7.2 Specify Contract Rollover Details

This topic provides the instructions to capture the Contract Rollover Details.

By default, a contract marked for rollover is rolled over with all the terms of the original contract. However, change certain terms by specifying them in the Rollover tab of the Money Market Contract input screen.

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

   Money Market Contract Input screen is displayed.

   Figure 7-2 Money Market Contract Input - Rollover tab

   
   Description of "Figure 7-2 Money Market Contract Input - Rollover tab"
2. On the Money Market Contract Input screen, click Rollover.
3. Click Save to save the details or click Cancel to exit the screen.

   The rollover specified for the product will get defaulted to the deal. The rollover parameters are explained in detail in the section Features of the product rollover details screen.

   For information on fields, refer to the below table.

   Table 7-2 Money Market Contract Input - Field Description

   Field	Description
   Rollover Amount	When you roll over a deal, you can rollover: The outstanding principal of the deal The outstanding principal and the outstanding interest together The outstanding principal and the outstanding interest minus the tax. The outstanding principal and the additional amount The outstanding principal+ interest+ Additional amount or, An amount that is different from the total of the outstanding principal and the outstanding interest. This is a ‘special’ amount. The ‘special’ amount is: Less than the outstanding principal + interest. This is because the amount by which it is less is liquidated against the interest and principal of the old deal and the rest is rolled over. The special amount can never be more than: The outstanding principal + interest of the old deal. The outstanding principal If it is, then initiate a new deal.
   Additional Amount	This is the field mutually exclusive with the Special Amount, you can specify the amount based on the requirement.
   Treat Special Amount As	If you specified that the principal of the new money market deal is meant to be a special amount you also have to indicate the manner in which the special amount is to be treated. You can choose any one of the following options: Rollover Amount - If the outstanding amount is 20,000 and the special amount is given as 25,000, the additional 5000 will get added to the money market deal. If the outstanding amount is 30,000 and the special amount is given as 25,000, the additional 5000 will get liquidated. The Outstanding Amount is the sum of all the components put together. Liquidation Amount - If the outstanding amount is 20,000 and the special amount is given as 25,000, you will not be allowed to rollover. If the outstanding amount is 30,000 and the special amount is given as 5,000, the additional 5000 will get liquidated. Note that the individual components are liquidated in the liquidation order. Maximum Rollover Amount - If the outstanding amount is 20,000 and the special amount is given as 25,000 you can rollover the entire outstanding amount. If the outstanding amount is 30,000 and the special amount is given as 25,000 only 25,000 is rollover and the remaining 5000 is liquidated. Ignore The amount that is rolled-over will depend on the treatment that you specify. You can choose not to treat the special amount in a specific manner by choosing to ignore this option.
   Parent Reference	In the linked rollover scenario, Parent Reference Number indicates the parent deal for which the child deal is booked. While booking a new child deal, you need to specify the parent deals contract reference number or select the appropriate one from the adjoining option list. Choose a parent deal that satisfies the following conditions: Product code is the same as that of the child deal. Counterparty is the same as that of the child deal. Currency is the same as that of the child deal. Maturity Date is the same as the value date of the child deal.
   Child Reference	In the linked rollover scenario, this field is displayed when the rollover of the parent deal is triggered.
   Settlement Amount	This field displays the total settlement amount.
   Count	For a deal that has been rolled over, this field indicates the number of times it has been rolled over.
   Rollover Mechanism	This indicates whether the rolled over contract will create a new version of the existing contract, a new contract or a child contract that is linked to the parent contract. You can choose from the following options: New Version - A new version will get created in existing MM deal as part of rollover, with the same details specified in the contract ‘Rollover Details’ screen. Spawn Contract - In this mechanism, the existing contract will get liquidated and the system will book a new contract as part of rollover, with the details specified in the contract ‘Rollover Details’ screen. Booking of the new contract happen through the MMAUTDLY batch. Linked Contract - In this mechanism, a new MM deal is created manually and linked to the parent deal. On the maturity date of the parent contract, the contract will get liquidated into a rollover wash GL, and the new contract that was input will get initiated automatically. You can select ‘Linked Contract’ only in case you have checked the option ‘Auto’ for rollover mode.
   Rollover Method	If you have indicated the rollover mechanism as ‘Spawn Contract’, use this field to indicate whether a single new contract must be created for the rolled over amount, or if the original contract must be split into multiple contracts, or consolidated with other contracts into a single new contract, when rolled over using the rollover operation. Accordingly, select any of the options, ‘Normal’, ‘Split’ or ‘Consolidated’, in this field, as applicable.