2.5 Instrument Margin Calculation Setup
This topic describes the instrument margin calculation setup process such as instrument margin calculation maintenance.
Margin calculation setup can be defined for a Module, product or an instrument using ‘Instrument Margin Calculation Maintenance’ function. These preferences are used for the applicable transactions for calculating margin required for different margin types allowed.
The details that can be captured for Margin Calculation Setup include,
- A unique reference for the setup
- Details about the branch, module, product, instrument, portfolio for which this setup is used
- Details about the type of transactions and the purpose for which these preferences are applied
Configuring the calculation parameters for each margin type applicable for this setup
Margin calculation setup can be defined at the HO branch as well as specific to any branch.
- All the modifications to the calculation setup are logged for audit trail purposes
- Auto authorization can be enabled for this function
If preferences for an existing margin calculation setup is amended, the new value for the field amended is used only for the subsequent margin calculations using this setup and not be applied on the existing margin balances and transfers in retrospective. User have to operationally manage recalculation of margin requirements using the amended setup and initiate margin transactions manually for any adjustments.
This topic has the following sub-topics: