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Islamic Derivatives User Manual

1. DV AMR DVAMORT1 Unhandled exception while building accounting entry 161 DV AMR DVAMORT1 Unhandled exception while processing for amount tag 171 DV AUT DVCCOATH Unhandled exception while authorizing the Contract 001 DV AUT DVCCOATH Maker Cannot Authorize the Contract 002 DV AUT DVCCOATH Rekey Field In Leg Currency is incorrect 003 DV AUT DVCCOATH Rekey Field Out Leg Currency is incorrect 004 DV AUT DVCCOATH Rekey Field In Leg Principal Amount is incorrect 005 DV AUT DVCCOATH Rekey Field Out Leg Principal Amount is incorrect 006 DV AUT DVCCOATH Rekey Field Value Date is Incorrect 007 DV AUT DVCCOATH Rekey Field Maturity Date is Incorrect 008 DV AUT DVCCOATH Override s are not confirmed 009 DV AUT DVCCOATH Do You Want to Continue Authorization 010 DV AUT DVCCOATH Failed to authorize the contract 012 DV BCH DVBCHSRV Unhandled exception while preparing for batch 001 DV BCH DVBCHSRV Batch is configured as Mandatory Function in invalid End 002 of Cycle Group DV BCH DVBCHSRV Unhandled exception while obtaining the process till date 005 DV BCH DVBCHSRV Unhandled exception while checking program status 011 DV BCH DVBCHSRV Batch already processed 012 DV BCH DVBCHSRV Predecessor Functions to Batch are pending 013 DV BCH DVBATCH Unhandled Exception while calculating the process till 021 date 10 3 OR
2. 9 7 9 5 Event wise Accounting Entries and 0 9 8 9 5 1 DBOK Contract Booking sss 9 8 9 5 2 DINT Contract Initiation sessi 9 10 9 5 3 DILQ Contract Profit Liquidation 2 9 11 9 5 4 DPLQ Contract Principal Liquidation 2 9 14 9 5 5 DRVL Contract Revaluation sss 9 17 9 5 6 DIAM Contract Inception Amortization 7 9 18 9 5 7 DTER Contract Termination 22 22 2000 9 19 9 5 8 DAMN Contract Amendment esses 9 20 9 5 9 DIAC Contract Profit Accrual sss eene 9 20 9 5 10 Contract Termination 222202 9 22 9 5 11 DRRL Contract Revaluation Reversal sss 9 24 9 5 12 UIDB Upfront Profit Booking seen 9 25 9 5 13 DTER Contract Termination sess 9 26 9 5 14 PCON Purchase Confirmation sss 9 27 9 5 15 SCON Sale Confirmation sss 9 27 9 5 16 DASS Contract Assumption enne 9 27 9 5 17 DASG Contract Assignment sse eene nennen 9 27 9 5 18 DRVN Contract Rate Revision sss 9 27 10 Annexure B Error Codes and Messages 10 1 10 1 Error Codes and 104 4 0 10 1
3. DV AML DVAMLSRV Unhandled exception while getting reset dates 016 DV AML DVAMLSRV Unhandled exception while getting compounding dates 017 DV AML DVAMLSRV Unhandled exception while getting settlement details 018 DV AML DVAMLSRV Unhandled exception while getting account details 019 DV AML DVAMLSRV Unhandled exception while processing a tag 020 DV AMR DVAMORTO Product is not Open 002 DV AMR DVAMORTO Product is not Authorized 003 DV AMR DVAMORTO Product is not Open 004 DV AMR DVAMORTO Product is not Authorized 005 DV AMR DVAMORTO Unhandled exception while obtaining the periodic amort 011 date DV AMR DVAMORTO Unhandled exception while processing periodic inception 021 amort DV AMR DVAMORTO Unhandled exception while processing periodic termina 031 tion amort DV AMR DVAMORT1 Unhandled exception while processing for a contract 101 DV AMR DVAMORT1 Failed to round the amount 102 DV AMR DVAMORT1 Failed to round the amount 103 DV AMR DVAMORT1 Unhandled exception while populating product amort 121 DV AMR DVAMORT1 Unhandled exception while populating period amort 131 DV AMR DVAMORT1 No data found for periodic amortization details 132 DV AMR DVAMORT1 Unhandled exception while populating amort master 141 DV AMR DVAMORT1 Unhandled exception while populating product entry 151 10 2 ORACLE
4. 5 1 8 1 IDRPBKDT 8 3 IDRPCACT 8 5 8 6 IDRPCSSM 8 8 IDRPEXCP 8 10 IDRPRVAL 8 11 IDRPSTLD 8 13 IDSCNRAT 5 44 3 16 IDSTRONL 5 42 IVBAUDLY 7 1 5 STDCLMNT 2 10 11 1 ORACLE
5. ds neon Error Code Message DV RVN DVRESETO Unhandled Exception while processing rate revision 001 DV ADV DVADVSRV Unhandled exception while processing messages to be 001 generated DV AML DVAMLSRV Unhandled exception during message generation for FRA 001 confirmation DV AML DVAMLSRV This message cannot be sent for this contract 002 DV AML DVAMLSRV This message cannot be sent for this contract 003 DV AML DVAMLSRV Unhandled exception while generating message for Rate 004 Swap confirmation DV AML DVAMLSRV Unhandled exception while generating message for con 005 tract assignment DV AML DVAMLSRV Unhandled exception while getting in leg details 006 DV AML DVAMLSRV Unhandled exception while getting out leg details 007 DV AML DVAMLSRV Unhandled exception while getting in leg details 008 DV AML DVAMLSRV Unhandled exception while getting out leg details 009 DV AML DVAMLSRV Unhandled exception while getting the general terms of 010 the contract DV AML DVAMLSRV Unhandled exception while getting sender and receiver 011 addresses DV AML DVAMLSRV Unhandled exception while getting broker details 012 DV AML DVAMLSRV Unhandled exception while getting agreement details 013 DV AML DVAMLSRV Unhandled exception while getting payment dates 014 DV AML DVAMLSRV Unhandled exception while getting payment dates 015 195 ORACLE
6. 3 1 3 2 1 Specifying Preferences for the 3 3 3 3 Viewing Product Summary Details enn 3 16 Defining the Fair Price Revaluation Methods 4 1 4 4 IntroductiOn iiie e AEEA 4 1 4 2 Maintaining Fair Values for Revaluing a 4 1 4 2 1 Operations on the Contract Fair Price Maintenance record 4 3 4 3 Maintaining Branch wise Forward Profit 4 3 4 3 1 Operations on the Branch wise Forward Profit Rate Maintenance record 4 5 4 4 Viewing Branch Rates Summary 00 4 6 4 5 Maintaining Contract Specific Forward Profit Rates for Revaluation 4 7 4 5 1 Operations on the Contract Specific Forward Profit Rate Maintenance record 4 8 Processing an Islamic Derivatives Contract 5 1 Jdntrod ctioni sciet ori n iter i nerd 5 1 5 2 Maintaining the Islamic Derivative Contract Input 5 1 5 2 1 Main Details ess it t d e da Eheu ER 5 4 5 2 2 Maintaining Principal Schedule Details 5 8 5 2 3 Maintaining Holiday Tr
7. DEBIT CONT ASSET OFS INLEG DEBIT INLEG ASSET INLEG PRN LIQD CREDIT CONT LIAB OUTLEG PRN CONT DEBIT CONT LIAB OFS OUTLEG PRN CONT CREDIT CONT LIAB OUTLEG PRN LIQD DEBIT OUTLEG LIAB OUTLEG PRN LIQD DEBIT CUSTOMER OUTLEG PRN LIQD CREDIT CONT LIAB OFS OUTLEG PRN LIQD CREDIT CUSTOMER TRMN GAIN DEBIT TRMN INC TRMN GAIN CREDIT CUSTOMER TRMN LOSS CREDIT TRMN EXP TRMN LOSS DEBIT Advices Advice Name Description SWIFT Message DV CCS TRMN CCS Termination MT365 ORACLE 9 5 8 9 5 9 DV IRS TRMN IRS Termination DAMN Contract Amendment Accounting Entries Nil Advices Advice Name Description SWIFT Message DV IRS AMND IRS Amendment DV CCS AMND CCS Amendment MT365 DIAC Contract Profit Accrual Accounting Entries For currency swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Accounting Role Amount Tag Dr Cr Indicator DV IN INT UID DV IN INT RAC DEBIT DV IN INT INC DV IN INT RAC CREDIT DV OUT INT EXP DV OUT INT PAC DEBIT DV OUT INT UID DV OUT INT PAC CREDIT For products wherein the Asset Movement Required box is not checked you may additionally set up the following entries Accounting Role Amount Tag Dr Cr Indicator DV IN INT INC DV IN INT IAC CREDIT DV IN INT UID DV IN INT IAC DEBIT DV
8. Asynchronous Revision schedules are not allowed Note Component IAC EAC NLSS NPRF tags for each of the profit components are created automatically on creation of a new profit class 9 5 12 UIDB Upfront Profit Booking Accounting Entries For currency and profit rate swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Advices Accounting Role Amount Tag Dr Cr Indicator DV IN INT REC DV IN INT UINT DEBIT DV IN INT UID DV IN INT UINT CREDIT DV OUT INT UID DV OUT INT UINT DEBIT DV OUT INT PAY DV OUT INT UINT CREDIT Nil Following are the UIDB accounting entries that are passed along with other related events 9 29 ORACLE 9 5 13 DTER Contract Termination Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CONT ASSET INLEG PRN CONT CREDIT CONT ASSET INLEG LIQD CREDIT CONT ASSET OFS INLEG CONT DEBIT CONT ASSET OFS INLEG PRN LIQD DEBIT CONT LIAB OUTLEG PRN CONT DEBIT CONT LIAB OUTLEG PRN LIQD DEBIT CONT LIAB OFS OUTLEG PRN CONT CREDIT CONT LIAB OFS OUTLEG PRN LIQD CREDIT CUSTOMER INLEG_PRN_LIQD DEBIT CUSTOMER OUTLEG_PRN_LIQD CREDIT CUSTOMER TRMN_GAIN DEBIT CUSTOMER TRMN_LOSS CREDIT DV IN INT_INC DV IN INT_IAC CREDIT DV IN INT_INC DV IN INT_JEAC DEBIT DV IN INT_REC DV IN INT_JEAC CREDI
9. Charge Details Contract Reference Charge Association 1 Of 1 Creation ESN Component x Description Consider as Discount 4 Charge Application 1 Of 1 Creation ESN Component Tag Currency Tag Amount Charge Currency Charge Amount Charge Liquidation 1 Of 1 Event Sequence Number Component Charge Currency Charge Amount Liquidated 9 02 ORACLE The reference number of the transaction leg for which you are defining charge details is displayed The screen will contain a list of all the charge components applicable to the transaction leg Charge Association All the charge components applicable to the transaction leg you are processing will be displayed together with the rule that is linked to the component In this section of the screen you can e Change the charge rule linked to the component e Disassociate a charge component from the transaction leg Changing the charge rule linked to a component The rule that is linked to a charge component is displayed next to the component Choose a new rule to link to the component from the option list A list of all the charge rules maintained will be displayed Select the appropriate rule from the option list The new rule will be made applicable to the charge component Disassociating a charge component from the transaction leg You can disassociate a charge componen
10. ORACLE 8 4 1 You can invoke this screen by typing the code IDRPCACT in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Contract Activity Report Contract Reference ReportFormat PDF PrinterAt Client Report Output Print Printer Specify the following details Contract Reference Select the contract reference number from the adjoining drop down list Click OK to generate the report Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Contract Activity Report is as follows Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated 6 Module Id Indicates Module Id Body of the Report The following details are displayed as body of the generated report Field Name Field Description Contract Reference Indicates the Contract Reference an ORACLE 8 5 Version Number Indicates the Version Number Event Sequence Indicates the Event Sequence Number Number Event Code Indicates the Event Code Event Description Indicates the Event Description Event Date
11. Holiday Treatment Currency Financial Centre Holiday Movement Cascade Schedules flag Move across month flag Schedule Details Revision Reset Date Basis Revision Details The following points are noteworthy A financial amendment is allowed only through External system Gateway If any one of the fields sent by the external system is not the mentioned in the list above it is considered as financial amendment upload In such a case the original contract is reversed and a new contract is booked However financial amendment upload is not allowed if SGEN message is already generated for the underlying contract In case of a financial amendment the system doesn t generate any confirmation message for the reversed deal It generates an 5 41 ORACLE amendment confirmation message as part of the DBOK event of the new deal This applies to only mail messages and not for SWIFT messages e Incase of a SWIFT message the system sends a cancellation message and a booking message e amendment of a contract is not allowed if the contract is cancelled liquidated reversed for a contract status L V or D Viewing Contract Summary Details You can view details of all contracts maintained in the system using the Islamic Derivatives Contract Summary screen You can invoke this screen by typing IDSTRONL in the field at the top right corner of the Application tool bar and clicking the adjoin
12. Previous Year Unrealized Income DV IN INT DLIQ Profit in Advance DV IN INT DLIQ CY Current Year Unrealized Income DV IN INT DLIQ PY Previous Year Unrealized Income ORACLE DV IN INT Income Accrual DV IN INT NLSS Expense Accrual on Net Loss Deal DV IN INT NPRF Income Accrual on Net Profit Deal DV IN INT ILIQ Profit Income DV IN INT JEAC Adjustment Expense Accrual DV IN INT JELQ Adjustment Profit Expense DV IN INT JIAC Adjustment Income Accrual DV IN INT JILQ Adjustment Profit Income DV IN INT Receivable Accrual DV IN INT RLIQ Profit in Arrears DV IN INT RLIQ CY Current Year Unrealized Income DV IN INT PY Previous Year Unrealized Income DV OUT INO DLIQ Profit in Advance DV OUT INO DLIQ CY Current Year Unrealized Expense DV OUT INO DLIQ PY Previous Year Unrealized Expense DV OUT INO EAC Expense Accrual DV OUT Expense Accrual on Net Loss Deal INO EAC NLSS DV OUT Income Accrual on Net Profit Deal INO EAC NPRF DV OUT INO ELIQ Profit Expense DV OUT INO JEAC Adjustment Expense Accrual DV OUT INO JELQ Adjustment Profit Expense DV OUT INO JIAC Adjustment Income Accrual DV OUT INO JILQ Adjustment Profit Income DV OUT INO PAC Payable Accrual DV OUT INO RLIQ Profit in Arrears DV OUT INO RLIQ CY
13. Reference Number User Reference Limit Type Transaction Date Effective Date Current Value Interest Exposure FX Exposure 2 13 ORACLE 3 1 3 2 3 Defining Attributes Specific to Islamic Derivative Products Introduction In this chapter we shall discuss the manner in which you can define attributes specific to an Islamic Derivative product You can create a derivative product in the ID Product Definition screen invoked from the Application Browser You can invoke this screen by typing IDDPRMNT in the field at the top right of the Application tool bar and clicking the adjoining arrow button In this screen you can enter basic information relating to a derivative product such as the Product Code the Description etc Derivatives Product Definition Enter Query Product Code Exchange Rate Variance Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Product Group Product Group Description Start Date End Date Remarks Rate Type Preferred Accounting Roles Events Branch amp Currency Customer Preferences Interest Charges Tax MIS Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status Maintaining Derivative Products For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions profi
14. DV PRN DVCPRDET Start Date Cannot be before the Value Date 013 DV PRN DVCPRDET Start Date Cannot be after the Maturity Date 014 DV PRN DVCPRDET Schedule Date is not Unique 015 DV PRN DVCPRDET Unhandled exception while validating the Holiday Treat 021 ment Details DV PRN DVCPRDET Mandatory field Schedule Holiday Currency is NULL 022 DV PRN DVCPRDET Mandatory field Schedule Financial Center is NULL 023 DV LDRPCSSM To Date Should be greater than From Date RET001 DV RVL DVREVAL Unhandled exception while building the queue array 001 10 25 ORACLE DV RVL DVREVAL Failed to obtain the next working day 002 DV RVL DVREVAL Product is closed 003 DV RVL DVREVAL Product is not authorized 004 DV RVL DVREVAL Failed to obtain the next working day 005 DV RVL DVREVAL Product is closed 006 DV RVL DVREVAL Product is not authorized 007 DV RVL DVREVAL Unhandled exception while calculating the periodic reval 011 date DV RVL DVREVAL Unhandled exception while processing periodic revalua 021 tion DV RVL DVREVAL Unhandled exception while populating reval records 031 DV RVL DVREVAL Unhandled exception while revaluing a contract 101 DV RVL DVREVAL Unhandled exception while processing product level 111 revaluation DV RVL DVREVAL Unhandled exception while processing revaluation 121 DV RVL DVREVAL No data found for the current product
15. 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated 6 Module Id Indicates the module id ORACLE Body of the Report The following details are displayed as body of the generated report Transaction Date Indicates the transaction date Branch Indicates the name of branch Process Name Indicates the process name Contact Refer Indicates the contact refer ence ence Error Code Indicates the error code Error Parameter Indicates the error parameter Revaluation Log Report The Revaluation Log report gives revaluation log details You can invoke this screen by typing the code IDRPRVAL in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Revaluation Log Selection Criteria Product Code Revaluation From Date To Date ReportFormat PDF Printer At Client Report Output Print Printer Specify the following details Product Code Specify the valid product code from the given adjoining drop down list From Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date To Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date Click OK to generate the report ORACLE 8 8 1 Contents of the Report The parameters specified while generatin
