Master agreement (hereinafter MA) is an agreement between two parties (participants of the repository) on the general conditions of performing various types of unorganized bidding transactions. An example of MA can be viewed here (russian version). The MA stipulates all conditions and procedures of performing transactions, payments, as well as the rights and obligations of participants in negotiation and execution of transactions.
By message of the FFMS of Russia from Dec 28, 2011 #11-68/pz-n (as amended on Dec 04, 2012) "On Approval of the Procedure of keeping an agreement registry", the information about MAs and transactions executed under such MAs shall be recorded in the repository registry. MA information will be transferred to the registry in the following cases:
- conclusion of a new MA;
amendments to the MA;
information on the termination of the MA.
The web-client’s form of the Master Agreement contains records of registered and terminated MAs (Fig. 1,1) and list of organizations the counterparty has concluded MAs with (Fig. 1,2).
Fig. 1 – form of the Master Agreement
Master Agreements tab
The Master Agreement tab opens by default when clicking on the section (Fig. 2). It contains a table listing all the counterparty’s MAs, available for viewing by the current user.
Fig. 2 – Master agreement tab
The table displays the following MA data:
- Registered – date of registration or a date of the last MA modification;
- Master agreement code – identification number assigned at registration in the registry repository;
- Party 1 – name of the organization that is a first party in the MA;
- Party 2 – name of the organization that is a second party in the MA;
- Instruments – a general instruments' list for the first and the second party that can be traded under the MA. For example, if a party can make REPO transactions, and all the instruments are available for for the second party, only REPO transactions will be displayed in the Instruments field.
Terminated or expired agreements are written in yellow. Name of the user’s company responsible for a certain role in the thread (under the MA this thread is associated with), is written in green. The background color of a cell determines the role of the counterparty:
– the current user’s organization is a party to the MA;
– the current user’s organization is the reporting agent of the second party of the MA;A. – the current user’s organization is the basic reporting agent of the second party of the M
The user may perform more than one role. Therefore, additional roles are written in the cells. The instruments, which RA can report to the party under this MA, are specified here. If the user does not report a trade on the instrument (MA has been changed), then a graphical element will be displayed next to the instrument (Fig. 3).
Fig. 3 – instruments
The information on who is RA or BRA under this MA and which instruments they can report is provided in the MA preview form (Fig. 4). To do this click the button on the toolbar that pops up when hovering the mouse over the row of the account table. Hovering over the table row opens a toolbar described in Table 1.
Fig. 4 – MA preview form
Table 1 – Instruments of the MA form
|Create a draft under the MA|
|Calls the MA preview form|
|Calls a edit form for registering changes in the conditions of MA (available for BRA)|
|Calls a edit form for terminating the MA (available for BRA)|
Web-client allows searching and sorting MAs by filters (Fig. 5).
Fig. 6 – filter settings
Description of filters available in the Web-client is provided in Table 2.
Table 2 – Transaction log filters
|Instruments||Selecting the type of transaction. Displays the MAs, where the selected instruments are used|
|Master agreement code||Selecting the master agreement code. Displays the MAs, whose code fully or partially match the code typed in the search box|
Choosing roles. Displays the MAs, in which the organization of the current user plays the selected role
|Date range||Setting the time interval. Displays the MAs, which were modified within the specified time period|
|Active only||Checking the Active only box. Displays only active MAs (not yet terminated)|
To apply filters it is necessary to open the settings panel by clicking , setup filters and click . As a result the table will display MAs matching the search criteria.
The form contains a table with a list of counterparties to the MAs, available to the current user's company. The parties are considered to be associated with the MA not only if they are parties to the agreement, but also if they are reporting agents under the MA. For example, one of them is a reporting agent, and the second one – a basic reporting agent Parties tab.
The table shows the following information about the counterparty:
- repository code (Fig. 6.1);
- name of organization (Fig. 6.2);
- role of the MA participants (Fig. 6.3);
- list of MAs, where the party plays a corresponding role (Fig. 6.4).
Fig. 6 – Parties tab
A MA can be viewed by clicking on its registration number (Fig. 7)
Fig. 7 – viewing the MA
The Parties tab only allows filtering by role the parties play in various MAs. Table 3 describes categories of the Party Role filter.
Table 3 – Categories of the Party Role filter
|All||Displays all participants|
Displays parties for which the current user’s organization is an RA
|Clients (BRAs)||Displays parties for which the current user’s organization is a BRA|
|RAs||Displays parties that are an RA for which the current user’s organization|
|BRAs||Displays parties that are a BRA for which the current user’s organization|
To display information about what master agreements have the necessary parties playing certain roles use the Parties filter. Filter by a set of participants settings are described in the General settings section.
To apply filters it is necessary to open the settings panel by clicking , install filters and click . As a result the table will display MAs matching the filter criteria.
The principle of filtering data in the table described in Filter settings.