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This course is designed to provide you with the knowledge required to process cash trades through the SFE Austraclear system. You will learn how to enter a trade, rectify or cancel a trade and finally how to authorise and settle a trade. In addition this course will cover queue management, recalling and viewing cash trades and reporting. Once you have reviewed this material you can then take the examination which is comprised of a number of multiple choice questions based on the material contained within the manual and visual demonstrations. (You will need to achieve a score of 70% to pass this course, 90% to gain a distinction).
Definition A Cash Trade is a two sided transaction that requires both the payer and receiver to enter their respective instructions; these transaction details need to be matched by the SFE Austraclear system to effect the settlement. Settlement can be either:
1 Automatic - where the payer has sufficient funds available the system will affect the transfer of funds without intervention by either counterparty, or
2 Manual - where participants set their cash records to a deferred state and selectively process transactions on their settlement queue.
The Cash Trade facility allows participants to pay and receive cash on the SFE Austraclear system, either as a same day transaction or for a future specified date. In this course you will cover:
Entering a cash trade Rectifying or cancelling a trade Authorising a trade Settling a trade Queue management Recalling a trade Viewing a trade Reporting
Cash Trades AClear Education Training Course 2005 Edition
1 From the main menu select Trades>> Create Trade>> Cash.
2 Enter the cash trade details and click Send.
System Rules
1. When you are entering a cash trade the system will match all fields entered by both the payer and the receiver except:
a. Trade Date b. Sub-Participant c. Cash Type d. Information e. Participant Reference
2. Mandatory fields are marked with a red triangle in the top left hand corner. It is essential that the correct information is entered to ensure that your trade is processed successfully.
Field Descriptions
Sub Participant – This specifies your sub participant code through which you have selected the settlement to occur. This is not a matching field. Cash Type – This specifies the payment type relating to the Cash Trade (for information purposes only).
When entering a trade, the SSI field will automatically default to Yes indicating that the cash will settle via the default Cash Record. To select an alternate Cash Record on a transaction by transaction basis, select No in the SSI field and use the drop down list in the Cash Record field to select the required Cash Record.
B. Rectifying or Cancelling a Cash Trade Once you have entered your trade, you have the option if required, to rectify or cancel your entry. Navigation – Rectify a Trade
1 From the main menu select Trades>> View Reported Trades.
2 Search for your trades by entering your search criteria and click Search to return a list of all cash trades to which you are a party.
3 To rectify your transaction, highlight the relevant record and using the right click menu select Rectify Trade Report.
View demonstration Navigation – Cancel a Trade
1 From the main menu select Trades>> View Reported Trades.
2 Search for your trades by entering your search criteria and click Search to return a list of all cash trades to which you are a party.
3 To cancel your transaction, highlight the record and using from the right click menu select Cancel Trade Report.
1 Unmatched transactions may be cancelled and / or all fields may be rectified. 2 Matched transactions may only be cancelled. 3 Paired transactions may be cancelled and the following fields rectified:
a. Sub-Participant b. Cash Record c. Information and Participant Reference
4 Pending Rectification transactions will remain in a Pending status until they are either confirmed or rejected by the counterparty. The transaction will only proceed to settlement once this has happened.
5 Pending Cancellation transactions will remain in a Pending status until they are either confirmed or rejected by the counterparty. The transaction will only proceed to settlement if the cancellation is rejected by BOTH parties.
1 From the main menu select Trades >> View Reported Trades.
2 Specify your search criteria and click Search to view all cash trades to which you are a party.
3 To authorise one transaction at a time, highlight the relevant record and using the right click menu select Authorise Trade Report. Check the details of the trade and if you wish to proceed with the authorisation, click OK.
4 To authorise a number of trades at once highlight the relevant transactions and using the right click menu select Bulk Authorise Trade Report. Check the details of all the trades and if you wish to proceed with the authorisation, click OK.
