Manager’s User Guide Chapter 2 Managing the Netting Cycle July … · 2013. 1. 3. · CitiDirect® Online Banking Netting Manager’s Guide: Ch. 2 Netting Cycle Managing the Netting

CitiDirect Online BankingManager’s User GuideNetting

Chapter 2 Managing the Netting Cycle

July 2003

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Proprietary and ConfidentialThese materials are proprietary and confidential to Citibank, N.A.,and are intended for the exclusive use of CitiDirect® OnlineBanking customers. The foregoing statement shall appear on allcopies of these materials made by you in whatever form and bywhatever means, electronic or mechanical, including photocopyingor in any information storage system. In addition, no copy of thesematerials shall be disclosed to third parties without express writtenauthorization of Citibank, N.A.

2 CitiDirect® Online Banking Netting Manager’s Guide: Ch. 2 Netting Cycle

Managing the Netting Cycle 5

Introduction 5

Netting Roles 5

Currency Center 6Sub Center 7Key Netting Cycle Dates 7

Netting Cycle Example 11

The Manager's Role in the Netting Cycle 12

Notification Day 12Information Day 12Cutoff Day 12Transaction Day 13Settlement Day 13Reconcilement Day 13

Task Summary by Key Date 14

The Manager’s Netting Cycle Tasks 16

Introduction 16

Procedure Summary: Accessing the Manage Netting Cycle Screen 16

Accessing the Manage Netting Cycle Screen 17

Functional Areas of the Netting Cycle Screen 18

The Netting Cycle Specification Area 19

Background on Netting Periods or Cycles 19Netting Period Field and Library Look Up 20The Run Netting Using Date Range Option 22Using the Calendar Dialog Box 22Using the Small Combo Box Arrows 23

Overview: Specifying the Netting Cycle 23

Summary: Optional Procedure for Specifying the Netting Cycle 24

Optional Procedure: Specifying the Netting Cycle 25

Contents Chapter 2 Managing the Netting Cycle

Entering and Updating Foreign Exchange Rates 28

Introduction 28The Netting FX Rates Summary Screen 29The Functional Tabs 29The Seven Columns of the FX Rates Summary Screen 30The Action Buttons on the FX Rates Summary Screen 31

The Netting FX Rates Modify Detail Screen 32

The Purpose of Entering Forward Rates 32The Action Buttons 32Setting the Foreign Exchange Rate Type 33Rate Method Calculations 34Using the Managed Treasury Function 35

Entering and Updating Foreign Exchange Rates 36

Section Overview 36

Procedure Summary: Adding a New Currency 36

Procedure: Adding a New Currency 37

Procedure Summary: Modifying a Spot Rate 42

Procedure: Modifying a Spot Rate 43

Procedure Summary: Entering or Modifying a Forward Rate 44

Illustrated Procedure: Entering or Modifying a Forward Rate 45

Procedures for Running a Netting 47

Section Overview 47

Overview: Locking and Unlocking the Database 47

Procedure Summary: Locking and Unlocking the Database 48

Procedure: Locking and Unlocking the Database 49

Overview: Selecting Participants 50

Procedure Summary: Selecting Netting Participants 53

Example: Selecting Participants for Netting and Reporting 54

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CitiDirect® Online Banking Netting Manager’s Guide: Ch. 2 Netting Cycle

Selecting Participants for Reporting 57

Overview: Running a Netting 58

Procedure Summary: Running an Approximate or Final Netting 59

Illustrated Procedure: Running an Approximate or Final Netting 61

Netting Manager Reports 66

Introduction 66

Summary of Netting Manager Reports 67

Closing the Netting Cycle 69

Introduction 69

Effects of Closing the Netting Cycle 69

Procedure Summary: Closing the Netting Cycle 70

Procedure: Closing the Netting Cycle 70

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Managing the Netting Cycle

5

Introduction

The Netting application within CitiDirect® Online Banking enablesmultinational companies to settle their intracompany obligationsaccording to a predetermined calendar defined by the parentcompany. This calendar is comprised of the key dates in the Nettingcycle, the series of events needed to complete the Netting processin each period.

Normally companies run one cycle per month, although morefrequent cycles are possible. Each company then either pays orreceives one payment per cycle in its local or chosen currency,where local exchange controls permit.

Participants and the Netting manager use the Netting application tocreate and submit CitiDirect transactions for processing. At keydates in the Netting cycle, the Netting manager uses the NettingCenter to perform Netting activities and generate reports. On thebasis of the Netting results, Participants and the Netting managertransfer funds between the Participants' bank accounts and theCitibank Netting Center accounts for settlement.

The Netting manager controls one Citibank Netting Center accountfor each currency in which payments are issued or received. TheseCitibank accounts are called zero balance accounts because theinflows balance the outflows, resulting in zero balances. The NettingCenter consists of the Netting manager, the zero-balance accounts,and the Netting Management functions of the Netting application.

Netting Roles

Each company engaging in Netting traditionally performs one ofthese two roles:

Netting Participant—Inputs transactions into Netting andaccesses relevant informational reports.

Netting Center—Inputs appropriate foreign exchange rates,“runs” the Netting, produces Netting reports, authorizes andreleases the consolidated payments, and reconciles accounts.

Netting Roles (Cont.)

In addition, the following roles can be performed, and each isdescribed in the following subsections:

Currency Center

Sub Center

Currency CenterAn additional role may be performed, that of Currency Center, inwhich transactions are consolidated in one currency in order tominimize the cross-border costs involved in transactions with thatcurrency.

A Currency Center is one of your organization's Participantdivisions, affiliates, or subsidiaries designated to serve as a financialintermediary between the Netting Center and Participants in aspecified country.

Within a specified country, some Participants may be net payersand some may be net beneficiaries. The sum of the Participant'spayments and receipts determine whether the country is a netpayer or a net beneficiary.

With a Currency Center, the Netting Center either makes a singleconsolidated net payment to the Currency Center or receives asingle consolidated net payment from the Currency Center. Forexample, if the Participants resident in the U.S. are a netbeneficiary, then the U.S. Currency Center receives a singleconsolidated payment from the Netting Center and the U.S.Currency Center then makes individual payments to or receivesindividual payments from the U.S. Participants in its local currency(U.S. dollars).

Because in-country transfers are less costly than cross-borderfunds transfers, organizations can realize cost savings by usingCurrency Centers. One Participant in each country may be assignedto serve as the Currency Center for that country.

When a Participant functions as a Currency Center, it is assigned anadditional Participant ID. The Currency Center Participant ID allowsit to issue or receive consolidated payments to or from the NettingCenter and to receive reports, but not to process transactions withthat ID.

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Sub CenterAn additional Netting role is that of a Sub Center, which is a subsetof a Netting Center set up for the company's own reporting andcontrol purposes.

A Sub Center is one of your organization's participating divisions,affiliates, or subsidiaries designated to receive reports on relatedParticipants.

The Participants are usually related to the Sub Center throughorganization, function, or geography. For example, a Sub Centermay be comprised of all facilities in a certain region or country or allfacilities in a specific division.

Sub Centers can receive reports for all companies associated withthe Sub Center. The Participant reports they receive showApproximate and Final data for their reporting Participants.

