Settlements
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      Making Payments From Wallet Balances

      In Kooltra, users can make payments on behalf of their clients using wallet balances, which are also referred to as Vostro accounts.

      Vostro accounts represent the cash balances belonging to clients or counterparties, managed within Kooltra. For a broader understanding of Vostro accounts, you can refer to the Understanding Nostros & Vostros article. If you need guidance on setting up these accounts, the Creating Nostros & Vostros article provides step-by-step instructions.

      Using Wallet Balances to Fund Trades and Cashflows

      Vostro accounts can be used to fund trades or handle freeform cashflows. When using Vostro accounts for trades, the settlement type of the counterparty can be either Vostro or Payments. However, these two options differ in their handling of funds.

      Vostro Settlement Types

      Counterparties with a settlement type of Vostro will generally settle their transactions into their Vostro account by default. However, if specific payment instructions are provided, such as directing the funds to a particular beneficiary or account, those instructions take precedence.

      Payment Settlement Types

      Counterparties with a settlement type of Payments will have a Vostro account created only when a trade requires settlement into it. If a trade is executed for a counterparty and no settlement instructions have been provided by the value date, the system will automatically generate a Vostro account for the traded currency if one does not already exist. In this case, the trade will be settled into the newly created Vostro account by default.

      Making Adjustments to Vostro Accounts

      Adjustments allow users to manage freeform cashflows that are not directly tied to specific trades. These adjustments are useful for capturing non-trade-related cash movements, such as processing client withdrawals or recording interest payments from banking providers. Payments can be made using Vostro accounts through Adjustments in two ways:

      • Vostro Debit: Decreases the specified amount to a Vostro account. For example, it can be applied to charge a customer a one-time fee.

      • Vostro Transfer: Transfers money between two Vostro accounts. This type of transaction involves debiting the Vostro specified in the Client field, and crediting the Vostro specified in the To field.