ClearPar Settlement Date Coordination 2011/04/07

Transcription

1 ClearPar Settlement Date Coordination 2011/04/07

2 Revision History Date By Version Description 2011/03/22 R. Downs 1.0 Initial version. 2011/04/06 J. Olesky 1.1 SDC Report section added. 2011/04/07 J. Olesky 1.2 Added workflows. 2

3 Contents User Guide... 4 Workbins... 4 Actors... 4 Resetting SDC... 5 Proposed Close Date... 5 Agent Workbins... 5 Attachments... 5 Counterparty Lead Times and Operational Cut-Off Times... 6 Overrides... 8 Suggestion Methods... 8 Automatic SDC Selection When and Why Advanced Trades Notifications Settlement Date Coordination Report Support and Training Annex A: Workflows

4 User Guide This document provides an overview of ClearPar s Settlement Date Coordination (SDC) initiative. All significant areas of SDC have been summarised and this document serves as both starting point for users new to SDC functionality and reference material covering and providing examples around important functionality. Workbins Workbins in ClearPar help manage workflow relating to the settlement process. Documents and tasks move from one workbin to another when tasks are performed and appear in workbins when a certain action is required. A new set of workbins has been added to ClearPar to facilitate the SDC Process. These workbins are accessible from the ClearPar Home page along with all other existing workbins. On trade entry the relevant trade is moved to all parties Suggest/Approve Settlement Date workbin: Trades involving Fund Managers move to Suggest/Approve Settlement Date upon allocation. Party can suggest a date/range and trade will move trade into party s Awaiting Approval workbin; If another party suggests a date that does not correspond to suggested date or range the sub-trade will move back into party s Suggest/Approve Settlement Date workbin; Once all parties have agreed to a date, trade moved to Settlement Date Approved workbin; Parties are able to suggest a new date from Awaiting Approval and Settlement Date Approved workbins by pressing Suggest New Date. Settlement Date Coordination widget provides parties with an overview of current SDC status: Overlapping range: Current suggested Settlement Date. Individual suggested ranges. Icons: Green: Party has suggested a valid, current date/range. Orange: Party has not suggested a date/range or previously suggested date/range no longer valid. When all parties agree a date, if a range has been agreed, the first date in the range will be selected as Agreed Settlement Date but subject to Lead Times and Operational Cut-Off Times (described in more detail below): So, if a range is agreed, ClearPar picks the first date in the range that would not create an override. Actors Users identified as Closer for each party can conduct Settlement Date Coordination on relevant trades; Any user logging in under an Agent Trade Account can conduct Settlement Date Coordination on behalf of the Agent party; ClearPar Closers can conduct Settlement Date Coordination on behalf of any party. 4

5 Resetting SDC SDC will be reset for all parties by the following reset events: Amending Trade Date; Transferring a trade to another Trade Account; Creating/Undoing an Advanced Trade; Trade Placed On Hold. Parties can manually reset their own SDC selection from Awaiting Approval and Settlement Date Approved workbins: SDC cannot be reset when: o Agent has executed the Assignment Agreement (AA) on non-cot (Cash on Transfer 1 ) trade. SDC can be reset when: o Agent has executed the AA on COT trade (any signature in escrow will be removed); o Agent signature does not exist: When SDC reset in above cases, FM signatures will be removed and SDC Reset notification will be sent. Proposed Close Date Funding Memo (FM) calculations are based on Proposed Close Date (PCD); PCD can be updated on trade entry which in turn will update the FM; If trade is advanced (e.g., Combine ), PCD of all linked sub-trades will update when Master trade PCD updates; Each new Settlement Date suggestion will update the current Suggested Settlement Date: PCD updates only when all parties agree to a date or range. Agent Workbins Trades moved to Ready to Prepare on trade entry; Trades can be pushed to Ready to Attach and Ready to Release before SDC is completed; When trade pushed to Ready to Sign workbin from e.g., Ready to Attach the trade will not reach Ready to Sign workbin until SDC is complete; Agents have the ability to be proactive and suggest a Settlement Date as soon as a trade is entered. Attachments Assignment: Agent can attach Agent signature or fully executed AA only when SDC has been agreed between all parties (Effective Date (ED) will match agreed SDC); ClearPar can attach Agent signature or fully executed AA at any time: o If SDC is not agreed between all parties, SDC for all parties will update to match the ED of the attachment; o If SDC is agreed between all parties, ClearPar must attach AA with ED to match agreed SDC. Funding Memo: ClearPar can attach FM but FM cannot be attached until SDC is complete and the date on the attached FM must match agreed SDC. 1 Cash on Transfer enables simultaneous transfer of asset and cash. Full COT functionality will be released at a later date. 5

6 Counterparty Lead Times and Operational Cut-Off Times Lead (Funding) Times and Operational Cut-Off Times can be set per Trade Account (for each counterparty); ClearPar will consider Lead Times and Operational Cut-Off Times of both Buyer, Seller and Agent when suggesting a Settlement Date: Any date that violates (is before) either Buyer or Seller Lead Time will be marked in red on the date suggestion calendar and in order to suggest a date that violates Lead Times, parties will be required to suggest a specific date and create an override (see below). A default Lead Time (as Buyer) will be set at Trade Account level. The default Lead Time will apply to all currencies where a Lead Time has not been explicitly input for the particular Trade Account. Numerous Operational Cut-Off Times can be set at Trade Account Level one will be selected as default. All Cut-Off Times set at Trade Account level will be available for selection for individual members of a particular Trade Account. If the Closer on a particular trade has an Operational Cut-Off time that differs from the Trade Account default, the result is to utilise the Cut-Off time of the particular member rather than the Trade Account default. Within each ClearPar Trade Account their will exist the ability to populate separate Lead Times and Operational Cut- Off Times for when the relevant account is acting as Buyer, Seller and Agent: Buyer = Default Lead Time for all currencies > Ability to override default and set Lead Time per currency; Seller and Agent = Generic Lead Time utilised when Seller or when Agent. 6

7 Example of Lead Time Affect on Date Suggestion Calendar: Date = Jan 17, 2011 Perfect Investment III Lead Time = 3 days Bank of London Lead Time= 1 day Date Suggestion Calendar displays January 20 as first available Settlement Date that would not require an override. This is because Perfect Investment III has a 3 day Lead Time. ClearPar will consider the earliest Operational Cut-Off time set for any party to the trade when determining if an override is required and by which date/time the Transfer Certificate/ Assignment Agreement must be fully executed in order for Lead Times to be adhered to. Suggested Settlement Date (SSD) v Target SDC Completion Whenever a party makes a suggestion, ClearPar will update the current Suggested Settlement Date : ClearPar updates the current SSD based on the first non-override date within an overlapping range. Example (date still January 17, 2011): o Perfect Investment III suggests January 21 January 27 > SSD = January 21, 2011; o Bank of London then suggests January 25 January 31 > SSD = January 25, Based on the SSD, ClearPar will create a Target SDC Completion date: ClearPar updates the Target SDC Completion date by subtracting the max lead time for any party/currency on a sub-trade from the SSD and adding the earliest Operational Cut-off time for any party to the sub-trade: Example (if earliest Operational Cut-off was 11am GMT and longest Lead Time of 3 days): o SSD = Jan 21, 2011 > Target SDC Completion = January 18, am GMT o SSD = Jan 25, 2011 > Target SDC Completion = January 20, am GMT The Target SDC Completion date is the date by which, based on the current SSD, parties should attempt to agree SDC and when SDC is agreed, the ideal date by which all documentation should be complete. The Target SDC Completion date will not display if the current SSD is an override date. 7

8 Overrides Any date that correlates with an On Hold date or that violates the Lead Time of the Buyer/Seller/Agent on a particular sub-trade will require an explicit override date to be agreed between all parties: If a date is selected that matches the maximum lead time of the Buyer/Seller/Agent on a particular sub-trade (based on all traded currencies), the Operational Cut-Off Times of the Buyer/Seller/Agent on the trade will be taken into account to determine whether or not an override will be created. Credit on Hold (further rules): If SDC agreed and trade placed on hold during agreed period: o If Agent has not executed AA, Wipe SDC for all parties and remove any FM signatures; o If Agent has executed AA, SDC will be preserved. Suggestion Methods Master suggestion (suggests all sub-trades under selected master tickets): User selects date/range to bulk suggest ; User presses Suggest Date for Selected Trades ; Sub-trades under selected Master ticket/s that do not create an override are suggested; Sub-trades under selected Master ticket/s that would create an override are not suggested: o Message/s displayed informing user of sub-trades that were not suggested and that user can manually suggest from the internal view of the SDC workbins. Internal Suggestion (suggests all selected sub-trades under a single master ticket): User selects date/range to bulk suggest ; Date/range populates for sub-trades where an override would not be created and where the date/range does not conflict with an existing, valid selection; User can manually populate remaining sub-trades with dates not corresponding to current suggestions or that would create an override; User can suggest one or more populated dates by selecting each relevant sub-trade and pressing Suggest/Approve. 8

9 Master Suggestion Steps: 1- Choose if you want to suggest a: -Specific Date; -Date Range; - On or after date. 2- Select All trades or select specific trades you want to suggest. 3-Hit Suggest Date for Selected Trade(s). ClearPar will suggest all sub-trades where an override is not required and inform the user of any subtrades that did not receive a suggestion. Such sub-trades can be suggested by creating an override from the internal view of the workbin. 9

10 Internal Suggestion Steps: For particular subtrades: 1- On each sub-trade you want to suggest, choose if you want to suggest a: -Specific Date; -Date Range; - On or after date. 2-Check the checkbox for each sub-trade. 3-Hit Suggest/Approve at bottom of screen. ClearPar will suggest all populated dates. To populate fields for multiple sub-trades use the Bulk Suggest section. Steps: 1-Choose if you want to suggest a: -Specific Date; -Date Range; - On or after date. 2-Hit Apply Range ClearPar will auto-populate the suggested dates to all sub-trades where an override would not be created. 3-Hit Suggest/Approve at bottom of screen to suggest populated dates. Important: Users can manually suggest a specific override date for sub-trades that did not auto-populate via Bulk Suggestion. The user will be informed an override will be created when they populate the override date for the specific subtrade and on pressing Suggest/Approve, any override dates will be suggested along with all other populated dates. 10

11 Automatic SDC Selection When and Why ClearPar will automatically suggest a new Settlement Date for certain parties to a trade in the following scenarios: Current Calendar Date > Agreed SDC Date; Trade sent to Cash on Transfer (COT) and COT fails. Current Calendar Date > Agreed SDC Date: SDC is maintained for all parties; ClearPar auto-selects new date as above and new date is automatically approved if it falls within parties suggested ranges. Trade sent to COT and COT fails: Signatures in escrow removed; SDC for Agent is pulled; ClearPar searches for next available Settlement Date based on Buyer/Seller/Agent Lead Times and Operational Cut-off times (and taking into account any relevant On Hold periods); If next date falls within suggested counterparty ranges, ClearPar suggests date back to Agent; Date will be re-suggested back to any counterparty who s original range falls outside the new date (in this case, the counterparty will need to explicitly approve the auto-suggested date for SDC to become agreed). Note: Difference between two scenarios is that in scenario two the Agent will always have to re-approve the autosuggested date whereas in scenario one a new auto-suggested date will become automatically approved by all parties if date falls within their suggested ranges. ClearPar will run a nightly job to determine which sub-trades have missed execution and therefore require automatic suggestion of a new Settlement Date. Advanced Trades All SDC tasks/suggestions are removed when advanced trade created or undone; A field labelled Doc Type in SDC workbins will tell user what type of trade they are dealing with or rather, on what document SDC is occurring (Multilats will have doc type Assignment as SDC will be conducted on that piece of the trade); Combined Trades: Master ticket displays in SDC workbins, SDC for all sub-trades updated when master updated. Full Net-off: Agent cannot see trades in SDC workbin; Agent removed from SDC process; Parties can review Net-off at any time but have to agree SDC prior to signing; Net-off becomes effective after last party signs; ClearPar can upload fully executed Net-off and update SDC for both parties but if SDC has been agreed, ClearPar must upload Net-off to match agreed date. 11

12 Partial Net-off: Buyer/Seller involved in Net-off piece; Buyer/Seller/Agent involved in Assignment piece; Two separate SDC widgets one for each part of the trade: o Both widgets viewable from Trade Ticket; o Assignment widget viewable from Fund Allocation screen; o Net-off widget viewable to ClearPar from Net-off tab. Multilateral Netting Agreement: Original Buyer/Buyer/Seller/Agent involved; Original Buyer/Buyer same person in eyes of Agent who only sees a date agreed between Original Buyer/Buyer: o Agent will not receive notifications around Buyer/Original Buyer agreeing a date. Multilat Assignment (between Seller and Buyer) cannot sit in Agent Ready to Sign until Original Buyer/Buyer/Seller have executed Multilat. Notifications All notifications can be activated/deactivated: Settlement Date Modified: o Whenever a new date/range is suggested that does not correspond to an existing valid range. Buyer/Seller Settlement Date Agreed: o When Buyer/Seller agree a date/range. New Settlement Date Auto-Suggested: o When new date auto-selected that falls within acceptable range of all parties but is different from previous agreed date (because current calendar date > agreed SDC date). SDC Reset FM Sigs Removed: o When SDC is reset due to any action causing reset and FM signatures exist that are removed. Facility Placed on Hold FM Sigs Removed: o When SDC is reset due to a Credit/Facility being placed on hold during a suggested period where no Agent signature exists on the AA. 12

13 Settlement Date Coordination Report Overview: The Settlement Date Coordination report (SDCR) is a revamped version of the Proposed Closing report (PCR). It blends the new selection improvements with the familiar functions of the old report. The report utilises the philosophy defined in earlier sections of this document so this section will simply define the specific functions available. Note that actions performed via the SDCR impact a trade in the exact same way as actions performed via and SDC workbin. The SDCR is accessible by clicking on the Reporting menu item in ClearPar and selecting Settlement Date Coordination from the report list. Filter Section: Party view Agent view 13

14 1. Filters: o Party (closer role only): Allows user to filter for one or more of his own permissible accounts o Counterparty (closer role only). Allows user to filter for a specific counterparty o Agent (closer role only): Allows user to filter for a specific agent. o Credit: Allows user to filter for a specific credit. o Executed By: Allows user to filter based on the signature state of the assignment. o Closer: Allows user to filter for a specific closer. o CP Closer: Allows user to filter for a specific ClearPar closer. o Approval Status: Allows user to filter based on the completion status for SDC. o Target Settlement: Allows user to filter trades based on the current suggested settlement. o Ticket Owner (closer role only): Allows user to filter trades where the selected accounts in the Party filter are ticket owners. o Agent Review (agent role only): Allows user to filter where agent review has been completed. o Overrides: Allows user to filter where the current active suggestion is an override. o SubTrade Status: Allows user to filter based on whether they are effective vs. non-effective. o Market Type: Allows user to filter based on the market type (Primary/Secondary). o Trade Market: Allows user to filter based on the trade market type (LSTA/LMA). o Credit Category (closer role only): Allows user to filter based on the credit category (Par/Distressed). o On Hold: Allows user to filter based on whether traded assets are on hold. o Trade Action: Allows user to filter based on whether the selected accounts in the Party filter are buyers or sellers. o # of Results: Allows user to determine the size of the result set. Count is in trade tickets, not SubTrades. 2. Legend Visibility: o Allows user to toggle the visibility of the selection legend. 3. User Guide: o Allows user to access the SDC user guide. 4. Generate Report: o Allows user to execute report based on filter criteria. 14

15 Results Section: 5. Select All: o Allows user to select all trades in the result list. 6. Bulk Suggest: o Allows user to make an SDC suggestion for all selected trades in the result list. 7. Trade Count: o Displays the number of trade tickets in the result list. 8. Ticket Info: o Displays the high level details of the trade. o Clicking on the ticket number navigates user to the trade ticket screen. 9. Docs & Timeline: o Allows user to launch a window-based version of the Available Documents section of the trade ticket. o Allows user to launch the Trade Timeline. 10. Trade/SubTrade Selection: o Allows user to select all SubTrades within a ticket or specific SubTrades. o Selecting SubTrades allows the user to use the Bulk Suggest capability. 11. SDC Suggestion (see image below): o Allows user to make any possible selection across trade accounts. o Calendar will enable buttons for Seller/Buyer/Agent based on the user s defined account memberships. This allows users to make SELECTIONS ACROSS ACCOUNTS. o Calendar will use the same logic as defined in earlier sections of this document. 15

16 Suggestion Pop-up 12. Party Closer: o Allows user to view closer details. 13. ClearPar Closer: o Allows user to view ClearPar closer details. 14a. Suggestion via Agreement (SubTrade with active suggestion): o Allows users to interact in a similar fashion to how they could with the Proposed Closing report. o When at least one party has an active suggestion on the SubTrade, any party may use the radio buttons (displayed below) to perform one of the following actions: Unapproved: Signifies that the party is not in agreement with the current active suggestion; When not already selected, clicking this button will unapprove the account s current suggestion; Unapproved suggestions are displayed in red. Approved: Signifies the fact that the account has a currently active suggestion. The suggestion will be displayed in green above the button; When not already selected, clicking this value will result in a selection that agrees with the specific date displayed in the Target date field. Persisted: Signifies the fact that the account has a currently active suggestion of type on or after. The suggestion will be displayed in green above the button; When not already selected, clicking this value will result in a selection signifying that the party is good to settle on or after the specific date displayed in the Target date field. 16

17 14b. Suggestion via Agreement (SubTrade without an active suggestion): o When there are no active suggestions, users may not use the agreement radio buttons; o When this is the case a user must click on the Suggest text in the Target field to make an SDC suggestion; o After one party makes a suggestion, remaining parties may use the Suggestion via Agreement method defined in 14a above. 17

18 Support and Training General Questions: Your ClearPar closer; ClearPar Support: o ClearParSupport@markit.com Training and Further questions: ClearPar Product Management: o ClearParBA@markit.com ClearPar Relationship Management: o ClearParSalesTeam@markit.com 18

19 Annex A: Workflows Date Suggestion: General Workflow: 19