5 Process a Derivatives Contract

Capture the details of the contract through the Contract Input Details screen. Before we proceed to discuss the details of the Derivatives Contract Input screen, briefly recall the work flow in the Derivatives module.

Maintain the basic information that is necessary for the successful functioning of the module. This information includes the maintenance of:

• Derivative Types
• Bank and Branch Parameter details
• Revaluation details
• Messaging party details
• Counterparty details
• Interest, Tax and Charge class details

The next step in the process is the creation of products for the derivatives module. Products help you group or categorize contracts, which share broad similarities. Associate a derivative type with each of the products that you create. Thus the product inherits all the attributes of the type. Subsequently associate the various interest, charge and tax classes with the product.

Under each product that you define, you can enter specific contracts for this module. By default, a contract inherits the attributes of the product to which it is associated. This means that you do not have to define the attributes that default from the product every time you input a contract involving the product. It is possible to change some of the attributes to suit the product you are defining.

This topic contains the following sub-topics:

• Maintain the Derivative Contract Input Screen
  This topic describes the systematic procedure to maintain the derivative contract input screen.
• Saving the Details of a Contract
  This topic explains the concept of saving the contracts details using Save from the Actions menu in the Application tool-bar or by clicking the save icon.
• Inflation Swap Processing
  An inflation swap is a contract used to transfer inflation risk from one party to another through an exchange of fixed cash flows.
• Processing Amendment on Derivatives Contract Details Screen
  This topic describes the amendment processing using the Derivatives Contract Details screen.
• View Derivative Contract Details
  This topic describes the systematic instruction to process derivative contract details.
• Contract Upload
  This topic explains how to upload a contract, amendment fee processing, and upload derivative rate.
• Schedule Confirmation
  This topic describes the schedule confirmation, confirm interest and principal schedules, and confirm a schedule.
• Reassign contract to another user
  This topic describes the systematic instruction to reassign topics to another user.
• ISDA Confirmation
  This topic describes the details to capture the confirmation check for derivative deal events.
• Rate Fixing
  This topic describes the rate fixing, Treasury branch parameter maintenance, Treasury rate fixing maintenance, Derivative product definition, Transaction input, Rate fixing process, Manual principal reset processing on CCS deals, Manual principal reset summary, Manual principal reset processing from UI, Manual principal reset processing on CCS deals, and CCS principal reset EOD processing.
• Manual Liquidation
  A new screen is introduced to enable Online manual liquidation on Derivative type of contracts. The contracts that are due on the scheduled date or after the scheduled date can be manually liquidated through this manual liquidation screen.
• SGEN Messages Generation
  This topic describes the SGEN message generation feature.