Acadia Interest Manager
The Interest Manager window displays interest bearing trades and information related to those trades.
All interest-bearing trades generated for Collateral are displayed in the Interest Manager, so the user has one point of entry regardless of whether Acadia interest or non-Acadia interest is being managed.
NOTE: This functionality does not include gross interest statements, disbursement types that are not cash and non-interest-bearing trades and no match.
Ⓘ When using interest statements, be sure to set acadia.intereststatement.message.version=4.0 in your calypso_acadia_config.properties file. If not using an interest statement, set interest.polling.interest.enabled=falseand the polling url should be empty in your acadia.polling.properties file.
Overview of Acadia Interest Statement Process
Pairing of Statements
Pairing is done by Acadia.
Statements are paired on the following fields:
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Call type - Initial, Variation or Netted |
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Agreement type - CSA or Regulatory CSA |
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Role - Pledgor or Secured |
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Party Receiving Payment |
In case of an unpaired Statement, the following can be done:
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View and compare the unpaired statement with the counterparty's unpaired statements |
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Dispute counterparty statements with reason code and comment |
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Cancel your statement if an error is found |
Match and Mismatch
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Party Receiving Payment |
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Ending Collateral Balance (if elected) |
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Clients can set matching tolerances for Payment Amount by currency |
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Clients can bilaterally agree to use Ending Collateral Balance |
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Clients can set matching tolerances for Ending Collateral Balance by currency |
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If two parties have different tolerances, the smaller tolerance (more conservative) is used |
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If a party does not set a tolerance, exact match is required |
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Exact match required on Party Receiving Payment |
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Exact match required on Disbursement Type |
User can view and compare their statements with the counterparty's statements
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Differences in matching fields highlighted in red |
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Daily item comparison screen shows differences in red |
Collateral Balance
Movement
Rate and Spread
Daily Interest
Accrued Interest
From Mismatched, users can:
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Amend - Modify values on current statement; Send statement through matching logic again |
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Cancel - Cancel the statement; Counterparty's statement becomes unpaired |
NOTE: The actual pairing/matching keys are determined by Acadia and depend on specific agreement characteristics. The actual keys may vary depending on a user's specific setup.
1. Interest Manager
The Interest Manager Window displays the Interest Bearing trades in the results panel and information related to those trades below, in a set up similar to Collateral Manager. The window is displayed by choosing from Calypso Navigator. (refdata.collateral.InterestManagerDesktop)
All interest bearing trades generated for the Collateral module are displayed in this manager so that the user has one point of entry, regardless of whether Acadia or non Acadia interest is being managed.
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The Interest Config Filter area allows the user to filter by: |
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The Results panel displays the interest bearing trades. In this area, the columns from the Trade Browser reporting are available. |
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Upon selecting an interest bearing trade in the Results panel the daily entries of that trade are displayed in the daily entry Account Interest Config panel with the: |
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By selecting an Interest Bearing Trade and clicking on: |
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MCC Config - The associated Margin Call contract will be opened. |
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Account Config - The Account Definition window of the account linked to the trade will be opened. |
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Action - All available actions that can be performed on the existing status of the trade as per its workflow will be displayed and can be applied accordingly. |
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There is a Reconciliation panel that can be used to trace and compare Processing Org and Counterparty information. |
This tab can be loaded independently from the Result tab. In this case, all reconciliation entries are displayed for the selected date range. The incoming unpaired messages are displayed (with trade Id = ) that the PO can dispute by applying the action IB_DISPUTE.
To generate reconciliation entries, the workflow rule "UpdateIBReconciliationDetails" must be added to every transition from which the reconciliation entries are to be generated. All the original statuses on which this workflow rule is applied, must then be added to the domain value "acadiaInterestBearingValidStatus".
A second Reconciliation panel is available which displays the information vertically.