16. 8 1 8 2 Profit Accrual Report iue dede Lose d eed ree dead dei dee rin 8 1 8 2 1 Contents of the Report sss 8 1 8 3 Back Dated Deals 8 2 8 3 7 Contents of the 22 0 000042 4 2 0 001000000000 eene 8 3 8 4 Contract Activity 8 4 6 4 0 GContents of the Report ioter aae ione ta RR DER 8 5 8 5 Customer Wise Details 8 6 8 5 1 Contents of the Report 20021 101010000000000 99 8 7 8 6 Customer Wise Summary 8 8 8 6 1 Contents of the Report 2 10000 599 8 9 8 7 Process Exception 8 9 8 7 1 Contents of the Report sss nennen 8 10 8 8 Revaluation Log 8 11 8 8 1 Contents of the Report 9 nennen 8 12 8 0 Settled Deals 8 13 8 9 1 Contents of the Report 2000000000000000 8 13 Annexure Accounting Entries and Advices 9 1 9 1 lgjtfeJe eo ERRARE 9 1 9 2 err ee et e Pe deett eese 9 1 9 32 AMOUNT oce a odia RU 9 2 O 4 6
17. As part of setting up the product preferences you have to specify the relevant profit accrual details The accrual details that you specify will be made applicable to all hedge contracts associated with the product ad ORACLE You have to indicate whether profit should be accrued at the product or contract level for hedge deals The profit accrual specifications should be done for both the inward and outward legs of the contract You can specify the profit accrual details by clicking on the Profit tab in the Product Preferences screen Derivatives Product Preferences Product Code Product Type Main Schedules Amortization Details Profit Main Details Interest Accrual Level In Leg Denominator Basis Per Annum Allow External Rate Revision In Leg Profit Accrual Details Accrual Frequency Accrual Start Weekday Accrual Start Day Accrual Start Month Numerator Method Denominator Method Denominator Basis Include To Date In Leg Profit Liquidation Details Liquidation Method 5 Manual Auto Numerator Method Actual Denominator Method Actual Denominator Basis Per Annum Include To Date Profit Main Details Profit Accrual Required As a product preference you can indicate whether profit accrual is required for the contract by checking the box You can leave the box unchecked to indicate that accrual is not applicable Product Description Product Type Description Interes
18. DVLIMITS The Limit is not entered 00027 DV LM DVLIMITS The Collateral Start Date cannot be later than the Collat 00028 eral Expiry Date DV LM DVLIMITS The Margin computed is not between 0 and 100 00029 DV LM DVLIMITS The Collateral Currency is not entered 00030 DV LM DVLIMITS The Collateral Type is not entered 00031 DV LM DVLIMITS The Collateral Review Date cannot be later than the Col 00032 lateral Expiry Date DV LM DVLIMITS The Collateral Review Date cannot be earlier than Collat 00033 eral Start Date DV LM DVLIMITS The Expiry Date cannot be earlier than Start Date 00034 DV LM DVLIMITS The Security Code is not entered 00035 DV LM DVLIMITS The Security Type is not entered 00036 DV LM DVLIMITS The Currency is not entered 00037 DV LM DVLIMITS The Market Price Details are incomplete Complete 00038 Delete the Market Price Details DV LM DVLIMITS The Line Code is not entered 00039 DV LM DVLIMITS The computed exposure is not between 1 and 100 00040 109 ORACLE DV LM DVLIMITS There are Active Sub Lines reporting to this Main Line 00041 Main Line cannot be closed DV LM DVLIMITS The Last Price Change Date cannot be greater than 00042 Branch Date DV LM DVLIMITS The Security Code is not entered for the MVBC 00043 DV LM DVLIMITS The Price Code is not entered for the MVBC 00044 DV LM DVLIMITS The Number Of Units is not en
19. Islamic Derivatives Product Summary screen You can invoke this screen by typing IDSPRMNT the field at the top right corner of the Application tool bar and clicking the adjoining arrow button C Advanced Search 9 Reset Authorization Status Record Status Product Code Product Description End Date Product Group Start Date Product Type Records perpage 15 v 10f1 Authorization Status Record Status Product Code Product Description End Date Product Group Here you can query on records based on the following criteria e Authorization Status e Product Code e Description e Product Start Date e Record Status e Product Group e Product Type e Product End Date Click the Search button The system will display all records satisfying the search criteria 5 19 ORACLE 4 1 4 2 4 Defining the Fair Price Revaluation Methods Introduction Revaluation is used to revalue all active trade deals based on the revaluation frequency parameters that you specify through the Preferences screen while defining products Since the market rates are constantly in a state of flux you may wish to revalue the worth of all active trade deals periodically In Oracle FLEXCUBE you can revalue the worth of contracts by using either one of the following methods They are as follows e Maintaining Contract Fair Prices whereby you have to indicate the fair price of individual contracts which wil
20. account specified for the contract will take precedence Ifyou have specified Debit or Credit settlement accounts that use an account class that is restricted for the product an override is sought Account You have to specify the settlement account if Settlement Instructions have not been defined for the customer The settlement account that you specify is the account through which the various components linked to the contract get settled ORACLE Contract All derivative contracts must be designated at inception either as Trade as Hedge contracts At the time of product definition you would have indicated whether the product being defined is meant for trade deals or hedge deals When you associate a contract with a product the specification you made for the product will be defaulted to the contract You can however change this specification The specification you make for the Contract Type will determine the accounting entries that will be passed for processing the particular contract The system will identify all trade contracts and revalue them according to the revaluation preferences you have specified For hedge type of contracts profit accruals will be carried out at periodic intervals In addition you also have to indicate whether the contract is a Buy type or Sell type of contract Booking Date The date on which the deal details were entered is displayed here This defaults to the system date today s
21. e Customer Wise Summary Report e Process Exception Report e Revaluation Log Report e Settled Deals Report Profit Accrual Report The Profit Accrual report gives details of profit accrual You can invoke this screen by typing the code IDRPACCR in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Profit Accrual Accrual Date ReportFormat PDF Printer At Client Report Output Print Printer Specify the following details Accrual Date Specify the date Click OK to generate the report Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Profit Accrual Report is as follows a ORACLE Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated Body of the Report The following details are displayed as body of the generated report Field Name Field Description Contract Reference Indicates the contract reference number Component Indicates the component Period Start Date Indicates the periodic start date Period End Date Indicates the periodic end
22. is specified as Currency or Financial Center You can specify the details of currencies or financial centers for combined holiday treatment for uploaded DV contracts in the table shown below Column Name Data Type Length Description BRANCH CODE Character 3 Branch Code SOURCE CODE Character 20 Source Code of the external system EXTERNAL REF N Character 16 Unique Reference Number of the contract being uploaded COMPONENT Character 10 INLEG PRN gt Principal of the in leg OUTLEG PRN gt Principal of the out leg DV IN INT gt gt Interest of the in leg DV OUT INT gt Interest of the out leg CCY FIN CENTER Character 3 Currency code or Clearing house CCY OR FINCENTE Character 1 C gt Currency F gt Financial Center SCHEDULE TYPE Character 1 P gt Principal gt Interest R gt Revision If the value of CCY_OR_FINCENTER is C then the value provided in CCY_FIN CENTER must be an authorized and open currency If the value of CCY OR FINCENTER is then the value provided in CCY FIN CENTER must be an authorized and open clearing house You must provide details of the list of currencies or financial centers from the above table if the derivatives type for the uploaded product supports combined holiday treatment and the holiday treatment for a specific component and schedule type is set as currency or financial center When holiday treatment has been set as combined but sche
23. 11 Function ID Glossary reo ioco secat e eee racer he pes 11 1 1 1 Introduction 1 Preface This manual is designed to help you maintain and process Islamic Derivative instruments in Oracle FLEXCUBE It also assists you in handling all the necessary activities in the life cycle of a derivative once it is booked This includes the generation of messages and reports the accrual and liquidation of profit components the application of charges and taxes and so on 1 2 Audience This manual is intended for the Customer Service Representatives CSRs and staff in charge of setting up new products in your bank 1 3 Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http www oracle com pls topic lookup ctx acc amp id docacc 1 4 Acronyms and Abbreviations The following are some of the acronyms and abbreviations you are likely to find in the manual IDV Islamic Derivatives FRA Forward Rate Agreements CCS Cross Currency Swaps IRS Interest Rate Swaps MA Master Agreement SWIFT Society for Worldwide Inter bank Financial Telecommunication ISDA gig Swaps and Derivatives EOD End of Day BOD Beginning of Day 1 5 Organization This manual is organized as follows Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters
24. CREDIT INLEG RVL EXP CUR INRVL PAY DEBIT INLEG RVL EXP PRV INRVL PAY CREDIT INLEG RVL INC CUR INRVL REC CREDIT INLEG RVL INC INRVL DEBIT NET RVL EXP CUR NETRVL EXP DEBIT NET RVL EXP NETRVL EXP CREDIT NET RVL INC CUR NETRVL INC CREDIT NET RVL INC PRV NETRVL INC DEBIT OUTLEG RVL EXP CUR OUTRVL PAY DEBIT OUTLEG RVL EXP PRV OUTRVL PAY CREDIT OUTLEG RVL INC CUR OUTRVL REC CREDIT OUTLEG RVL INC PRV OUTRVL REC DEBIT Advices No advices allowed for this Event ORACLE 9 5 6 DIAM Contract Inception Amortization Accounting Entries Accounting Role Amount Tag iU LR INCP EXP INCP EXP AMORT DEBIT INCP GAIN DEF INCP INC AMORT DEBIT INCP INC INCP INC AMORT CREDIT INCP LOSS DEF INCP EXP AMORT CREDIT Advices No advices allowed for this Event ORACLE DTER Contract Termination Accounting Entries for NPV Rebate Accounting Role Amount Tag Dr Cr Indicator DV IN INT INC DV IN INT IAC CREDIT DV IN INT RIA DV IN INT IAC DEBIT DV IN INT INC DV IN INT JEAC DEBIT DV IN INT REC DV IN INT JEAC CREDIT DV OUT INT EXP DV OUT INT EAC DEBIT DV OUT INT PIA DV OUT INT EAC CREDIT DV OUT INT EXP DV OUT INT CREDIT DV OUT INT PAY DV OUT INT JIAC DBEIT CONT ASSET PRN CONT CREDIT CONT ASSET OFS INLEG PRN CONT DEBIT CONT ASSET INLEG CREDIT CUSTOMER
25. Consequently for all contracts linked to this type the in leg schedules will be bulleted while the out leg can have multiple schedules You can also choose to define multiple schedules for both the inward and outward legs and indicate that the frequency of repayment should differ Revision Schedules Allowed for the Leg Type Just as in the case of profit schedules so also revision schedules too can either be multiple or bulleted depending upon your specification A revision schedule is the time period for which a floating profit rate is to be used Normally this would be the same as the profit schedule but in Oracle FLEXCUBE you are allowed to maintain separate profit and revision schedules Therefore you have to specify whether the revision schedules defined for the particular In or Out leg of the contract need to be in sync with the profit schedules or whether they can be asynchronous For instance you may like to permit contracts with semi annual profit payments with quarterly revision in profit rate Payment Method Profit amount repayments for both the inward and outward profit legs can be made either at the start of the profit period or at the end of the profit period Profit rate swap would require cash flows to be exchanged at the end of each profit period Your choice of the payment method at the derivative type definition level will be defaulted to all the contracts linked to the derivative type Note that if the option Islamic Pr
26. Derivative Type involved in the contract Holiday 1 041 Currency or Financial Institution Click Add button to select a currency financial institution from the option list If you wish to delete a currency financial institution click delete button on the screen The following example illustrates the procedure for combined holiday processing as handled by Oracle FLEXCUBE Auto Settlement The principal exchange schedules can either be settled automatically or manually Check this box to indicate whether the principal settlement has to be done automatically as of the settlement date Else you will have to do it manually Holiday Movement Move Backward Forward Occasionally the preferred holiday treatment the branch holiday the currency holiday or the holiday governed by the financial center may in turn fall on a holiday In such a situation you have to indicate the movement of the schedule date Whether it is to be moved forward to the next working day or whether it should be moved backward to the previous working day This concept can be easily explained with the help of an example Cascade Schedules The question of cascading schedules arises only if e You have specified that a schedule falling due on a holiday has to be moved forward or backward e schedule has been defined with a definite frequency If you have indicated that schedules should be cascaded the schedule date for the next
27. For contracts associated with the product you have to indicate the way in which the principal amount if exchanged has to be settled This can be manual or automatic Depending on your choice all contracts linked to the particular product will be settled either automatically or manually Note You can change this preference at the time of entering the contract details Profit Settlement Method You can indicate whether profit settlement for all the contracts associated with the product is to be automatic or manual Note You can change this preference at the time of entering the details of the contract Rekey Fields When a derivative contract is invoked for authorization as a cross checking mechanism you can specify that the values of certain fields should be entered before the contract is authorized This is called the Rekey option While defining the product you have to indicate the fields whose values you need to enter before a contract is authorized Thus it becomes mandatory for you to enter the values of rekey fields for all contracts linked to the product You can specify any or all of the following as rekey fields e In Currency Out Currency e Maturity Date e Prn Amount e Out Prn Amount e Value Date If no rekey fields have been defined the details of the contract will be displayed immediately when the authorizer calls the product for authorization ORACLE Revaluation Details Yo
28. House Maintenance screen The reason for maintaining clearing houses or financial centers is that at the time of processing the contract you can indicate that holiday treatment for principal and profit schedules and for rate resets should be according to the holiday calendar of the financial center ae ORACLE 2 6 You invoke this screen by typing STDCLMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Clearing House Maintenance New Enter Query Clearing House Description Swift Code Input By Authorized By Modification Date Time Date Time Number L Authorized Open If you are maintaining details of a new financial center choose New from the Actions Menu or click New icon from the tool bar The Clearing House Maintenance screen will be displayed without any details If you are calling a clearing house record maintenance record that has already been defined choose the Summary option under Clearing House In the Summary screen double click on a record of your choice Clearing House In Oracle FLEXCUBE you have to assign a unique three character code to the clearing house that you are maintaining The code that you assign is used to identify the particular clearing house whenever you link it to a particular contract You can follow your own convention while devising this code Description In ad
