2.6 Margin-Netting Product

This topic describes the Margin-netting product maintenance process.

Products can be defined with default preferences for Collateral Margining and Settlement Netting using ‘Margin-Netting Product Maintenance’ function. The advantage of defining a margin-netting product is that it allows to create a broad framework for margining and netting processes followed by the bank. These preferences defined for a product is applied by default on all settlement schemes and master agreements linked to the product.

The details that can be captured for Margin-Netting Product include,

• A unique code and a brief description for the Product
• Basic details about the type of the product, validity, exchange rate to be used, etc.
• Mapping Accounting roles to chart of accounts
• Configuring Events applicable with mapping to accounting roles and amount tags
• Specific preferences for margining and netting processes
• Configuring MIS details
• Details about Charges and Tax applicable for different events

Products are defined at the HO branch by the product control team and made available to all branches.

• All the modifications to the product configuration is logged for audit trail purposes
• Auto authorization can be enabled for this function

This topic contains the following sub-topics:

• Margin-Netting Product Maintenance screen
  
• Accounting Roles
  
• Events
  User can configure the Events applicable for the product.
• Preferences
  User can define specific preferences for the product to be used during margining and netting processes.
• MIS
  User can configure the MIS details applicable for the product.
• Charges
  
• Tax
  User can configure the applicable Tax components for the product.
• Fields
  User can define values for UDF associated with Margin-Netting Product Maintenance function.
• Margin-Netting Product Summary
  User can view the list of products maintained for margining and netting processes using Margin-Netting Product Summary function.
• Margin-Netting Product Summary screen