GLR supports various workflows for applying Limits & Conditions to agreements, and distributing notifications to counterparties detailing the applied limits and/or conditions. Limits & Conditions may be applied to all Standard and LME templated agreements, however are not available for EFP templates. The following workflows detail applying limits and conditions via the Limits & Conditions Center, and may be used to update single or multiple agreements based on agreement selection. Limits and Conditions may also be added directly through the Agreement page, detailed here.
- Issuance of Product Specific Exclusions
- Issuance of Numerical Limits (Daily Contracts or Daily Initial Margin) – User Interface
- Issuance of Numerical Limits (Daily Contracts or Daily Initial Margin) – Excel Update
- Party-level Limit & Condition defaults
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Permissioning Users as Limits & Conditions Composers
Prior to applying Limits & Conditions to agreements, users must be permissioned as Limits & Conditions Composers, which may be completed by Party Admins, detailed here.
Issuance of Product-Specific Exclusions
The system currently supports preset product exclusions for various products, either directly within an Agreement, or via the Limits & Conditions Center.
1. While logged in as a Limits & Conditions user navigate to the Limits & Conditions> Limits & Conditions Center.
2. Within the Limits & Conditions Center, select the desired agreements for your exclusion, using the various filters for specific parties and/or GUA IDs, or use ‘Select All’ to apply or revoke exclusions to all GUAs with all counterparties.
3. Once agreements have been selected, the Bulk Edit pane will appear on the right of the page.
- If you have used the 'Select All' option, or selected specific counter parties or specific GUAs, within the Bulk Edit pane, select “Add/Remove Exclusions”. This will open the product-specific exclusions sections in the screenshot below. Select “Exclude” for each of the products that you would like to exclude via section, or "Remove Exclusion" to revoke the selection. Select the “Publish” button on the bottom right to publish these changes.
4. You will then receive a confirmation message recapping the products to be excluded. Select “Publish” to proceed with sending notices of the exclusion, and application the specified agreements.
5. The exclusion will then be displayed within each affected agreement within the Limits & Conditions workstream, as well as within the Limits & Conditions Center in the Product Exclusions column.
Issuance of Custom Conditions
1. While logged in as a Limits & Conditions user, navigate to the Limits & Conditions> Limits & Conditions Center.
2. Within the Limits & Conditions Center, select the desired agreements for your exclusion, using the various filters, or ‘Select All’ as needed.
3. In the Edit Limits & Conditions pane, Select “Edit Conditions”, populate the the Custom Conditions field with your desired language. Select “Publish”
Issuance of Numerical Limits (Daily Contracts or Daily Initial Margin) - UI
In addition to preset Product Exclusions, firms may also set limits to Daily Contract agreements or Daily Initial margin, either on single or multiple agreements, using the same filter/select workflow detailed above.
1. While logged in as a Limits & Conditions user, navigate to the Limits & Conditions> Limits & Conditions Center.
2. Within the Limits & Conditions Center, select the desired agreements for your exclusion, using the various filters, or ‘Select All’ as needed.
3. In the Edit Limits & Conditions pane, Select “Edit Limits”, and enter any applicable Daily IM value, including the currency, and/or Daily Max Contracts. Select “Publish”
4. A confirmation message will be presented, recapping the products to be excluded. Select “Publish” to proceed with sending notices of the exclusion, and application the specified agreements.
5. The exclusion will then be displayed within each affected agreement within the Limits & Conditions workstream, as well as within the Limits & Conditions Center in the Daily IM and/or Daily Max Contracts columns.
Issuance of Numerical Limits (Daily Contracts or Daily Initial Margin) – Excel Update
In addition to the User Interface, firms may edit limits via an excel upload file, using the Limits & Conditions Center, selecting downloading desired agreements, and uploading with changes.
1. Select desired agreements, and then "Download Selected Agreements" in the Edit window, OR select "Download" to retrieve all agreements.
2. In the downloaded excel file, enter desired limits in Columns N (Daily IM) and/or P (Daily Max Contracts). If a Daily IM limit is added, the IM currency must also be noted in Column O
3. Save file as .CSV, and select "Upload". A Success/Failure banner will be displayed confirming the upload.
Update All Agreements
The "All Agreements" button allows for Limits and Conditions to be applied to all Standard and LME agreements, utilizing the same flyout menu shown in the sections above. Section 2 Notices will be distributed for all currently Executed agreements, and will be distributed for any in-flight agreements upon execution.
Ongoing Limit Updates
Ongoing updates to Limits & Conditions may be performed directly within Agreement pages, or via the Limits & Conditions center using the workflows listed above. The Limits & Conditions Center will show all current Limits and Conditions, and a history of Notices is available within each Agreement page, under the Limits & Conditions workstream. Existing Limit and Conditions are carried from preceding to following agreements when underlying agreement details (typically rate schedules) are amended, with a new Section 2 notice sent when the amended agreement is executed.
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