Counterparty Management

Overview

The Counterparty Management System is the foundation of Indication Mode, enabling institutions to establish, configure, and manage bilateral trading relationships with other known institutional partners. This system provides comprehensive controls for invitation management, role configuration, and trading parameter customization.

Core Features

Invitation and Onboarding System

Sending Invitations

Institutions can invite other organizations to establish trading relationships:

• Institution Invite Codes: Copy system-provided codes to share with potential counterparties

• Institution Code Sharing: Distribute codes through secure communication channels

Accepting Invitations

Organizations can join trading networks by:

• Using Invitation Codes: Enter codes received from other institutions

• Institution Verification: Verify the identity of the inviting organization

• Relationship Establishment: Complete the bilateral connection process

Counterparty Configuration

Each counterparty relationship can be customized with specific trading parameters:

Role-Based Permissions

Configure the trading roles for each counterparty:

• Lender Only: Institution can only lend to this counterparty

• Borrower Only: Institution can only borrow from this counterparty

• Both: Institution can both lend to and borrow from this counterparty

Lender Configuration Settings

When acting as a lender to a specific counterparty:

• Maximum Tenor: Set the maximum loan duration (in days) for loans to this counterparty

• Maximum Match Value: Define the maximum transaction amount in USD for individual loans

• Unlimited Option: Toggle to remove transaction limits for trusted counterparties

Borrower Configuration Settings

When acting as a borrower from a specific counterparty:

• Maximum Tenor: Set the maximum loan duration (in days) for borrowing from this counterparty

• Maximum Match Value: Define the maximum transaction amount in USD for individual borrows

• Unlimited Option: Toggle to remove transaction limits for established relationships

Status Controls

• Enable/Disable Trading: Temporarily suspend or activate trading with specific counterparties

Counterparty Workflow

1. Invitation Process

Institution A → Generates Invite Code → Shares with Institution B
Institution B → Enters Invite Code → Sends Relationship Request
Institution A → Reviews Request → Approves/Rejects
Both Institutions → Configure Trading Parameters → Relationship Active

2. Configuration Phase

Both parties independently configure their trading parameters:

• Set role permissions (Lender/Borrower/Both)

• Define maximum tenor limits for the relationship

• Establish transaction value limits

• Configure status management preferences