29. New from the Actions Menu or click New icon from the tool bar The Messaging Party Maintenance screen will be displayed You can identify the person who is to receive the message on behalf of the counterparty and the medium through which the message should be sent To do this you have to assign a unique code to the receiver and medium combination Subsequently you have to capture the name of the receiver Receiver Id This is the code assigned to the receiver of the message Enter a unique code to identify the receiver of the message Medium Choose the medium through which you wish to send the message This can be any of the following e Mail e Telex e Fax e SWIFT Receiver Name This is the name of the receiver of the message Enter the name of the party who will receive the message on behalf of the customer 2n ORACLE Address While maintaining the messaging party details you are required to indicate the mailing address of the receiver of the message All the messages addressed to the counterparty will be directed to the receiver address that you specify During contract input when you indicate the ID of the receiver the default address specified for the receiver is displayed Note If you specify that the message should be sent through SWIFT then you have to indicate the SWIFT address of the receiver in the first line of the address box before you specify the mailing address Language The mes
30. Settlements Click this button to invoke the Settlement screens Based on the details that you enter in the Settlement screens the contract will be settled The details of these screens have been discussed in the Settlements manual Tax This button invokes the Tax services The application of tax on a deal is discussed under the head Levying tax on a contract Sub Agree Click this button to invoke the Sub Agreement screen You can either ment choose to link the sub agreement to the master agreement or choose to link it at a future point in time Principal Click this button to invoke the principal schedule details for the in and out legs of the contract This is possible only if you have specified so for the derivative type linked to the contract Interest Click this button to indicate the profit schedule profit revision sched ule and accrual related details for every contract that you process Commodity Click this button to maintain principal and profit schedules for the in Tracking and out legs of the contract Through the Islamic Derivatives Contract Input screen you can process all types of derivative contracts Product You can enter the details of a contract using a derivative product Based on the type of contract you are entering you can select a product from the option list available at the Product field Once you link a product with a contract the attributes defined
31. Tag Description DR CUSTOMER Customer DV IN INT DLI Profit amount Q Inleg CR DV IN INT In leg profit Received DV IN INT DLI Profit _ RIA in advance Q Amount Inleg DR DV OUT INT Outleg Expense Paid DV OUT INT D Profitamount PIA in Advance LIQ Outleg CR CUSTOMER Customer DV_OUT_INT_D Profitamount LIQ Outleg DR CUSTOMER Customer NET_INT_INC Net Income on Accrual CR DV_IN_INT_RI Net Profit received in NET INT INC basis A advance DR DV OUT INT Net expense paid in NET INT EXP Net Expense PIA advance on Accrual basis CR CUSTOMER Net Expense paid in NET INT EXP advance Accounting Entry Setup Settlement on Non Cash basis Arrears Contracts ORACLE 9 5 4 cn Accounting Role Amount Tag Role Description Tag DR CUSTOMER Customer DV IN INT RLIQ Profit amount Inleg CR DV IN INT REC Inleg receivable GL DV IN INT RLIQ Profit Amount Inleg DR DV OUT INT PA Outleg payable GL DV OUT INT RL Profit Y IQ amount Outleg CR CUSTOMER Customer DV OUT INT RL Profit IQ amount Outleg DR CUSTOMER Customer NET INT INC Net Income on Accrual CR DV IN INT REC Net Profit Receiva NET INT INC basis ble DR DV OUT INT PA Net expense Paya NET INT EXP Net Y ble Expense on Accrual CR CUSTOMER Net Expense NET INT EXP basis Note In all the above scenarios Settlement on cash and non cash basis netting tags NET INT INC and NET INT EXP will b
32. Time Status Authorization Status You can capture the following details Product Code Specify the product code of the contract You can select the appropriate code from the adjoining option list Contract Reference Number Specify the contract reference number that has to be reassigned The adjoining option list displays all contracts linked to the specified product You can choose the appropriate one Current User Identification The customer id linked to the chosen contract is displayed here New User Identification Specify the identification code of the customer to whom the contract has to be reassigned The adjoining option list displays all customers linked to the specified product Processing Profit Rate Swaps Oracle FLEXCUBE allows you to process profit rate swaps contracts using the Islamic Derivatives module When you book a contract the system triggers the DBOK event and updates the contract status as Yet to be Initiated If the option Commodity Settled has been checked in the screen Islamic Derivatives Commodity Tracking the system will trigger the 949 ORACLE event SCON thereby confirming sale of commodity in one leg Similarly it will trigger PCON thereby confirming purchase of commodity in the other leg Once these events are triggered the contract status will be updated as Active Once the contract status is updated as Active the system triggers the DINT event on the contra
33. Value Date Indicates the value date Rate Type Indicates the rate type Rate Code Indicates the rate code Rate Indicates the rate Currency Indicates the currency Out Leg Profit Details Component Value Date Indicates the component Indicates the value date ORACLE Rate Type Indicates the rate type Rate Code Indicates the rate code Rate Indicates the rate Currency Indicates the currency ORACLE 9 1 9 2 9 Annexure A Accounting Entries and Advices Introduction This section contains details of the suggested accounting entries that can be set up for the Derivatives module of Oracle FLEXCUBE The details of the suggested Accounting Entries and Advices are listed event wise IDV Events The following is an exhaustive list of events that can take place during the lifecycle of a Derivatives contract Event Code Event Description DAMN Contract Amendment DASG Contract Assignment DASS Contract Assumption DBOK Contract Booking DIAC Contract Profit Accrual DIAM Contract Inception Amortization DILQ Contract Profit Liquidation DINT Contract Initiation DPLQ Contract Principal Liquidation DRVL Contract Revaluation DRVN Contract Rate Revision DRVS Contract Reversal DTAM Contract Termination Amortization DTRB Booking of Termination Date DTER Contract Termination DRRL C
34. Weighted Limit Tracking is checked and risk percentage cannot be arrived at Risk percent once arrived at will be stored and the contract level and will be used to compute the risk weighted amount for limit tracking Any future amendment of risk percentage in risk percentage maintenance will not affect the risk weighted amount of the contract and it will remain the same throughout the life cycle of the contract Limits Utilization for the Notional Amount and the Risk Weighted amount will be done against the in leg currency for IRS and CCS Limits Processing Limit tracking for Notional Contract amount will be carried out on the in leg principal For risk weighted limit tracking notional amount will be multiplied with the risk percent for finding out the risk weighted amount and limit tracking will be done on this amount If credit netting is checked during contract input and the contract is governed by a master agreement then the limit tracking will be done against a single reference number This reference number will be the master agreement code of the master agreement for the counterparty of the contract Processing Brokerage on a Contract When capturing the details of a contract that involves brokerage you will have to specify the brokerage details applicable to the contract To recall you have already specified the name of the broker through whom the contract was brokered in the Islamic Derivatives Contract Input screen T
35. a new financial year Accounting Role Amount Tag Debit Credit In Leg entries INLEG_RVL_INC PRV_INRVL_REC_PY Debit CONT_FAIR_VAL PRV_INRVL_REC_PY Credit CONT_FAIR_VAL PRV_INRVL_PAY_PY Debit INLEG_RVL_EXP PRV_INRVL_PAY_PY Credit Out Leg entries OUTLEG_RVL_INC PRV_OUTRVL_REC_PY Debit CONT_FAIR_VAL PRV_OUTRVL_REC_PY Credit CONT_FAIR_VAL PRV_OUTRVL_PAY_PY Debit 9 24 ORACLE OUTLEG RVL EX PRV OUTRVL PAY PY Credit P In case of Revaluation Netting NET RVL INC PRV NETRVL INC PY Debit CONT FAIR VAL PRV NETRVL INC PY Credit CONT FAIR VAL PRV NETRVL EXP PY Debit NET RVL EXP PRV NETRVL EXP PY Credit For FRA contracts satisfying the following conditions the accounting entries for the Profit Settlement Cash and Accrual and Profit Accrual events are given below with the help of an example Conditions e Netting Required option has to be enabled at the derivatives type level and Accrual Required has to be either enabled or disabled for both the legs An error message will be shown if this is not the case e This applies only to FRA contracts having the following definition of the derivative type attached in the product Netting Required should be checked Payment method for both the in leg and out leg is Advance Principal Exchange required is No Asynchronous Profit schedules are not allowed
36. as and when the contract is revalued When you are entering a contract you may enter the inception value in this field This will be taken as the current value of the contract FX Exposure The likely increase in value in a contract during the contract tenor may be attributed to two factors e Profit Exposure Exposure to fluctuation in profit rates e FX Exposure Exposure to fluctuations in exchange rates only when foreign currency is involved Specify the profit and FX Exposure amounts Notional amp Risk Weighted Limits You can specify whether Limit Tracking is required for the particular contract The fields Fair Value Limit Tracking Notional Limits Tracking and Risk Weighted Limits Tracking will be enabled only if Limit Tracking option is enabled If the contract is governed by a Master agreement then if any of the three fields Fair Value Limit Tracking Notional Limits Tracking and Risk Weighted Limits Tracking are checked in the Master Agreement the Limit Tracking Required option will be checked at contract level The fields Notional Limits Tracking Notional Line Code Risk Weighted Limits Tracking and Risk Weighted Line Code are defaulted from the Master agreement maintenance if the contract comes under the preview of a Master agreement 9 80 ORACLE 5 2 10 5 2 11 Notional Line Code and Risk Weighted Line Code are mandatory if the Notional Limits Tracking and Risk Weighted Limits Tracking options are
37. be linked Maturity Date Details Holiday Treatment As part of specifying the maturity date details you have to select the holiday handling treatment if the Maturity Date were to fall due on a holiday You can specify that the holiday should be treated according to on of the following e Ignore the holiday e Branch Holiday e Currency Holiday e Financial Center Holiday Movement You can also choose to move the maturity date falling due on a holiday either forward or backward to the next or the previous working day respectively If not the maturity date will be kept in the same month on the last or first working day of the month depending on whether the maturity date is over the month end or the beginning of the month Holiday CCY If you have specified that the Holiday Treatment should be as per your specifications in the Currency Holiday Calendar then you have to indicate the currency for which the holiday table should be checked os ORACLE Financial Centre If you have indicated that the Holiday Treatment should be governed by the holiday calendar of the Financial Center then you have to indicate the code assigned to the Financial Center Inception Details Inception Value The inception value refers to the value of the contract at inception This is applicable only in the of trade deals You can either choose to amortize the gain loss at inception or you can choose to ignore the same Note Your preferen
38. be passed The options available are 529 ORACLE e Product e Contract At the product level amortization entries will be passed for the product and currency combination The system identifies those contracts which need to be amortized for inception gain and or loss and passes accounting entries based on the set up defined for accounting entries At the contract level inception gain loss amortization entries will be passed for individual contracts linked to the particular product Amortization Frequency After you indicate the amortization level for gain and loss of contract inception and termination you have to specify the frequency at which amortization should take place The frequency can be one of the following e Daily e Weekly e Monthly e Quarterly Half yearly e Yearly Amortization Start Weekday In the case of weekly accrual you should specify the day of the week on which profit accruals should be carried out For instance if you specify that accruals should be carried out every Friday then the contract or product depending on the level specified will be accrued on every Friday of the week Amortization Start Day In the case of monthly quarterly half yearly or yearly amortization you should specify the date on which the amortization should be done during the month For example if you specify the date as 30 amortization will be carried out on that day of the month depending on the frequency If y
39. confirmation is saved the contract status becomes unauthorized On authorization of the confirmation through the Confirmation screen the contract status is also updated to Authorized Note After you authorize the record the A option appears checked you are not allowed to make any modifications in the Schedule Confirmation screen pertaining to a confirmed schedule If the counter party confirms another schedule later on the above process must be repeated for the relevant schedule Reassigning a Contract to another User A contract can be deleted only by the user who entered it If a contract has to be deleted and the user who input the same is not available to do it you can reassign the contract to another user so that the other user can delete it Typically this situation may arise during EOD 6 2 ORACLE operations when a contract that is not authorized has to deleted the user who input it has left office for the day You can invoke the Islamic Derivatives Contract Reassign screen by typing IDDTREAS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Reassign New E3 Enter Query Reassign User Prior To Authorization Product Code Contract Reference Current User Identity New User Identity Maker Date Time Checker Date Time Status Authorization Status To reassign a contract to another us
40. covered in this User Manual 1 1 ORACLE General Maintenance for the Islamic Derivatives Module deals Chapter 2 with the maintenance of basic information that needs to be set up before the Islamic Derivatives module becomes operational Defining Attributes Specific to a Islamic Derivative Products Chapter 3 describes the procedure to define attributes specific to Islamic derivative products Defining the Fair Price Revaluation Methods is used to revalue all Chapter 4 active trade deals based on the revaluation frequency parameters that you specify while defining products Processing an Islamic Derivative Contract lists and explains the Chapter 5 details of a Islamic derivative that should be captured It also explains how to associate an IDV product with an IDV contract Confirmation of Profit and Principle Schedules details the confir Chapter 6 mation by the counter party involved in the Contract It also cap tures the details of each such confirmation received Batch Processing documents the Beginning and End of Day func Chapter tions that are processed by the system Reports lists the possible reports that can be generated for the Chapter Module Annexure A Accounting Entries and Advices contains an event Chapter 9 wise list of suggested accounting entries and advices for the Islamic Derivatives module Annexure B Error Codes and Messages for Islamic Derivatives Chapter 10 lists
