LMEAUTO - Auto Settlement for LME trades
What is
This process can also be actioned as a part of the standard ITAS overnight procedures, see Note A.
The essential elements of the LME auto settlement are TCCM maintenance of 'Exchange = LME' and the 'LME Auto Sett Days' (No of business days (0-99) to be applied to TODAY date when operating automated Settlements e.g. If LME Copper is T+2, entry is 2 and automated settlements run during the calendar day of Monday 28Apr08 would settle positions for prompt date 30Apr08 AND would preferably use the TPRICE of 28Apr08 instead of the latest Spot TPRICE for the prompt date.)
NoteA:
setup DEP.TXT with parameters as …c:\itas\Exec\t\t19 MenuBatch xx DEP /output=file/LeaveDays=2 /docdate=TODAY /LMESETTDAYS=Y
The Leavedays parameter specifies to exclude trades that have a trade date since last days of ITAS run date. This enables the operating company to check/confirm their business with their broker before the trades are used in settlement processes. The LMESETTDAYS=Y command is applied when auto settlement of LME market trades is required.