6.2.4 Process a CLS deal

For CLS eligible deals, where the ‘Exclude From CLS’ option is not selected, the system will perform the following as part of deal processing:

• The SGEN event (Settlement Message Generation) will be suppressed for CLS eligible deals. The Payment and Receive messages, the Debit and Credit advices will also be suppressed.
• The CLS deals will not form part of the ‘Netting Agreement’ and hence will be excluded from the FX netting process, both auto and manual.
• The accounting entries will be posted to the Control Accounts at the individual deal level.
• When you save the contract, the system will check whether the Settlement Accounts are ‘CLS Control Accounts’ (the Pay/Receive accounts maintained for the module ‘FS’).
• Settlement instructions with module ‘FS’ will be picked up selectively for the amount tags ‘SETBOTAMT’ (Bought Settlement Amount) and ‘SETSOLDAMT’ (Sold Settlement Amount).
• During amendment, if a CLS deal becomes a non-CLS deal, the system will display an error message. Amendment of CLS deals will be allowed only if the CLS Status is ‘Matched’ or ‘Un-matched’.
• In the case of New, Amend and Reverse operations, the CLS Status will be updated as ‘Un-matched’.

Note:

The system liquidates both matched and unmatched CLS deals on the value date.

This topic has the following sub-topic:

• Process uploaded deals