VOLUME 20 - BULLETIN #236
TO:
|
ALL CLEARING MEMBERS
|
FROM:
|
BUSINESS SYSTEMS GROUP
|
DATE:
|
August 8, 2000
|
SUBJECT:
|
Original Margin Collateral Processing Changes
|
Effective Friday, August 11, the Board of Trade Clearing Corporation is converting to a new original margin collateral management system. In conjunction with this systems conversion, certain business practices and reports will be modified. This bulletin explains those modifications.
Original Margin Cash Releases
The minimum amount of any cash released by the Clearing Corporation will be $1,000 and all releases will be in increments of $1,000 up to the total amount of excess cash being held for the member by the Clearing Corporation (by origin).
Letters of Credit – New Deadline for Extending or Posting Replacement LOCs
Members will have until 3:00 p.m. the day prior to the expiration date of a letter of credit ("LOC") to post a new LOC to replace the expiring LOC (or to post an amendment extending the expiration date of the expiring LOC). If the replacement LOC or the amendment has not been received by the 3:00 p.m. deadline, then the Clearing Corporation will remove the existing LOC from its margin collateral system. Accordingly, an expiring LOC that has not been extended will be valued at zero for margin purposes on its expiration date. (Note: The Clearing Corporation will continue to hold the expiring LOC, with the right to make demands for payment, through its expiration date.) All other letter of credit deadlines and procedures remain unchanged. In order to implement this change, all Clearing Corporation reports will now show new and amended LOCs as maturing one business day prior to the expiration date of the actual letter of credit.
Reports
Some Infopac reports will have minor changes as noted:
OMR00002 – Revaluation of Securities - Securities will be listed by total par value per CUSIP. The report will no longer list each lot of each CUSIP.
OMR00011 – Securities Held by Firm – Securities will be listed by total par value per CUSIP. The report will no longer list each lot of each CUSIP.
OMR00022 – Security Price Update Report – The report will only show the CUSIP of the received securities. Fixed income securities will no longer be listed as priced in 32nds. All securities will be priced to three decimals. Security type FGN (Foreign Sovereign Debt) will now be FGNSV.
If you have questions regarding any of these changes, please contact the Treasury Operations department at (312) 786-3860, or call or e-mail one of the following Business Systems Analysts:
| 
Printer
Friendly Version