Create a Correspondent Trade

Use the Correspondent Trades tab to create trades and then:

Allocate loans to a trade.
Assign loans to a trade by importing loan files or entering loan numbers

Auto Generated Correspondent Trades When New Individual Lock Submitted via Encompass or Encompass TPO Connect

To automate the correspondent trade process, a correspondent trade can be automatically created when a new individual loan is locked via Encompass or Encompass TPO Connect.

To use this feature, your system administrator must select the Enable Auto-create of Correspondent Trades for Individual Delivery Type setting on the Trade Management Setup screen under the Encompass Settings.

The loan number is used as the correspondent trade’s commitment number if the loan is submitted via Encompass.
The loan number is used as the correspondent trade’s commitment number if auto create correspondent trade commitment numbers is disabled and the loan is submitted via Encompass TPO Connect.
The loan lock date is used as the commitment date.
The Individual Best Efforts delivery type is used as the Best Efforts commitment type.
The Individual Mandatory delivery type is used as the Mandatory commitment type.
The Individual Best Efforts delivery type is used as the Best Efforts delivery type.
The Individual Mandatory delivery type is used as the Mandatory delivery type.
The loan amount is used as the trade amount.
The tolerance is empty unless a correspondent master commitment is assigned.
The note rate is added to a note rate range (e.g., 4.0% - 4.0%).
The lock expiration date is used as the expiration date.

The individual loan is automatically assigned to the newly created correspondent trade.

Two Lock Confirmed log entries are generated during the process. One for when the correspondent trade is created and the other when the loan is assigned to the trade.

Create a Correspondent Trade

When creating a correspondent trade, you must select a Third Party Originator (TPO) and then select a Commitment Type. Once you make your selections, the trade's Details tab is displayed.

Click the Trades tab, and then click the Correspondent Trades tab.
Click the New icon.
Select a TPO using the Lookup (magnifying glass) icon .

Click the Lookup icon.
On the Third Party Originator Selector screen, select a TPO.
For Encompass 19.2 or later, The Max Commitment Authority and Available Amount columns have been added to provide users with a Seller's commitment authority to a Correspondent buyer before they create a correspondent trade.
The amounts populated in the two columns are mapped from the External Company Details Commitments tab of the corresponding Third Party Originator (TPO) client.
Click Select.
The TPO Info section is completed.

Select a Commitment Type.

For Encompass 17.2 or earlier:
The Commitment Type options provided here (Mandatory and/or Best Efforts) are determined by the settings that were configured for the TPO who originated the loan by the administrator. The administrator uses the Commitments tab in the TPO’s Company Details window to manage these Commitment Type options.
Only one Commitment Type can be selected, regardless of whether both options are available.

If only one option is available, that option is automatically selected for the correspondent trade.

For Encompass 17.3 or later:
When Best Efforts on the Company Details Commitments tab and Allow Best Efforts for Correspondent Trades on the Trade Management Setup setting are enabled, the Best Efforts commitment type is enabled on the New Correspondent Trade pop-up screen.
If the Best Efforts commitment type is selected, the Commitment Type on the Correspondent Trades Details tab will be set to “Best Efforts”.
When Best Efforts on the Company Details Commitments tab or Allow Best Efforts for Correspondent Trades on the Trade Management Setup setting is disabled, the Best Efforts commitment type is disabled on the New Correspondent Trade pop-up screen.
When Mandatory on the Company Details Commitments tab is enabled, the Mandatory commitment type is enabled on the New Correspondent Trade pop-up screen.
If the Mandatory commitment type is selected, the Commitment Type on the Correspondent Trades Details tab will be set to “Mandatory”.
When Mandatory on the Company Details Commitments tab is disabled, the Mandatory commitment type is disabled on the New Correspondent Trade pop-up screen.

Click OK.
Complete the Correspondent Trade, AOT Information, Eligible Loans, and Pair-Offs sections.

Correspondent Trade

Type a unique Commitment #.

