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AClear Education Cash Trades Training Manual © SFE © SFE Austraclear 2005 1

This course is designed to provide you with the knowledge required to process cash trades through the SFE Austraclear system. You will learn how to enter a trade, rectify or cancel a trade and finally how to authorise and settle a trade. In addition this course will cover queue management, recalling and viewing cash trades and reporting. Once you have reviewed this material you can then take the examination which is comprised of a number of multiple choice questions based on the material contained within the manual and visual demonstrations. (You will need to achieve a score of 70% to pass this course, 90% to gain a distinction).

Definition A Cash Trade is a two sided transaction that requires both the payer and receiver to enter their respective instructions; these transaction details need to be matched by the SFE Austraclear system to effect the settlement. Settlement can be either:

1 Automatic - where the payer has sufficient funds available the system will affect the transfer of funds without intervention by either counterparty, or

2 Manual - where participants set their cash records to a deferred state and selectively process transactions on their settlement queue.

The Cash Trade facility allows participants to pay and receive cash on the SFE Austraclear system, either as a same day transaction or for a future specified date. In this course you will cover:

Entering a cash trade Rectifying or cancelling a trade Authorising a trade Settling a trade Queue management Recalling a trade Viewing a trade Reporting

Cash Trades AClear Education Training Course 2005 Edition


A. Entering a Cash Trade Navigation

1 From the main menu select Trades>> Create Trade>> Cash.

2 Enter the cash trade details and click Send.

System Rules

1. When you are entering a cash trade the system will match all fields entered by both the payer and the receiver except:

a. Trade Date b. Sub-Participant c. Cash Type d. Information e. Participant Reference

2. Mandatory fields are marked with a red triangle in the top left hand corner. It is essential that the correct information is entered to ensure that your trade is processed successfully.

Field Descriptions

Sub Participant – This specifies your sub participant code through which you have selected the settlement to occur. This is not a matching field. Cash Type – This specifies the payment type relating to the Cash Trade (for information purposes only).

When entering a trade, the SSI field will automatically default to Yes indicating that the cash will settle via the default Cash Record. To select an alternate Cash Record on a transaction by transaction basis, select No in the SSI field and use the drop down list in the Cash Record field to select the required Cash Record.

View demonstration


B. Rectifying or Cancelling a Cash Trade Once you have entered your trade, you have the option if required, to rectify or cancel your entry. Navigation – Rectify a Trade

1 From the main menu select Trades>> View Reported Trades.

2 Search for your trades by entering your search criteria and click Search to return a list of all cash trades to which you are a party.

3 To rectify your transaction, highlight the relevant record and using the right click menu select Rectify Trade Report.

View demonstration Navigation – Cancel a Trade

1 From the main menu select Trades>> View Reported Trades.

2 Search for your trades by entering your search criteria and click Search to return a list of all cash trades to which you are a party.

3 To cancel your transaction, highlight the record and using from the right click menu select Cancel Trade Report.

View demonstration


System Rules

1 Unmatched transactions may be cancelled and / or all fields may be rectified. 2 Matched transactions may only be cancelled. 3 Paired transactions may be cancelled and the following fields rectified:

a. Sub-Participant b. Cash Record c. Information and Participant Reference

4 Pending Rectification transactions will remain in a Pending status until they are either confirmed or rejected by the counterparty. The transaction will only proceed to settlement once this has happened.

5 Pending Cancellation transactions will remain in a Pending status until they are either confirmed or rejected by the counterparty. The transaction will only proceed to settlement if the cancellation is rejected by BOTH parties.


C. Authorising a Cash Trade Navigation

1 From the main menu select Trades >> View Reported Trades.

2 Specify your search criteria and click Search to view all cash trades to which you are a party.

3 To authorise one transaction at a time, highlight the relevant record and using the right click menu select Authorise Trade Report. Check the details of the trade and if you wish to proceed with the authorisation, click OK.

4 To authorise a number of trades at once highlight the relevant transactions and using the right click menu select Bulk Authorise Trade Report. Check the details of all the trades and if you wish to proceed with the authorisation, click OK.

System Rules

1 The system will not allow you to authorise a trade that you have entered. All trades must be entered and authorised by different users.

2 Cash Trades will be Paired when high level details of the transaction match but authorisation is pending on one or both sides of the transaction.

View demonstration


D. Settling a Cash Trade Navigation – Reported Trades

1 From the main menu select Trades >>View Reported Trades. 2 Specify your search criteria and click Search to view all cash trades to which

you are a party. 3 Highlight the transaction you wish to settle and using the right click menu

select DVP Information. 4 The DVP Information screen will then be displayed with the following

information: • Settle Status • Sub Settle Status

Navigation – Settlement Instructions

1 From the Main Menu select Settlements>>View Settlements>>Settlement Instructions.

2 Specify your search criteria and click Search to view all Cash Trade settlement instructions settling today.


System Rules

1 If your Cash Trade is Matched, the system will automatically create a DVP instruction with a settlement status of Accepted and a Settlement Instruction with a state of Matched in preparation for settlement.

2 On the settlement day, the Settlement Instruction will automatically undergo Cash Limits testing and RTGS processing.

3 On completion of the Cash Limits and RTGS processing, the Settlement Instruction state will change to Settled and the Cash Records of both the payer and the receiver will be updated. In addition, the settle status in the DVP Information screen will be updated to Completed.

4 To settle a cash trade manually, set the Cash Record priority to Deferred in order to prevent the system from automatically processing the transaction.

5 All trades with a Deferred status will not progress to the settlement queue until you update the status to either Priority or Active.

View demonstration


E. Checking the Settlement Status of a Matched Settlement Instruction Navigation

1 From the main menu select Settlements>> View Settlements>> Settlement Instructions.

2 Specify your search criteria and click Search to view all Cash Trade settlement instructions settling today.

3 Highlight the relevant transaction and using the right click menu select State History to display details of the settlement processes for that transaction.