41. currencies that you have specified for the contract in the Holiday Currency screen explained in detail in the subsequent section e Indicate that the holiday treatment should be governed by the Financial Center In such a case the movement of schedules will be based on the holidays maintained for the financial institutions involved in the contract multiple financial institutions are also maintained in the Holiday Currency screen Holiday Currency and Financial Centre If you choose to follow either the currency holiday or the holiday calendar maintained for the financial center you need to specify the currencies financial institutions that are involved in the contract In the event a schedule date of a component falls due on a holiday the system computes the next schedule date based on the combination of holiday calendars maintained for all the currencies financial institutions that you have specified for the contract whether principal profit or revision Therefore in effect the next schedule date for a component will be a working day in all the calendars involved in the contract oe ORACLE Multiple Currencies Financial Institutions Click Holiday button to invoke the Holiday screen to indicate the currencies or the financial institutions depending on your selection of the holiday treatment involved in the contract This option is enabled only if you have selected the Combined option for the
42. date Leg Type Indicates the leg type Payment Method Indicates the method of payment Previous Accrual Date Indicates the previous accrual date Current Accrual To Date Indicates the current accrual to date Current Run Accrual Indicates the current run accrual Accrual Till Date Currency Code Indicates the accrual till date Indicates the code of the currency Back Dated Deals Report Back Dated Deals report gives back dated deals details 8 2 ORACLE 8 3 1 You invoke this screen by typing the code IDRPBKDT the field at the top right corner of the Application tool bar and click on the adjoining arrow button Back Dated Deals Report Selection Criteria Booking Dated From Date To Date Value Date From Date To Date ReportFormat PDF PrinterAt Client Report Output Print Printer Specify the following details From Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date To Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date Click OK to generate the report Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Back Dated Deals Report is as follows Header The following details are displayed in the header secti
43. date This date is for information purposes only The accounting entries are passed as of the Value Date of the deal initiation date of the deal Value Date If you are entering the details of a profit cross currency swap you have to indicate the date on which the swap takes effect The accounting entries for the initiation of the deal will be passed as of the value date The tenor of the deal will begin from this date and all calculations for profit and all the other components based on tenor will be made from this date onwards The system defaults to today s date You can also enter the Value Date of your choice here and it can be any one of the following e Today s date e A date in the past e A date in the future The Value Date should not be earlier than the Start Date or later than the End Date of the product involved in the deal If the liquidation date for any of the deal components falls before today s date the liquidation entries as defined by you for the product will be passed if you have specified the same for the product Maturity Date While maintaining the details of a swap you have to indicate the date on which the swap matures Buy or Sell You need to indicate whether the contract is a Buy type or Sell type of contract Liquidate Past Schedules You can choose to liquidate past schedules of back dated contracts If you specify that back dated schedules should be liquidated the system will liquidate these schedu
44. details DV LM DVLIMITS The Last Available Date cannot be less than the Line 00012 Start Date DV LM DVLIMITS The Customers Allowed details are incomplete Complete 00013 Delete the Customers Allowed details DV LM DVLIMITS The Tenor Limit Amount exceeds the Line Limit Amount 00014 DV LM DVLIMITS The Sub Line Tenor Limit Amount cannot be greater than 00015 the next higher Main Line Tenor Limit Amount 1 2 DV LM DVLIMITS The Sub Line Tenor cannot be greater than Maximum 00016 Main Line Tenor 1 Days DV LM DVLIMITS There are no Tenors specified for the Main Line 00017 DV LM DVLIMITS The Line Code is Limits Template Details will be copied 00018 from template Continue DV LM DVLIMITS The Sub Line Limit cannot exceed the Main Line Limit 1 00019 2 DV LM DVLIMITS The Main Line Limit cannot be less than any of its Sub 00020 Line Limit 1 2 1990 ORACLE DV LM DVLIMITS The Main Line Tenor cannot be Less than the Minimum 00021 Tenor of any Sub Lines reporting to it 1 Days DV LM DVLIMITS The Main Line Tenor Limit Amount cannot be less than 00022 the next lower Sub Line Tenor Limit Amount 1 2 DV LM DVLIMITS The Limits Copy could not be completed 00023 DV LM DVLIMITS Blank spaces cannot be a part of this field 00024 DV LM DVLIMITS The Line Code should have nine characters 00025 DV LM DVLIMITS The Tenor Mnemonic is not entered 00026 DV LM
45. enabled respectively For the line code all valid lines for the counterparty and the product will be displayed in the option list On saving the contract all the three lines selected will be validated for any restrictions based on product and currency Oracle FLEXCUBE will also ensure that all line codes selected are distinct from each other Risk and Risk Weighted amount will be calculated and shown the screen as soon as the Risk Weighted Limits Tracking option is selected These fields will be recalculated if the value date or the maturity date is amended Risk Weighted Amount will be calculated as follows Risk percent will be computed by comparing the tenor Maturity date Value date of the contract with the tenor slabs in risk percent maintenance Risk category used for comparison will be the risk category defined in customer maintenance for the counterparty of the derivatives and options contract Product used for comparison will be the product for the contract If there is no risk maintenance for the particular category and product product will be replaced by ALL and risk percent for contract tenor customer category and product ALL will be arrived at Module used for find out the risk percent will be DV for Islamic Derivatives Various combinations possible for find out risk percentage in order of preference are DV Customer Category Product DV Customer Category ALL An error message will be raised if Risk
46. for the product and consequently the derivative type associated with the product will be inherited by the contract automatically You are allowed to change a few of these details such as revaluation details the in and out leg profit details before saving the contract Reference Number In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system This number tag is used to identify the contract you are entering it is also used in all the accounting entries and transactions related to this contract Hence the system generates a unique number for each contract The contract reference number is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD a ORACLE 5 2 1 YY stands for the last two digits of the year DDD for the number of day s that has have elapsed in the year User Reference You can enter a reference number for the contract A contract will be identified by this number in addition to the Contract Reference No generated by the system This number should be unique and cannot be used to identify any other contract By default the Contract Reference Number generated by the system will be taken as the User Reference No External Reference If the transaction is being uploaded from an external source you can specify the identification for the tra
47. information is basically for the internal reference of your bank and will not be reflected on any customer correspondence Additionally you can also capture your own internal remarks about the master agreement that you have created These remarks too will not be reflected in your correspondence with the customer Sub Agreements With every master agreement that you create you can link one or more sub agreements Subsequent to creating a sub agreement you can either choose to link it to the master agreement or choose to link it at a future point in time Code Enter a code to identify the sub agreement that you are creating The code that you enter will have to be a unique code at the counterparty level Description Enter a brief description that will enable you to identify the sub agreement code being maintained quickly The description that you specify here is for information purposes only and will not be printed on any customer correspondence Date Specify the date as of which the sub agreement was signed Agreement Details You can summarize and capture all the details about the sub agreement The details that you enter here will not be printed on any customer correspondence Linkage You can check this box to indicate that the sub agreement for which you are maintaining details should be associated with the master agreement Maintaining Clearing Houses You can maintain the details of financial centers through the Clearing
48. liquidation Referthe Chapter Defining Attributes specific to Derivative Products for details on Numerator and Denominator Methods Payment Details Rate Denominator Basis You need to indicate the basis on which rate denominator has to be computed The options available are Perannum e Per period Note If you are specifying in leg details then indicate the in leg rate denominator basis While defining out leg details indicate the out leg rate denominator basis Payment Method You can indicate the method in which profit components for both the in as well as the out legs of the contract should be paid You can indicate one of the following e Arrears Profit is liquidated at the end of each profit period e Advance Profit is paid at the start of each profit period Discount Rate Basis When you decide to pay profit in Advance you have to indicate the basis on which the profit rate should be picked up to compute the discounted amount You can select any one of the following options e Direct Input e Contract Floating Component e Other Floating Component If you select the first option then you have to manually enter the rate at which profit is to be discounted When the discount rate basis is the Floating Component you have to specify the Floating Component based on which profit is to be discounted If your choice to discount the rate basis is the Other Floating Component you have to indicate the rate source l
49. not exist in the system an error message will be displayed to notify that the contract cannot be amended The Reference Number provided by the external system has to same if itis a new contract or if itis an amendment to an existing contract When you upload a new contract the Reference Number will be displayed in the User Reference Number field for that contract The User Reference Number will be the basis for checking whether the contract exists or not The upload for contract amendment will trigger the DAMN event The same event is triggered even when you make the amendment in the Islamic Derivatives Contract Input screen The fields that can be amended for the Islamic Derivatives module are as follows e Remarks e Rate Type IN LEG e Rate IN LEG e Rate Type OUT LEG was ORACLE 5 3 1 5 3 2 5 3 3 Rate OUT LEG e Reval Required e Reval Netting Required e Reval Method e Holiday Treatment e Holiday Currency e Finance Centre e Holiday Movement e Move Across Months e Inception Value Operations on a Islamic Derivatives Contract Record You can perform the following operations on a derivative contract e e Authorize e Delete e Amend e Reverse e Liquidate Refer to the Common Procedures User Manual of Oracle FLEXCUBE for details on these operations Uploading Derivative Rates Oracle FLEXCUBE allows uploading of derivative rates During the upload Oracle FLEX
50. number of schedules depending on how many you want to define for the particular component For instance for a particular schedule you have indicated that the Frequency should be Weekly and the Frequency Unit as 2 Subsequently you indicate that the Number of Schedules as 12 This particular schedule will be run once in every two weeks twelve times Adhere to the Month End When the principal exchange frequency is in terms of a month you can choose to indicate whether the schedules should be liquidated as of the last working day of the month or whether it should strictly follow the defined schedule Adjustment Type Periodic schedule repayment of the principal amount will always bring about a readjustment in the principal amount It either increases or decreases the amount that is to be repaid to the counterparty Therefore while defining principal schedules you have to indicate whether liquidation of the particular schedule results in the Increase or Decrease of the actual amount Amount Since the periodic schedule repayment of the principal amount either increases or decreases the amount to be repaid to the counterparty you have to indicate the amount by which the principal is being changed 2 7 ORACLE 5 2 5 Viewing Schedule Details Click Explode button to view the details of all the schedules for the contract Principal Schedules Explode 10f 1 Start Date Base End Date AdjustmentType Adjustment Amount Principal Amo
51. pend 124 ing DV IAC DVACCR Unhandled exception while processing product level 131 accrual DV IAC DVACCR Unhandled Exception when processing interest accrual 141 DV IAC DVACCR No data found for the current product code 142 DV IAC DVACCR Unhandled exception while processing interest accrual 151 DV IAC DVACCR Unhandled exception while processing interest accrual 161 DV IAC DVACCR Unhandled exception while processing interest accrual 171 i ORACLE DV IAC DVACCR No data found for the current contract ref no 172 DV IAC DVACCR Unhandled exception while processing the amount tags 191 DV ICA DVINTCAL Unhandled exception while computing Interest Amount 001 DV ICA DVINTCAL Failed to round the Interest Amount 002 DV ICA DVINTCAL Unhandled exception while computing Discount Amount 011 DV ICA DVINTCAL Failed to round the Discount Amount 012 DV ICA DVINTCAL Unhandled exception while computing Discount Amount 021 DV ICA DVINTCAL Failed to round the Discount Amount 022 DV ICA DVINTCAL Unhandled Exception while calculating the interest 031 amount DV ICA DVINTCAL Unhandled Exception while calculating the interest 041 amount DV ICA DVINTCAL Unhandled Exception while calculating the interest 051 amount DV ICA DVINTCAL Unhandled Exception while calculating the interest 061 amount DV INT DVDINDET Unhandled exception while validating
52. picked up automatically based on the type of contract you are entering and the parties specified in the contract The address of the party who is the recipient of the message will be picked up by default based on the media and address maintenance for the party You can change either of them For a payment message by SWIFT you also have the option to change the priority of the message Receiver ID Specify the Customer to whom the Advice is being dispatched Suppress By default all the advices defined for a product will be generated for contracts involving it If any of the advices are not applicable to contract you are processing you can suppress its generation Priority For a payment message by SWIFT you also have the option to change the priority with which the message should be generated By default the priority of all advices is marked as Normal You have the option to prioritize a payment message to one of the following options ORACLE 5 2 13 Normal e Medium e High Medium The medium through which an advice is transmitted and the corresponding address will be picked up based on the address and media maintained for the customer who is the recipient of the message You can however change either of these while processing the contract Typically if changed both of them will be changed Viewing Event Details Click Event button from the Contract Input Details screen to view details of e