If the Auto Loan Numbering option has been enabled in Encompass Settings, Encompass automatically numbers the correspondent trade and this field is read-only. The system-generated commitment number is displayed when the trade is saved.

If the commitment number reaches the maximum number of 18 digits, a warning is displayed, and your system administrator must go to Encompass Settings and adjust the Auto Correspondent Trades Numbering Starting Number value.

If the Lock icon is unlocked (blue), the commitment number cannot be edited.
If the commitment number is edited and there are no loans assigned to the trade, when you save the trade your changes are saved.
If the commitment number is edited and there are loans assigned to the trade, when you save the trade the loans files are updated and your changes are saved.
If the Lock icon is locked (yellow), the commitment number can be edited.
If the correspondent master commitment Available Amount is less than the correspondent trade Trade Amount and an individual delivery type (Mandatory or Best Efforts) is locked and confirmed:
The correspondent trade is automatically created without being assigned to the correspondent master commitment if the Commitment Type for the TPO who originated the loan is Limited for either Mandatory or Best Efforts on the Commitments tab in the TPO’s Company Details window.
The correspondent trade is automatically created and assigned to the correspondent master commitment if the Commitment Type for the TPO who originated the loan is Unlimited for Individual Best Efforts on the Commitments tab in the TPO’s Company Details window.
If a correspondent loan is locked with the same commitment number as a previously auto created correspondent trade, an extension is added to the commitment number of the newly created correspondent trade.

For example, if the commitment number of the first auto created correspondent trade is 1503EM00005, then the commitment number of the second auto created correspondent trade is 1503EM00005(1)

Select a Master Commitment #, if applicable.

If the Correspondent Masters tab has been enabled in your Encompass Settings, you can select a Master Commitment #.
Otherwise, N/A is the only available option.
If the Correspondent Masters tab is enabled, and a Master Commitment # is not selected, a warning message is displayed.
If you select Yes, the correspondent trade is saved.
If you select No, you are returned to the Correspondent Trade screen.

Select a Delivery Type.

The Delivery Type options provided here are based on the accepted delivery types that were configured for the TPO who originated the loan by the administrator. The administrator uses the Commitments tab in the TPO’s Company Details window to manage these Delivery Type options.
For Encompass 20.1 and later, two additional delivery types, Bulk AOT and Co-Issue, are available.
When Co-Issue is selected, a new Co-Issue section is displayed where the following information is entered:
Whether the Fund Type is "Flow" or "Bulk".
Whether the Origination Rep & Warrant Type is "Bifurcated" or "Non-Bifurcated" (standard).
The Agency Name: "FNMA", "FHLMC", or "GNMA".
Whether the Agency Delivery Type is "MBS" or "Cash Window".
The Doc Custodian selected from Business Contacts or manually entered.

When Bulk AOT is selected:
The Pricing tab is not displayed.
The View eligible loans checkbox is not displayed on the Loans tab.

If a Master Commitment # is selected, the delivery type options are updated based on the delivery types and tolerance for the selected correspondent master commitment.

Complete the remaining required fields: Commitment Date, Trade Amount, Tolerance %, Expiration Date, and Delivery Expiration Date.

As part of the 22.3 release, the following updates have been made to the Tolerance % field for Best Efforts correspondent trades:
If Flat Tolerance is set on the Company Details - Commitments tab, the Tolerance field is populated with the Flat Tolerance percentage and the field will not be editable.
If Conditional Tolerance is set on the Company Details - Commitments tab, once the Trade Amount is entered the Tolerance field is populated with the conditional tolerance percentage and the Tolerance field will not be editable.
As part of the 23.2 release, the following updates have been made to the Tolerance % field for Mandatory and Best Efforts correspondent trades:
Percentages greater than 100% cannot be entered.
Negative values cannot be entered.
Values cannot be copied into the field.

Complete the remaining fields as needed.