Sub Centers can enter foreign exchange rates for analyticalreporting purposes and run an Approximate (but not Final) Netting,for all associated Participants within the Sub Center.

There is no limit to the number of Sub Centers an organization mayhave.

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Key Netting Cycle Dates

The Netting Calendar Library, which is in the LibraryMaintenance service class under Maintenance on the NavigationBar, is used to define a Netting cycle.

The following graphic depicts the key dates in the Netting cycle,each of which is explained in the remainder of this section.

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Key Netting Cycle Dates (Cont.)

There are six key dates in the Netting cycle:

Notification Date—the final date in a given Netting period forsubmitting transactions to the Netting Center. When all transactionshave been entered, the Netting manager can run an ApproximateNetting.

Information Date—the Netting manager performs an ApproximateNetting run, enabling each Participant to run reports displaying itsapproximate net currency position.

Cutoff Date—the last date when changes may be made to thetransactions in a period; the Netting database may be locked afterthis date in order to prevent additional changes.

Transaction Date—the Final Netting is run; transactions areactually executed, foreign exchange deals are booked andsettlement instructions are made to pay net payer positions, ifapplicable; each Participant can run reports on its final net currencyposition.

Settlement Date—the funds are actually transferred pursuant tothe settlement instructions; typically this date is fixed two days afterthe Transaction Date.

Reconcilement Date—the transactions and the accounts involvedin the cycle are reconciled.

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Key Netting Cycle Dates (Cont.)

Hints and TipsThe process of reaching a final Netting is iterative in thatthe steps leading up to it can be done any number of timesuntil the parties involved find the results satisfactory.

When the Approximate Netting is satisfactory, the Nettingmanager indicates that the Netting should be Final, runs it,and the Netting is Final.

This process is depicted in the following diagram.

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2. RRun AApproximateNetting

3. NNetting OOK?

YesNo

1. IInput/modifytransactions

4. FFinal NNetting


Netting Cycle Example

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Notification Date:20 November 2003

Information Date:21 November 2003

Cutoff Date:27 November 2003

Transaction Date:28 November 2003

Settlement Date:1 December 2003

4 PM

1 PM onwards

4 PM

1 PM onwards

N/A

Input and/or importtransactionsSubmit transactions

Input foreign exchange ratesRun Approximate NettingRequest and reviewApproximate Report

Modify or deletetransactions based onNetting results

Input foreign exchange ratesRun final NettingRequest and review FinalReportReview incoming andoutgoing paymentsRelease outgoing paymentsParticipants instruct localbanks to remit or receivefunds for value onSettlement Date, to or fromthe Netting Center accounts

Date on which funds are transferred

Date Time Deadline Actions Notes(London Time)

Data entry for a cycle startsearlier in the month, any time upto and including NotificationDate

The database may be locked bythe Netting manager after thisdate

The Manager's Role in the Netting Cycle

Notification DayParticipants should have all transactions for the current cycleentered for processing by a predefined time on this day.

After this predetermined time the Netting manager can run aZero Transactions Report to highlight those Participants thathave not yet submitted any transactions.

Information DayThe Netting manager initiates the following sequence of Nettingactivities:

1. Enter indicative foreign exchange rates into Netting, i.e., ratesthat are realistic but not final.

2. Run an Approximate Netting.

3. Produce Netting reports that enable Participants to assesstheir approximate net positions.

Cutoff DayBased on Information Day reports, Participants must make anyfinal additions or changes to their data by a predefined time onthis day.

The Netting manager locks the database with the status,Locked Except for Manager, which means that only the Nettingmanager may make additional adjustments if required.

Hints and TipsA trial Final Netting can be run after Cutoff Day in preparationfor Transaction Day. Do this to discover if any payments needrepair in the Bank Details and Preformat tables.

Suppress all reports before running the trial Final Netting,described in the Procedures for Running a Netting section.

After running the trial Final Netting, click the RepairRequired Tab of the Netting Payments Summaryscreen. Review and amend any transactions as needed.

A trial Final Netting can be done several times, howevercare should be taken not to release, modify, delete or verifyany of the payments that are generated at this stage.These payments will be overwritten when the Final Nettingis run on Transaction Day.

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Transaction DayThe Netting manager performs these critical steps in the Nettingprocess:

1. Lock the database for the current period using the statusLocked.

2. Update indicative foreign exchange rates.

3. Arrange Foreign Exchange deals, contacting the dealer toestablish final rates.

4. Input final foreign exchange rates from currency purchases orsales.

5. Run a Final Netting, resulting in final net positions.

6. Produce Final Netting reports.

7. Review incoming and outgoing payments, and releaseoutgoing payments.

8. Close the Netting cycle causing the current Netting period tobecome period -1, and the +1 period to become period 0.

Net payers instruct their banks to remit payments to the Nettingcenter account according to the settlement instructions

Settlement DayNet recipients receive previously advised funds in their localbank accounts.

Reconcilement DayNetting manager checks all Netting accounts to ensure that thecorrect amounts of funds have been transferred.

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Task Summary by Key Date

The tasks required on or before each of the six key dates aresummarized in the following table.

(Table continues on next page)

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Final import orinput oftransactions for thecurrent cycle

Find notification inInbox thatApproximateNetting has beenrunRun ApproximateNetting reports toassess positions

Modify or deletetransactions asnecessary

Notification Day

Information Day

Before Cutoff Date

Cutoff Date

Before TransactionDay

Run ZeroTransactionsReport

Enter indicativeforeign exchangerates; if ManagedTreasury in use, alsoinclude a spreadRun an ApproximateNettingProduceApproximateNetting reports

Lock database,Locked Except forManager status

Run NettingAnomalies ReportRun Final Netting tocheck payments;exclude theParticipants fromthe distribution ofreports

Date Participant Netting Manager

Task Summary by Key Date (Cont.)

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Date Participant Netting Manager

Run final Netting reportsNet payers instructtheir banks to makepaymentsaccording tosettlementinstructions

Lock database,Locked status Update approximateforeign exchangerates; if ManagedTreasury in use, alsoinclude a spreadRun anApproximateNetting againArrange foreignexchange dealsUpdate foreignexchange ratesaccording topurchases/sales,flagging deals notbooked withCitibank Run Final NettingProduce FinalNetting reportsRelease paymentsClose the Nettingcycle

Reconcilesreceivables andpayables againstaccount balances

Transaction Day

Settlement Date

Reconcilement Date

Funds transferred for Value Day

Introduction

A Netting manager’s overall responsibility is to manage the Nettingcycle. This includes the following activities:

Specify the Netting cycle

Enter indicative and final foreign exchange rates

Lock and unlock the database

Select Participants for Netting and reporting

Run reports

Run Approximate and Final Nettings

Review incoming and outgoing payments

Release outgoing payments

Close the Netting cycle

Reconcile accounts

Each of these areas is covered by a separate procedure andillustrated in this guide with the exception of account reconciliation.

Procedure Summary: Accessing the ManageNetting Cycle Screen

In order to manage the Netting cycle, you need to access theManage Netting Cycle screen. To access the Manage NettingCycle screen:

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The Manager’s Netting Cycle Tasks


Log on to CitiDirect®

OnlineBanking and click theProcess Category.

Click Manage Netting Cycle.

The Process Service Classesfor Netting are displayed.

