Function documentationDefine Default Values for Risk Mitigation Indicator

 

In the calculations for the clearing threshold report, the system does not consider derivative financial transactions that you have concluded to mitigate risks. The Risk Mitigation indicator is set on the Administration tab in the financial transaction data.

You use this function to define rules controlling the automatic selection of the Risk Mitigation indicator when financial transactions are created.

If this indicator is set automatically for a financial transaction for which the indicator did not need to be set, you can correct this manually in the financial transaction data.

Activities

  1. Choose Start of the navigation path Transaction Manager Next navigation step Information System Next navigation step Reports Next navigation step Reporting Next navigation step Clearing Threshold Reporting (CTR) Next navigation step Define Default Values for Risk Mitigation Indicator End of the navigation path (transaction FTR_THRESHOLD_RM_DER).

  2. Choose New Entries.

  3. You can use the following criteria to define the rules:

    • Company Code

    • Product Category

    • Product Type

    • Transaction Type

    • Counterparty

    • Commodity ID

    • Portfolio

    At the end of a line, you can set the Risk Mitigation indicator. If you set this indicator for a line, the system sets the Risk Mitigation indicator for all new financial transactions that correspond to the selected criteria, unless there is a specific entry in the table preventing the Risk Mitigation indicator from being set for a particular transaction.

  4. Save your entries.