If the correspondent trade has an associated correspondent master commitment, the correspondent trade Trade Amount cannot be greater than the correspondent master commitment Available Amount.
If the Trade Amount is greater than the Available Amount, an error message is displayed.
The correspondent trade is automatically created without being assigned to the correspondent master commitment if the Commitment Type for the TPO who originated the loan is Limited for either Mandatory or Best Efforts on the Commitments tab in the TPO’s Company Details window.
If a Master Commitment # is selected, the tolerance % from the correspondent master commitment, based on the delivery type, is copied to the Tolerance % field.
For Encompass 17.2 release and later, you can determine the Weighted Average Bulk Price (WABP).
To enable the system to calculate the WABP, the lock icon must be unlocked.
The Delivery Type must be “Bulk”.
If the WABP is calculated, it will include all the total prices of loans that are allocated to the trade.
To manually enter the WABP, the lock icon must be locked.
The Delivery Type must be “Bulk”.
When you enter a price, that price is mapped to the total price for each loan allocated to the trade. When you allocate a loan to the trade, the import file will only import a single column of loan numbers or manually entered loan numbers.

You cannot allocate a loan to a trade with a blank price in the manually entered WABP.

If the correspondent trade has an associated correspondent master commitment, the Delivery Expiration Date is calculated by adding the master commitment Delivery Days to the correspondent trade Expiration Date.

For example, if the Expiration Date is 03/10/2015 and the correspondent master commitment Delivery Days is 2 (for the appropriate delivery type), the Delivery Expiration Date is 03/12/2015 because 2 days are added to the Expiration Date.

For Encompass 20.1 and later, you can enter an Authorized Trader. This field supports custom commitment confirmations generated from Correspondent trades.
The dropdown field lists the users authorized to execute trades for TPO.

A TPO user must have the Authorized Trader Personas setting enabled to be included in the dropdown list.

Click the Save icon.

If changes are made to the Commitment Date, Delivery Type, Expiration Date, or Delivery Expiration Date, then, when the trade is saved, a pop-up notification is displayed that enables you to update the loan files associated with the trade.

AOT Information

Eligible Loans

Select EPPS Loan Programs

On the Pricing tab, you can define the range of rates for the loans in your trade using the Base Price Grid, apply price adjustments, and apply SRPs and SRP adjustments.

This tab is not displayed if the Delivery Type (on the Details tab) for the trade is Individual Best Efforts or Individual Mandatory.

Base Price Grid

In this grid, you can create base price tables with a range of note rates and prices for the loans in your trade.

Click the Trades tab and then the Correspondent Trades tab.
Create a new trade or select an existing one.
Click on the Pricing tab.
In the Base Price Grid section, click the Add Pricing icon.
Enter a Rate.
Enter a Price.

The price must be greater than or equal to 0 but less than 1000.
Click Add Another and repeat steps 5 and 6 to add additional note rates and prices.
When done, click OK.
Click the Save icon.

To delete an entry, select the entry and click the Delete icon.

Pricing Adjustments Grid

In this grid, you can create a table of pricing adjustments based on the note rate of each loan.

To Add an Adjustment Template

To Add an Adjustment

Click the Trades tab and then the Correspondent Trades tab.
Create a new trade or select an existing one.
Click on the Pricing tab.
In the Pricing Adjustment section, click the Add Adjustment icon.
Enter a percentage value for the price adjustment when the condition is met in the Price Adjustment field.
- If the investor will pay the adjustment amount when the condition is met, enter a positive value. If the investor will receive a discount, enter a negative value.
Click the Add Filter icon.
In the Field field, click the Lookup icon to select a field from the list. The list includes a default set of loan fields and any loan fields added to the Reporting Database.

Or, type one or more characters in the field at the top of the window and click Find. The first occurrence of the characters in any column will be found.