The Manage Netting Cyclescreen is displayed.

Step Action Result

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Accessing the Manage Netting Cycle Screen

To access the Manage Netting Cycle screen follow the stepssummarized on the right.

Note: The Service Classes displayed during your session dependon how CitiDirect was customized for your organization andthe permissions assigned to your User ID.


To Access the Manage NettingCycle Screen:

Click Process to see theProcess Service Classes

Click Manage NettingCycle

��The selected items onthe Navigation Barchange color to reflectyour selection

The Manage Netting Cyclescreen is displayed (see nextpage)

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Functional Areas of the Netting Cycle Screen

The Manage Netting Cycle screen, illustrated in the followinggraphic, provides access to all of the functions needed to managethe Netting process. It is organized into the highlighted functionalareas shown in the graphic, and the Action buttons at the bottom ofthe screen.

These are the five functional areas of the Manage Netting Cyclescreen:

11. Netting Center Identification Area, contains the Netting CenterID and the Netting Center Name.

22. Netting Cycle Specification Area, which displays the period anddates in effect for the current period. Clicking the Netting PeriodLibrary Look Up also provides access to each of the other Nettingperiods (cycles) defined in the Netting Calendar Library. If theoption to run a Netting cycle by customizing the dates of theNetting period is selected, then the Start Date and End Datefields are accessible and used to define the date range.

33. Netting Run Area, which provides access to Netting run optionsand settings that play a role in the Netting. The choice of whether itis to be an Approximate or Final Netting run is made after clickingthe Run Netting Action button on the lower right of the screen.

Netting CenterIdentification Area

Netting Cycle SpecificationArea

Netting Run Area

Participant Selection Area

Click to run the Netting

Click to complete theNetting cycle

Click to display databasestatus and available lockingoptions

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Functional Areas of the Netting Cycle Screen(Cont.)

44. Participant Selection Area where you can specify individuallywhich Participants will be included or excluded from reports on aNetting run and/or whether they will be included in the Netting itself.The default is to include every Participant in both the Netting andthe report distribution.

55. Action Buttons include functions for running the Netting, closingthe period, locking or unlocking the database, and updating foreignexchange rates. All of these functions will be discussed in theremainder of this chapter.

The Netting Cycle Specification Area

The Netting cycle, or period, may be specified using the NettingCycle specification area of the Manage Netting Cycle screen,which is illustrated in the following graphic.

The features of this area are discussed in the subsections thatfollow.

Background on Netting Periods or CyclesThe Netting Calendar enables the Netting manager to set up acurrent and 24 future Netting periods, or cycles. In addition, theNetting application can retain up to 12 periods of historical data.Thus, you can run future Approximate Nettings to anticipate futurepositions, and you can rerun past Nettings if you want to reviewhistorical Netting data.

Click to accesscurrently definedNetting periods

Displays thecurrent Nettingperiod; may bechanged usingLibrary Look Up

These dates aredefined in theNetting CCalendarLibrary

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Background on Netting Periods or Cycles (Cont.)

The values in the Netting Period field are interpreted according tothe following table:

Hints and TipsThe Netting periods change by one whole number. Forexample, if your Netting cycles are monthly, -1 would signifythe previous month and 2 would signify 2 months into thefuture from the present period.

Netting Period Field and Library Look Up The Netting Period part of the Manage Netting Cycle screenconsists of:

A Library Look Up icon ( in the illustration on the previouspage), which is used to access the Netting cycles that havebeen defined in the Netting Calendar; the maintenance of thiscalendar is covered in Chapter 3 Library Maintenance.

The Netting Period field ( in the illustration on the previouspage), contains a positive or negative number, or zero,indicating Netting periods in the future, the past or the present,respectively.

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The current period

Past Netting period

Future Netting period

0

–

[no sign in front]

Type of MeaningNumber(±,0)

Netting Period Field and Library Look Up (Cont.)

When the Library Look Up icon is selected, the Netting PeriodLibrary Look Up Dialog is displayed, as illustrated in the nextgraphic.

A Netting period is selected from this dialog box to specify theperiod for which you want to run an Approximate or Final Netting.

Select the row of thedesired Netting period tohighlight it

Click to change the Nettingperiod to the selectedperiod

Return to the ManageNetting Cycle screenwithout changing theNetting period

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The Run Netting Using Date Range OptionWhen the Run Netting Using Date Range check box is selected,as shown in the following graphic, the Start Date and End Datefields become accessible, and can be used to set the dates usedby the Netting process.

This option enables you to run Netting over a different time periodthan the one defined by the Netting Calendar, without changing theCalendar in the Library. For example, a Netting could be run for aweek or a quarter.

Using the Calendar Dialog BoxTo choose a new date, click the large down arrow to the right of thedate field ( in the graphic above). A calendar dialog box isdisplayed, as illustrated in the following graphic.

There are three ways to change the date using the calendar dialogbox:

Change the year using the large arrows.

Change the month using the small arrow.

Change the day by clicking the day of your choice.

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When selected, Start Dateand End Date fields areaccessible

Click to change individualdate fields

Click to access a calendardialog box

Single arrows change thecalendar forward or backby a month

Large arrows changecalendar forward or backby a year

Click an individual day toselect it

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Using the Calendar Dialog Box (Cont.)

Hints and TipsOnce you click into a day of the month to select it, Netting willreturn you to the Manage Netting Cycle screen and the newyear, month, or day of the month you selected will bedisplayed with the day of the month highlighted.

Using the Small Combo Box ArrowsThe start and end dates may also be changed by using the smallup-and-down arrows to the right of the date field.

If you want to change the day of the month, highlight the field, thenclick the appropriate arrow, up (for a later day) or down (for anearlier day):

Use the same procedure to change the month or year.

The date can also be changed by highlighting the field or fields tobe changed, and just typing the new date into the field.

Overview: Specifying the Netting Cycle

Specifying the Netting cycle involves:

Selecting a Netting period using the Library Look Up, ifnecessary; or

Selecting the check box Run Netting Using Date Range andthen entering or selecting new start and end dates for the cycle.

A summary and illustrated procedure for specifying the Nettingcycle follow.

Hints and TipsIf the Netting cycle displayed on the Manage Netting Cyclescreen is the one you want to use for the current Netting run,then you do not need to select a different period or enter startand end dates. The cycle displayed will usually be the default,period 0, which is the current Netting period.

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Summary: Optional Procedure for Specifying theNetting Cycle

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Click Manage Netting Cycleunder Process on theNavigation Bar.

Options:If you want to change theNetting period to anotherone defined in the NettingCalendar, click theNetting Period LibraryLook Up icon. If you want to run theNetting with the currentperiod, skip to Step 4.

Select the Netting period youwant to use for this run andclick OK.

Options:If you want to change thestart or end date of theperiod, select the RunNetting Using DateRange check box.If you want to run theNetting with the currentdate range, skip to step 6.

Change the dates in the StartDate or End Date fields tothe dates desired.

If you do not wantParticipants to access theresults of this Netting run,select the SuppressParticipant Reports checkbox.


The Library Look Up Dialogis displayed.

You are returned to theManage Netting Cyclescreen and the period youselected is displayed.

The Start Date and End Datefields will turn white,indicating that they are nowopen for your input.

