On Home page, type OTDXLMVL in the text box, and then click next arrow.
   The Options Other Exposures Maintenance screen is displayed.

   Figure 2-3 Options Other Exposures Maintenance

   
   Description of "Figure 2-3 Options Other Exposures Maintenance"
2. On the Options Other Exposures Maintenance screen, click New.
3. On the Options Other Exposures Maintenance screen, specify the fields, and then click Enter Query.

   For more information on the fields, refer to the below Field Description table.

   Table 2-3 Options Other Exposures Maintenance - Field Description

   Field	Description
   Contract Reference Number	The system displays the reference number of the contract.
   Limit Type	Specify the limit type.
   Transaction Date	Specify the date on which the transaction is processed.
   Current Value	Current value represents the mark-to-market value of the contract. This value changes as and when the contract is revalued.
   Interest Exposure	Specify the exposure to fluctuation in interest rates.
   User Reference Number	The system displays the user reference number, based on the contract reference number.
   FX Exposure	Specify the exposure to fluctuations in exchange rates only when foreign currency is involved. You can identify the contract for which you would like to record the Interest and FX exposures by selecting the Reference Number of the contract. The Transaction Date is defaulted to the application date you will not be allowed to change it. If a contract is amended and the limit line is changed in the Contract Online screen, utilization is deleted for the previous line, and the latest utilization is recorded for the new line.