When selecting a specific trade, the Reconciliation panel displays with information such as:
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the party receiving the payment |
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contractual settle date |
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ending collateral balance |
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current period interest amount |
Similar to Collateral Manager's Notification panel, the information available in the Interest Notification panel, the information available will contain all of the information that can be loaded in a message report.
On selecting the Transfers and Settlements tabs, all the relevant information about the transfers and settlements associated with the selected Interest Bearing trade will be displayed.
Transfer and Settlement statuses can be modified by right clicking a trade settlement and updating its status by applying the required ACTION.
2. Interest Details in Margin Call Contract
In the Margin Call Contract panel, there is an Interest section that is used to designate if the contract is using the Interest Statement functionality.
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If Enable Interest Statement is selected, Acadia interest statements are generated for the interest bearing trades linked to the Margin Call Contract. If it is not selected, the potential interest bearing trades linked to this Margin Call Contract will not generate interest statements. |
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If Include daily entries while generating interest statement for ACADIA is chosen, Acadia interest statements will include daily entries. |
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ON the Acadia side, the user needs to set up interest in the following way: |
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Net Interest Payment = ON , meaning one message is sent for the net amount. (When it is disabled one message is sent for gross positive and one for gross negative.) |
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Match Ending Collateral Balance = ON or OFF |
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All other attributes = OFF |
Fields propagated to Interest Bearing trade
The following information is propagated from the Margin Call Contract to the Interest Bearing trade:
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MarginAgreementShortName |
2.1 Adding an Account to the Margin Call Contract
An Account should be added to the margin call contract in the Eligible Currencies section. Create an account in the Account Definition window ().
Account Definition Window
Margin Call Contract - add account
3. Trade Workflow
Ⓘ The InterestBearing trade workflow needed for Interest Manager is uploaded when CollateralWorkflowSchemaData is added when running Execute SQL.
Please remove the following transitions from the InterestBearing trade workflow as these are not valid.
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PAYMENT_NOTIFIED - IB_CANCEL - VERIFIED |
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RECEIPT_NOTIFIED - IB_CANCEL - VERIFIED |
They are removed as of version 18 May monthly release..
3.1 Specific Workflow Actions
These actions can only be applied from the Interest Manager, not from the trade window.
Notify
The Notify action should be done when the end date of the trade has been passed.
PO Trade actions with pop-up message
When applying the action IB_CANCEL on a trade, the user is required to provide certain pieces of information.
If the user selects the action IB_CANCEL, meaning the create interest statement will be canceled, a pop-up message appears where the user needs to select a cancel reason and an optional cancel comment.
Additionally, when applying the action IB_DISPUTE on a trade, the user must provide certain information. When IB_DISPUTE is chosen, a pop-up window appears for the user to enter a dispute reason and optional comment.
The cancel and dispute reasons are:
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Description |
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9000
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Unknown Business Error
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9701
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Payment Amount Discrepancy
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9702
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Party Receiving Payment Discrepancy
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9999
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Other
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4. Transfers
An Interest Bearing transfer is generated when the trade is in VERIFIED status. This is the default behavior. The transfer stays in PENDING status until the trade goes to FINALIZED status.
5. Messages
The Acadia Interest messages setup is automatically created upon installation.
5.1 Workflow
Outgoing Messages
This is the Acadia Interest Statement specific workflow.
Incoming Messages
An additional message subtype, ACADIA_INTEREST_INCOMING, manages incoming messages from the Acadia Interest API.
The DISPUTE action is only possible on a counterparty incoming message that cannot be paired by Acadia. In this case, the PO can dispute the message. The action is applied on the message itself. Upon selecting DISPUTE a pop-up message appears where the user needs to select a dispute reason and an optional dispute comment.