The next Netting run will usethe date range you specify.

The Participants will beprevented from accessingand receiving reports for thisrun.

Step Action Result

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Optional Procedure: Specifying the NettingCycle

Use this procedure if any of the following Netting cycle settingsneed to be changed:

The Netting period

The Netting period’s start or end date

Whether or not Participants should have access to the results ofthe Netting run

1. Click Manage Netting Cycle under Process on theNavigation Bar. The Manage Netting Cycle screen isdisplayed, as illustrated in the following graphic.

Netting Period field andLibrary Look Up

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Optional Procedure: Specifying the NettingCycle (Cont.)

2. To change the Netting period to another one in the NettingCalendar, click the Netting Period Library Look Up icon. TheLibrary Look Up Dialog is displayed, as illustrated in thefollowing graphic.

If you want to use the current Netting period, skip to Step 4.

3. Select the Netting period you want to use for this run and clickOK. You are returned to the Manage Netting Cycle screenand the period you selected is displayed.

For example, if you had selected Netting period -1, theNetting Cycle Specification Area of the Manage NettingCycle screen would look like the following illustration.

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Optional Procedure: Specifying the NettingCycle (Cont.)

4. To change the start or end date of the period, select the RunNetting Using Date Range check box. The background colorof the Start Date and End Date fields will turn white, indicatingthat they are now open for input, as illustrated in the followinggraphic.

If you want to use the current date range skip to Step 6.

5. Change the dates in the Start Date or End Date fields to thedates desired, typing or using the calendar functions. The nextNetting run will use the date range you specify.

6. If you want Participants to access the results of this Netting run,clear the Suppress Participant Reports check box, asillustrated in the following graphic.

Hints and TipsThe default is not to suppress the Participant reports.

Run Netting Using DateRange check box

Suppress ParticipantReports check box

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Entering and Updating Foreign Exchange Rates

IntroductionThe results of a Netting run depend on the foreign exchange ratesused to calculate a Participants’ net position in each currency usedin the transactions for a given cycle. Indicative rates are used to getapproximate positions, and final rates, which result from spotcontracts, are used to get final positions.

There are two settings that need to be set for each foreignexchange rate. First, the type of rate to be used in the next Nettingrun is set on the Manage Netting Cycle screen, using the FXRates drop down list. An example of this setting is shown ( ) onthe screen illustrated immediately below.

The second setting is the numerical value of the rate. This is set onthe Netting FX Rates Summary screen, or Netting FX RatesModify Detail screen, which is illustrated on the next page. TheNetting FX Rates Summary screen can be accessed from theManage Netting Cycle screen using the Update FX RatesAction button.

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Use the FX Rates dropdown list to set the type offoreign exchange rate

Click to access Netting FXRates Summary screen,where the numerical valueof the rate is set

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The Netting FX Rates Summary Screen

When the Update FX Rates Action button is clicked, the NettingFX Rates Summary screen is displayed, as illustrated in the nextgraphic.

As the name implies, this is a summary screen. A Detail screen isdisplayed when the Go to Details Action button is clicked. We willreview the Detail screen after reviewing the Summary screen.

The Functional TabsThe Netting FX Rates Summary screen functional tabs are:

Input/Modify—Used to enter or modify previously enteredforeign exchange rates; access to New Action button forentering new rates.

View—View only previously entered foreign exchange rates.

Click a differentfunctional tab toperform a differentfunction

Click in the RateMethod field, orthe down arrow, todisplay the RateMethods available

Click anywhere ona currency’s rowto select it

Click to processand save changes

Click to enter anew currency

Click to see thedetails for aselected currency

Click to displayOther Optionsmenu. Optionsinclude:

SearchUpdateScreenPrintManageNetting CycleView ErrorMessages

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The Seven Columns of the Netting FX Rates SummaryScreen

** Rate Method is explained in greater detail in the Rate MethodCalculations subsection of this section of the chapter

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Period

ExchangeCCY

SpotRate

RateMethod*

BookedLocally

Status

Error

Column Function

The Netting cycle to which the rate applies.

The currency being defined, represented by its three-letterSWIFT™ code.

The rate at which the currency may be exchanged with a basecurrency at the present time. When this field is bolded it canbe modified directly on the Summary screen.

Note: The currencies linked to the Euro are not individuallymodifiable.

The way that the rate is calculated:B—Base to exchangeE—Exchange to base

By clicking the down arrow or in the field, a list showing the available Rate Methods is displayed, as shown in the graphic on the right.

When the Rate Method field is bolded it can be modified directly on the Summary screen.

Check the box to indicate that the foreign exchange deal isbooked with the same branch where your Netting accounts areheld, e.g., Citibank London.

If you book your foreign exchange with a local branch, e.g.,Citibank New York, while your Netting accounts are held, e.g.,with Citibank London, uncheck this box when entering the finalrates in order to generate corresponding foreign exchangepayments to, in this example, Citibank New York.

Indicates whether the rate has been verified.

Displays any error messages that occur when a new entry issubmitted.

The Action Buttons on the Netting FX Rates SummaryScreenThis table explains the functions of the Action buttons.

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Submit

New

Go to Details

OtherOptions

Button Function

Initiates processing of the rate entries or modifications thathave been made. If you exit without clicking this button, nochanges will be made.

Starts a new line in the screen into which an additionalcurrency can be entered.

Displays the Detail screen.

Search—Provides the ability to search for a currency. Update Screen—Refreshes the screen to reflect yourentries or Netting application actions.Print—Prints the selected row or rows. If no row isselected, you will get an error message.New—Displays the Detail screen so that a new currencyrate may be entered. If all the currencies in the currencytable have been defined, then a new rate can not beentered.Manage Netting Cycle—The Manage Netting Cyclescreen is displayed.

The Netting FX Rates Modify Detail Screen

The primary purpose for using the Modify Detail version of theNetting FX Rates screen to modify a currency’s Forward Rates,although it can also be used to modify the Spot Rate.

Purpose of Entering Forward RatesUp to 24 Forward Rates can be entered so that you can makeprojections and run "what-if" scenarios.

The Action Buttons

The base currency ispopulated from yourNetting Center ControlInformation

Enter the Spot Rate of theExchange Currency in thisfield

Click to select the RateMethod

The value of the ExchangeCurrency is shown in theSpot Rate field

Forward Rates may beentered in these open fields

Click to save the rateentries or changes

Click to go back to theSummary screen

Other Options includes:PrintManage Netting Cycle

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Submit

Next

Return toSummary

OtherOptions

Initiates processing of the rate entries or modifications thathave been made. If you exit without clicking this button, nochanges will be made.

If more than one record was selected prior to clicking Go toDetails then clicking Next takes you to the next selectedrecord. Otherwise, you are returned to the Summary screen.

Takes you to the Summary screen.

Print—Prints the information for the one currency·being displayed.Manage Netting Cycle—the Manage Netting Cyclescreen is displayed.

Button Function

Setting the Foreign Exchange Rate TypeAfter setting the numerical rates correctly on the Netting FX RatesSummary, or Netting FX Rates Modify Detail screen, return tothe Manage Netting Cycle screen. Use the FX Rates drop-downlist to select the type of rate you are going to use in the nextNetting run.

