1.2.1 Derivatives Workflow

The various operations and events in the life cycle of a derivatives contract are summarized below:

  • Booking, amendment, termination and settlements
  • Accounting treatment for life cycle events
  • Initial and final exchange of principal (if applicable) and interest schedules
  • Assumptions/purchase and assignments/sale of running contracts (trade deals)
  • Brokerage Processing
  • Revision of floating interest indices and interest accruals
  • Revaluation of contracts
  • Amortizations – Inception and Termination gains/losses
  • Counterparty limit tracking under credit lines
  • Exposure tracking under ISDA and other Master agreements
  • SWIFT Messaging including multi-party messaging