Hello guys, I have a question related to the folowing script: BatchWithIntermediaries.daml ( BatchWithIntermediaries.daml )
I see that for the case ‘Settlement where the Bank allocates its Instruction
with a direct credit to the seller’ (run2), the bank ends up with 200_000.0 cashInstrument. I was wondering whether that is correct.
Have a nice day!
Hi @jvelasco.intellecteu and welcome to the forum!
This test script is named “with intermediaries” because the cash leg is sent from buyer to seller across an intermediary (the seller’s bank).
Specifically,
- the buyer holds
200_000.0
units of the cash instrument at the central bank (CB).
- sending the money to the seller happens in two steps:
- the buyer sends the
200_000.0
units held at CB to the seller’s bank (specifically, in the bank’s account at the CB)
- the bank credits
200_000.0
units to the seller (specifically, in the seller’s account at the bank
This results in two final cash holdings:
-
200_000.0
held by the bank against the CB (that is, bank is the owner and CB is the custodian)
-
200_000.0
held by the seller against the bank (that is, seller is the owner and bank is the custodian)
The bank is effectively “flat”, as it has a 200_000
units holding ownership which is offset by a 200_000
units liability on the cash instrument.
I hope this provides some clarity, let me know otherwise!
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Got it.
Thanks @Matteo_Limberto for the clarification!
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