This chapter explains processing Collateral Margin transferin Oracle Banking Treasury Management application.
Collateral Margin can be assigned and exchanged with the counterpartyfor different purposes, at different stages during the life cycleof a contract and from different functions in Oracle Banking TreasuryManagement application.
- Collateral can be assigned for the purpose of
- Initial Margin while taking a position
- as an Independent Amount for additional collateral
- as Variation Margin to compensate for changes in the value ofthe collateral due to Marking to Market or
- for funding as required before taking a position or for initiatingsettlement
- Collateral can be exchanged with any party eligible for collateralincluding,
- Counterparty of the contract
- Exchange or Execution Broker through which a position is taken
- Clearing House or CCP or Clearing Broker through whom a tradeis cleared and settled
- Custodian or Triparty Agent or any Third party intermediarydesignated for calculating and maintaining eligible collateral onbehalf of the trading parties
- Collateral can be assigned during the life cycle of the contract
- for booking a new contract
- for margin calls due to change in the value of collateral orposition while Marking to Market
- for substituting or replacing the collateral given earlier withanother collateral of same or different type
- for returning the collateral during Maturity or Liquidationof the contract
- for returning and reassigning of collateral every day for DBVcontracts
- Collateral margin processing can be performed from the functions
- used for contract booking while booking contracts
- used specifically for collateral assignment, substitution andmargin calls processing
- used for manual payments and liquidation of contracts, for returningthe collaterals received
- can be automatically triggered when the contract is initiated,liquidated or rolled over through a batch process - during the day,End of Day or Beginning of the Day
This topic contains the following sub-topics:
