Reselection of Transactions 

Use

The reselection of transactions is triggered when, during the analysis of collateral items, the basic set of data contains the financial object of a single-transaction-related collateral item but not the financial object of the transaction to which the collateral is assigned. The following conditions apply for the reselection of transactions:

...

      1.      The collateral assigned to the transaction must already be in the basic data set.

      2.      The valuation date must be within the term of the financial object of the transaction. This is because collateral is not effective for a transaction that has already expired.

Only those transactions are reselected that are not in the selected basic set because the field for the counterparty/issuer risk or country risk is inactive.

Example

The following example explains which conditions have to be met in order for the system to be able to reselect a transaction. We assume here that the determination procedure is one relevant for counterparty/issuer risk.

Determination procedure for counterparty/issuer risk

Case

1

2

3

4

5

6

7

8

9

 

Financial object of the collateral item is activated for counterparty/issuer risk				X	X		X	X	X
Valuation date is within term of financial object					X	X	X	X	X
Collateral is active in the master data						X	X	X	X

 

Collateral is in the selected basic set

X

X

X

 

Financial object of the transaction is activated for counterparty/issuer risk	X	X						X	X
Valuation date is within the term of the financial object of the transaction	X		X	X	X	X	X		X

 

Transaction is in the selected basic set

X

X

 

Transaction is reselected

X

As you can see in the table, the reselection of a transaction takes place in case 7 only. This case fulfills all the conditions required for reselection.