The dispute reasons are:
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Description |
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9000
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Unknown Business Error
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9701
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Payment Amount Discrepancy
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9702
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Party Receiving Payment Discrepancy
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9999
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Other
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6. Outgoing Messages
6.1 Create Interest
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Direction is PAY or RECEIVE. |
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Message type is create.intereststatement.api.acadiasoft.com. |
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Business State is <amp:businessState>Received</amp:businessState>. |
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If the agreement has interest enabled on the margin call contract (Details > Acadia Details> , when the Notifiy action is applied, the createinterestsatement message is generated. |
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Both the PO and CP (the payer and receiver) must send an interest statement which Acadia will pair. The PO messages are generated on these two transitions: |
VERIFIED- NOTIFY - PAYMENT_NOTIFIED
VERIFIED - NOTIFY - RECEIPT_NOTIFIED
6.2 Amend
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Direction is PAY or RECEIVE |
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Message type is amend.intereststatement.api.acadiasoft.com. |
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Business State is <amp:businessState>Unpaired</amp:businessState>. |
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The PO can only amend an Interest Statement generated by the PO and vice versa. |
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The AMEND action is the workflow transition |
6.3 Finalizing Interest Statement
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Message type is finalize.intereststatement.api.acadiasoft.com. |
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Business State is <amp:businessState>Matched Final</amp:businessState>. |
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Only the Payer can define the settle date. If the PO is the payer of interest and the settle date has not be provided, the PO must define it. |
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The workflow transition is DELIVERY_PENDING_VALUE_DATE - FINALIZE - FINALIZED |
6.4 Disputing Interest Statement
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Direction is PAY or RECEIVE |
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Message type is dispute.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Disputed</amp:businessState> |
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PO can dispute an incoming unpair message sent by the CP by applying action IB_DISPUTE |
6.5 Canceling an Interest Statement
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Direction is PAY or RECEIVE |
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Message type is cancel.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Cancelled</amp:businessState> |
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You can only cancel your own outgoing Interest Statement. This can be done at various stages in the workflow: |
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PAYMENT_INTEREST_AMENDED |
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RECEIPT_INTEREST_AMENDED |
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The workflow transition action is IB_CANCEL - This action can only be applied from the Interest Manager (not directly from the trade) |
7. Incoming Messages
7.1 Unpaired Messages
There are two possibilities with Unpaired messages:
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Calypso receives an unpaired response to an outgoing interest statement sent out by Calypso. In this case, the UNPAIR action is applied and the trade will move to DELIVERY_UNPAIRED or CALL_UNPAIRED. |
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Calypso receives an unpaired message following a counterparty interest statement that cannot be paired. In this case, the message follows the message workflow transition NONE - UNPAIR - UNPAIRED. The user will then be able to view the messages in the Message Report or in the Interest Manager > Reconciliation tab with trade Id = 0. |
7.2 Create Interest
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Direction is PAY or RECEIVE |
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Message type is create.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Received</amp:businessState> |
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Both the PO and the CP (payer and receiver) must send an Interest Statement which Acadia will pair. |
7.3 Amend
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Direction is PAY or RECEIVE |
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Message type is amend.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Unpaired</amp:businessState> |
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The counterparty can amend their message, which can lead to either: |
7.4 Finalizing Interest Statement
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Message type is finalize.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Matched Final</amp:businessState> |
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Only the payer can define the settle date, if the Finalize Interest Statement is incoming, it means that the PO is receiving collateral. |
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The workflow transition RECEIPT_PENDING_VALUE - FINALIZE - RECEIPT_FINALIZED |
7.5 Disputing Interest Statement
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Direction is PAY or RECEIVE |
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Message type is dispute.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Disputed</amp:businessState> |
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The counterparty can dispute the Create Interest Statement if it is in UNPAIRED status, the trade will move to a _DISPUTED status |
7.6 Canceling Interest Statement
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Direction is PAY or RECEIVE |
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Message type is cancel.intereststatement.api.acadiasoft.com |
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Business State is <amp:businessState>Cancelled</amp:businessState> |
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A counterparty can cancel their message, which brings the message back into an UNPAIRED status. |
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