The following graphic illustrates the relationship between the rateslisted on the FX Rates drop-down list, and fields they correspondto on the Netting FX Rates Modify Detail screen.

The choices on the FX Rates drop-down list are Spot, and anumerical identifier for each of the 24 Forward Rates on theNetting FX Rates Modify Detail screen.

Spot is the default type of foreign exchange rate.

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Rate Method Calculations

Introduction

Netting receipts and payments involve the exchange of onecurrency for another. The rates of exchange are computed against abase currency, very often U.S. dollars (USD). There are two ways toexpress these rates, called "Rate Methods," in CitiDirect OnlineBanking:

� Base/exchange (B)

� Exchange/base (E)

Example

Let's say that your base is USD, and that you can buy 1.13888euros (EUR) with a dollar.

If this rate is expressed as base to exchange, the exchange isdivided by the base:

Method B: 1.13888 euros = 1.1388800 1 dollar

If this same rate is expressed as exchange to base, the base isdivided by the exchange:

Method E: 1 dollar = 0.8780556 1.13888 euros

Note: Rates are expressed to seven decimal places in CitiDirectOnline Banking.

34



Using the Managed Treasury Function

There are a number of Netting platform settings that need to be ineffect to use the Managed Treasury function. These are described inthe Managed Treasury Library section of Chapter 3 of this guide.

One of these settings is to select the Use Managed Treasurycheck box on the Manage Netting Cycle Screen, shownhighlighted in the illustration below.

The Managed Treasury function involves adding and subtracting afixed spread to the exchange rates. If you have set up theManaged Treasury Library, select this check box, and theManaged Treasury function will be applied to the next Netting run.

35



Section Overview

Entering and updating Foreign Exchange rates on the Netting FXRates Summary screen can be accomplished using one or moreof these three procedures:

Entering a new currency

Updating a currency's Spot Rate

Updating the Forward Rates for a currency.

Each of these procedures is summarized and illustrated in thissection.

Procedure Summary: Adding a New Currency

Prior to starting this procedure, you must make sure that thecurrency you want to add to the Netting FX Rates screen is in theCurrency Library Look Up table, and that you have its SWIFT™code and current Spot Rate.

Note: If you need assistance adding a currency to the CurrencyLook Up table, contact the Citibank Netting OperationsTeam.


36



Click Netting FX Rates underMaintenance on theNavigation Bar.

Click the New Action buttonat the bottom of the screen.

Enter the current Spot Ratefor the new currency in theSpot Rate field.

If necessary, change the RateMethod. Click the defaultvalue of the Rate Methodfield, "B," then select "E," forExchange To Base.

Type the three-letter SWIFTcode for the new currency inthe Exchange CCY field.

Deselect Booked Locally ifappropriate.

The Netting FX RatesSummary screen is displayed.

The Netting FX Rates InputDetail screen is displayed.

The correct rate is entered.

The Rate Method is selected.

The Currency Code is entered.

The check box is checked ifBooked Locally is selected,and cleared otherwise.

1

2

3

4

5

6

Step Action Result

Adding a New Currency (Cont.)

Procedure: Adding a New Currency

Prior to starting this procedure, make sure that you have the SWIFTcode and current Spot Rate of the currency you want to add to theNetting FX Rates library.

Hints and TipsAny currency can be added to the Netting FX Rates table,but if you want to settle a Participant's net position in acurrency, then you must consider the impact of using thiscurrency with respect to the following libraries:

The Participant Control Information Library

The Netting Center Bank Details Library

The Preformat Library

1. Select NNeettttiinngg FFXX RRaatteess under MMaaiinntteennaannccee on the NavigationBar. The NNeettttiinngg FFXX RRaatteess SSuummmmaarryy screen is displayed asshown in the illustration at the top of the next page.

37



Enter any Forward Rates forthe new currency directly inthe open Forward Ratefields, starting with ForwardRate 1.

Click the Submit Actionbutton at the bottom of thescreen to save and processyour entry.

The Forward Rate fields intowhich you enter data will beupdated.

The database is updated withyour entries, you are returnedto the Netting FX RatesSummary screen, and yourentries are displayed.

7

8

Step Action Result

2

1 3


2. Click the New Action button at the bottom of the screen. TheNetting FX Rates Input Detail screen is displayed, as shownin the following graphic.

38



The Netting FX Rates InputDetail screen is displayed withthe following defaults:

Base CCY—The basecurrency defined in yourNetting Control Centerinformation

Spot Rate—Defaults to1.0000000

Rate Method—B, for BaseTo Exchange

3

2

1


3. Enter the current Spot Rate for the new currency in the SpotRate field.

In this procedure the new currency we will be adding is theSouth African Rand (ZAR).

4. Change the Rate Method default if necessary. To change theRate Method, click the letter in the Rate Method fielddesignating the current method, and a list will be displayed.Click the other option. An example is illustrated in the followinggraphic.

Enter the Spot Rate for thenew currency

1

39



1


5. Type the three-letter SWIFT code for the new currency in theExchange CCY field.

6. If necessary, change the Booked Locally option by clicking theBooked Locally check box. If it is selected, clicking it will clearit. In the illustration immediately below, the Booked Locallyoption is cleared.

Select this option when you are booking the currency in thesame bank where Netting accounts are held.

The Exchange CCY field1

40



1


7. If you have Forward Rates to enter for the new currency, click inthe field for Forward Rate 1, and enter it directly. Repeat asnecessary with the other Forward Rate fields in numerical order.

8. Click Submit at the bottom of the screen to save and processyour entry. The database is updated with your entries, you arereturned to the Netting FX Rates Summary screen, and theentries you have made will be displayed, as illustrated in thefollowing graphic.

Note: If this rate has already been entered, after clicking Submit awarning message is displayed, as illustrated in the followinggraphic.

Click OK. You will be in the Netting FX Rates Input Detailscreen. Enter a unique currency, and repeat this procedurefrom Step 5 above.

The South African Rand isnow displayed on theNetting FX RatesSummary screen

1

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1

Procedure Summary: Modifying a Spot Rate

42




To modify a Spot Ratedisplayed with bold text, typethe new rate directly into thatcurrency's Spot Rate field.

If necessary, change the RateMethod in the Rate Methodfield.

If necessary, change thestatus of the Booked Locallycheck box.

To process the changes youhave made and enter theminto the database, clickSubmit at the bottom of thescreen.

The Netting FX RatesSummary screen isdisplayed.

The new rate is displayed.

The new Rate Method isdisplayed.

The new Booked Locallyoption is selected.

The database is updated withthe modifications you havemade.

1

2

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4

5

Step Action Result

Procedure: Modifying a Spot Rate

1. Click Netting FX Rates under Maintenance on the NavigationBar. The Netting FX Rates Summary screen is displayed:

2. To modify a Spot Rate displayed with bold text, type the newrate directly into that currency's Spot Rate field.The new rate is displayed.

3. If necessary, change the Rate Method. Click in the RateMethod cell and the list of options is displayed. Click the othervalue. For example:

The new Rate Method is displayed.

4. If necessary, change the default Booked Locally option. Clickthe check box to change it.

Booked Locally will be changed.

43



Modifying a Spot Rate (Cont.)

