3.11 Initiate a Future Value Dated Deal

This topic describes how to initiate a future value dated deal manually.

A “future-dated” deal is one that has a Value Date that is later than the date on which it is booked. The Automatic Contract Update function will initiate the deal on the Value Date of the deal.

A future Value Date falling on a holiday is initiated either on the previous working day or the next, depending on your definition for automatic processing at your branch.

All the initiation related entries specified for the product involved in the deal is passed automatically. If currency conversions are involved, the conversion rates as of the date on which the deal is initiated is picked up from the Currency Table. To recall, the rates that are applicable to a deal are defined for the product involved in the deal.

If there is a rate revision applicable for the future dated deal on the day it is initiated (that is, on the future Value Date), the rate revision will also be applied on the deal. This rate revision could either be due to a Floating Rate change or a Value Dated Change.

Initiate Future Dated MM deals Manually

In a situation where the Initiation event for an MM deal has not been triggered during the BOD processes, you can choose to trigger it manually using the Reopen option in the Toolbar or from the Actions Menu. A typical instance when the system does not trigger the initiation event is due to insufficient funds.

You can manually trigger the Initiation event for all uninitiated MM deals with value date less than or equal to the system date.

Note:

If your user profile has been granted the Auto-Auth privilege, such a deal gets authorized automatically after initiation. Otherwise, it has to be authorized by a different user from the MM contract online screen.