1 / 7

Current solution – Cash settlement

Current solution – Cash settlement. Nasdaq. CASH OPTIMIZATION. Member D t o pay -1900 SEK. Member A t o receive 2000 SEK. Member C t o receive 1700 SEK. Member B to pay - 1500 SEK. Current solution – initial Margin. CLIENT01 -1000 SEK. CLIENT02 +400 SEK. CLIENT03 -800 SEK.

leo-price
Download Presentation

Current solution – Cash settlement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Current solution – Cash settlement Nasdaq • CASH OPTIMIZATION Member D to pay -1900 SEK Member A to receive 2000 SEK Member C to receive 1700 SEK Member B to pay -1500 SEK

  2. Current solution – initial Margin CLIENT01 -1000 SEK CLIENT02 +400 SEK CLIENT03 -800 SEK CLIENT04 -2000 SEK CLIENT05 -1200 SEK CLIENT06 -1600 SEK • Member A

  3. Cash optimization

  4. Cash Optimization CLIENT01 -1000 SEK CLIENT02 +400 SEK Nasdaq CLIENT03 -800 SEK CLIENT04 -2000 SEK CLIENT05 -1200 SEK CLIENT06 -1600 SEK • Member A • Total initial margin + cash settlement: • -3000

  5. Overview • CASH OPTIMIZATION • Use one flow (per currency) for cash settlement and margin • Positive cash settlement is used to cover initial margin requirement • Surplus cash collateral on custody account (in instrument currency) is used to cover cash settlement requirement • Direct debit created (per currency) only if: • there after subtraction of positive cash collateral is still a daily cash settlement requirement (per currency) • there is a total collateral deficit on the account in the base currency • Credit instructions are created for the custody account (with same day value) if there is a total collateral surplus in the base currency after the daily cash settlement is finalized – the credit instruction can include both cash collateral surplus withdrawals and specific call backs of excess cash collateral

  6. Updated Daily cycle • CASH OPTIMIZATION Day 1 Day 2 20:00 CET Daily cash settlement calculation ready 10:30 CET Final end of day margin call 21:30 CET Cash optimization calculation ready 19:45 CET All markets closed 21:00 CET End of day margin requirements ready 09:00 CET Direct debits are sent for daily cash settlement requirements and cash collateral deficits 14:00 CET Credits are sent for positive daily cash settlement and cash collateral surplus

  7. Techincal impact • CASH OPTIMIZATION

More Related