System Rules

1 If Cash Limits testing is not complete a state of Waiting in Queue will be displayed as the last state in the State History screen.

2 If RTGS processing is not yet complete, a state of Payment Pending will be displayed as the last state in the State History screen.

View demonstration


F. Queue Management This function allows you to change the priority of Cash Records and Sub Accounts for transactions in the settlement queue. Navigation

1 From the main menu select Settlement>> Manage Queue Priority. 2 Specify your search criteria and click Search to view all transactions waiting

in the queue. 3 Highlight the transaction or transactions to be changed and using the right

click menu select Set Priorities to change the cash record priority to Priority, Active or Deferred.

System Rules

1 Only the owner of the Cash Record can manage the priorities of transactions on the queue.

2 Cash record and Sub Account priorities can be changed on a transaction by transaction basis or in bulk by selecting a group of transactions.

3 Sub-Accounts and Cash Records are assigned one of the following statuses: a. Priority – the highest level available taking priority over all others; b. Active - this status should be given to Sub Accounts and Cash

Records with medium priority. Such transactions will be processed when there are no Priority transactions in the queue

c. Deferred – These transactions will not proceed to Cash Limit Testing or the RTGS queue.

4 Before a transaction can be processed to settlement, the Sub Accounts and Cash Records will require a Priority or Active status.

View demonstration


G. Recalling a Cash Trade Navigation

1. From the main menu select Settlement>> View Settlements>>Settlement Instructions.

2. Specify your search criteria and click Search to view all Cash Trades settling today.

3. Highlight the transaction you wish to recall and using the right click menu select Recall to remove the transaction from the queue.

System Rules:

1. You can only recall Settlement Instructions with the state of Payment Pending from the RTGS queue.

View demonstration


H. Viewing a Cash Trade Navigation

1. From the main menu select Trades>>View Reported Trades 2. Specify your search criteria and click Search to view all Cash Trades to which

you are a party.

Navigation - View details of a single cash trade

1. Highlight a transaction and right click to view Counterparty Trade Report details (if the counterparty has entered their side), DVP Information, Trade Report History and Properties.

View demonstration Navigation - View Settlement Instructions

1. From the main menu select Settlement>>View Settlements>>Settlement Instructions.

2. Specify your search criteria and click Search to view the settlement instructions created by the system for all Cash Trades settling today, and/or

Navigation - View Settlement Obligations

1. From the main menu select Settlement>>View Settlements>>Settlement Obligations.

2. Specify your search criteria and click Search to view the settlement obligations created by the system for all Cash Trades settling today and/or


Navigation - View DVP Instructions

1. From the main menu select Settlement>>View Settlements>>DVP Instructions

2. Specify your search criteria and click Search to view the DVP instructions created by the system for all Cash Trades settling today.

Navigation - View the balance of your Cash Record after settlement has completed

1. From the main menu select Sub Participants>>Cash Records>>View. 2. Specify your search criteria and click Search to view your Cash Records. 3. Highlight record, right click & View Cash Record Transactions for Owner.

View demonstration


System Rules

1. All Cash Trades which are waiting to be settled appear as follows: a. In the Settlement Instructions screen with a state of Matched b. In the Settlement Obligations screen in a state of Not Settled and c. In the DVP Instructions screen in a state of Accepted

2. Once settlement is completed, the Settlement Instruction state is updated to Settled, the Settle Status of the DVP instruction is updated to Completed and the Cash Records of both parties are updated.

3. All View screens (e.g. View Reported Trades, View Settlement Instructions) are archived for a period of 90 days.

4. You can backdate the Settlement Date/s by up to 90 days to view online the details of historical transactions when entering your search criteria.


I. Reporting Navigation - Viewing Reported Trades

1. From the main menu select Trades >> View Reported Trades. 2. Specify your search criteria and click Search to view all Cash trades to which

you are a party or proxy. 3. To produce a Reported Trades CSV formatted report, simply Right click and

select Export to CSV File. 4. Save the file into your nominated drive and select your file name to view, print or sort the results.

Navigation – Viewing Settlement Instructions Reports

1. From the main menu select Settlement>>View Settlements>>Settlement Instructions.

2. Specify your search criteria and click Search to view the settlement instructions of all cash transfers settling today.

3. To produce a Settlement Instructions CSV formatted Report, Right click and select Export to File.

4. Save this file into your nominated drive and select your file name to view, print or sort the results.

Navigation – Viewing Cash Record Transactions Reports

1. From the main menu select Sub Participants>>Cash Records>>View. 2. Highlight the required Cash Record and right click to View Cash Record

Transactions. 3. To produce and save a Cash Record Transactions Report, Right click and

select Export to File. 4. Save this file into your nominated drive and select your file name to view, print

or sort the results.


Navigation – Viewing & Printing Available Reports

1. From the main menu select View >> Reports>>Explore to display the Reporting screen.

2. Click Search to view all reports available to you (according to your sub-participant) for the current business day.

3. To select a particular report, highlight the record and right click to Download. 4. To print this report right click and select Print.

View demonstration Available Reports The following reports are available at the start of each business day as a result of overnight processing:

1. Cash Open Trade Report - This displays all Cash trades that are yet to settle, including unmatched trades and is available in PDF format only.

2. Settlement Instructions Report – This displays the settlement instructions

for transactions that were settled on the previous business day and is available in both PDF and CSV formats.

3. Cash Report – This displays the cash movements of all transactions settled

for all sub participants’ cash records at the close of business on the previous day. This report is available in both PDF and CSV formats.

cash trades training manual - acleareducation.sfe.com.au€¦ · aclear education cash trades...

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