5. To process the changes you have made and enter them into thedatabase, click Submit at the bottom of the screen. Thedatabase is updated with the modifications you have made.

Procedure Summary: Entering or Modifying aForward Rate

44




To enter or modify a ForwardRate for a displayed currency,select the currency, then clickthe Go to Details Actionbutton.

Enter the Forward Rates inthe open fields, 1 through 24.

When you have finished withyour entries, click the SubmitAction button at the bottomof the screen.

If you have other rates tomodify, repeat thisprocedure from Step 2.

The Netting FX RatesSummary screen isdisplayed.

The Netting FX RatesModify Detail screen isdisplayed.

The new rates are displayedin the open fields.

The database is updated withyour entries. The Netting FXRates Summary screen isdisplayed.

1

2

3

4

Step Action Result

Illustrated Procedure: Entering or Modifying aForward Rate

1. Click Netting FX Rates under Maintenance on the NavigationBar. The Netting FX Rates Summary screen is displayed.

2. Select the currency whose Forward Rate you want to modify,and click the Go to Details Action button. The Netting FXRates Modify Detail screen is displayed.

You can select more thanone currency from theSummary screen usingShift for adjacent rows, andCtrl for non-adjacent rows

1

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1

Entering or Modifying a Forward Rate (Cont.)

3. Enter the Forward Rates in the open fields, 1 through 24, ormodify a rate as needed. The updated rates are displayed in theopen fields.

4. When you have finished with your entries, click Submit at thebottom of the screen. The database is updated with yourentries.

If you selected more than one currency to update in Step 2,click Next,, and the next selected currency will be displayed.

46



Section Overview

After the Netting cycle has been set, and the Netting FX RatesSummary screen has been updated for the next Netting, thefollowing three procedures are executed:

Lock the database

Select Participants

Run Netting

These three procedures are covered in this section.

Overview: Locking and Unlocking the Database

Netting managers may lock and unlock databases on severaloccasions throughout the Netting cycle. However, Netting managersmust lock the database to produce final positions and releasepayments.

The Netting application provides two locking options:

Locked (Except Manager)—Enables the Netting manager toenter, import or modify current period transaction data. Amanager might want to do this on Cutoff Day, for example, totroubleshoot a problem while still blocking Participants fromentering or accessing current period transactions.

If a Participant does enter a transaction while the databaseis in this state, the following message is displayed:

Netting Centre is locked for the current period. Alltransactions submitted for the current period havebeen carried over to the next available period.

Locked—Blocks everyone from entering, importing or changingcurrent period transaction data.

If the Netting manager enters a transaction, the applicationbehaves as described above. Namely, the transaction isincluded in the next Netting period unless the database isUn-Locked or Locked (Except Manager).

Hints and TipsIf the Netting manager does unlock the database, anytransactions that were included in the next period due toone of the two locked states are admitted into the currentperiod, unless the maturity date specifies otherwise.

47

Procedures for Running a Netting


Procedure Summary: Locking and Unlocking theDatabase

To lock and unlock the database:

48



Select Manage NettingCycle under Process fromthe Navigation Bar.

Locate the Netting CenterStatus field.

To change the Netting Centerstatus, click the NettingCenter Status Action button.

Click the option desired.Note that in order toselect Locked ExceptManager you must firstchange the status toLocked. Then click theNetting Center StatusAction button; the LockedExcept Manager optionwill then be accessible.


The Netting Center status isdisplayed.

The option or optionsavailable for changing thestatus will be displayed inblack. The database can beeither:

Un-LockedLocked Except ManagerLocked

The status of the database ischanged.

1

2

3

4

Step Action Result

Procedure: Locking and Unlocking the Database

1. Select Manage Netting Cycle under Process from theNavigation Bar. The Manage Netting Cycle screen isdisplayed, as illustrated in the following graphic.

2. Note the status of the database as indicated in the NettingCenter Status field.

3. To change the Netting Center status, click the Change NettingCenter Status Action button. The available options aredisplayed in black.

The Netting Center StatusfieldChange Netting CenterStatus Action button

The database can beeither:

Un-LockedLocked Except ManagerLocked

3

2

1

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3

1

2

Locking and Unlocking the Database (Cont.)

4. Click the status you want. The status of the database changes.

Overview: Selecting Participants

The Manage Netting Cycle screen permits you to select theParticipants for a particular run and also to select the Participantswho will be able to get that run's reports. This is done in theParticipant Selection for Reporting/Netting areas of the screen,as shown in the following illustration.

To add one or more Participants to one of the selection areas, clickthe Library Look Up button in that area.

To lock the database so thatonly the Netting manager canamend or add transactions:

Click Lock (prior screen) tochange the status toLocked.

Click Netting CenterStatus, which displays anew set of options

Click Lock (Except Mgr.)

Click to access LibraryLook Up list of Participants

Participant selection areafor Reporting

Participant selection areafor Netting

Type of list of Participantsin area above. The optionsinclude:

List of Participants tobe excludedList of Participants tobe included

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2

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1

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3

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4 4

Overview: Selecting Participants (Cont.)

The same dialog box is used to select Participants for Netting andfor reporting. An example is shown in the following graphic.

Select one or moreParticipants:

Click to select oneDrag the mouse toselect more than oneadjoining ParticipantUse the Ctrl key tomake additionalselections

1

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1

Overview: Selecting Participants (Cont.)

To clear a Selection area of all listed Participants:

Right-click the Library Look Up button for the area you wantto clear, Reporting or Netting.

Click the Clear option, as illustrated in the following graphic.

Right-click the Library LookUp button to display theoptions, as illustratedClick Clear2

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1

2

Procedure Summary: Selecting NettingParticipants

To select Participants for Reporting, follow the same steps but usethe Library Look Up on the left side of the screen next to theParticipant Selection for Reporting area.

53




The Library Look UpParticipant list is displayed.

The code number and nameof all selected Participants isdisplayed in the NettingSelection area.

The Netting Selection areadisplays a list of thoseParticipants who are includedin the Netting run.

Participants will not getreports if this option isselected.

Step Action Result

1

2

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4

5

Select Process and thenManage Netting Cycle fromthe Navigation Bar.

Click the Library Look Uparrow next to the ParticipantSelection for Netting area onthe right.

Select the Participant orParticipants you want to add,and click OK.

Use Shift to selectParticipants who are nextto one another on the list.Use Ctrl key to selectParticipants who areseparated on the list.

Change the default List Typefrom Exclude to Include.

Determine if the SuppressParticipants Reports optionis checked. Set it to theappropriate option.

Example: Selecting Participants for Netting andReporting

The example illustrated in the following graphic is based on thefollowing situation: a Netting manager wants to run a Netting tomake sure that the final adjusting transactions for a small group ofParticipants have been entered.

To include only some Participants in a Netting run, follow thesesteps.

1. Select Manage Netting Cycle under Process on theNavigation Bar. The Manage Netting Cycle screen isdisplayed.

54



Example: Selecting Participants for Netting andReporting (Cont.)

2. Click the Library Look Up arrow next to the ParticipantSelection for Netting area on the right side of the screen. TheLibrary Look Up Dialog list of Participants is displayed.

