5.6.1 NDF Fixing Deal

An NDF fixing deal will be booked against an authorized unfixed NDF Forward contract. The NDF Related reference number is selected from the option list of all unfixed authorized NDF Forward contract. The product for the NDF Fixing Contract is Spot type of product with the NDF indicator set to ‘True’.

When NDF Forward Contract is selected, the following fields are defaulted for an NDF Fixing Contract:

• The Buy and Sell indicators of the NDF Forward Contract is interchanged in the NDF Fixing Contract and it cannot be modified.
• The bought and sold currency of the NDF Forward Contract is interchanged in the NDF Fixing Contract and it cannot be modified.
• The Value date is defaulted and it is same for both the currency.
• The Counter Party is same customer from the NDF Forward Contract.
• The Amount in the NDF currency is same in both the deals.
• The settlement accounts in the Fixing deal are defaulted from those of the original NDF deal.
• The amount in the settlement currency for the NDF Fixing Contract cannot be same as the amount of the NDF Forward Contract.

The following are the processing steps for an NDF Fixing Contract:

• The booking of the NDF Fixing Contract will process the FIXG event of the NDF Forward Contract which creates an unauthorized version of NDF Forward Contract.
• Authorization of the NDF Fixing Contract will authorize the unauthorized version of NDF Forward Contract.
• Deletion (Include version delete)
• Amendment
• Reverse

The following are the operations carried out for an NDF Fixing Contract:

• The Save operation executes the unauthorized FIXG event of the NDF Forward Contract.
• The Authorization operation will change the authorize status of an unauthorized FIXG/UFIX event of the NDF Forward contract to authorize status and generates advice associated to FIXG/UFIX.
• The Liquidation event for the NDF Fixing Contract does not have accounting entries. It only marks the contract as liquidated.
• While Amending, if LIQD/ SGEN have been fired for NDF Forward contract then the NDF Fixing Contract cannot be amended. Otherwise it executes another version of FIXG event for NDF Forward Contract with new settlement amount and the fixing status as fixed.
• While Deleting the NDF Fixing Contract, it deletes unauthorized FIXG event for the NDF Forward Contract.
• While Reversing the NDF Fixing Contract, an unauthorized UFIX event is executed for the NDF Forward Contract.
• The NDF Fixing Contract cannot be copied.

Table 5-10 Operations and actions undertaken for the NDF Forward Contract

NDF Forward Contract	NDF Fixing Contract	Action
-	Book	-
BOOK + Authorized	-	Move this text to the below cell adjoining 'Book'
Amendment	-	Not Allowed
Reverse	-	Not Allowed
Liquidation	-	Not Allowed
SGEN	-	Not Allowed
-	Authorization	Authorize the unauthorized event (FIXG, UFIX) of the NDF Forward contract.
SGEN	-	After the Settlement days of the NDF Forward contract SGEN will be executed.
Liquidation	-	If Fixing has been done, the SGEN is executed and maturity date is reached, then LIQD executed.
-	Amendment	If LIQD or SGEN for the NDF Forward Contract is fired then NDF Fixing Contract cannot be amended. Else, Execute unauthorized version of FIXG event with the new settlement amount.
-	Delete	Delete the unauthorized FIXG version of NDF Forward Contract related to the Fixing Contract.
-	Reverse	Execute the UFIX for the NDF Forward Contract and rollback all changes for the NDF Forward Contract. IF LIQD has been executed for the NDF Forward Contract then reverse all the entries and make NDF Forward contract active again, but only in unfixed status.
Amendment	-	Allowed
Reverse	-	Allowed
Deletion	-	Allowed