5.2 Cash-Margin Net Settlement

This topic describes the cash-margin net settlement process such as initiate a new transaction, query and view transaction details, modify an existing transaction, cash-margin net settlement process, scheme balance summary and deal cashflows.

Net settlement of Cash components can be performed using ‘Cash-Margin Net Settlement’ function.

All cashflows that are marked for netting, including cash margin transfers, can be settled together for the net amount.

• All pre-netting transactions initiated using Cash-Margin Netting Initiation (MGDCMINI) function are available for Net Settlement

The details that can be captured for Cash Net Settlement include,

• Settlement Scheme, Party, Currency, Amount and Value date for the net settlement
• Optionally can filter the pre-netting transactions for the selected Agreement or Portfolio
• Settlement details to be used for funds transfer, as agreed with the party and applicable for the scheme selected
• User Defined Fields configured for cash net settlement process

User can view the details for,

• Pre-netting transactions for Initial Margin, Variation Margin and Deal cashflows considered for net settlement using the selected scheme
• Events triggered for the net settlement transaction along with accounting entries posted and advice(s) generated for each event

Cash-Margin Net settlement transactions can be initiated only for the branch to which user has access.

This topic has the following sub-topics:

• Process to initiate a new transaction
  
• Process to query and view the details of an existing transaction
  
• Modifying an existing transaction
  This topic provides the systematic instructions to modify an existing transaction.
• Discard, reverse and print transactions
  
• Cash-Margin Net Settlement Process screen
  
• Scheme Balance Summary
  
• Initial Margin
  
• Variation Margin
  
• Deal Cashflows
  
• Settlements
  
• Events
  
• Fields
  
• Authorization
  
• Cash-Margin Net Settlement Summary