Background

In certain scenarios it is possible for securities lending trades to be set up with no collateral defined i.e. where there is an agreement between the borrower and the lender that there will be no cash or non-cash collateral posted as collateral against the trade.

This is commonly seen between internal counterparties, i.e. intra-group trades.

Proposal

In order to qualify a securities lending trade the collateral -> collateralPortfolio must be specified (please see Issue #4083 for more details). Under collateralPortfolio the collateralProvisions -> collateralType enumerated list is mandatory.

The proposal is to add a new option to CollateralTypeEnum of "Uncollateralised". This will allow trades to still qualify correctly and also specify that they are not expecting any collateral to be posted against them.

Compatibility

This is adding a new option to an existing list so is backwardly compatible

Release

CDM V7

Additional Context

Please see Issue #4083 for more information about qualifying securities lending trades.

This requirement came from conversations with production users of the CDM.