Novation for CCP

[YC]

Hi there,

From a CCP perspective, we are trying to perform requestConsent messages for novation from Party1 to Party2.

We require further information on the following;
1) Do we submit both requestConsent to the outgoing and incoming party?
2) Do we populate requestAction = Novation
3) party fields:
– Do we stipulate each party of the transaction and in addition the clearing broker associated to each party (if client trade)
4) firstPeriodStartDate – do I populate the first period start date post novationDate? and if novation date is in the middle of the cashflow period it will be the cashflow period start date before novation date?

Thanks for your response.
YC

[mgratacos]

Hi,

My answers in >>

1) Do we submit both requestConsent to the outgoing and incoming party?
>> I think so. It will depend on the model but both submitting would work.

2) Do we populate requestAction = Novation
>> Yes, however it is not required since the content of the messages will have the novation event.

3) party fields:
– Do we stipulate each party of the transaction and in addition the clearing broker associated to each party (if client trade)
>> Yes, you can define the clearing broker as a role (using the ClearingFirm value) within the partyTradeInformation/relatedParty=”ClearingFirm” structure pointing to the party acting as a clearing broker.

4) firstPeriodStartDate – do I populate the first period start date post novationDate? and if novation date is in the middle of the cashflow period it will be the cashflow period start date before novation date?
>> Yes, that’s right. It will be the cashflow period start date before the novation date.

Thanks,
Marc

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