2.6.4 Preferences

User can define specific preferences for the product to be used during margining and netting processes.

User can perform the following:

• indicate whether the product can be used for collateral margining or settlement netting or both processes
• indicate whether the product can be used for settlement of cash or securities or both
• define the preferences for margining and netting as applicable
• define the fields to be used for Rekey during authorization
• define product restrictions

Click the Preferences button at the bottom of the Product Maintenance screen to open this screen.

Figure 2-9 Margin-Netting Product Preferences

Description of "Figure 2-9 Margin-Netting Product Preferences"

The following table describes the fields captured for margin-netting product preferences.

* indicates mandatory fields.

Table 2-4 Margin-Netting Product Maintenance - Preferences

Field	Description
Product	Displays the code of the product selected.
Product Description	Displays the description of the product selected.
Applicable For	Fields to indicate whether the product can be used for settlement of cash and/or securities. At least one of the fields either ‘Cash’ or ‘Securities’ should be mandatorily checked for the product At least one of the fields either ‘Collateral Product’ or ‘Netting Product’ should be mandatorily checked for the product
Cash	Indicate whether the product is applicable for Cash Settlement. This field cannot be unchecked after authorization of the product
Securities	Indicate whether the product is applicable for Securities Settlement. This field cannot be unchecked after authorization of the product
Collateral Product	Indicate whether the product is enabled for Collateral Margining. This field cannot be unchecked after authorization of the product
Netting Product	Indicate whether the product is enabled for Settlement Netting. This field cannot be unchecked after authorization of the product
Collateral Preferences	Group of fields to capture the preferences to be used when the product is applicable for collateral margining.
Securities Deliver Product	Select the securities combination (CBBS) product to be used to create securities sale transaction for the bank to transfer the securities to the counter party. This field is enabled only for collateral products This field is mandatory, if ‘Securities’ field is checked
Securities Receive Product	Select the securities combination (BBCS) product to be used to create securities purchase transaction for the bank to receive the securities from the counter party. This field is enabled only for collateral products This field is mandatory, if ‘Securities’ field is checked
Block Product	Select the securities block product to be used to block (and release) the securities given as collateral, in the bank’s portfolio. This field is enabled only for collateral products This field is mandatory, if ‘Securities’ field is checked
Internal Product	Select the securities combination (BBBS) product to be used to transfer securities internally from one portfolio to another portfolio. This field is enabled only for collateral products
Cash Netting	Group of fields to capture the preferences to be used when the product is applicable for cash settlement netting.
Net Cash	Select the default preference for netting cash components of a contract with other contracts with the same party. This field is enabled only for netting products This field is mandatory, if ‘Cash’ and ‘Netting Product’ fields are checked If ‘Net’ is selected, then both cashflows paid and received are netted together, for the same component across multiple contracts linked to the same netting scheme If ‘Aggregate’ is selected, then cashflows paid are netted and cashflows received are netted separately, for the same component across multiple contracts linked to the same netting scheme ‘Net’ is set by default, if not specified
Netting Tenor	Select the default preference for netting cash components of the contract with other contracts having any tenor or same tenor. This field is enabled only if ‘Cash’ and ‘Netting Product’ fields are checked and Net Cash is ‘Net’ or ‘Aggregate’ If All is selected, then the cash components is netted across contracts having any tenor If Same Tenor is selected, then the cash components is netted only across contracts having same tenor If Same Deal is selected, then only cash components of the same contract is netted All is set by default, if not specified
FX Netting Type	Select the default preference for netting cash components of Foreign Exchange (FX) contracts. This field is enabled only if ‘Cash’ and ‘Netting Product’ fields are checked and Net Cash is ‘Net’ or ‘Aggregate’ If Pair-Wise is selected, then cash flows of only those FX contracts traded with the same currency pair is netted together If Currency-Wise is selected, then cash flows in the same currency is netted across all the FX contracts, even if they are not booked with the same currency pair Currency-Wise is set by default, if not specified
Rekey Fields	Group of fields for which the authorizer, of a transaction event using this product, re-enter the values while authorizing the transaction event. Multiple fields can be selected for Rekey However, from the selected Rekey fields, only those fields that are applicable for a transaction event is available for Rekey during authorization of that event
Rekey Required	Indicate whether the authorizer, of a transaction event using this product, re-enter the values for selected fields while authorizing a transaction event, as a mechanism for cross-checking that correct transaction event is getting authorized. For the fields selected for Rekey, values are not displayed in the authorization screen The values re-entered by the Authorizer is verified against the values available for these fields in the transaction event If multiple values are available for a field, the value re-entered is verified against any one of the values available for this field For the fields not selected for Rekey, values from the event is displayed in the authorization screen
Party ID	Indicate whether Party ID should be rekeyed by the authorizer of a transaction event using this product.
Scheme ID	Indicate whether Scheme ID should be rekeyed by the authorizer of a transaction event using this product.
Scheme Event	Indicate whether margining or netting Event code should be rekeyed by the authorizer of a transaction event using this product.
Agreement Code	Indicate whether Agreement Code should be rekeyed by the authorizer of a transaction event using this product.
Settlement Amount	Indicate whether Settlement Amount should be rekeyed by the authorizer of a transaction event using this product. Applicable only if ‘Cash’ field is checked
Settlement Currency	Indicate whether Settlement Currency should be rekeyed by the authorizer of a transaction event using this product. Applicable only if Cash field is checked
Settlement Date	Indicate whether Settlement Date should be rekeyed by the authorizer of a transaction event using this product.
Margin Code	Indicate whether Margin Code should be rekeyed by the authorizer of a transaction event using this product. Applicable only if Collateral field is checked
Margin Account	Indicate whether Margin Account number should be rekeyed by the authorizer of a transaction event using this product. Applicable only if ‘Collateral and Cash field is checked
Transfer Action	Indicate whether Transfer Action should be rekeyed by the authorizer of a transaction event using this product.
Component	Indicate whether the Component code, of the cashflow settled, should be rekeyed by the authorizer of a transaction event using this product. Applicable only if ‘Netting’ and ‘Cash’ field is checked
Security ID	Indicate whether Security ID should be rekeyed by the authorizer of a transaction event using this product. Applicable only if ‘Securities’ field is checked
Portfolio ID	Indicate whether Portfolio ID should be rekeyed by the authorizer of a transaction event using this product. Applicable only if Securities field is checked
Nominal / Units	Indicate whether / Quantity (units), of the security transferred, should be rekeyed by the authorizer of a transaction event using this product. Applicable only if Securities field is checked
Product Restriction	Group of fields to indicate how the restriction should be applied for the list of party categories or currencies selected for the product. Product restrictions (CSDTRPDR) function can be used to select the list of party categories or currencies to be restricted for the product
Categories List	Indicate whether the list of party categories selected should be Allowed or Disallowed for this product.
Currency Restrictions	Indicate whether the list of currencies selected should be Allowed or Disallowed for this product.
Holiday Check Required	Group of fields to indicate the default types of holidays to be considered for the transaction events using this product
Local Holiday	Indicate whether local holidays is considered by default for the transaction events using this product
Currency Holiday	Indicate whether currency holidays is considered by default for the transaction events using this product
Financial Center Holiday	Indicate whether financial center holidays is considered by default for the transaction events using this product