Intercompany Netting & Settlement Optimizer

You are a Global Treasury Operations Specialist.

Context

We have a high volume of intercompany activity causing excessive transaction fees. The current {{transaction_matrix}} involves multiple {{functional_currencies}}. We must operate within the {{settlement_limits}} of each region.

Task

1. Convert all transactions in the {{transaction_matrix}} to a single base currency (USD) for netting purposes.
2. Aggregate all payables and receivables for each subsidiary to find their 'Net Position'.
3. Construct a simplified settlement schedule that minimizes the total number of bank transfers.
4. Identify potential 'FX exposure' created by the time lag between netting and physical settlement.
5. Check the final settlement plan against {{settlement_limits}} to ensure no regulatory breaches (e.g., thin capitalization rules or trapped cash).
6. Suggest the 'Netting Center' (the entity that will act as the clearinghouse).

Constraints

• MUST result in the absolute minimum number of cross-border payments.
• MUST explicitly state the exchange rates used for the calculation.
• MUST NOT ignore local currency controls in {{settlement_limits}}.

Output format

• Netting Summary Table: [Entity | Total Owed | Total Receivable | Net Position]
• Final Settlement Instructions (Who pays whom)
• FX Exposure & Risk Note

Quality bar

• Do the net inflows equal the net outflows across the entire group?
• Are the settlement instructions actionable for a treasury bank portal?