5.12 SGEN Messages Generation

This topic describes the SGEN message generation feature.

The system sends SGEN messages for future dated events ‘n’ number of days before the due date where ‘n’ is the value maintained as settlement days in‘Currency Definition’ screen. In case of current or back dated deals , the message is generated online

This is applicable for IRS and FRA contracts for the following events:

• DILQ (Interest liquidation)
• FELR (Amendment fee liquidation)
• DTER (Termination loss/Termination Gain)

This is applicable for CCS contracts for the following events:

• DINT (Contract Initiation)
• DILQ (Interest liquidation)
• DPLQ (Principal liquidation)
• FELR (Amendment fee liquidation)
• DAMN (Principal amendment)
• DTER (Termination loss/Termination Gain)

In the case of future-dated events of the contracts, SGEN messages are required to be sent before the value date or payment date. For such contracts, the system generates the settlement message after taking into account both currency holidays and local holidays maintained. It generates the SWIFT messages in the BOD batch.

For SGEN Message on contract initiation, when the SGEN date is calculated as branch date or lesser than the branch date, the system sends out an online SGEN message during contract initiation itself.

When you reverse a contract for which SGEN has been generated, the system displays an appropriate override message.

If you accept the override and continue with contract reversal, the system generates the Cancellation request messages MT 292 /192 (REVSWIFT).

You can maintain payment messages either at the SGEN event or at the respective events only, not at both levels. You can also maintain a product without the SGEN event and attach the payment message in the respective events.

Contract Level Message Generation

You need to perform the following for contract level message generation:

• For corporate customer with settlement account as normal or nostro, system generates Credit/Debit advice when CUST_PMT_ADV is configured for DINT, DAMN, DLIQ, DPLQ, FELR and DTER events at product level
• System generates the Payment Message MT210/MT202 for customer type as Bank and settlement account as Nostro, when PAYMENT_MESSAGE advice is configured for DINT, DAMN, DLIQ, DPLQ, FELR and DTER events at product level.
• SGEN event will be supported only for PAYMENT_MESSAGE advice MT210/MT202. The SGEN functionality remains to be the same.
• System will generate the settlement message based on the currency parameter and ensure the SGEN message is generated SGEN days before the value date or payment date. In the BOD batch, the system will generate the SWIFT messages.
• In case CUST_PMT_ADV is not configured to any of the event at product level, system will not generate any MT900/MT910 message assuming the customer type is corporate and settlement account type is Normal. You need the maintain the following details for the contract level message generation:
• Treasury message type for DV module and message type 'CUST_PMT_ADV' using the 'Treasury Message Type Maintenance' screen.
• Maintain new advice 'CUST_PMT_ADV' for DINT, DAMN, DLIQ, DPLQ, FELR and DTER Event using the Derivative Product Definition screen.
• The system validates whether the CUST_PMT_ADV is maintained to SGEN event.
• When CUST_PMT_ADV advice is maintained at specific events, the system will restrict you to maintain CREDIT_ ADVICE DEBIT_ADVICE and displays an appropriate error message.
• Both PAYMENT_MESSAGE and CUST_PMT_ADV can be mapped to same event. The system generates the messages at contract level based on the product and the events maintained.