53. relevant accounting entries are passed The Contract Charge Details screen displays e charge components that have already been liquidated e amount that was liquidated e currency in which it was liquidated Maintaining Settlement Instruction Details In order to capture the details of a contract successfully you have to capture the following details as well e accounts to be debited for charges if there are any e accounts to be debited for profit that the contract involves e method in which the contract is to be settled whether it is an instrument or a Message as in a SWIFT or TELEX message e Details about the route through which the money settlement should take place The information that is related to the settlement method and route applicable for a transfer is referred to as Settlement Instructions The Settlement Instructions are captured through four different screens Click Settlements button in the Contract Input Details screen to invoke the Settlement Instructions screen Through the four screens you can capture the following information e Account details details about the accounts involved in the contract that have to be either debited or credited in your branch e Message details e Party details details about the various parties involved in the contract Settlement Details Contract Reference Component Payment Details Parties Par
54. schedules e Revision Revision of profit rates for a contract with periodic profit rates Start Reference The reference date is the date based on which the repayment schedules for the various components Principal Profit Revision is calculated You can specify that the schedule start period should either be based on the Value Date of the contract or that it should be based on a Calendar Date If you specify that the reference should be the Value Date the dates for schedule repayment dates will be determined by the date of initiation of the contract and the frequency that you specify If the Reference is specified as Calendar Date the dates for schedule repayments will be based on the Start Day Month and Frequency combination Frequency The frequency of schedules that you specify along with the Start Reference and the Frequency Unit will determine the actual repayment schedules for the particular component By default the frequency will be Bullet which means that all the repayments will be made as of the maturity date of the contract SH ORACLE You can change the frequency to any one of the following options e Daily e Weekly e Monthly e Quarterly e Half yearly e Yearly Note If the Reference is set as the Value Date the repayment dates will be calculated using the Value Date the frequency and the Unit of Frequency If the Reference is set as Calendar Date the repayment dates will be calculated based on
55. the error messages that you encounter while working with Oracle FLEXCUBE Function ID Glossary has alphabetical listing of Function Screen Chapter ID s used in the module with page references for quick navigation 1 6 Related Documents e The Procedures User Manual e The Messaging System User Manual Central Liability User Manual 1 7 Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function X Exit Add row Delete row EE Option List tg ORACLE 2 1 2 2 2 General Maintenance Introduction Before you begin any operations in the Islamic Derivatives module you have to maintain certain basic information This information is necessary for the successful functioning of the module The information that you need to maintain includes e Defining Derivative Types e Bank and Branch Parameter details e Revaluation details e Messaging party details e Counterparty details e Limits Processing Although you maintain this information at the out set before beginning any transactions in this module it is imperative that you periodically review and update this information to reflect the latest changes The procedure to maintain these details is documented in the subsequent sections Maintaining Derivative Types The difference between this module and the other modules in Oracle FLEXCUBE is that before you begin
56. the legs of the contract Next you can start capturing additional information relating to the derivative such as the Revaluation details Inception and Termination details and so on by moving to the Detail tab Besides the existing fields in the Derivative Contract On line screen you will also notice a vertical array of buttons Clicking on an button launches a screen that captures details specific to an attribute Settlement Message details for example These buttons are briefly described below Field Description Brokerage Click this button to indicate brokerage details applicable to the con tract Advice Click on this button to enter the leg advices You can view suppress and prioritize the advices that are to be generated for each leg of the transaction Event Click this button to view details of the events and accounting entries that the contract involves The screen also displays the overrides that were encountered for the contract 5 2 ORACLE Fields Click this button to invoke the User Defined Fields screen You indicate the user defined fields for which information needs to be cap tured Charges This button invokes the Charge service of Oracle FLEXCUBE On invoking this function you will be presented with a screen where the charge rate amount and the waive charge parameters can be speci fied MIS Click on this button to enter the transaction MIS details
57. this Event 9 21 ORACLE 9 5 10 DTAM Contract Termination Amortization Accounting Entries Accounting Role Amount Tag Dr Cr Indicator TRMN EXP TRMN EXP AMORT CREDIT TRMN GAIN DEF TRMN INC AMORT DEBIT TRMN INC TRMN INC AMORT CREDIT TRMN LOSS DEF TRMN EXP AMORT DEBIT Entries that are passed during the for transfer of unrealized to realized income are as follows Gain Loss Accounting Role Amount Tag ndicator Gain Debit TRMN GAIN DEF TRMN INC AMORT Credit TRMN INC UNRLZ TRMN INC AMORT Loss Debit TRMN EXP UNRLZ TRMN EXP AMORT Credit TRMN LOSS DEF TRMN EXP AMORT On Contract Maturity In addition to above Gain Debit TRMN INC UNRLZ TRMN GAIN PY Credit TRMN INC TRMN GAIN PY Debit TRMN INC UNRLZ TRMN GAIN CY Credit TRMN INC TRMN GAIN CY Loss Debit TRMN EXP TRMN LOSS PY Credit TRMN EXP UNRLZ TRMN LOSS PY Debit TRMN EXP TRMN LOSS CY Credit TRMN EXP UNRLZ TRMN LOSS CY If the amount tag is of type Component RLIQ DLIQ PY and if the accounting role pertains to unrealized income expense the head for the accounting role will be replaced by the previous year adjustment GL while passing accounting entries Note The transfer of income expense from the previous year adjustment GL to the realized in come expense GL happens only if the Track PY P amp L Adjustment option has been set as a branch preference through
58. to maintain products you are required to define Derivative types In maintaining derivative types you can broadly classify the derivative instrument as a CCS or IRS Additionally you can also capture relevant information about the instrument For instance indicating whether schedules are allowed or whether profit is to be paid in advance or in arrears and so on The advantage of defining Islamic derivative types is that at the time of creating a product you need to specify the code assigned to the derivative type The basic details you have specified for the derivative type will be automatically inherited by the product and consequently by any contract entered using that product 21 ORACLE You can invoke Derivative Type Maintenance screen by typing DVDDTMNT the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Derivative Type Enter Query Derivative Type Holiday Treatment Type Description E Combined Islamic Derivatives Principal Details Interest Details Cross Currency Allowed 7 Asynchronous Schedules Netting Required Exchange Required Asynchronous Schedules In Schedules Allowed 71 Out Schedules Allowed Amortization Start Date Termination Date In Leg Interest Details Out Leg Interest Details Settlement Date Asynchronous Revision Asynchronous Revision Schedules Sc
59. under the End of Day Batch in the Batch Operations menu and specifying the activity and the stage till which the system needs to run for a particular Branch You can check the progress of the activity in the Monitor option available under End of Day Batch You can invoke this screen by typing i ORACLE 7 3 7 3 1 BADEODFE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Batch EOD Function Inputs E New E5 Enter Query Batch End Of Day Functions Branch Code Function Description End of Cycle Group Transaction Input Report Orientation Not Applicable End of Transaction Input Portrait End of Financial Input Landscape End of Day Beginning Of Day m Function Inputs 10f 1 Parameter Data Value Date Format Fields Date Time Mod No Checker Record Status Date Time Authorization Status Refer the Automated End of Day User Manual for further details about running an EOD batch Triggering the Year end Batch process for collecting Contract wise Data The year end batch process can be triggered to collect data pertaining to the unrealized income booked for each contract during the year You will be allowed to trigger this process only if you have enabled the Track PY PnL Adjustment option for your branch through the Preferences section of the Branch Parameters scre
60. 0DV21992950177 You have to unlock the record enter the in out leg values and the net fair value of the contract 44 ORACLE You invoke Islamic Derivatives Revaluation Contract Fair Values screen by typing IDDCNVAL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button islamic Derivatives Revaluation Contract Fair Values Enter Query Contract e User Reference In Leg In Leg Revaluation Currency In Leg Fair Value Profit Revision Profit Revision Net Net Revaluation Currency Net Fair Value Auto Manual Revaluation Date Transaction Date Out Leg Out Revaluation Currency Out Fair Value Confirm Confirmation Date Confirmed Input By Date Time Authorized By Date Time Modification Number W Authorized When you want to change the revaluation frequency of a specific contract choose New from the Actions Menu or click New icon from the toolbar The Islamic Derivatives Revaluation Contract Fair Value screen will be displayed without any details Select the reference number of contract whose revaluation frequency is to be changed Enter the revaluation date the new in and out leg values and the net fair value If you are calling an existing contract price maintenance record choose the Summary option under Contract Price From
61. ACLE DV BCH DVBCHSRV Branch Parameters not maintained for Derivatives 022 DV BCH DVBCHSRV Unhandled exception while obtaining the Period End Date 031 DV BCH DVBCHSRV Failed to obtain the Period End date for the Branch 032 DV BCH DVBCHSRV Unhandled exception while preparing for batch 041 DV BCH DVBCHSRV Unhandled exception while preparing for batch 051 DV BCH DVBCHSRV Unhandled exception while preparing for batch 061 DV BCH DVBCHSRV Unhandled exception while processing batch 071 DV BCH DVBCHSRV Unhandled exception while processing batch 081 DV BCH DVBCHSRV Unhandled exception while processing batch 091 DV BCH DVBCHSRV Unhandled exception while unmarking End of Transaction 101 Input DV BCH DVBATCH Unhandled Exception while processing Batch 111 DV CEV DVCNTEVO Unhandled Exception While Processing The Booking 001 Event DV CEV DVCNTEVO Unhandled Exception While Processing the revision 011 Event DV CEV DVCNTEVO Unhandled Exception While Processing the Initiation 021 Event DV CEV DVCNTEVO Unhandled Exception While Amortizing Inception Value 031 DV CEV DVCNTEVO Unhandled Exception While Processing the Liquidation 041 Event DV CEV DVCNTEVO Unhandled Exception While Accruing Profit 051 DV CEV DVCNTEVO Unhandled Exception While Processing Termination 061 Event DV CEV DVCNTEVO Unhandled Exception While b
62. CNSRV1 Advice Details Defaulted 112 DV CSR DVCNSRV1 User Defined Fields Defaulted 113 DV CSR DVCNSRV1 Charges Defaulted 114 DV CSR DVCNSRV1 MIS Details Defaulted 115 108 ORACLE DV CSR DVCNSRV1 Settlement Details Defaulted 116 DV CSR DVCNSRV1 Tax Details Defaulted 117 DV CSR DVD For event 1 no receiver id given for message type 2 118 MGMNT DV CSR DVCNSRV1 Unhandled Exception while defaulting interest details 121 DV CSR DVCNSRV1 For the component 1 the spread 2 is less than the 122 allowed minimum spread 3 DV CSR DVCNSRV1 For the Component 1 the spread 2 is more than the 123 allowed spread 3 DV CSR DVCNSRV1 For the component 1 the Interest rate Cannot be NULL 124 DV CSR DVCNSRV1 For the component 1 the Interest rate 2 is less than the 125 allowed minimum rate 3 DV CSR DVCNSRV1 For the component 1 the Interest Rate 2 is more than 126 the allowed maximum rate 3 DV CSR DVCNSRV1 For this Counterparty 1 the Line Code 2 is not allowed 127 DV CSR DVCNSRV1 For this Product 1 the Line Code 2 is not allowed 128 DV CSR DVCNSRV1 For this Branch 1 the Line Code 2 is not allowed 129 DV CSR DVCNSRV1 For this Base Currency 1 the Line Code 2 is not 130 allowed DV CSR DVCNSRV2 Unhandled Exception while deleting the contract 201 DV CSR DVCNSRV2 Error While Deleting the MIS deta
63. CUBE expects the following information to be present in the upload message e Rate Code Rate Source e Tenor Code e Currency If any of these values are missing for any record then the system will raise an error Validations e If the effective date is Null then the current application date is defaulted e Allthe validations are performed for the received fields Based on the data it identifies whether the request is creation or amendment For new records new maintenance is created else the details of the existing record are updated During the upload even if one record fails to process entire upload will get rejected A Note on DV Contract Amendment Upload If any one of the fields mentioned below is sent by the external system Oracle FLEXCUBE considers the upload as a non financial amendment upload e Internal Remarks 22 ORACLE Rate In amp Out Rate Code In amp Out Rate Source In amp Out Tenor Code Spread Profit Rate Remarks Profit Details Accrual Allowed Flag Numerator amp Denominator Method Denominator Basis Liquidation Details Auto Settlement flag Numerator amp Denominator Method Denominator Basis Payment Details Rate Denominator Basis Payment Method Discount Rate basis Discount Rate Floating Component Discount Rate Source Discount Rate Code Discount Tenor Code Discount Rate Spread Schedules
64. Current Year Unrealized Expense DV OUT INO RLIQ PY Previous Year Unrealized Expense DV OUT INT DLIQ Profit in Advance DV OUT INT CY Current Year Unrealized Expense DV OUT INT DLIQ PY Previous Year Unrealized Expense ORACLE DV OUT INT Expense Accrual DV OUT Expense Accrual on Net Loss Deal INT EAC NLSS DV OUT Income Accrual on Net Profit Deal INT EAC NPRF DV OUT INT ELIQ Profit Expense DV OUT INT JEAC Adjustment Expense Accrual DV OUT INT JELQ Adjustment Profit Expense DV OUT INT JIAC Adjustment Income Accrual DV OUT INT JILQ Adjustment Profit Income DV OUT INT PAC Payable Accrual DV OUT INT RLIQ Profit in Arrears DV OUT INT RLIQ CY Current Year Unrealized Expense DV OUT INT PY Previous Year Unrealized Expense DVR CHG DISC Derivatives Charge class DVR CHG LIQD Derivatives Charge class DVR CHG PREM Derivatives Charge class DVTAX LIQD Liquidation Amount DVTOUT LIQD Liquidation Amount INCP EXP AMORT Inception Expense Amortization Amount GAIN Inception Gain INCP GAIN DEF Inception Gain Deferred INCP INC AMORT Inception Income Amortization Amount INCP LOSS Inception Loss INCP LOSS DEF Inception Loss Deferred INLEG PRN In Leg Principal INLEG PRN CONT In Leg Contingent Principal A
65. DEBIT CONT ASSET INLEG LIQD CREDIT CONT ASSET OFS INLEG PRN DECR DEBIT CONT ASSET OFS INLEG PRN INCR DEBIT CONT ASSET OFS INLEG PRN LIQD DEBIT CONT ASSET OFS OUTLEG PRN DECR CREDIT CONT ASSET OFS OUTLEG PRN INCR DEBIT CONT LIAB OUTLEG PRN DECR DEBIT CONT LIAB OUTLEG PRN INCR CREDIT CONT LIAB OUTLEG PRN LIQD DEBIT CONT LIAB OFS OUTLEG PRN LIQD CREDIT CUSTOMER INLEG PRN DECR DEBIT CUSTOMER INLEG PRN INCR CREDIT ORACLE CUSTOMER INLEG PRN LIQD DEBIT CUSTOMER OUTLEG PRN DECR CREDIT CUSTOMER OUTLEG PRN INCR DEBIT CUSTOMER OUTLEG PRN LIQD CREDIT INLEG ASSET INLEG PRN DECR CREDIT INLEG ASSET INLEG PRN INCR CREDIT INLEG ASSET INLEG LIQD CREDIT OUTLEG LIAB OUTLEG PRN DECR DEBIT OUTLEG LIAB OUTLEG PRN INCR CREDIT OUTLEG LIAB OUTLEG PRN LIQD DEBIT Advices Payment Message ORACLE DRVL Contract Revaluation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CONT FAIR VAL CUR INRVL PAY CREDIT CONT FAIR VAL CUR INRVL REC DEBIT CONT FAIR VAL CUR NETRVL EXP CREDIT CONT FAIR VAL CUR NETRVL INC DEBIT CONT FAIR VAL CUR OUTRVL PAY CREDIT CONT FAIR VAL CUR OUTRVL REC DEBIT CONT FAIR VAL PRV INRVL PAY DEBIT CONT FAIR VAL PRV INRVL REC CREDIT CONT FAIR VAL PRV NETRVL EXP DEBIT CONT FAIR VAL NETRVL INC CREDIT CONT FAIR VAL PRV OUTRVL PAY DEBIT CONT FAIR VAL PRV OUTRVL REC
