Process Reinvest Collateral Coupon for Buy Sellbacks and Sell Buybacks

In the Global Process workspace's Reinvest Collateral Coupon Processing panel, you can process a Buy Sellback or Sell Buyback globally. This panel processes Underlying Collateral Coupon Reinvestment corporate action announcements for BSB/SBBs that have a corporate action status of Released.

Before you perform global processing for BSB/SBB trades, review the following guidelines:

• To ensure earnings are correctly posted, the corporate actions for processing coupon adjustments must be started successfully prior to running earnings. Typically, the global process for the corporate action processing is included in the Beginning of Day schedule. However, you must check Automation Center's Exceptions workspace to ensure that close events did not fail due to errors.

• In the case of overnight Buy Sellback and Sell Buyback trades where the underlying coupon is due on the maturity, that is, end date, the maturity can be processed long before you get a chance to create a corporate action. This can happen if trades are loaded as part of an end of day batch and maturities are processed as part of a beginning of day run schedule. In such a scenario, the system rolls back and replays the maturity when corporate actions for adjusting the underlying coupon is entered on the next day and the global process for executing the corporate action is run.

• The trade date and settlement date of the close event that was created to account for the underlying coupons is set to the ex-date or, coupon date, if that date is not a holiday, or to the next business date if the ex-date or, coupon date, is a weekend/holiday.

• If there is no coupon expected to be due during the term of a Buy Sellback or Sell Buyback deal, there is no need to create corporate actions for the reinvestment of the underlying collateral coupons.

To process a Reinvest Collateral Coupon globally for a BSB/SBB position:

1. In Accounting Center, in the left navigation pane, click Processing and Exceptions > Global Processes.
   You see the Global Process workspace.

2. In the left navigation, click Corporate Actions > Reinvest Collateral Coupon Processing.
   You see the Reinvest Collateral Coupon Processing panel.

3. Complete the options on the Reinvest Collateral Coupon Processing panel.

4. Click Submit.
   The system processes the corporate actions that met your global processing criteria. It processes mandatory corporate actions that have a status of Released. When processing completes, the Global Process workspace displays the results of the job.

When the global process starts, the system generates a close event. It does this to reduce the contract payable or contract receivable by the coupon amount of the underlying collateral security, depending on whether it is a Sell Buyback or Buy Sellback position. For a Buy Sellback position, the system creates an MTCLOSE/SELL event. For a Sell Buyback, it creates an MTCLOSE/BUYCVR event.

You can run reports to check the position or ledger entries or can review your results in Position Viewer. You can see transactions with a REINVEST_COLLCPN Event Type and a Corporate Action Type value for Buy Sellback Sell Buyback in the Cost object's Close Lots tab.