3.2.1 Agreements applicable for the Contract

User can select the agreements applicable for the contract. These agreements can be for,

• Collateral Margining purposes if collateral is required for the contract.

• Agreement selected should be with the collateral party as selected in the Linked Entities sub system
• Settlement Netting purposes if netting is required for the contract
• One agreement can be selected for each contract party, selected in Linked entities sub system, with whom Net Settlement of components is required
• Collateral or Netting preferences defined for the selected agreements are applied by default for the contract as applicable

The following table describes the fields captured for Agreements applicable for a Contract.

* Indicates mandatory fields.

Table 3-3 Agreements applicable for the Contract

Field	Description
Agreement Purpose	Select the purpose for which this agreement is used. This field cannot be amended after first authorization of the contract Can select Collateral (COLL) or Credit Support Annex (CSAX), if the sub agreement is for collateral margining purposes Can select Settlement Netting (NETS), if the sub agreement is for net settlement of either cash or securities or both for a transaction
Party	Select the contract party of the agreement for the selected purpose. This field cannot be amended after first authorization of the contract If the purpose is for Collateral Margining (COLL or CSAX), then the party is set to Collateral Party and cannot be changed If the purpose is for Settlement Netting (NETS), then any of the contract parties can be selected
Agreement Code	Select the Agreement available for the selected purpose, with the selected party and for the module of the contract. This field cannot be amended after first authorization of the contract Agreement should be active and expiry date of the agreement should be > trade date
Margin Type	Select the Margin Type for which the selected agreement is used. This field cannot be amended after first authorization of the contract If the purpose is for Settlement Netting (NETS), then this field is set to Net Settlement (NT) and cannot be changed Can select Initial Margin (IM), Independent Amount (IA), Variation Margin (VM) or Any Margin (AL), if the purpose is for Collateral Margining (COLL or CSAX) Only one agreement can be selected for each Margin type for the contract At least one Agreement for Variation Margin (VM) or Any Margin (AL) should be selected mandatorily if collateral is required for the contract Set to Any Margin (AL) by default, if defined for the Agreement
Margin Code	Select the Margin Code defined for the selected Agreement and Margin Type. This field cannot be amended after first authorization of the contract This field is mandatory only if the purpose is for Collateral Margining (COLL or CSAX) Defaulted to the active Margin Code defined for the margin type in the agreement
Margin CCY	Select the Currency in which margin is calculated for the selected Agreement and Margin Type. This field cannot be amended after first authorization of the contract This field is mandatory only if the purpose is for Collateral Margining (COLL or CSAX) Defaulted to the Margin Ccy defined for the margin code in the agreement
Sub Agreement	Select the Sub Agreement defined for the selected Purpose, Agreement and Margin Type. This field cannot be amended after first authorization of the contract Defaulted to the active Sub agreement defined for the purpose and margin type in the agreement
Is Valid	Indicate whether the selected Sub Agreement is valid for the contract. At any point in time, only one sub agreement can be valid for the contract for a margin type and contract party
Agreement Description	Displays the description of the agreement.
Document Type	Displays the document type used for the Sub Agreement selected. Example: ISDA, GMRA, CNBR, CAR, etc.
Document Version	Displays the version of the document type used for the Sub Agreement selected.
Expiry Date	Displays the expiry date of the document used for the Sub Agreement selected.