5.2 Limit Tracking Options

This topic describes the limit tracking options.

The limits tracking options are defaulted from the limits netting agreement maintenance applicable for the counterparty. You can modify the limits tracking options during FX contract input.

The process for defaulting from the limits netting agreement is as follows:

• The system checks if the limit netting agreement exists for the counterparty of FX contract. If the agreement exists, then the risk tracking options default to the contract from limits netting agreement.
• If the limit netting agreement does not exist for the counterparty, then the system checks if the counterparty is part of FX netting group customer from Treasury Customer Additional Details Maintenance.
• If the netting group customer is not maintained for the counterparty then all the risk tracking options are unchecked at contract level.
• If the netting group customer exists, then the system checks if the limit netting agreement exists for the netting group customer. If the agreement exists, then all the risk tracking options default to FX contract from limits netting agreement.
• If the limit netting agreement does not exist for the netting group customer, then all the risk tracking options are unchecked at the contract level.
• The pre-settlement risk tracking option is unchecked at the contract level even though the line maintained in agreement and revaluation is ‘No’ at the product level. The same cannot change during amendment or any other event.

During copy operation, the limits tracking options default from limits netting agreement and not copied from the contract.

These will be defaulted from limits netting agreement.

During limits processing, the credit lines and limits netting type will be picked from the limits netting agreement