1. Secondary Loan Trading
  2. Processing an SLT Contract
  3. Introduction
  4. Specifying Contract Details

4.1.3 Specifying Contract Details

You can specify the following details related to the contract, in Trade Online screen.

Table 4-4 Contract Details

Field Description
Counterparty Select the unique identification of the counterparty involved in the trade deal from the option list. The list of all valid customers is displayed from which you can select the counterparty.

Note:

The buyer or seller should be an existing customer of your bank.
Currency Select the currency to be associated with the tranche from the option list provided.
Trade Amount Specify the tranche amount that you want to buy or sell. The amount you specify here should not exceed the total amount for the tranche.
Trade Price Specify the price at which the trade transaction is being carried out.
Original Trade Amount The trade amount specified at the time of booking the contract gets displayed. Original trade amount is not impacted by any further amendments to the trade amount. This is used for calculating the broker fee involved in the trade.
Type Select the contract type from the options available. The type of contract is not considered while processing the trade.
Quotation Select the type of quotation to be associated with the trade, from the drop-down list. The following options are available:
  • Flat – Delayed compensation fee is not computed for deals booked under this quotation method, even if there is delay in settlement.
  • SWOA - Delayed compensation fees is computed from the expected settlement date(T+7 or T+21).
PIK Amount Specify the PIK portion associated with the funded amount for the trade.
Buy/Sell Indicator Select Buy option to indicate that the related trade is a buy transaction or select Sell to indicate that it is a sell transaction.
Trade Type Select the type of the trade from the drop-down list. The options available are as follows:
  • Customer Trade
  • Line Accommodation
Deal Type Select the type of the trade deal from the drop-down list. The following options are available:
  • Assignment – where bank is directly involved in the trade.
  • Participation – where bank is silently participating in the trade.
Commitment Reduction Amount Specify the amount indicating a reduction in the commitment amount for the tranche.
Commitment Reduction Price Specify the commitment reduction discount/ premium price for trade booking and trade amendment. You cannot amend Commitment Reduction Price alone as part of commitment reduction amendment.

Note:

Commitment Reduction Price in the Draft Input screen cannot be amended as part of any normal amendment.
Collateral % Specify the collateral percentage.
Transfer Price The system displays the price entered while processing the associated HFS transfer as part of PRAM in the LB module. This value is displayed only for trades processed as part of HFI to HFS transfer.
HFS Transferred Cost Basis The system displays the lowest of LOCOM Carry Value and Transfer price, and displays it here for internal sell trades processed as part of HFI to HFS transfer.

Parent topic: Introduction