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Where to enter the Clearing House/Partner in a Securities Trade

Former Member
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Hi,

When we enter into a Purchase transaction (entered in Securities module) with a counterparty for purchase of listed securities, the seller tells how the settlement takes place and through which clearing house. Accordingly we have to send settlement instructions to our Custodian in MT541.

For example if the settlement is through EUROCLEAR  the counterparty will say that we have to send their EUROCLEAR account number (5 digit account #)while sending the payment. This has to be passed to on to our custodian in MT541.

For this purpose how should we enter the clearing House/partner name in the transaction? Is there a field where we can enter, while creating a transaction in FTR_CREATE where we can enter the clearing house name. Does the system read this and find out the correct Settlement instruction (which is createdin FTR_SI_DERIVE t-code) accordingly?

Any help is appreciated.

Kalyan

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Answers (1)

Answers (1)

lisa_savinovich
Active Participant
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Hi Kalyan,

There a few ways to default bank information.

1) Tcode TRS_SEC_ACC => It can be part of the Bank Data tab for the Securities Account

2) Tcode BP = > In the company code data of the business partner, you can default bank data on the SI: Payment Details.

Lisa

Former Member
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Hi Lisa,

Thanks for your response. But in the both the options suggested by you we can have only one set of instructions. Let use take both the options separately.

1) Tcode TRS_SEC_ACC => It can be part of the Bank Data tab for the Securities Account

The default bank information created in the Securities account created using t-code TRS_SEC_ACC is specific to this Securities Account. But the 5 digit EUROCLEAR account # of each Business Partner changes - I mean each Counter party has its own  5 digit EUROCLEAR account #. So we cannot store that in our Securities Account using TRS_SEC_ACC.

2) Tcode BP = > In the company code data of the business partner, you can default bank data on the SI: Payment Details.

In SI:Payment details, we link our House Bank details with the partner (counter party) bank details. I am not sure whether this information will be used  because in case of Securiites we do not make payment directly to the counter party. We just instruct the custodian to make the payment via the MT541 message. So I am not sure the system will even look at this information.

Secondly we can maintain only one set of information here to default for a specific product type. But the information will change depending upon each clearing house we use - I mean the if the clearing house used is EUROCLEAR then we need the 5 digt account number, if we use DTC as the clearing house for the same counter party, then the reference is not the 5 digit EUROCLEAR  number, it is different information which is to be supplied in MT541. Similarly if the clearing is through Fed Wire the information to be supplied to the custodian in MT541 is totally different.

Hence my question. I think the FTR_SI_DERIVE is for this purpose. But I am not sure how it gets linked to the transaction and where in the transaction we can enter the clearing house (DTC/EUROCLEAR/FED WIRE) name.

Appreciate your help.

Kalyan