3. Select the Participant or Participants you want to be added tothe list in the Selection area. Participants can be selected by:

Clicking a single lineClicking a line, then holding down Shift and clicking anotherline, which causes all the lines in between to be selectedClicking a line with Ctrl pressed will select it in addition toany other selected lines

4. Click OK.

The code number and name of all selected Participants aredisplayed in the Netting Selection area.

In our example, the Netting manager wants to run the Nettingfor just the selected Participants, and to be the only one to getreports on this Netting run.

Select the Participant orParticipants to be included

Click OK to add selectedParticipants to the listingarea

2

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2

1

Example: Selecting Participants for Netting andReporting (Cont.)

5. Change the List Type by clicking the down arrow, and clickingInclude. The default is Exclude. This will tell the application toinclude in the Netting run only the transactions that belong tothe Participants who are listed.

6. Select the Suppress Participant Reports check box. Thistells the application to not send reports on the Netting run to anyParticipants.

These Participants havebeen selected

In this example the ListType is set to include theselected Participants

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2

1

Selecting Participants for Reporting

The procedure for selecting Participants for reporting is exactly the

same as the one for selecting Participants for Netting except that

you use the Library Look Up button located to the left of the

Participant Selection for Reporting area.

In this example we'll assume that the Netting manager wants to do

one more limited Netting, but this time he wants the Participants to

see the reports.

1. Click the Suppress Participant Reports check box to

"unselect" it. This means that the Participants listed in the

Participant Selection for Reporting area are included in the

reporting.

2. Set the List Type for the Reporting and Netting areas to

Include, which tells the application to include only the listed

Participants for both Netting and reporting purposes.

Hints and TipsIt is usually the case that all Participants are included in aNetting even if only some Participants are going to get thereports.

Select the SuppressParticipant Reports checkbox

These Participants areselected

List Type in this example isInclude

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1

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2

Overview: Running Netting

Netting managers run two types of Nettings:

Approximate, which calculates approximate positions, and isrun on Information Day. The database can be locked with thestatus Locked Except Manager to prevent the entry of newtransactions.

Final, which calculates final positions, and is run on TransactionDay. In order to run the final Netting, the database must belocked with the status Locked.

A procedure for running both an Approximate and a Final Netting ispresented in Summary and illustrated form below.

Before beginning the Netting, the Netting manager checks thefollowing factors:

The Netting Cycle—For more information refer to the OptionalProcedure for Specifying the Netting Cycle in The Manager’sNetting Cycle Tasks section of this chapter.

Currency and Foreign Exchange Rates—For moreinformation refer to the procedures for entering a new currency,updating Spot Rates, and updating forward foreign exchangerates in the Entering and Updating Foreign Exchange Ratessection of this chapter.

Participants for the Netting and Reporting—For moreinformation refer to the procedures for selecting Participants forNetting and reporting in the Procedures for Running a Nettingsection earlier in this chapter.

Database status—For more information refer to theprocedures for locking and unlocking databases described inthe Procedures for Running a Netting section earlier in thischapter.

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Procedure Summary: Running an Approximateor Final Netting

To run an Approximate or Final Netting, follow these steps.


59

Select Manage Netting Cycleunder Process on theMaintenance screen.

Verify that the Netting cyclefields are set correctly:

Netting PeriodStart DateEnd DateSettlement Date

Click the Run Netting UsingDate Range check box ifnecessary to change the startand end dates from those set inthe Netting Calendar Library,and change the dates asdesired.

Determine whether Participantsshould access reports for thisNetting run.

If not, click the SuppressParticipant Reports checkbox

If the foreign exchange ratesshould be adjusted using theManaged Treasury function,click the Use ManagedTreasury check box.

If the Netting should useForward rates, select thenumber of the rate from the FXRate drop-down list.

Verify and modify the DatabaseStatus, if necessary. Thechoices are:

UnlockedLocked—use this status fora Final NettingLocked (Except Manager)—this status can be used foran Approximate Netting

To initiate the Netting run, clickthe Run Netting Action button,then click either Approx. orFinal.




The Netting cycle is set for therun.

The Participant reports will besuppressed if the check box ischecked.

Managed Treasury will be usedif the check box is checked.

The Netting will use a Forwardforeign exchange rate or theSpot rate, depending on theaction selected.

The database status will beunlocked, locked, or lockedexcept for the manager.

A message box is displayedstating the kind of Netting runselected, and prompting forconfirmation to proceed.

Step Action Result

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7

Running an Approximate or Final Netting (Cont.)

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To proceed with the kind ofNetting run stated in themessage box, click Yes,otherwise, click No.

Navigate to the In Box to verifythat the Netting has runsuccessfully. Click the StatusTab.

Details on the run can bedisplayed by clicking the lineshowing the run

If Yes was selected, the Nettingrun proceeds.

The status of the Netting isdisplayed.

Step Action Result

8

9

Illustrated Procedure: Running an Approximateor Final Netting

To run an Approximate or Final Netting:

1. Select Manage Netting Cycle under Process on theNavigation Bar. The Manage Netting Cycle screen isdisplayed.

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2. Verify that the Netting cycle fields are set correctly:

Netting Period

Start Date

End Date

Settlement Date

Click the Run Netting Using Date Range check box if it isnecessary to change the date range within which transactionswill be included in the Netting. Adjust the Start Date and EndDate fields as necessary.

The following partial screen shows how these fields might look.

3. Determine whether Participants should have access to reportsfor this Netting run.

If not, select the Suppress Participant Reports check box, asshown in the following illustration.

Hints and TipsThe default is not to suppress Participant reports.

4. If the foreign exchange rates should include Managed Treasury,select the Use Managed Treasury check box, as illustrated inthe following graphic.

Managed Treasury will be used or not according to your action.

62




5. Select the kind of foreign exchange rate from the FX Ratesdrop-down list.

Spot is the default, as shown in the following graphic.

6. Verify the database status, which is displayed under NettingCenter Status, and modify if necessary. The choices are:

Unlocked

Locked

Locked (Except Manager)

Hints and TipsThe database can be locked before an ApproximateNetting run to prevent new entries being made to thecurrent period while you are trying to assess positionsand determine the actions to take.

The database has to be locked in order to run a FinalNetting.

7. To initiate the Netting run, click the Run Netting Action buttonat the bottom of the screen. The following graphic shows theoptions displayed.

Click Approx.. or Final.

If this is an Approximate Netting, the application displaysthe message illustrated in the following graphic.

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Running an Approximate or Final Netting (Cont)

If you have selected a Final Netting but not locked thedatabase, a Validation Error message is displayed.

Click OK and you will be returned to the Manage NettingCycle screen.

8. To proceed with a Netting run, click Yes to one of theconfirmation messages.

If Yes was selected, the Netting run will proceed.

9. To verify the status of the Netting run, navigate to the Inboxusing the Navigation Bar. Click the Status Tab to see the statusof the Netting Run.

If your Netting run is not shown, click the Update ScreenAction button. Your run will first show up as Running. Its finalstatus will be Completed.

Click the StatusTab

The final status ofthe Netting will beCompleted

2

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1

2

Running an Approximate or Final Netting (Cont)

Click the line reporting the run to see details about the run in thebottom pane of the screen.