Select an Operator, enter any required Values, and then click OK.
- The Operator and Value define how the field will be used to define the adjustment. For example, Field ID = 1109 (Loan Amount), Operator = Greater than, Value = 250000.
For compound filters, use the AND/OR button to indicate how the filters are applied. Use and when you want all the selected filters to apply to the loans. Use or when you want to locate loans that match any of the selected filters.
- Use Parentheses to control the order in which the filters are evaluated. Click Parentheses, select the filters to group, click the New icon, and then click OK.
To adjust the price adjustment directly on the Price Adjustment list, click the cell in the Price Adjustment column, and type a percentage value for the adjustment when the condition is met.
- If the investor pays the adjustment amount when the condition is met, enter a positive value. If the investor receives a discount, enter a negative value.
Click the Save icon.
- To edit a price adjustment, select an entry, click the Edit icon , make your changes, and then click Apply.
- To delete a pricing adjustment, select the entry and click the Delete icon .

Adjustments to PPE

SRP Table Grid

You can apply SRPs and SRP adjustments from a template and/or create them manually. When you apply a template, the template data will replace the current data in the SRP Table.

To Add an SRP Template

To Add New SRP Data

Click the Trades tab and then the Correspondent Trades tab.
Create a new trade or select an existing one.
Click on the Pricing tab.
In the SRP Table section, click the Add Item icon.
In the SRP Details section, enter a minimum and maximum Loan Amount to establish the range that the Base SRP and adjustments will apply to.
Type the Base SRP value, as a percent of the loan.
Type the Base SRP Adjustment, If Impounds are Waived percent for loans whose escrow has been waived. This is typically a negative value. This adjustment percent is added to the Base SRP value for loans whose escrow has been waived.

To waive a loan's escrow, select the Escrow will be waived checkbox located on the Loans tab of the Secondary Registration tool.

If additional adjustments are required for specific locations:

Select a location in the State column in State from the SRP Adjustment Based on Geography list.
Click the SRP Adjustment field to the right of the location and type the adjustment percent. This adjustment percent is added to the Base SRP value for loans on properties in the selected location.
Click the SRP Adjustment, If Impounds are Waived field to the right of the location and type the adjustment percent. This adjustment percent is added to the Base SRP value for loans on properties in the selected location whose escrow has been waived.
Select and add additional location-specific adjustments as required.

When finished entering SRP values for the range, click the Save icon in the SRP Details section.

SRP from PPE

On the Loans tab, you can allocate loans to the trade. For more information on allocating loans, see Allocate a Loan to a Trade.
On the Notes/History tab, you can add notes about the correspondent trade and manage your history items.

In the Encompass 20.1 release, a History Details grid was added and additional events are included in the History section.
History Details grid:
Records the date and time when a trade is created, updated, or published.
Records changes to fields on the Details tab, including the user that made the change and the date/time the change was made.
Records changes to pair-off transactions, including the user that made the change, the date/time the change was made, and the status of the pair-off (created, reversed, removed, edited).
New events recorded in the History section:
Commitment status changes
Changes to fields on the Details tab
Pair-off transactions
Any comments added to pair-offs on the Correspondent Trade Details tab.

When a comment is updated, the change will be displayed in red in the history log.

Add Notes

Pair-Offs

To record a short delivery, select an entry on the Pair-Offs table and then click the Edit icon.
- Or double-click an entry.
Select or type a Pair-Off Date (the date the pair off occurred).
In the Requested By field, type the name of the person who requested the pair-off.

This field is available in Encompass 20.1 and later.

In the Trade Amount field, type the amount of the trade to which the pair-off fee applies.
- For Encompass 20.1 and later, pair-offs can be reversed and a history of the transaction recorded, by entering a negative amount in the Trade Amount field.
- A negative trade amount is only allowed if there is an existing pair-off entry.
- When a negative trade amount is saved, it is saved as a positive trade amount in the Pair-Off grid.
- The positive trade amount will be added back to the Total Pair-Off Amount and Open Amount.
- The Total Gain/Loss will be updated by the reversed Pair-Off Gain/Loss.
- A validation is performed to ensure the negative trade amount does not exceed the total pair off amount. If the validation fails, an error message “The Pair-off reversal cannot exceed the Total Pair-off amount.” is displayed.
In the Pair-Off Fee field, type the pair-off fee percentage.
- The Gain/Loss amount is calculated.
In the Comments field, you can enter comments, if needed.