System Rules
1 The system will not allow you to authorise a trade that you have entered. All trades must be entered and authorised by different users.
2 Cash Trades will be Paired when high level details of the transaction match but authorisation is pending on one or both sides of the transaction.
1 If your Cash Trade is Matched, the system will automatically create a DVP instruction with a settlement status of Accepted and a Settlement Instruction with a state of Matched in preparation for settlement.
2 On the settlement day, the Settlement Instruction will automatically undergo Cash Limits testing and RTGS processing.
3 On completion of the Cash Limits and RTGS processing, the Settlement Instruction state will change to Settled and the Cash Records of both the payer and the receiver will be updated. In addition, the settle status in the DVP Information screen will be updated to Completed.
4 To settle a cash trade manually, set the Cash Record priority to Deferred in order to prevent the system from automatically processing the transaction.
5 All trades with a Deferred status will not progress to the settlement queue until you update the status to either Priority or Active.
E. Checking the Settlement Status of a Matched Settlement Instruction Navigation
1 From the main menu select Settlements>> View Settlements>> Settlement Instructions.
2 Specify your search criteria and click Search to view all Cash Trade settlement instructions settling today.
3 Highlight the relevant transaction and using the right click menu select State History to display details of the settlement processes for that transaction.
System Rules
1 If Cash Limits testing is not complete a state of Waiting in Queue will be displayed as the last state in the State History screen.
2 If RTGS processing is not yet complete, a state of Payment Pending will be displayed as the last state in the State History screen.
F. Queue Management This function allows you to change the priority of Cash Records and Sub Accounts for transactions in the settlement queue. Navigation
1 From the main menu select Settlement>> Manage Queue Priority. 2 Specify your search criteria and click Search to view all transactions waiting
in the queue. 3 Highlight the transaction or transactions to be changed and using the right
click menu select Set Priorities to change the cash record priority to Priority, Active or Deferred.
System Rules
1 Only the owner of the Cash Record can manage the priorities of transactions on the queue.
2 Cash record and Sub Account priorities can be changed on a transaction by transaction basis or in bulk by selecting a group of transactions.
3 Sub-Accounts and Cash Records are assigned one of the following statuses: a. Priority – the highest level available taking priority over all others; b. Active - this status should be given to Sub Accounts and Cash
Records with medium priority. Such transactions will be processed when there are no Priority transactions in the queue
c. Deferred – These transactions will not proceed to Cash Limit Testing or the RTGS queue.
4 Before a transaction can be processed to settlement, the Sub Accounts and Cash Records will require a Priority or Active status.
1. From the main menu select Trades>>View Reported Trades 2. Specify your search criteria and click Search to view all Cash Trades to which
you are a party.
Navigation - View details of a single cash trade
1. Highlight a transaction and right click to view Counterparty Trade Report details (if the counterparty has entered their side), DVP Information, Trade Report History and Properties.
1. From the main menu select Settlement>>View Settlements>>DVP Instructions
2. Specify your search criteria and click Search to view the DVP instructions created by the system for all Cash Trades settling today.
Navigation - View the balance of your Cash Record after settlement has completed
1. From the main menu select Sub Participants>>Cash Records>>View. 2. Specify your search criteria and click Search to view your Cash Records. 3. Highlight record, right click & View Cash Record Transactions for Owner.
1. All Cash Trades which are waiting to be settled appear as follows: a. In the Settlement Instructions screen with a state of Matched b. In the Settlement Obligations screen in a state of Not Settled and c. In the DVP Instructions screen in a state of Accepted
2. Once settlement is completed, the Settlement Instruction state is updated to Settled, the Settle Status of the DVP instruction is updated to Completed and the Cash Records of both parties are updated.
3. All View screens (e.g. View Reported Trades, View Settlement Instructions) are archived for a period of 90 days.
4. You can backdate the Settlement Date/s by up to 90 days to view online the details of historical transactions when entering your search criteria.