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You can use the Create Investment Disclosures panel to pledge a security as derivatives collateral on Schedule DB Section D Part 1 and/or the Schedule DB Section D Part 2.

To assign a lot for the security to the DB-D schedules:

1. In Accounting Center, in the left navigation pane, click Setup > Insurance > Investment Disclosures > Create Investment Disclosures.
   You see the Create Investment Disclosures panel.

2. In the Open Event ID box, select the Open Event ID of the lot to be designated.

3. In the Investment Disclosure Type list, select Collateral.
   You see the Collateral Designation Info section.

4. In the Schedule Type list, select Schedule DB.
   You see the DB Collateral Info section.

5. In the Type of Asset list, select the asset type.
   Options include:
   - Cash. If Cash, no additional asset information is required and the panel hides the issue fields in the Asset Info section from data entry.
   - Treasury.
   - Corporate.
   - Municipal.
   - Loan-Backed and Structured.
   - Mortgage.
   - Other.

6. Under DB Collateral Info, you can complete the options, as follows:
   - In the Pledged To/From box, select whether the asset is pledged by or pledged to the reporting entity.
   - Select whether the collateral relates to an exchange, central clearinghouse, or a counterparty.
   - Enter the LEI. Use the 20-character legal entity identifier for the exchange, central clearinghouse, or counterparty.
   - Set Type of Margin. Options include: Initial Margin, Variation Margin, and Both.
   - Enter the Collateral Share Quantity, if applicable.

7. Complete the remaining options on the panel.

8. Click Submit.

For Derivatives Collateral Pledged from a counterparty, exchange or central clearinghouse to the entity, the entire lot is designated as collateral and cannot be partially pledged. To enforce this behavior, on the Create Investment Disclosures panel:

• You cannot modify the Units field value if you set the Investment Disclosure Type field to Collateral, set the Schedule Type field to Schedule DB, and set the Pledge To/From field to Pledged to the Entity.

• You can partially allocate lots to a counterparty, exchange, or central clearinghouse when you set the Pledge To/From field to Pledged by the Entity. The lots display on Schedule DB-D-2.

A collateral pledge related to a counterparty, exchange, or central clearinghouse displays on both Schedule DB-D-1 and Schedule DB-D-2 for lots assigned as collateral pledged with Pledge To/From set to Pledged by the Entity.

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