Hi Rohit,
One more question -
For cancelling any forward contract deal I think, we have to create a premature settlement. am i right?
In that case, when i do a premature settlement, 2 new transactions get created for the original contract. I understand that one transaction is for squaring off the original contract and the other contract will contain the new terms for cancellation such as the spot rate and the value date.
Both the original contract and the Netting remains in the system till the maturity date. By running TBB1 on maturity date for both the transactions the flows get knocked off.
Now my question is, on cancelling a contract before maturity date, as per our requirement, the unrealized gain/loss should be calculated as a reset entry every month till the maturity date. On which contract should we perform TPM1 valuation ?
Many Thanks in advance!
Regards,
Vinod P