A.1.30.2 Trade Transaction
Trade monetary transaction is posted by external origination system to Trade and transfer equity from an existing (old) Account to new Account. This transaction implicitly posts Equity-In transfer and Equity-Out transfer transactions on new and old accounts respectively.
Following are the different types of Trade transactions supported:
Table A-55 Trade Transactions
| Type | Description |
|---|---|
| Upgrade | In this case, one existing (old) Account is upgraded to new Account. |
| Split | In this case, one existing (old) Account is upgraded to multiple new Accounts. |
| Combine | In this case, multiple old Accounts are upgraded to one new Account. |
Table A-56 To post Trade transaction
| Transaction | Parameters |
|---|---|
| TRADE | TXN DATE |
| PROCESS MASTER ACCOUNT | |
| PROCESS LINKED ACCOUNT | |
| VALIDATE COMMON CUSTOMER | |
| COMMENT |
While posting the transaction,
- If PROCESS MASTER ACCOUNT is selected as YES, then Trade transaction is automatically posted to corresponding Master Account.
- If PROCESS LINKED ACCOUNT is selected as YES, then Trade transaction is automatically posted to corresponding Linked Accounts.
- If VALIDATE COMMON CUSTOMER is selected as YES then system validates for a common customer between existing (old) and new account. If not, displays an error.
Note the following:
- Before processing actual trade transaction, Trade Equity is computed and updated in ACC_EQUITY_AMT.
- If Trade transaction is posted on Accounts where Trade Equity is zero, then system considers those as Non-Equity Based accounts.
- As part of Trade process if Trade Eligible flag is set to N for an Asset, then that particular Asset Status is marked as ACTIVE. Else, asset status is updated to INACTIVE.
Trade transaction will be posted Only if the resultant value of following 3 are similar:
- Sum of Equity in itemization of new Accounts
- Sum of Trade Equity of existing (old) Accounts
- Sum of Equity Transfer Amount in Trade Details
In case of mismatch in any one of above, Trade transaction is not posted and instead TRADE MISMATCH transaction is automatically posted by the system with same transaction parameters on the existing (old) account along with a condition - EQUITY MISMATCH DURING TRADE.
In addition,
- During the Trade transaction, a linked Equity Out Transfer Transaction is posted on existing (old) Account to transfer Equity to new account.
- Adjustment minus transaction is posted for all open balances on traded (old) Account to mark the outstanding amount as zero.
On successfully posting of Trade transaction,
- A Comment is posted on existing (old) account in the format ACCOUNT TRADED ON <DATE> WITH TOTAL TRADE EQUITY <VALUE> WITH <TRADE FIX REASON> AND <COMMENT>
- Account status is updated as TRADED.
Parent topic: Trading of Accounts - Monetary Transactions