66. DVMNT Failed to close the record 011 DV MNT DVMNT Failed to unlock the record 012 DV MNT DVMNT Failed to unlock the record 013 DV MNT DVMNT Do you want to reopen the record 014 DV MNT DVMNT Record successfully reopened 015 DV MNT DVMNT Failed to reopen the record 016 DV MNT DVMNT Failed to reopen the record 017 DV MNT DVMNT Failed to save the record 018 DV MNT DVMNT Failed to save the record 019 DV MNT DVMNT Unhandled exception while saving the record 020 DV MNT DVMNT Record successfully saved 021 DV MNT DVMNT Failed to authorize the record 022 DV MNT DVMNT Failed to authorize the record 023 DV MNT DVMNT Failed to copy the record 024 DV MNT DVMNT Failed to copy the record 025 DV MNT DVMNT Do you want undo changes made to the record 026 19 19 ORACLE DV MNT DVDDTMNT Mandatory Field Derivative Type is NULL 101 DV MNT DVDDTMNT Mandatory Field Type Description is NULL 102 DV MNT DVDTMNT Derivative Type is not Unique 103 DV MNT CFDRTSRC Mandatory Field Rate Source is NULL 104 DV MNT CFDRTSRC Rate Source is not Unique 105 DV MNT CFDRTSRC Mandatory field Description is NULL 106 DV MNT STDCLMNT Mandatory Field Clearing House is NULL 107 DV MNT STDCLMNT Clearing house is not Unique 108 DV MNT STDCLMNT Mandatory Field Description is NULL 109 DV MNT DVDLMVAL Mandatory fie
67. Date should be before Next Working Date 1 234 DV MNT DVDBRRAT Mandatory field Currency code is NULL 235 DV MNT DVDBRRAT Mandatory field Period start date is NULL 236 DV MNT DVDBRRAT Mandatory field Period end date is NULL 237 DV MNT DVDBRRAT Mandatory field Interest Rate is NULL 238 DV MNT DVDBRRAT Record for this period already exists 239 DV MNT DVDBRRAT Period Start Date not be before Reval Date 1 240 DV MNT DVDBRRAT Period End Date should be after Period Start Date 241 DV MNT DVDCPMNT Master Agreement Code is not Unique 252 DV MNT DVDCPMNT Mandatory Field Master Agreement Code is NULL 253 10 18 ORACLE DV MNT 254 DVDCPMNT Mandatory Fields are NULL DV MNT DVDCPMNT Active Contracts are existing for current Record 255 DV MNT DVD Mandatory Field Receiver ID Medium is NULL 256 MGMNT DV MNT DVD Receiver ID and Medium is not Unique 257 MGMNT DV MNT DVD Message Type and CIF Id combination is not Unique 258 MGMNT DV MNT DVD Message Type CIF Id Combination is already defaulted 259 MGMNT DV MNT DVD ALL CIF Id Combination is already defaulted 260 MGMNT DV MNT DVDPRMNT Interest Not yet defined for product Schedules will be 301 incomplete Continue DV MNT DVDPRMNT Mandatory field Frequency Unit is NULL 302 DV MNT DVDPRMNT Mandatory field Weekday is NULL 303 DV MNT D
68. E Reset Days For the reset basis and reset date movement specified you have to indicate the number of days before or after the start end or any other date that should be used to determine the rate reset date Note If a particular reset date falls on a holiday then you are required to indicate the way in which the holiday should be treated Revision Schedules Start Date Specify the date on which the particular profit revision schedule should start Frequency If you want to define periodic profit revision schedules you should indicate the frequency of the revision schedules for a particular profit component The options are e Daily e Weekly e Monthly e Quarterly e Half yearly e Yearly e Bullet Note If you prefer to keep the revision schedules as bullet then the particular profit component will be liquidated only as of the Maturity Date Frequency Units You can specify the number of units of the frequency in this field The number that you specify here will determine the actual schedule frequency For instance for a particular schedule you want to have a bi weekly frequency The option list available for Frequency does not have this option In the Frequency field indicate the option weekly and in the Frequency Unit field if you enter 2 the particular schedule will be due every once in two weeks No of Schedules For a particular Frequency and Frequency Unit combination you can choose to have
69. For instance if you indicate the weekday preference as Wednesday then liquidation will be carried out on a weekly basis on every Wednesday Schedule Start Day When the Start Reference is set as Calendar Date you have to indicate the date on which the schedule is due to start For instance if the frequency you have specified is daily set the date on which the first daily schedule should fall due 9 12 ORACLE Similarly when the frequency is monthly indicate the day of the month in which the liquidation should fall due The schedule repayment dates will be computed using the Frequency the Unit Start Month and the Start Day that you specify Schedule Start Month If you have set the Reference as Calendar Date and the frequency as quarterly half yearly or annual you can indicate the month in which the first schedule falls due Based on your specification the subsequent schedule dates will be calculated Adhere to Month End If the schedule frequency is in terms of a month you can choose to indicate that the schedule days should adhere to Month Ends The implication of this option is explained in the following example For example you are defining preferences for a derivative product You would like to maintain several derivatives under this product We shall study the impact of the Adhere to Month End option with reference to a derivative maintained under the Product Assume the Effective Date of the contract with floating profi
70. In the case of monthly quarterly half yearly or yearly revaluation you should specify the date on which the revaluation should be done during the month For example if you specify the date as 30 revaluation will be carried out on that day of the month depending on the frequency If you wantto fix the revaluation date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the revaluation will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the revaluation date as 31 the revaluation will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly revaluation frequency Revaluation Start Month If you set the revaluation frequency as quarterly half yearly or yearly you have to specify the month in which the first revaluation has to begin besides the date on which the revaluation should be done For example you have selected the half yearly option and specified the start date as 31 and the start month as June The system will do the first revaluation on the 3041 of June for the period from 2 January to June 30 and the second one on 315 December for the period from 1 July to 3154 December Profit Accrual Details tab
71. Indicates the Event Date Counterparty Indicates the Counterparty Customer Name Indicates the Customer Name Maker Id Indicates the Maker Id Maker Date Stamp Indicates the Maker Date Stamp Checker Id Indicates the Checker Id Checker Date Stamp Indicates the Checker Date Stamp Customer Wise Details Report The Customer Wise Details report gives customer wise details You can invoke this screen by typing the code IDRPCSDT in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Customer wise Details Selection Criteria Customer Customer Booking Date From Date To Date Value Date From Date To Date Report Format F E Printer At Client Report Output Printer Specify the following details From Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date To Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date Click OK to generate the report a ORACLE 8 5 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Customer wise Details Report is as follows Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Dat
72. M DVLIMITS Line 1 Amount exceeds line limit Limit 3 2 Utiliza 00113 tion 4 2 Overdraft 5 2 Overdraft 6 DV LM DVLIMITS Main Line 1 Amount exceeds Main line limit amount 00114 Limit 3 2 Utilization 4 2 Overdraft 5 2 Overdraft 6 DV LM DVLIMITS Line has matured 00115 DV LM DVLIMITS Line not available 00116 DV LM DVLIMITS Amount exceeds limit for liability 1 Limit 3 2 Utiliza 00117 tion 4 2 Overdraft 5 2 Overdraft 6 DV LM DVLIMITS Clean risk limit exceeded for Customer 1 On 2 Limit 00200 4 3 DV LM DVLIMITS Clean risk limit exceeded for Liability 1 On 2 Limit 4 00201 3 DV LM DVLIMITS Date input is a holiday Do you want to continue 00202 DV LM DVLIMITS Limits Node 1 Unavailable Utilization s will be updated 99998 later DV LM DVLIMITS Limits Service Unexpected Error 1 99999 DV MNT DVMNT Failed to create a new record 001 DV MNT DVMNT Failed to create a new record 002 DV MNT DVMNT Do you want to delete the record 003 DV MNT DVMNT Record successfully deleted 004 DV MNT DVMNT Failed to delete the record 005 DV MNT DVMNT Failed to delete the record 006 10 19 ORACLE DV MNT DVMNT Do you want to close the record 007 DV MNT DVMNT Unauthorized records can not be closed 008 DV MNT DVMNT Record successfully closed 009 DV MNT DVMNT Failed to close the record 010 DV MNT
73. Maintaining Principal Schedule Details You have to maintain the principal schedule details for the in and out legs of the contract only if you have specified so for the derivative type linked to the contract While defining the details of a particular leg either in leg or out leg click Principal button The Contract Principal Schedule screen will be displayed Derivatives Contract Principal Details Contract Reference 10f 1 Leg Type Amount Currency Component Holiday Treatment Auto Settlement Holiday Currency Schedule Movement 5 Move Backward Financial Center Move Forward Move Across Months Cascade Schedules 10f 1 E Base StartDate Frequency Unit Schedules Adhere To Month End Adjustment Type Amount View Principal In this screen you can specify the holiday treatment the holiday movement and the frequency of the principal schedules Maintaining Holiday Treatment Details Holiday Treatment In Oracle FLEXCUBE a schedule date falling due on a holiday can be treated in any of the following ways e Ignore the holiday In which case the holiday will be ignored and the schedule date will be retained on that day e Choose to follow the Local holiday The holiday will be treated as per your specifications in the Branch Holiday Maintenance screen e Choose to follow the Currency holiday The movement of schedules will be based on the holiday calendars maintained for all the
74. NL Unhandled exception while defaulting Principal Sched 111 ules DV ONL DVDCNONL Unhandled exception while retrieving the contract 121 amounts DV ONL DVDCNONL Not a valid product 132 DV ONL DVDCNONL Unhandled exception while validating the Contract 141 DV ONL DVDCNONL Mandatory field Counterparty is NULL 142 DV ONL DVDCNONL Mandatory field Valued Date is NULL 143 DV ONL DVDCNONL Mandatory field Maturity Date is NULL 144 10 22 ORACLE DV ONL 145 DVDCNONL Mandatory field In Leg Currency is NULL DV ONL DVDCNONL Mandatory field In Leg Principal Amount is NULL 146 DV ONL DVDCNONL Mandatory field In Leg interest Rate Type is NULL 147 DV ONL DVDCNONL Mandatory field In Leg interest Rate Code is NULL 148 DV ONL DVDCNONL Mandatory field In Leg interest Rate Source is NULL 149 DV ONL DVDCNONL Mandatory field In Leg interest Tenor Code is NULL 150 DV ONL DVDCNONL Mandatory field In Leg interest Rate Spread is NULL 152 DV ONL DVDCNONL Mandatory field In Leg interest rate is NULL 153 DV ONL DVDCNONL Mandatory field In Leg interest Flat amount is NULL 154 DV ONL DVDCNONL Mandatory field Out Leg Currency Cannot is NULL 155 DV ONL DVDCNONL Mandatory field Out Leg principal Amount is NULL 156 DV ONL DVDCNONL Mandatory field Out Leg interest Rate Type is NULL 157 DV ONL DVDCNONL Mandato
75. New from the Actions Menu or click New icon from the tool bar The Counterparty Master Agreement Maintenance screen will be displayed without any details If you are calling a master agreement record that has already been defined choose the Summary option under Counterparty From the Summary screen double click a record of your choice to open it Counter Party and Master Agreement code Each master agreement that you create can be associated with a counter party You have to indicate the code assigned to the counterparty for which the master agreement is being maintained After you specify the customer for who the master agreement is being maintained you have to enter a code to uniquely identify the master agreement You can follow your own conventions while devising this code Master Agreement Type You can indicate the type of master agreement under which the contract falls The options available in the option list provided contain a list of standard master agreement types They are as follows e AFB BBAIRS e ISDA e FRABBA e OTHERS Product Group A product is a specific service that you offer your customers In Oracle FLEXCUBE you are required to group together products according to the common attributes that they share This 27 ORACLE kind of grouping of products helps you organize information pertaining to the services that you provide Besides it also simplifies information retrieval Maintena
76. ORACLE Islamic Derivatives User Guide Oracle FLEXCUBE Universal Banking Release 12 0 3 0 0 Part No E53393 01 April 2014 Islamic Derivatives User Guide April 2014 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently da
77. OUT INT EXP DV OUT INT EAC DEBIT DV OUT INT UID DV OUT INT EAC CREDIT DV IN INT INC DV IN INT IAC CREDIT DV IN INT RIA DV IN INT IAC DEBIT DV OUT INT EXP DV OUT INT EAC DEBIT 9 20 ORACLE DV OUT INT PIA DV OUT INT EAC CREDIT Entries that are passed for the DIAC event Arrears Contracts for transfer of unrealized to realized income are as follows pida Dr Cr Indicator Accounting Role Amount Tag In Debit Component REC Component RAC Credit Component INC UNRLZ Component RAC Out Debit Component EXP UNRLZ Component PAC Credit Component PAY Component PAC Entries that are passed for the DIAC event Advance Contracts for transfer of unrealized to realized income are as follows 2 DUCI Accounting Role Amount Tag eg Indicator In Debit Component RIA Component Credit Component INC UNRLZ Component Out Debit Component EXP UNRLZ Component Credit Component PIA Component EAC Final Accruals In addition to above In Debit Component INC UNRLZ Component DLIQ PY Credit Component INC Component DLIQ PY Debit Component INC UNRLZ Component DLIQ CY Credit Component INC Component DLIQ CY Out Debit Component EXP Component DLIQ PY Credit Component EXP UNRLZ Component DLIQ PY Debit Component EXP Component DLIQ PY Credit Component EXP UNRLZ Component DLIQ PY Advices No advices allowed for
78. Operation Global Reference Counter Party Agreement Date Counter Party Name Units Goods Description Quantity Purchase Price Purchase Unit Price Location Commodity Settled Prefix 1 Payment Maker Checker Status Date Time Date Time Authorization Status You can capture the following details Contract Reference The system displays the contract for which commodity details are being input pu ORACLE 5 2 8 1 Event Sequence Number The system displays the event sequence number Leg Type The system displays the commodity details for the in and out leg Counterparty The system displays the counterparty details of the contract Operation The system displays commodity operation details based on the contract type and the commodity tracking status Goods Description Specify the description of the goods bought Global Agreement Reference Specify the agreement reference number associated with the transaction Global Agreement Date Specify the date of the agreement associated with the contract Quantity Specify the quantity of commodity to be purchased Price The system displays the principle amount of the transaction as the purchase price of the commodity by default Unit Price The system derives the unit price based on the purchase price and the quantity of the commodity Location Specify the place where the sales and purchase of the commodity occurs Title Specify the title for the commodit