Select the run about whichyou want to see moredetails

Additional details aredisplayed in the highlightedarea

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1

2

Introduction

CitiDirect® Online Banking provides the Netting manager with anumber of reports designed to help the Netting manager assessthat status of the Participants after an Approximate Netting hasbeen run, and to help the process of making whatever adjustmentsare necessary before a Final Netting is run.

These reports are accessible by navigating to the ReportsCategory, and clicking Netting Manager Reports. The screen isdisplayed in the following illustration.

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Netting Manager Reports



Summary of Netting Manager Reports

The table below lists and describes the reports accessible in the Netting Manager Reports ServiceClass. The Participant’s User Guide (Chapter 4) contains detailed information on how to run, edit, deleteand manage report output.


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Netting Center CurrencyPositions Report -Approximate

Netting Center CurrencyPositions Report - Final

Managed Treasury -Profitability by Currency

Managed Treasury -Profitability by Company

Netting Center CurrencyPositions Breakdown Report

FX Rates Report

Payments Report

FX Spreads Report

Netting Anomalies Report

Transaction Activity Report

Zero Transactions Report

Participant Basic Information

Participants Which Can InputOn Behalf Of Others

Participants Who MayReceive Reports for Others

112/11A

113/11F

116/13X

117/13

129

151

152

153

155

156

157

158

159

160

Shows Netting Center's approximate net currency position. TheNetting Center uses this report to identify each currency that it mustbuy (deficit currency) or sell (surplus currency ) to settle itsParticipants' obligations for the specified Netting period.

Shows Netting Center's final net currency position. The NettingCenter uses this report to identify each currency that it must buy(deficit currency) or sell (surplus currency) to settle its Participants'obligations for the specified Netting period.

Gives the aggregate net profit or loss to the Netting Center bycurrency.

Gives the aggregate net profit or loss to the Netting Center byParticipant.

Shows the breakdown of each currency position showing theindividual Participant positions that make up each surplus or deficitcurrency.

Detailed report of the foreign exchange rates. For a summary, usereport 169.

Detailed report of the payments. For a summary, use report 171.

Shows the spreads for the foreign exchange rates.

Identifies potential errors or problem areas within the tables thatmake up the Account Maintenance Libraries.

Identifies the number of transactions which have been entered,changed, or deleted since the date specified by the Nettingmanager.

Identifies those Participants which have not yet submitted anytransactions since the date specified by the Netting manager. TheZero Transactions report includes both "remote users" (who useCitiDirect) and "non-remote users" (who use fax or telex).

Shows the basic information for a Participant.

Shows the Participants who have been authorized to preparetransactions for other Participants.

Shows the Participants who have been authorized to receive reportsfor other Participants.

Report Description ID


Summary of Netting Manager Reports (Cont.)

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Citi Netting SystemParticipants Reports

Participants by SettlementCurrency

Participants With aSettlement Option OtherThan One

Settlement Conditions Report

Netting Center TransactionOverview

Netting Efficiency MIS Report

FX Rates Report - Summary

Payments Report - Summary

Preformat Report - Summary

Preformat Report - Detail

161

162

163

164

166

167

169

171

183

184

Shows which CNS (CitiNetting Software, which is the legacy DOS-based application) reports a Participant is allowed to receive.

Shows the settlement currency details for each Participant in aNetting Center.

Shows Participant details for each company in a Netting Center thathas a Netting option other than Full Netting.

Shows the settlement terms for each Participant for every currencyand counterparty for which details are available.

Shows the number of transactions and their disposition for eachParticipant and Netting period for a Netting Center.

Provides MIS on the Netting showing the efficiencies and savingsmade daily by using Netting versus not using Netting.

Shows a summary of the foreign exchange rates. For a moredetailed version, use report 151.

Shows a summary of the payments. For a more detailed version, usereport 152.

Shows a summary of the preformatted information users can reusefor payments. For a more detailed version, use report 184.

Shows details of the preformatted information users can use forpayments instead of entering all of the fields manually. For a lessdetailed version, use report 183.

Report Description ID

Introduction

After the Netting manager releases or deletes all Netting paymentson Transaction Day, the Netting manager closes the Netting cycle.

Summary and illustrated versions of the procedure for closing theNetting cycle are presented in this section.

Effects of Closing the Netting CycleThe Netting period is moved forward, making what was thecurrent period the prior period.

The new current period is activated.

The database is unlocked for transaction entry.

Any current period transactions that were entered during priorperiods are displayed.

Procedure Summary: Closing the Netting Cycle

To close the Netting cycle, follow these steps.

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Closing the Netting Cycle


Click Manage Netting Cycleunder Process on theNavigation Bar.

Click the Close Cycle Actionbutton at the bottom of thescreen.

Click Yes to confirm.


A confirmation dialog box isdisplayed.

The Netting period ismoved forward.The new current period isactivated.The database is unlockedto permit transactionentry.Any current periodtransactions that wereentered during priorperiods are displayed.

1

2

3

Step Action Result

Procedure: Closing the Netting Cycle

To close the Netting cycle, follow these steps.

1. Click Manage Netting Cycle under Process on theNavigation Bar.

2. The Manage Netting Cycle screen is displayed. Click theClose Cycle Action button at the bottom of the screen.

3. A confirmation dialog box is displayed, as shown in thefollowing illustration.

Click the CloseCycle Actionbutton to close thecycle

1

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1

Closing the Netting Cycle (Cont.)

If Yes is clicked, but all payments have not been released, aValidation Error message is displayed, as shown in thefollowing graphic.

Click OK and release the payments. A procedure for releasingpayments is described in Chapter 4 of this guide.

Click Yes to proceed with closing the Netting cycle. Thefollowing events occur:

The Netting period is moved forward.

The new current period is activated.

The database is unlocked to permit transaction entry.

Any current period transactions that were entered duringprior periods are displayed on the Summary screen.

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Disclaimer

The authoritative and official text of this CitiDirect® Online Banking documentation shall be in theEnglish language as used in the United States of America. Any translation of any CitiDirectdocumentation from English to another language is done solely for the convenience of the reader, andany inconsistencies, or inaccuracies between the English text and that translation shall be resolved infavor of the English text.

These materials are proprietary and confidential to Citibank, N.A., and are intended for the exclusiveuse of CitiDirect Online Banking customers. The foregoing statement shall appear on all copies ofthese materials made by you in whatever form and by whatever means, electronic or mechanical,including photocopying or in any information storage system. In addition, no copy of these materialsshall be disclosed to third parties without express written authorization of Citibank, N.A.

Customer shall be solely responsible for the use of any User identifications, passwords andauthentication codes that may be provided to it, from time to time, in connection with CitiDirect OnlineBanking (collectively, "User IDs"). Customer agrees to keep all User IDs strictly confidential at alltimes. Customer shall immediately cease use of CitiDirect Online Banking if it receives notificationfrom Citibank, or otherwise becomes aware of, or suspects, a technical failure or security breach.Customer shall immediately notify Citibank if it becomes aware of, or suspects, a technical failure orsecurity breach. © 2012 Citibank, N.A. All rights reserved. Citi and Arc Design are registered service marks of Citigroup Inc.

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Documents

Manager’s User Guide Chapter 2 Managing the Netting Cycle July … · 2013. 1. 3. · CitiDirect® Online Banking Netting Manager’s Guide: Ch. 2 Netting Cycle Managing the Netting