Releasing Positions

Once you have entered an external account statement or uploaded it from an Excel file, you can release the account statement positions.

You specify the type of margin statement that you want to create in the master data for external accounts (transaction TREA_ACC_MNT). If you opt for a margin statement in the form of a margin balance overview, you can only ever reverse the last margin statement. You need to delete any existing account statements that have not been processed yet (status: Not Processed) before you can reverse the preceding margin statement. This rule is necessary because the margin flows of a margin statement are calculated on the basis of the preceding margin statement.

If you opt for a margin statement that is not a margin balance overview, you can reverse margin positions in any sequence.

When the positions are released, the system generates flows for them that update the position components of the clearing account position.

The following flows are generated:

Case A: Net payment for flows on the clearing account position

In this instance, the flows are generated as follows:

A flow is generated for each position for initial margins and transaction-independent fees.
For variation margins and transaction-dependent fees, a flow for each position is generated for the respective assigned position, and, for the clearing account position, an aggregated flow is generated for both variation margins and for transaction-dependent fees.

Example

Customizing setting under Specify Update Types for Central Counterparty Clearing

Update Type	Flow Category	Relevant for Aggregation
EA_INI-	Initial Margin Outgoing	X
EA_MTI-	Negative Variation (Transaction-Independent)	X
EA_MTM-	Negative Variation Margin	X

Position of an External Account Statement

Update Type	Transaction	Amount	Posting Release Status	Payment Release Status
EA_INI-		1000	Not released	Not released
EA_MTI-		100	Not released	Not released
EA_MTM-	Transaction 1	50	Not released	Not released
EA_MTM-	Transaction 2	50	Not released	Not released

Flows Generated After Releasing the Positions

Position Context	Transaction	Update Type	Amount	Relevant for Posting
CLP		EA_INI-	1000	X
CLP		EA_MTI-	100	X
CLP		EA_VM-	100
ASP	Transaction 1	EA_MTM-	50	X
ASP	Transaction 2	EA_MTM-	50	X

Position Components on the Clearing Account Position

Component	Description	Amount
1001	Initial Margin	1000
1002	Variation Margin	200
2001	Initial Margin Open	1000
2002	Variation Margin Open	200
2003	Other (such as Fees) Open	0
8000	Clearing Payment	0
9000	Total Open	1200
9001	Total Margin Open	1200

Case B: No Aggregation of Flows on the Clearing Account Position

For the transaction-independent positions, the system generates a posting-relevant flow that is entered in the clearing account position.
For positions that can be assigned to one financial transaction, two flows have to be generated. First, a posting-relevant flow that is entered in the assignment position, and second a payment-relevant flow that is entered in the clearing account position.

Customizing setting under Specify Update Types for Central Counterparty Clearing

Update Type	Flow Category	Relevant for Aggregation (Indicator)
EA_INI-	Initial Margin Outgoing	Yes/no
EA_MTI-	Negative Variation (Transaction-Independent)	Yes/no
EA_MTM-	Negative Variation Margin	Yes/no

Update Type

Flow Category

Relevant for Aggregation

(Indicator)

EA_INI-

Initial Margin Outgoing

Yes/no

EA_MTI-

Negative Variation (Transaction-Independent)

Yes/no

EA_MTM-

Negative Variation Margin

Yes/no

Position of an External Account Statement

Update Type	Transaction	Amount	Posting Release Status	Payment Release Status
EA_INI-		1000	Not released	Not released
EA_MTI-		100	Not released	Not released
EA_MTM-	Transaction 1	50	Not released	Not released
EA_MTM-	Transaction 2	50	Not released	Not released

Flows Generated After Releasing the Positions

Position Context	Transaction	Update Type	Amount	Relevant for Posting
CLP		EA_INI-	1000	X
CLP		EA_MTI-	100	X
CLP	Transaction 1	EA_VM-	50
CLP	Transaction 2	EA_VM-	50
ASP	Transaction 1	EA_MTM-	50	X
ASP	Transaction 2	EA_MTM-	50	X

Position Components on the Clearing Account Position

Component	Description	Amount
1001	Initial margin	1000
1002	Variation Margin	150
2001	Initial Margin Open	0
2002	Variation Margin Open	0
2003	Other (such as Fees) Open	0
8000	Clearing Payment	0
9000	Total Open	0
9001	Total Margin Open	0

Following the release, you can post the posting-relevant flows using the Post External Account Flows function.

The payment of flows is made as follows:

Case A
You generate a net payment. See also: Creating Net Payments
Case B
When you post the flows using the Post External Account Flows function, the payment requests for the payment-relevant flows are also generated. You only now need to start the payment run.

Procedure

Under External Accounts External Account Statements , call function Release Positions (transaction TREA_RELEASE).
You can select the flows to be released based on the following criteria:
- Company Code
- External Account
- Date
Set the Releasable Positions Only checkbox so that you only select the flows that have not yet been released.
You can perform the function as a test run first.
Choose Execute. The Release Statement Positions screen appears.
To display the margin values calculated for individual position components in the position currency and local currency, choose Detail. The position components are as follows:
- Initial Margin / Variation Margin: Margin positions without considering margin limit calculation (note: Fees are always cleared automatically)
- Open margin positions after performing margin limit calculation; the position is cleared when the payment is initialized
- Open total: Total of all open positions
- Open total per margin: Total open positions for initial margin and variation margin
/Release Statement Items (Test Run).
Select the position to be released and choose Execute.
The flows are generated. The flows in the external account statement receive the posting and payment release status Released.