Maintain Netting Details

On the Home page, type FXDNETMA in the text box, and click next arrow.

The Foreign Exchange Netting Agreement Maintenance screen is displayed.

Figure 2-9 Foreign Exchange Netting Agreement Maintenance

Description of "Figure 2-9 Foreign Exchange Netting Agreement Maintenance "

On the Foreign Exchange Netting Agreement Maintenance screen, click New.

On the Foreign Exchange Netting Agreement Maintenance - New, specify the fields as per the requirement.

Click Save to save the details or click Cancel.

For information on the fields, refer to the below table.

Table 2-8 Foreign Exchange Netting Agreement Maintenance - Field Description

Field	Description
Customer Number	You must indicate the customer for whom you are maintaining netting details. The adjoining option list displays a list of all the customers maintained in the system. You can choose the appropriate one. When you choose to net contracts at the beginning of the day, all contracts specified for netting is netted for every customer for whom you have maintained netting details.
Netting Type	Contracts involving a customer is netted in two ways: Pair- wise Netting - The FX contracts entered involve ‘currency pairs’. For example, a deal where buying USD 10,000 against EUR15,000 consists of a currency pair. When the user chooses to net the contracts pair-wise the system selects specific contracts that are for Pair-wise Netting counterparty wise. Contracts that have the same currency pair, irrespective of whether they are bought or sold, is netted. Only those contracts that: Have not already been netted, Do not belong to the status both bought and sold netted will be netted. Currency- wise Netting - When the Netting Process is initiated, the system selects all contracts that have been specified for Currency-wise Netting counterparty wise. The value date of the bought currency leg and that of the sold currency leg are considered individually to arrive at the netting date. The currency-wise netting contract can have one of the following status: Not Netted (status before netting). Bought Netted (sold not netted - in case of currency-wise netting where the bought leg is netted before the sold leg in case the value date of the bought currency is before that of the sold ccy). Sold Netted (bought not netted - in case of currency-wise netting where the sold leg is netted before the bought leg in case the value date of the sold leg is before that of the bought leg). Both Bought and Sold leg netted. When the netting process is run, only contracts that have not already been netted will be netted. That is, only those contracts that do not belong to the status “both bought and sold netted” will be netted. The bought and the sold legs (bought currency and sold currency) of the contract will be netted individually. The system ensures that the leg to be netted is not already netted. At the time of contract processing, the netting type that is specific for the customer applies to all contracts involving the customer. The system does not allow changing the limit netting type during the contract booking.
Netting Mode	While specifying netting details for a customer, indicate the initiation process of netting. Choose between the following two options as the mode of netting: Automatic: This option automates the netting process; netting is done automatically for the specified customer. Manual: Choose this option to manually initiate the netting process for the customer through the Foreign Exchange Manual Netting screen (TRDMNNET).
Netting Deal Type	Select netting deal type from the drop-down list. The list displays the following values: All Deals: Consider all deals; This option is selected by default. On selecting this option, the existing netting functionality will continue. Spot: Only spot deals will be considered for netting. NDF deals are excluded. Forward: Only forward deals are considered for netting. NDF deals are excluded. NDF Deals: Only NDF deals and corresponding fixing deal will be considered for Netting. Non- NDF Deals: Non NDF i.e. spot & forward deals will be considered for Netting Split Netting: Netting is done based on the deal type, namely, Spot, Forward, and NDF separately. The External Payment System creates separate payment contracts based on these products. Net NDF/Non-NDF: Netting is done for NDF and Non-NDF (Spot and Forward) separately. The External Payment System creates separate payment contracts, both NDF and Non-NDF contracts. When NDF contracts are netted, the system considers only those contracts for which fixing deals are already booked.
Netting Date Currency	For every currency, you can maintain a list of holidays. This list is maintained in the Core Entities module. The holiday list for a currency is used to compute the netting date for contracts. The holiday list of the currency that you specify in this field will be used to compute the netting date for contracts involving the customer. In the Currency field you can invoke a list of the currencies that you have maintained in your bank. Double click on the currency that you want to indicate as the Netting Date Currency.
Netting Days	When you specify the netting details for a customer, you can also indicate the day on which the contracts involving the customer are to be netted. This day could be a certain number of working days before the settlement date of the contracts.
Netting Days Basis	You can specify whether Netting date should be based on netting days maintained for the Currency or the netting days maintained in the Netting Agreement for the customer. You have to choose between: Currency: If you opt for currency as the basis for netting days, netting days will be defaulted from the FX netting days of currency maintenance considering the specific currency and the leg being netted. Netting Agreement: If you opt to relate the netting days to the Netting Agreement, the netting date will be calculated taking into consideration, netting days maintained in the netting agreement for the customer irrespective of the leg being netted.
Standard Payment Details	You can enter the text of the payment details that you would like to generate along with the payment in this field.