8 Confirmation and Affirmation Process

This topic provides the introduction to Confirmation and Affirmation changes of a contract.

Pre - Settlement Manager generates outgoing SWIFT confirmations for every transaction booked. Once the deal is processed and authorized from exception handling Queue’s like Repair, Special, Amendment, Credit Check & Verification an outgoing confirmation is sent out to the counterparty agreeing to the transaction details of the deal booked. Pre - Settlement Manager generates the confirmations for transactions where Standard settlement Instructions are still unknown. Primarily deals held in the enrichment Queue. The system generates the event based confirmation message at the time of New, Amend, Roll and Cancellation.

The System supports the receipt of Incoming counterparty confirmation message MT 300 and MT 320, and upload it into an internal upload table, thus confirming that the format is correct. If this step is successful, the incoming browser shows the message as processed else the message is marked for repair with an error code, which indicates the format error.

The Pre - Settlement supports auto/manual matching between our outgoing confirmation and counterparty’s incoming confirmation messages received through SWIFT based on multiple confirmation rules maintained. An auto confirmation batch FXCONFRM (in case of FX) & MMCONFRM (in case of MM) will use the data in the incoming message and execute the matching based on Confirmation sequential rules maintained. This will reduce manual intervention in matching of confirmation messages.

The list of contracts in case of full/partial matches is stored and subsequently can be viewed from the Confirmation Message matching screen so that further manual action can be taken to complete the confirmation process from confirmation message matching screen user can query matched/partial matched/unmatched message details and do a manual match / un-match using this screen. Contract confirmation status initially by default is Unconfirmed and should change to Confirmed after manual \ auto matching. An event WCNF without any advice linked is triggered upon a successful auto \manual match. The System supports event based MT 300 \ MT320 matching. When WCNF event is triggered in Pre - Settlement manager a CONF event gets fired and confirmation status marked as confirmed gets propagated to Product processor and updates in the FX \MM contact on line screens FXDTRONL \ MMDRONL.

Maintenance for multiple confirmation/affirmation types are available. User is able to choose the related type while manually entering the confirmation/affirmation. Certain affirmation types can mark contract as confirmed.

System supports marking the confirmation status as Affirmed \ Unaffirmed\ Waived\ Unwaived for a deal from Foreign exchange affirm contract input screen FXDAFFRM and Money Market Affirm contract input screen MMDAFFRM for FX and MM deals respectively, In addition to the suppress confirmation flag on the CIF confirmation parameters maintenance screen TRDCIFPM. It should not be possible to perform auto matching if outgoing confirmation message is suppressed at contract level.

In Pre - Settlement Manager, Confirmation Queue Monitor is introduced for handling FX & MM unconfirmed transactions. User is able to perform filters and search for Un-confirmed deals. Upon double click of a contract from the confirmation Queue Monitor respective FX or MM Pre - Settlement Contract Input screen is launched and user is allowed to select confirm option from the tool bar, FXDTRCON screen launches and user enters the confirmation instructions manually and saves the contract. WCNF confirmation event gets triggered and the deal exists from the Confirmation Queue Monitor. In the product processor online screen CONF event gets fired and confirmation status gets updated to confirmed.

Manual Confirmation and Affirmation process is supported from FXDTRCON\ MMDTRNCQ and FXDAFFRM\MMDAFFRM screens respectively. Once the contract is saved it needs to be verified by another user from the same screens respectively. Once the contract is authorized with the confirmation changes, the details are sent to product processor and the confirmation processing is done.

This topic contains the following sub-topics:

• Generation of Outgoing SWIFT Confirmations MT 300 – Foreign Exchange Confirmation and MT 320 - Money Market Confirmation
  This topic describes the Generation of Outgoing SWIFT Confirmations MT 300 – Foreign Exchange Confirmation and MT 320- Money Market Confirmation.
• FX Manual Matching Process
  This topic describes about FX Manual matching Process.
• MM Confirmation Matching - Auto and Manual Matching Process
  This topic describes the Confirmation Rule Maintenance.
• Example for MM Confirmation Rule Maintenance
  This topic describes about example for MM confirmation rule maintenance.
• Customer Address Maintenance
  This topic describes about customer Address maintenance.
• Process MM Confirmation Message Matching Screen
  This topic describes about systematic instruction about confirmation messages matching.
• MM Confirmation Message Matching Summary
  This topic describe about MM Confirmation Message matching Summary.
• Auto Matching of MM Confirmation Messages
  This topic describes about Auto Matching of MM Confirmation Screen.
• MM Manual Matching Process
  This topic describes the overview of MM manual matching.
• Multiple Affirmation and Confirmation Types
  This topic describes the Multiple Affirmation and Confirmation Types