6.1.7 Maintain Settlement Instructions for CLS Deals

This topic describes the systematic instructions to Maintain Settlement Instructions for CLS Deals.

Maintain the settlement preferences for a customer in the Settlement Instructions Maintenance screen.

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

   Treasury Settlement Instructions Maintenance screen is displayed.

   Figure 6-10 Treasury Settlement Instructions Maintenance

   
   Description of the illustration isdtrins.png
2. On the Treasury Settlement Instructions Maintenance screen, click New.
3. On the Treasury Settlement Instructions Maintenance - New screen, specify the details as required.
4. Click Save to save the details or Cancel to close the screen.

   You have to maintain the settlement instructions exclusively for CLS deals. For this, you have to select the module FS (FX Settlements) which will indicate that the instructions apply to CLS deals alone.

   For information on fields, refer to the below table.

   Table 6-5 Treasury Settlement instructions Maintenance - Field Description

   Field	Description
   Counterparty Type	The counterparty is of the ‘CIF’ type.
   Counterparty	The counterparty is a specific customer who is identified as a ‘CLS Participant’ (in the ‘Customer Information Maintenance’ screen). You cannot select the counterparty ‘ALL’ in this case.
   Currency	The currency is a specific currency, which is eligible to participate in CLS deals (this is defined in the ‘Currency Definition’ screen). In addition, the currency should be allowed for the counterparty and the CLS participant branch. The CLS Currency Restrictions maintained for the customer will be used to verify the same.
   Product Code	If you have selected a specific product, it should necessarily be an ‘FX’ product. Otherwise, the product should be ‘ALL’.
   Branch	The branch that you select is identified as a ‘CLS Participant’ (in the ‘FX Branch Parameters – CLS Preferences’ screen). This validation will not be applicable if you select the branch code as ‘ALL’.
   Parties	The different parties involved are maintained in the ‘CLS Directory’.
   Settlement Sequence Number	The system displays the Settlement Sequence Number by default on the click of the Save icon. Note: When multiple settlement instructions are maintained for the same combination of keys, it is useful to have a settlement instruction description. The settlement instruction description that you specify here is displayed in the list of values for settlement details during contract booking.

   Note:

   Refer the Settlements User Manual for more information on maintaining settlement instructions for customers.

   The debit and credit accounts maintained for the module FS and CLS Currency combination will be referred to as the Control Accounts and is debited/credited on liquidation of a CLS FX deal. Entries are posted to the Control Accounts at the individual deal level. On receipt of pay-out/pay-in advice from the settlement member, pass a net entry to the Control Account and post the other leg to the Real CLS Nostro account.

   Specify the Pay/Receive accounts for CLS deals