Create Cash Sweep Transactions Process

pencil-small This process relies on your institution's cash sweep models for input. These models are created via the Cash Sweep Models e-doc. If your institution does not use cash sweep models, this process need not be included in the batch processing sequence.

The Create Cash Sweep Transactions process directs the system to examine the frequency codes of your institution's cash sweep models. When the appropriate dates arrive, the system generates e-docs for investing excess cash or selling investments as needed to return a KEMID's negative cash balance to positive.

For the overnight investment of cash (cash sweep), the process causes the system to generate asset increase (EAI) e-docs for the KEMIDs based upon the cash sweep model assigned to the KEMID record. If a KEMID cash balance is negative, it creates Asset Decrease (EAD) e-docs in attempts to sell sufficient investments to address the shortfall. If the KEMID does not own sufficient cash equivalents to cover the entire negative balance, all will be redeemed to reduce the overdraft.

Each Asset Increase and Asset Decrease e-doc generated:

• Has a document header that includes the description 'Increase Cash Sweep Investments' or 'Decrease Cash Sweep Investments,' depending on the type of e-doc.

• Has a transaction sub-type of Cash (C).

• Has a transaction source type of Automated Entry (A).

• References a single security record.

This process must be run daily, and must be run after all transactions—including all batch processes that generate transactions—have been created and balances have been updated. Additionally, it must occur before the Pooled Fund Control Transactions process is run. Because this process generates transactional e-docs, the batch sequence must include a run of the Post E-Docs process after this process has run to completion.