79. RF tag would be created for each com ponent This tag would represent accruals for net profit deals For example DV IN INT IAC NPRF Component EAC NLSS Accruals for Net loss deals Component DLIQ PY Previous year Unrealized outstanding Component DLIQ CY Current year Unrealized outstanding INLEG Inleg Principal Purchase INLEG PRN SALE Inleg Principal Sale OUTLEG PRN PURC Outleg Principal Purchase OUTLEG PRN SALE Inleg Principal Sale In addition to these you can define amount tags as per your requirement for the ICCF and tax components that are attached to the product The component is the ICCF component that you have created ORACLE 9 4 Accounting Roles The following list contains the Accounting Roles that are applicable to the Derivative contracts that you can process at your bank Accounting Role Description BROK PAID Brokerage Paid BROK PAYABLE Brokerage Payable CONT ASSET Contingent Asset CONT ASSET OFS Contingent Asset Offset CONT FAIR VAL Contract Fair Value Account CONT LIAB Contingent Liability CONT LIAB OFS Contingent Liability Offset DV IN INT INC Income DV IN INT REC Receivable DV IN INT RIA Received in Advance DV OUT INT EXP Expense DV OUT INT PAY Payable DV OUT INT Paid in Advance INCP EXP Inception E
80. RVL_REC Previous In Leg Revaluation Receivable PRV_INRVL_REC_PY Previous INRVL Receivable for Previous Year PRV_NETRVL_EXP Previous Net Revaluation Expense PRV_NETRVL_EXP_PY Previous Net Revalued Expense for Previ ous Year PRV_NETRVL_INC Previous Net Revaluation Income PRV_NETRVL_INC_PY Previous Net Revalued Income for Previous Year PRV_OUTRVL_PAY Previous Out Leg Revaluation Payable ORACLE PRV OUTRVL PAY PY Previous OUTRVL Payable for Previous Year PRV OUTRVL REC Previous Out Leg Revaluation Receivable PRV OUTRVL REC PY Previous OUTRVL Receivable for Previous Year TRMN EXP AMORT Termination Expense Amortization Amount GAIN Termination Gain TRMN GAIN CY Current year Unrealized termination gain TRMN GAIN DEF Termination Gain Deferred TRMN GAIN PY Previous year Unrealized termination gain TRMN INC AMORT Termination Income Amortization Amount TRMN LOSS Termination Loss TRMN LOSS CY Current year Unrealized termination loss TRMN LOSS DEF Termination Loss Deferred TRMN LOSS PY Previous year Unrealized termination loss UDEFCHGBASIS Charge Basis for UDEF Charges Component LIQD CY Current year Unrealized accrual amount for a component Component LIQD PY Previous year Unrealized accrual amount for a component Component EAC NPRF NP
81. T DV IN INT_RIA DV IN INT_IAC DEBIT DV OUT INT_EXP DV OUT INT_EAC DEBIT DV OUT INT_EXP DV OUT INT_JIAC CREDIT DV OUT INT_PAY DV OUT INT_JIAC DEBIT DV OUT INT_PIA DV OUT INT_EAC CREDIT INLEG_ASSET INLEG_PRN_LIQD CREDIT OUTLEG LIAB OUTLEG PRN LIQD DEBIT TRMN EXP TRMN LOSS DEBIT TRMN INC TRMN GAIN CREDIT Advices Advice Name Description DV CCS TRMN Cross Currency Swap Termination 226 ORACLE 9 5 14 9 5 15 9 5 16 9 5 17 9 5 18 PCON Purchase Confirmation Accounting Entries Nil Advices Advice Name Description IV ACPT OFFER Generate Acceptance of offer for IV Contracts SCON Sale Confirmation Accounting Entries Nil Advices Nil DASS Contract Assumption Accounting Entries Nil Advices Advice Name Description DV ASSUME 1 Assumption Adv to Deal Party DV ASSUME 2 Assumption Adv to Assuming Party DASG Contract Assignment Accounting Entries Nil Advices Advice Name Description DV ASSIGN 1 Assignment Adv to Deal Party DV ASSIGN 2 Assignment Adv to Assigning Party DRVN Contract Rate Revision Accounting Entries Nil 9 27 ORACLE Advices Advice Name Description DV RATE RESET Floating Rate Reset 9 28 ORACLE 10 1 10 Error Codes and Messages Error Codes and Messages
82. VDCNONL The Version of the contract is not the latest version Can 033 not be amended DV ONL DVDCNONL Contract is pending Authorization Cannot be amended 034 DV ONL DVDCNONL Contract is matured Cannot be amended 035 DV ONL DVDCNONL Only the maker of the contract can amend the contract 036 DV ONL DVDCNONL Contract is Reversed or Terminated Cannot Amend 037 DV ONL DVDCNONL Failed to Amend the contract 038 DV ONL DVDCNONL Unhandled exception while saving the contract 041 DV ONL DVDCNONL Unhandled exception 042 DV ONL DVDCNONL Unhandled exception 043 DV ONL DVDCNONL Failed to obtain contract amounts 044 DV ONL DVDCNONL Contract Saved Successfully 045 DV ONL DVDCNONL Failed to save the contract 046 10 21 ORACLE DV ONL DVDCNONL Unhandled exception while authorizing the contract 051 DV ONL DVDCNONL Cannot Create the Parameter List 052 DV ONL DVDCNONL Unhandled exception while keeping the contract on Hold 061 DV ONL DVDCNONL Contract Ref No Is Null 062 DV ONL DVDCNONL Unhandled exception 063 DV ONL DVDCNONL Product Code is NULL 082 DV ONL DVDCNONL Maturity Date Cannot be Less than Value Date 092 DV ONL DVDCNONL Maturity Date Cannot be less than the application Date 093 DV ONL DVDCNONL Maturity Date 1 is a Holiday Will be Changed to 2 094 DV ONL DVDCNO
83. VDPRMNT Mandatory field Start day is NULL 304 DV MNT DVDPRMNT Mandatory field Start Month is NULL 305 DV MNT DVMNT Revaluation method cannot be NULL 306 DV MNT DVMNT Mandatory field Denomination basis is NULL 307 DV MNT DVDPRMNT Mandatory field Numerator method is NULL 308 DV MNT DVDPRMNT Mandatory field Denominator method is NULL 309 DV MNT DVDPRMNT For this derivative type only one IN interest component is 310 allowed DV MNT DVDPRMNT For this derivative type only one OUT interest component 311 is allowed DV MNT DVDPRMNT There should be one primary component for this deriva 312 tive type DV MNT DVDPRMNT Stop association not allowed for primary component 313 10 19 ORACLE DV MNT DVDPRMNT Not more than one component can be defined as primary 315 component for IN leg DV MNT DVDPRMNT Mandatory field Leg type is NULL 316 DV MNT DVDPRMNT Not more than one component can be defined as primary 317 component for OUT leg DV MNT DVDPRMNT Interest components not defined 318 DV MNT DVDPRMNT Schedules for some components not defined 319 DV MNT DVDPRMNT No primary In leg interest components defined 320 DV MNT DVDPRMNT No primary out leg interest components defined 321 DV MNT DVDPRMNT Asynchronous Principal schedules not allowed for this 322 derivative type DV MNT DVDPRMNT Asynchronous IN inte
84. a number of schedules depending on how many you want to define for the particular revision component For instance for a particular schedule you have indicated that the Frequency should be Weekly and the Frequency Unit as 2 Subsequently you indicate that the Number of Schedules as 12 This particular schedule will be run every two weeks twelve times Adhere To Month End If the profit revision schedule is in terms of a month you can choose to indicate whether the schedule days should adhere to Month Ends by checking this option var ORACLE 5 2 7 5 2 8 Contract Rate Revision During rate revision the system picks up the floating rate applicable on the contract If the Related Component spread is not zero the profit rate of the related component is also picked up as part of rate revision This floating rate along with the spread is then compared with Cap or Floor rate depending on the Profit Type specified for the contract to arrive at the final rate The manner in which the system determines the final rate for each of the four profit types is given below e For Profit Type Cap if the total floating rate arrived at by the system plus profit rate of related component is greater than Cap Rate the final rate is taken as the Cap Rate minus profit rate of related component if the same is specified If related component is not selected the final rate will be Cap Rate minus the spread part Rate of related compone
85. ame Description SWIFT Message IV OFFER IV Contract Offer DV CCS CON CCS Contract Confirma MT361 F tion DV CCS TKT CCS Deal Ticket DV IRS CONF IRS Contract Confirmation DV IRS TKT IRS Deal Ticket DINT Contract Initiation Accounting Entries For profit rate swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Accounting Role Amount Tag Dr Cr Indicator CONT ASSET INLEG PRN CREDIT CONT ASSET OFS INLEG PRN DEBIT CONT LIAB OUTLEG PRN DEBIT CONT LIAB OFS OUTLEG PRN CREDIT INLEG ASSET INLEG PRN PURC DEBIT DV BRIDGE GL INLEG PRN PURC CREDIT DV BRIDGE GL OUTLEG PRN SALE DEBIT OUTLEG LIAB OUTLEG PRN SALE CREDIT For currency swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Accounting Role Amount Tag Dr Cr Indicator CONT ASSET INLEG PRN CREDIT CONT ASSET OFS INLEG PRN DEBIT CONT LIAB OUTLEG PRN DEBIT CONT LIAB OFS OUTLEG PRN CREDIT INLEG ASSET INLEG PRN PURC DEBIT CUSTOMER INLEG PRN PURC CREDIT CUSTOMER OUTLEG PRN SALE DEBIT ORACLE 9 5 3 OUTLEG OUTLEG PRN SALE CREDIT For products wherein the Asset Movement Required box is not checked you may additionally set up the following entries Accounting Role Amount Tag Dr C
86. andled Exception while Processing User Defined 021 Fields DV SUB DVSUBSYS Unhandled Exception while processing Charge 031 DV SUB DVSUBSYS Unhandled Exception while Processing MIS 041 DV SUB DVSUBSYS Error While defaulting MIS details from contract 042 DV SUB DVSUBSYS Unhandled Exception while picking settlement details 051 DV SUB DVSUBSYS Unhandled Exception while processing tax 061 DV SUB DVSUBSYS Unhandled Exception while processing module tags 071 DV SUB DVSUBSYS Unhandled Exception while processing interest tags 081 DV SUB DVSUBSYS NoSettlement Details are maintained for the tag 1 082 DV SUB DVSUBSYS Unhandled Exception while processing charge tags 091 DV SUB DVSUBSYS Unhandled Exception while processing tax tags 101 DV AMR DVAMORTO Unhandled exception while building queue array 001 10 30 ORACLE 11 Function ID Glossary B BADEODEFE 72 D DVDBRRAT 4 4 DVDCPMNT 2 7 DVDDTMNT 2 2 DVDMGMNT 2 11 DVSBRRAT 4 6 IDDBRNPM 2 6 IDDCNRAT 4 7 IDDCNVAL 4 2 IDDOOTRK 5 20 IDDLMVAL narsan 2 13 IDDPRMNT 3 1 IDDTRCNF 6 1 IDDTREAS 6 3 IDDTRONL
87. arks Free format information pertaining to the details of the contract can be captured in this field The remarks that you enter here will not be reflected in any of the advices sent to the customer You can capture the relevant information in the window that gets displayed Once you capture the necessary information click the OK button Default Details At the time of input of a contract in different currencies after you have specified the currency and amount of the first leg and the currency of the second leg you must click Default button The system then displays the equivalent amount for the second leg in the currency specified for that leg In case of contracts with both legs in the same currency you can use the Default button or manually input the amount and currency for both legs Note If you wish to specify the Principal and Profit details for a contract you must use Default button irrespective of whether both legs of a contract are in the same currency or in differ ent currencies The system displays an error if you try to access the Principal and Profit screens without having visited Default button In Out leg Details As part of maintaining the In and Out leg details of the contract you are required to indicate the currency amount 9o ORACLE Currency and Amount You are required to indicate the currency in which profit amount should be calculated for both the inward as well as
88. ate Revaluation Start Weekday Value Date Revaluation Start Day Revaluation Start Month Revaluation Level Contract Product The Product Code and Product Type are defaulted from the Product Maintenance screen In this screen you can specify the following Main Details tab Brokerage Allowed Check this option to indicate that brokerage should be allowed for contracts linked to this product Deal Type The first preference that you define for a derivative product is the Deal Type You can indicate the default nature of deals that will be processed under this product The choices available for this field are e Buy e Sell Note The deal type that you specify will be defaulted to contracts under this product However you are allowed to change this while entering the details of the contract Contract Type You have to indicate whether the product for which you are defining preferences for is meant for Trade contracts or Hedge contracts ORACLE Note You can amend this preference while entering the details of the contract Asset Movement Required Check this box to indicate that movement of the underlying asset needs to be done for all contracts linked to this product Refer the chapter Annexure A Accounting Entries and Advices for details on accounting entries that need to be set up for currency and profit rate swaps if you check the box Asset Movement Required Principal Settlement Method
89. ater than or equal to the Minimum Spread and less than or equal to the Maximum Spread defined for the product involved in the contract If the spread happens to be greater than the Maximum Spread then the Maximum Spread will be applied on the rate On the other hand if itis less than the Minimum Spread defined for the product the Minimum Spread will be picked up For a floating rate the spread will be applied over the market rate applicable for the day Profit Rate Details Rate Type The profit rate type paid on derivative settlements can be any one of the following types e Fixed e Floating e Special Profit Rate When you maintain a fixed profit rate for a particular component of the profit leg of a contract itis necessary that you specify the rate Flat Amount When the profit rate is special you have to indicate the Flat Amount Moreover if the derivative you are processing happens to be a commodity type of derivative instrument you have to indicate whether the flat amount specified is per unit of the derivative Waiver Check this box if you would like to waive this component Else leave this box unchecked Rate Source Indicate the Source from which the Rate Code is to be taken The Rate Code pick list is populated depending on your selection of the rate source aM ORACLE 5 2 6 2 Rate Code If the Rate Type you have specified is Floating then indicate the Rate Code that is to be associated from the Flo
90. ating Rates screen with the profit leg of the contract Tenor Code Once you specify the Rate Code you have to indicate the Tenor Code that is to be linked to the particular Rate Code Profit Spread You can choose to apply a spread over and above the rate maintained in the Floating Rates screen This Spread should be greater than or equal to the Minimum Spread and less than or equal to the Maximum Spread defined for the product that the contract involves If the spread you apply happens to be greater than the Maximum Spread then the Maximum Spread will be applied on the rate On the other hand if it is less than the Minimum Spread defined for the product the Minimum Spread will be picked up Main Component In Oracle FLEXCUBE you can define any number of tenor based profit components for every contract that you process Therefore it is essential that you identify one profit component as the Main Component This component will be used for amortization purposes Note For the main component the Rate Type will be defaulted from the Contract Input Mainte nance screen For all the other components the Rate type that you indicate will determine whether the particular in or out leg profit component depending on which leg details you are specifying is fixed floating or special Schedule Details tab The schedule preferences that you specify at the time of creating the product like the frequency of schedules the unit of f
91. ating Revision Sched 421 ules DV SET DVAUSETO Unhandled exception while processing for branch 001 DV SET DVAUSETO Unhandled exception while processing for contract 011 DV SET DVAUSETO Unhandled exception while processing principal compo 021 nents DV SET DVAUSETO Unhandled exception while processing interest compo 031 nents DV SET DVAUSETO Unhandled exception while populating interest liquidation 041 amount DV SET DVAUSETO Unhandled exception while populating interest accrual 051 amounts DV SET DVAUSETO Unhandled exception while populating interest accrual 063 DV SET DVAUSET1 Unhandled exception while processing interest compo 101 nents DV SET DVAUSET1 Reset not done for component 1for the period starting 102 2 DV SET DVAUSET1 Reset not done for component 1for the period starting 103 2 DV SET DVAUSET1 No data found for component 1for the period starting 2 104 DV SET DVAUSET1 Reset not done for component 1for the period starting 105 2 DV SET DVAUSET1 No data found for component 1for the period starting 2 106 DV SET DVAUSET1 Reset not done for component 1for the period starting 107 2 10 29 ORACLE DV SET DVAUSET1 No data found for component 1for the period starting 2 108 DV SUB DVSUBSYS Unhandled Exception while Processing Brokerage 001 DV SUB DVSUBSYS Unhandled Exception while processing Advices 011 DV SUB DVSUBSYS Unh