This field is available in Encompass 20.1 and later.

Enter pair-offs as needed.
- For Encompass 20.1 and later, the number of pair-offs are no longer capped at four (4) and instead are allowed until the open amount is within tolerance.
Click the Save icon.
- For Encompass 20.1 and later, a validation is performed to ensure the Trade Amount does not exceed the Open Amount. If the validation fails, an error message “The trade amount of the pair-off cannot be greater than the open amount.” is displayed.

All pair-off entries require the last entry to be deleted first.

Allocate a Loan to a Trade

Click the Trades tab and then the Correspondent Trades tab.
Create a new trade or select an existing one.
Click on the Loans tab.
Select the View eligible loans checkbox, at the top of the tab, to display a list of loans, created by the corresponding TPO, that are eligible to be added to the trade.
- If the Delivery Type for the correspondent trade is either Individual Best Efforts or Individual Mandatory, then only one loan can be allocated to the trade.
- If a loan is already allocated to the correspondent trade, no other loans can be allocated to the trade.
- If the Delivery Type for the correspondent trade is either Individual Best Efforts or Individual Mandatory, then only loans that are locked and confirmed can be allocated to the trade.
- For Encompass 17.2 and later, a correspondent loan with a status of “Withdrawn” (Withdrawn Date (field ID 4120) is populated on the Correspondent Loan Status tool) will be excluded from the Eligible Loans list.
- For Encompass 17.4 and later, a correspondent loan with a status of “Voided” (Voided Date (field ID 408) is populated on the Correspondent Loan Status tool) will be excluded from the Eligible Loans list.
Select one or more loans from the Eligible Loans list, and then click Assign Loans.
- The loans are added to the Currently in Correspondent Trade list with a status of Assigned – Pending until the trade is saved.
When finished with the trade, click the Save icon.
- If the Assigned Amount for the loan or loans being added is greater than the Maximum Amount for the trade, the loan or loans cannot be allocated to the trade.

Assign a Loan to a Trade by Importing a Loan File

On the Loans tab, you can assign loans to a trade by importing a single column Excel (CSV) file.

Click the Trades tab and then the Correspondent Trades tab.
Create a new trade or select an existing one.
Click the Loans tab.
Select the Assign Loans from a file/manual input checkbox, at the top of the tab.
- If the Delivery Type for the correspondent trade is either Individual Best Efforts or Individual Mandatory, then only one loan can be allocated to the trade.
- If a loan is already allocated to the correspondent trade, no other loans can be allocated to the trade.
- If the Delivery Type for the correspondent trade is either Individual Best Efforts or Individual Mandatory, then only loans that are locked and confirmed can be allocated to the trade.
- For Encompass 17.4 and later, if a voided loan is added to the trade, a message is displayed that states the voided loan could not be allocated to the trade.
Click Import.
Locate the loan file you want to import, and then click Open. The file to be imported must be a single column CSV file with the loan number.
- The loans are added to the Currently in Correspondent Trades list with a status of Assigned – Pending until the trade is saved.
Click the Save icon.
- If the Assigned Amount for the loan or loans being added is greater than the Maximum Amount for the trade, the loan or loans cannot be allocated to the trade.

Assign a Loan to a Trade by Entering a Loan Number

On the Loans tab, you can assign loans to a trade by manually entering loan numbers.

