4.7.1 Margin Details

User can default and view the margin preferences applicable for the Agreement, Portfolio or a specific Contract selected for which collateral is assigned.

• Displays the Collateral preferences defined for the Agreement, If Agreement is selected.
• Displays the Collateral preferences defined for the applicable Portfolio or Product, If Portfolio is selected.
• Displays the Collateral preferences defined for the contract, If Contract is selected.
• Displays the preferences from the linked agreement, if the contract uses Collateral Agreement
• If the preference for calculation type is ‘Internal’, can view the details about the margin calculated by Oracle Banking Treasury Management
• If the preference for calculation type is ‘External’, calculation fields value are not displayed

Click the Margin Details tab of the Collateral Assignment Process (SRDMRONL) function to open this screen.

Figure 4-2 Collateral Assignment Process – Margin Details

The following table describes the fields captured for processing securities margin for an agreement or contract.

* indicates mandatory fields.

Table 4-3 Collateral Assignment Process – Margin Details

Field	Description
Calculation Preferences	Group of fields to display the margin calculation preferences applicable for the Contract selected for Collateral Assignment, for the selected Margin Type. If Margin Type selected is ‘Netted Margin’, preferences are not displayed
Calculation Setup	Displays the margin calculation setup to be used, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Blank and not applicable, if no calculation setup is defined for the selected Contract in Oracle Banking Treasury Management
Calculation Level	Displays the level at which the exposure would be aggregated for margin calculation purposes for the Contract selected for Collateral Assignment, for the selected Margin Type. Displays ‘Trade’ by default
Calculation Type	Displays where the margin required is calculated for the Contract selected for Collateral Assignment, for the selected Margin Type. Displays ‘External’ by default, if no margin calculation rule is defined for the selected Contract or if Calculation Setup is ‘External’ Blank and not applicable, if Margin For selected is ‘Agreement’ or ‘Portfolio’
Source	Displays the system from which the collateral assignment is initiated.
Calculation Method	Displays the method that is used for calculating margin required for the Contract selected for Collateral Assignment, for the selected Margin Type. Blank and not applicable, if Margin Type selected is ‘Variation Margin’ or if Calculation Type is ‘External’ or if Margin For selected is ‘Agreement’ or ‘Portfolio’
Exposure Type	Displays the amount to be considered as exposure for calculating margin required for the Contract selected for Collateral Assignment, for the selected Margin Type. Displays ‘Principal’ by default, if no margin calculation rule is defined for the selected Contract Blank and not applicable, if Margin Type selected is ‘Variation Margin’ or if Calculation Type is ‘External’ or if Margin For selected is ‘Agreement’ or ‘Portfolio’
Offsetting Allowed	Displays whether exposure booked in opposite directions within the same group can be offset, to arrive at the net exposure for margin calculation purposes for the Contract selected for Collateral Assignment, for the selected Margin Type. Blank and not applicable
Margin Calculation	Group of fields to display the calculated margin required as on the Event Date for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type.
Margin Currency	Displays the currency in which the margin required is calculated for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Displays the Portfolio Currency or Contract Currency by default, if no margin calculation rule is defined for the selected Portfolio or Contract
Margin Required	Displays the calculated Margin Required in Margin currency for the exposure determined as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Blank and not applicable, if Calculation Type is ‘External’
Margin Available	Displays the Margin already transferred and available in Margin Currency equivalent as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Displays total of balance in both Cash Margin and Security Collateral available for the selected Agreement or Portfolio or Contract
Excess	Displays the additional Margin already available in excess of the Margin required as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type.
Shortfall	Displays the additional Margin to be transferred to meet the net Margin required as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type.
Cash Margin Adjustment	Group of fields to display the cash margin allowed based on the calculated margin required as on the Event Date for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type.
Cash Margin Allowed	Indicates whether collateral can be provided in Cash or Deposits, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Checked by default, if no margin calculation rule is defined for the selected Portfolio or Contract
Cash Margin Balance	Displays the Cash Margin already transferred and available as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Example: Cash Margin Balance = 5,250 Should display ‘0’, if Cash Margin Allowed is unchecked Otherwise, returning any available balance in Cash Margin should be operationally taken care by the bank
Minimum Cash %	Displays the Minimum Cash % configured for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Displays ‘0%’ by default, if Cash Margin Allowed is unchecked or if Calculation Type is ‘External’ or if no margin calculation rule is defined for the selected Portfolio or Contract
Minimum Cash	Displays the Minimum Cash Margin required based on the total margin required as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Minimum Cash = Margin Required * Minimum Cash % Example: If Margin Required = 40,250 and with Minimum Cash % = 5%, Minimum Cash = 40,250 * 5/100 = 2,012.50
Maximum Cash	Displays the Maximum Cash Margin allowed based on the total margin required as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Maximum Cash = Margin Required * (1 - Minimum Securities %) Example: If Margin Required = 40,250 and with Minimum Securities % = 15%, Maximum Cash = 40,250 * (100-15)/100 = 34,212.50
Security Margin Adjustment	Group of fields to display the securities collateral allowed based on the calculated margin required as on the Event Date for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type.
Securities Collateral Allowed	Indicates whether collateral can be provided in Securities, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Checked by default, if no margin calculation rule is defined for the selected Portfolio or Contract
Securities Collateral Value	Displays the value of Securities Collateral already transferred and available as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Example: Securities Collateral Value = 28,500 Displays ‘0’, if Securities Margin Allowed is unchecked Otherwise, returning any available balance in Securities Collateral should be operationally taken care by the bank
Minimum Securities %	Displays the Minimum Securities % configured for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Display ‘0%’ by default, if Securities Collateral Allowed is unchecked or if Calculation Type is ‘External’ or if no margin calculation rule is defined for the selected Portfolio or Contract
Minimum Security	Displays the Minimum Securities Collateral required based on the total margin required as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Minimum Security = Margin Required * Minimum Securities % Example: If Margin Required = 40,250 and with Minimum Securities % = 15%, Minimum Security = 40,250 * 15/100 = 6,037.50
Maximum Security	Displays the Maximum Securities Collateral allowed based on the total margin required as of the Event Date, for the Agreement or Portfolio or Contract selected for Collateral Assignment, for the selected Margin Type. Maximum Security = Margin Required * (1 - Minimum Cash %) Example: If Margin Required = 40,250 and with Minimum Cash % = 5%, Maximum Security = 40,250 * (100-5)/100 = 38,237.5

On click of the Default button, system automatically calculates and displays the margin details applicable for the collateral assignment transaction.