21.1.10 SGEN Message Generation
This topic describes the SGEN message generation and enabling RFR for SGEN.
The system can send SGEN messages ‘n’ number of days before the due date where ‘n’ is the value maintained as settlement days in Currency Definition screen. This generation is done for the following events:
- MSTL - Deal Settlement
- CPCD - Coupon Settlement for Bonds
- DVCD - Securities Dividend Collection for Equity Shares
- CPTR - Coupon Transfer
In the case of future-dated events for SE deal or Portfolio, SGEN messages are required to be sent before the value date or payment date. For such contracts, the system generates the settlement message after taking into account both currency holidays and local holidays maintained. It generates the SWIFT messages in the BOD batch.
For SGEN Message on contract initiation, when the SGEN date is calculated as branch date or lesser than the branch date, the system sends out an online SGEN message during contract initiation itself.
When you reverse a contract for which SGEN has been generated, the system displays an appropriate override message. If you accept the override and continue with contract reversal, the system generates the Cancellation request messages MT 292 /192 (REVSWIFT). However, the CPCD (Coupon Settlement), DVCD (Securities Dividend Collection) and CPTR (Coupon Transfer) reversal is not applicable. Whenever there is manual coupon transfer done, SGEN event will be triggered online with CPTR. If CPCD is manual and coupon transfer is automatic, SGEN will be triggered on BOD based on the number of message settlement days before CPTR date. If the coupon collection and coupon transfer is both automatic, then SGEN will be triggered on BOD based on the number of message settlement days before CPTR date.
For more information of CPTR processing, considering the SGEN and payment delay days, refer to the attached - Coupon Transfer Functionality. This attachment is best viewed in Adobe Acrobat.
You can maintain payment messages either at the SGEN event or at the respective events only, not at both levels. You can also maintain a product without the SGEN event and attach the payment message in respective events.
Final redemption is similar to sell deal and also has cash flows. This is taken care of by the MSTL event.