Click the Trades tab and then the Correspondent Trades tab.
Create a new trade or select an existing one.
Click the Loans tab.
Select the Assign Loans from a file/manual input checkbox, at the top of the tab.
- If the Delivery Type for the correspondent trade is either Individual Best Efforts or Individual Mandatory, then only one loan can be allocated to the trade.
- If a loan is already allocated to the correspondent trade, no other loans can be allocated to the trade.
- If the Delivery Type for the correspondent trade is either Individual Best Efforts or Individual Mandatory, then only loans that are locked and confirmed can be allocated to the trade.
- For Encompass 17.4 and later, if a voided loan is added to the trade, a message is displayed that states the voided loan could not be allocated to the trade.
Click the Add Loan Number icon , and then add the loan numbers for specific loan files.
- You can enter loan numbers separated by commas or line breaks.
- You can copy and paste loan numbers.
Click the Save icon.
- The loans are added to the Currently in Correspondent Trade list with a status of Assigned – Pending until the trade is saved.
- If the loan or loans are not from the Correspondent channel or are from a different TPO, the loan or loans cannot be allocated to the trade.
- If the Assigned Amount for the loan or loans being added is greater than the Maximum Amount for the trade, the loan or loans cannot be allocated to the trade.

Allocating Loans for Bulk Delivery

Save the Trade and Update Loans

Click the Save icon (on the top right of the screen).
When asked if you want to update the loan files, click Yes.

Updating Multiple Trades in a Queue

The Loan Data Synchronization enables multiple trades to be processed in an update queue that runs in the background. A new icon will be available in the status bar (bottom of the screen, which will open the new Trade Update Queue pop-up window. This window will display the update progress of the selected trades for users with persona access to the Trades tab.

Items of Note:

You may encounter an issue on the Trade Update Queue for loan trades, MBS pools, or correspondent trades where the Update Progress hangs when you attempt a batch update from the Pipeline screen (select the Update Pending Loans button). If this happens, cancel the affected trades/pools (select the X icon) on the Trade Update Queue page and then update each trade/pool individually from the Pipeline screen.
You may encounter an issue on the loan trades, MBS pools, or correspondent trades Pipeline screen where the Status does not automatically refresh after a trade/pool status is changed. If this happens, refresh the screen to display the correct Status.

The following are features on the Trade Update Queue:

The number of jobs is displayed next to the “Job Status” header.
The check boxes next to each entry is used to select that entry. The check box in the header column (to the left of the Trade/Pool ID) is used to select all the entries in the grid.
When a job is “InProgress”, a progress bar that displays the progress as a percentage will be displayed in the Update Progress/Results column. Once the job is done, the progress bar will be replaced with the job results.
To the right of “Job Status”, a Delete and Refresh icon is displayed.
To delete an entry, select the check box next to the entry and then select the Delete icon.
A prompt “Are you sure you want to delete the selected rows?” is displayed.
Select Yes, Delete Selected Rows to delete the entry.
The delete action cannot be undone.
To delete multiple entries, use the column filters to display the entries you want to delete, select the check box in the column header, and then select the Delete icon.
To refresh the page, select the Refresh icon.
When the page is refreshed, any new entries will be displayed in chronological order, unless there are search filters that affect the way the entries are displayed.
When the page is refreshed, any search filters will remain. However, if there are new entries, those new entries may be hidden if they do not satisfy the filter parameters.
In the Trade/Pool ID, Trade Type, Requested By, and Status columns, you can hover over the column header, select the Search icon, and then enter a search parameter.
Your previous searches will be listed. If you select a previous search, any entries that match the selected search is displayed.
The Trade Type column will always display “LoanTrade”, “MBSPool”, and “CorrespondentTrade” as search parameters.
The Status column will always display “InProgress”, “Completed”, “CompletedWithError”, “Error”, and “Cancelled” as search parameters.
Once your search parameter is entered, select Enter on your keyboard and any entries that match the search is displayed.
In the Request Date column, you can hover the column header, select the Calendar icon, and then select a date.
To search a date range, select the Date Range check box and enter a starting and ending date.
To the right of each entry, a Kebob () icon is displayed.
When the Kebob icon is selected, a Delete and Info() icon is displayed.
When the Info icon is selected, that trade or pool will be opened to its Notes/History tab and the Trade Update Queue will close.
If a trade update is “InProgress”, the Kebob icon will be disabled, but a Cancel icon is displayed to the left of the Kebob icon.
Once the Cancel icon is selected, any remaining loans in the job queue are cancelled and no more loans will be processed (loans that have already been processed will remain processed).
The Status will be set to “Cancelled”.
The Results will display, in red, the number of loans processed, the number of loans successful, the number of errors, and the number of loans cancelled.
At the bottom of the page, the number of entries per page and the number of pages is displayed.
If applicable, you can change the number of entries per page by selecting the down arrow next to “[nn]/page” with [nn] representing the number of entries. By default, 50 entries will be displayed per page.
If applicable, you can jump to a specific page by selecting the down arrow next to “[n]/[nn]” with [n] representing the page number and [nn] representing the total number of pages.

