6.3 Process ET Deal
This topic describes the processing of ET deal, long and short deals.
Using the ETD module of Oracle Banking Treasury Management, you can process the following deal types:
- Liquidation Deals
- Long and Short Deals
These are value dated today, or back value dated deals.
Each deal that you enter in Oracle Banking Treasury Management should necessarily be associated with a deal product.
You have already defined deal products to group together or categorize deals that share broad similarities. Deal products provide a general framework and serve to classify or categorize deals.
Under each Product that you have defined, you can enter specific deals based on your requirements. By default, a deal inherits all the attributes of the product, which is associated with it.
A deal would require information on the following:
- ET instrument involved in the deal
- Series, which is being traded
- Number of contracts that are traded
- Deal Type being processed (whether it is a buy/sell or liquidation type of deal)
- Option Premium or the price at which an option is bought or sold, excluding any commissions, trading fees, and applicable levies. The option premium is expressed in index points per contract. While capturing future deals, you will have to indicate the Future Price.
- Value Date of the money settlement
- Portfolio involved in the deal – whether it is a customer or bank portfolio
- Broker involved in the deal
- Details of the broker account involved in the deal
In the ETD module you have to process Long and Short and Liquidation deals using two separate screens. They are:
- Long Short deal input screen
- Liquidation deal input screen
Moreover, these deals are directly captured in Oracle Banking Treasury Management or uploaded from an external system. You can nevertheless amend an uploaded deal in Oracle Banking Treasury Management. In case of uploaded deals, users other than the maker also can unlock an unauthorized deal and modify the details of the record.
For deal matching purposes of your bank’s own portfolios, you can use the ET Deal Matching screen.
These details, and several others, required to process the two types of ET deals in Oracle Banking Treasury Management are discussed in the course of this chapter.
This topic has the following sub-topics: