Repos booked on PAS SEC ACCOUNT not allowed

[hein_nagel]

Hello

Can someone assist us, when we book repo 73A Transaction Type 200 on an 04X bond (Issued ) on a PAS sec account, we get an error "Per 19.01.2010 a negative balance of 100,000.00- ZAR Nominal exists

Message no. TRQ0001" (we get this error if we have not issued 04X on same sec account we are doing the REPO), note that short sales are activated,

2.Whereas if we first book 04X on same sec account and then book the repo on same sec account, we do not get the error BUT Instead of the repo increasing the bond nominal, it decreases it which is not correct, as the direction of the flows should be the same. Example of second scenarion is

deal 1 --book 04X TT 300 on PAS sec account F-ISSU for 1965M ID HWAY20

Deal 2-- book 73A TT200 on PAS sec account F-ISSU for 100T ID HWAY20

Coupon due should be calculated on total of 1965M plus 100T (desired action), but system subtracts 100T from 1965M and then calculates coupon on 1965M minus 100T, any idea why system does this??

REgards

Victor

[Former Member]

Hi Victor,

Since you already selected PAS type its a liability position in the system. TType 200 will be allowed once you have enough liability position to sell (actually decrease the net liability position).

Use TType 100 for increasing your Liability position and 200 for decreasing liability posiiton where you will not get any error message. You may have to create new flows/update type for liability repo transaction as the standard configuration is delivered for repo/reverse repo with Asset Position.

Regards

Prasad AV

[hein_nagel]

Hi Prasad

Thank you for your response, note that when i book the position against a asset sec account AKT, wihout the bond position on same sec account system allows this but does not recognise coupons from 73A TT200 position, this happens both ways for 04I bonds and 04X bonds, only when i have a long 04i tt100 bond position or 04X tt300 position booked on same sec account do i recognise coupons. With your suggestion to create new flow types and update types do you think i will be able to recognise coupons without bond positions? kindly advise on the characteristics/arameters of those flow types any specific i can copy??

REgards

Victor

Edited by: Hein Nagel on Sep 3, 2010 10:34 AM

[Former Member]

Hi,

For repo positions, the coupons are generated if the repo category of repo product is "With Collateral Transfer". If your repo product type is marked with With collateral transfer in define Product types, the coupon should get calculated.

Regards

Prasad AV

[hein_nagel]

Hello

Prasad

We are using 73A Repos with collateral transfer, note that on transaction type 100 where we receive the bond coupons are recognized correctly, the issue comes when we book transaction types 200 where we lend out the bond and receive cash, coupons are not recognised, ONLY if you book on same account with a long bond position for 04i bonds and issued bond 04x the coupons are recognised, we want to get way of booking TT200 without any bond postion but still recognize coupons.

Regards

Victor

[hein_nagel]

Hello

Prasad

We are using 73A Repos with collateral transfer, note that on transaction type 100 where we receive the bond coupons are recognized correctly, the issue comes when we book transaction types 200 where we lend out the bond and receive cash, coupons are not recognised, ONLY if you book on same account with a long bond position for 04i bonds and issued bond 04x the coupons are recognised, we want to get way of booking TT200 without any bond postion but still recognize coupons. Note that we dont mind even to book on akt sec account, as long as we can recognise the coupon.

Regards

Victor