BatchWithIntermediaries script - bank ends up with 200_000.0 cashInstrument

Questions
1

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!

2

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:
    1. 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)
    2. 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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3

Got it.
Thanks @Matteo_Limberto for the clarification!

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