About Saving and Updating Trades

Using the Save Icon - When you save a trade using the Save icon, you have the option of updating only the trade, or both the trade and its assigned loans. Until you update the assigned loans, the data in the trade will not be synchronized with the data in the loan files.

Update Selected Loans and Update All Loans Buttons - Use these buttons on the Loans tab to synchronize data in the trade with the assigned loans.

For Encompass 17.3.0.2 Server Patch and later, the Update Selected Loans and Update All Loans buttons will only be enabled when one of the following fields is updated in the trade: Commitment #, Commitment Date, Master Commitment #, Delivery Type, Expiration Date, Delivery Expiration Date, or any field on the Priicng tab.

Update Selected Loans - Updates the loans highlighted in the Loans grid. You must highlight at least one loan to enable this button.
Update All Loans - Updates all loans in the Loans grid.

When an exclamation point displays on the button, it indicates that one or more assigned loans has a Pending status. Loans with the following pending statuses will be highlighted in blue:

Assigned - Pending
Shipped - Pending
Purchased - Pending
Removed - Pending

For Encompass 17.3.0.2 Server Patch 2 and later, only the Update Selected Loans button will be enabled when one or more assigned loans has a Pending status.

If a loan is removed from the trade, the loan’s status will change to “Removed - Pending”. If a loan has a Removed-Pending status during the update process, it will be removed from the Currently in Trade list when the update is completed.

Commitment Authority Validations

In Encompass 17.4 and later, the trade is validated against a set commitment authority to ensure that authority is not exceeded.

A new trade and the Policy for Trades that exceed Max Commitment Authority is set to “Don’t allow Trade creation” - The commitment authority validation is invoked if the Trade Amount exceeds the Mandatory Available Amount.
If the Trade Amount exceeds the Mandatory Available Amount, a message is displayed and the trade is not saved.
If the Trade Amount does not exceed the Mandatory Available Amount:
Trade Amount is added to the matching Delivery Type Outstanding Commitment (e.g., Individual, AOT, etc.).
Percentage of Max is increased and the bar graphic is updated.
Trade Amount is added to Mandatory Outstanding Commitments.
Outstanding Commitment and % is increased, Available Amount and % is decreased, and the pie graphic is updated.
A Trade Amount change and the Policy for Trades that exceed Max Commitment Authority is set to “Don’t allow Trade Creation” - The commitment authority validation is invoked if the commitment difference exceeds the Mandatory Available Amount.
If the commitment difference exceeds the Mandatory Available Amount, a message is displayed and the trade is not saved.
If the commitment difference does not exceed the Mandatory Available Amount:
Commitment difference is added to the matching Delivery Type Outstanding Commitment (e.g., Individual, AOT, etc.).
Percentage of Max is increased and the bar graphic is updated.
Commitment difference is added to Mandatory Outstanding Commitments.
Outstanding Commitment and % is increased, Available Amount and % is decreased, and the pie graphic is updated.

Create a Correspondent Trade

See Also