92. be booked You can indicate preferences as to when the brokerage applicable to the contract should be linked The options available are e Booking e Advance e Arrears The preference specified for the broker will be displayed You can change it in this screen say from advance to arrears or vice versa You have a third option That is of waiving brokerage If you opt for no booking no accounting entries will be passed for brokerage for this deal Pup ORACLE Note If you invoke the Contract Brokerage Details screen for operations like delete change authorize liquidate and detailed view this screen will only display brokerage details You can change brokerage details for a deal only if you have clicked the Modify option from the Actions Menu 5 2 12 Specifying Advices for the Contract Click Advice button from the Islamic Derivatives Contract Input Details screen The Events Advices screen is displayed To recall the advices that can be generated for the events that occur during the life cycle of a contract are defined for the product to which the contract is associated Contract Reference Event Code Party type Receiver Id Name Suppress Language Address Line 1 Address Line 2 Address Line 3 Priority Address Line 4 Medium The details of the advices applicable for an event are displayed in the Advices screen Party Type The party type to whom a specific advice should be sent is
93. ce at the product level regarding the amortization of inception gain and or loss will be will be made applicable to the contract as well However if you do not want to allow amortization for inception gain loss for this particular contract you will be allowed to do so Termination Details Termination Type When you are terminating a particular contract you have to indicate whether it s a normal termination or whether the contract is going to be assigned to another counterparty In the latter case you have to indicate the counterparty to whom the contract is to be assigned Note This would not be applicable when you are entering a new contract Counterparty If the contract is to be assigned to counterparty then you can indicate the ID of the counterparty to whom the contract is to be assigned Termination Value and Currency If there has been any gain or loss due to termination you have to indicate the gain or loss in value by specifying a positive or negative amount and the currency in which the termination gain or loss should be settled You can either choose to amortize the termination gain loss or you can choose to ignore the same Termination Date You must specify the Termination Date Termination can either be back valued current dated or future valued The date that you specify should adhere to the following conditions e ForIRS CCS contracts the termination date can be anywhere between the Booking Date inclusi
94. ces defined at the product level will be inherited by the contract These preferences include the profit accrual preferences liquidation preferences and the schedules for the various profit and revision profit components Note Except for the profit accrual frequency which you have defined at the product level you will be allowed to modify all the other preferences accrual as well as liquidation to suit the contract you are processing Main Details tab Accrual and Liquidation Details Accrual Required You can choose not to accrue profit for a particular contract although you have indicated this preference at the product level For instance when you are processing a trade deal profit accrual details are not required since trade deals are always revalued In the Profit Details screen you can indicate that profit accrual is not required for the specific contract by disabling the option However if indeed profit accrual is required for the contract you are processing and you merely want to change the accrual related details such as the profit calculation method the basis on which profit is to be calculated for the accrual period you will be allowed to do so The accrual function when run as part of the batch process run at EOD calculates the accrual amount and passes accrual accounting entries for the accruable profit components of a derivative contract The function will pick up derivative contracts for processing on
95. code 122 DV RVL DVREVAL Unhandled exception while processing revaluation 131 DV RVL DVREVAL No data found for the current contract ref no 132 DV RVL DVREVAL Unhandled exception while processing revaluation 141 DV RVL DVREVAL Unhandled exception while processing revaluation 151 DV RVL DVREVAL Unhandled exception while building the accounting entry 161 lists DV RVL DVREVAL Unhandled exception while processing the amount tags 171 DV RVL DVREVAL Unhandled exception while calculating the fair value of 301 contract bn ORACLE DV RVL DVREVAL No confirmed records for the fair values of the contract 302 DV RVL DVREVAL No rates are maintained for the contract for carrying out 303 revaluation DV RVL DVREVAL Unhandled exception while calculating the leg fair value 311 DV RVL DVREVAL No rates are maintained for the contract for carrying out 313 revaluation DV RVL DVREVAL No rates are maintained for the branch to carry out reval 314 uation DV RVL DVREVAL Failed to round the fair value amount 315 DV RVL DVREVAL Unhandled exception while revaluation processing 321 DV RVL DVREVAL Unhandled exception while revaluation processing 331 DV DVREVAL No rates are maintained for the branch to carry out reval RVL_312 uation DV RVN DVRESET Unhandled Exception while processing rate revision 001 DV SCH DVSCHEDO Unhan
96. ct After contract initiation the system triggers the event UIDB to book the upfront profit computed on the contract In order to calculate the upfront profit the system fetches the floating rate type schedules for which the rate revision is being done Using the floating rate schedule the System also gets the fixed rate schedule and calculates the profit for the fixed rate leg Once the profit for the fixed rate leg is calculated the system recalculates the upfront profit booked on amendment and also the termination to pass the differential amount Note The profit calculation will be applied only for main profit component using the following for mula Profit Amount Principal Amount Rate 100 Days Count ORACLE 6 1 6 Confirmation of Profit and Principal Schedules Introduction The profit and principal schedules for Single Cross currency swaps defined for an Islamic derivative contract would typically be confirmed by the counterparty involved in the contract In Oracle FLEXCUBE you can capture the details of each such confirmation received Confirming Schedule Details The details that need to be confirmed have to be entered in the Islamic Confirmation screen available under the Derivatives Menu in the Application Browser The schedule details pertaining to the contract are automatically populated in the Islamic Confirmation screen upon authorization of the contract You can invok
97. ct is pending Authorization Cannot be terminated 193 DV ONL DVDCNONL Do You want to terminate the contract 194 DV ONL DVDCNONL Mandatory Field Termination type is NULL 195 DV ONL DVDCNONL Mandatory Field Termination Currency is NULL 196 DV ONL DVDCNONL Mandatory Field Termination Value is NULL 197 DV ONL DVDCNONL Failed to terminate the contract 198 DV ONL DVDCNONL Unhandled Exception while reversing the contract 201 DV ONL DVDCNONL Contract pending Authorization Cannot Reverse 202 DV ONL DVDCNONL Do you want to reverse the contract completely 203 10 24 ORACLE DV ONL 204 DVDCNONL Contract Reversed Successfully DV ONL DVDCNONL Failed to reverse the contract 205 DV ONL DVDCNONL User Reference no should be Unique 206 DV PRN DVCPRDET Unhandled exception while validating the schedules 001 DV PRN DVCPRDET Mandatory field Start Date is NULL 002 DV PRN DVCPRDET Mandatory field Frequency is NULL 003 DV PRN DVCPRDET Mandatory field Frequency Unit is NULL 004 DV PRN DVCPRDET Mandatory field No Of Schedules is NULL 005 DV PRN DVCPRDET Mandatory field Adjustment Type is NULL 006 DV PRN DVCPRDET Mandatory field Amount is NULL 007 DV PRN DVCPRDET Unhandled exception while validating the Start Date 011 DV PRN DVCPRDET Start Date Cannot be before the application Date 012
98. d Exception while Defaulting Revision Sched 141 ules DV SCH DVSCHED1 Unhandled Exception while Exploding Revision Sched 151 ules DV SCH DVSCHED1 The Frequency and Frequency Units are Invalid 152 DV SCH DVSCHED2 Unhandled Exception while Replicating Principal Sched 201 ules DV SCH DVSCHED2 Unhandled Exception while Replicating Principal Sched 211 ule Periods DV SCH DVSCHED2 Unhandled Exception while Replicating Interest Sched 221 ules DV SCH DVSCHED 2 Unhandled Exception while Replicating Interest Schedule 231 Periods DV SCH DVSCHED2 Unhandled Exception while Replicating Revision sched 241 ules DV SCH DVSCHED2 Unhandled Exception while Replicating Revision Sched 251 ule DV SCH DVSCHED3 Unhandled Exception while splitting the Contract Sched 301 ules DV SCH DVSCHED3 Unhandled Exception while re defaulting Principal Sched 311 ules 10 28 ORACLE DV SCH DVSCHED3 Unhandled Exception while re defaulting Non Principal 321 Schedules DV SCH DVSCHED3 Unhandled Exception while re defaulting Interest Sched 331 ules DV SCH DVSCHED3 Unhandled Exception while re defaulting Revision sched 341 ules DV SCH DVSCHEDA Unhandled Exception while Replicating Principal Sched 401 ules DV SCH DVSCHEDA Unhandled Exception while replicating Interest Schedules 411 DV SCH DVSCHEDA Unhandled Exception while replic
99. dition to assigning a code you can give it a brief description so that you can identify it easily while retrieving information The description that you enter is for information purposes only and will not be printed on any customer correspondence Swift Code Specify the SWIFT Code that you wish to maintain for the Clearing House Maintaining Messaging Party Details At every stage in the life cycle of a transaction you will need to send various messages to your customer You need to send these messages to the recipient of the message whom your customer has identified as the receiver of the message The Messaging Party Maintenance screen will enable you to capture details of the recipients of derivative messages that have to be sent to the various counterparties 20 ORACLE You invoke this screen by typing DVDMGMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Messaging Parties Maintenance E Enter Query Receiver Id Language Medium as Receiver Name Address Message Party Details Message Type Customer Id Default Input By Authorized Modification Date Time Date Time Number Wi Authorized If you are maintaining details of a new receiver behalf of the counterparty choose
100. dled Exception while getting next schedule Date 001 DV SCH DVSCHEDO Unhandled Exception while getting next schedule Date 011 DV SCH DVSCHEDO Unhandled Exception while getting next periodic Date 021 DV SCH DVSCHEDO Unhandled Exception while getting schedule Date 031 DV SCH DVSCHEDO Error while checking whether the scheduled date is hol 032 iday DV SCH DVSCHEDO Improper Holiday maintenance 033 DV SCH DVSCHEDO Unhandled Exception while Computing Reset Date 041 DV SCH DVSCHEDO Error while checking whether the scheduled date is hol 042 iday DV SCH DVSCHEDO Improper Holiday maintenance 043 DV SCH DVSCHEDO Unhandled Exception while Adding months 051 10 27 ORACLE DV SCH DVSCHED1 Unhandled Exception while defaulting Principal Sched 101 ules DV SCH DVSCHED1 Error While rounding the amount 102 DV SCH DVSCHED1 Unhandled Exception while Exploding Principal Sched 111 ules DV SCH DVSCHED1 Principal amount Cannot be Negative 112 DV SCH DVSCHED1 The Frequency and Frequency Units are Invalid 113 DV SCH DVSCHED1 Unhandled Exception while defaulting Interest Schedules 121 DV SCH DVSCHED1 Unhandled Exception while Exploding Interest Schedules 131 DV SCH DVSCHED1 The Frequency and Frequency Units is Invalid 132 DV SCH DVSCHED1 Interest amount is Negative 133 DV SCH DVSCHED1 Unhandle
101. dule holiday treatment has been set as ignore or Local at the specific component level then the data provided in the combined holiday treatment table will not be considered by Uploaded schedules In case of synchronous schedules for principal or interest supported by the derivative type the OUT leg holiday preference will be defaulted from the IN leg and the already provided OUT leg will be ignored While in case of synchronous revision for IN or OUT legs for interest revision supported by derivative type IN OUT revision holiday preference will be defaulted from IN OUT interest holiday preference In case of asynchronous schedules if you have to specify the holiday treatment in the existing upload tables as Currency Financial center for IN and OUT legs and the holiday treatment in type maintenance is defined as combined then you must provide for combined holiday ORACLE treatment details for IN and OUT leg separately else error is displayed If the holiday treatment has been specified as Ignore Local for the component in the existing table then the new upload table for combined holiday treatment will be ignored for that component and schedule type s ORACLE 8 1 8 2 8 2 1 8 Reports Introduction The following are the reports that you can generate for the Islamic Derivatives module e Profit Accrual Report e Back Dated Deals Report e Contract Activity Report e Customer wise Details Report
102. e generated on the settlement day Maximum of both Legs of the transaction The payment messages are generated for the principal exchange and profit liquidation as of the system date However the system will not reset the floating rate of the profit schedules for which settlement messages are already generated The system will trigger the event DRVN Rate Reset once you save the DV contract with profit schedules Subsequently SGEN event will be triggered on authorization Viewing different versions of a Contract When you enter a contract in Oracle FLEXCUBE it is assigned a version number of 1 From then on each amendment of the contract results in its next version When you come to the Islamic Derivatives Contract Input Detailed screen the latest version of the contract will be displayed To navigate between the versions of a deal use the buttons provided for the same e Click back button to view the previous version e Click forward button to view the next version Uploading Contracts for Amendment From an external system you can upload contracts that require amendment in Oracle FLEXCUBE The system will distinguish between the new and the contracts that require amendment based on the action code of the uploaded record For a contract requiring amendment the action code will be AMND If the action code is AMND Oracle FLEXCUBE will first check whether the contract exists in the system or not If the contract does
103. e Date Broker Settlement Account Maturity Date Dealer Branch Buy or Sell Buy Exchange Rate Account Sell Remarks Contract Type Hedge Trade Leg Rate Type Rate Code In Leg Currency Rate Source Tenor Code Account Description Rate Spread In Principal Amount Flat Amount In Traded Id Out Leg Rate Type E Rate Code Out Leg Currency Rate Source Tenor Code Spread Flat Amount Description Rate Out Principal Amount Out Traded Id Event Brokerage Settlements Advice Charges Tax MIS Fields Principal Profit Sub Agreement Commodity Tracking Input By Authorized By Status Authorization Status Date Time Date Time The Contract On line screen contains a header footer and a body of fields that capture information specific to the contract that you are maintaining You need to capture these details in addition to the attributes that the contract acquires as a result of being linked to the product The body of fields in this screen is divided into two tabs Firstly you need to capture the main details of the derivative contract such as the Contract Type Counterparty and the In and Out Leg profit and principal details You can specify the Contract Principal Schedules for both the in and out legs separately by clicking Principal button Click Profit button to indicate the profit details for both the legs of the contract Click Commodity button to track the commodity details for both
104. e Indicates Branch code 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated Body of the Report The following details are displayed as body of the generated report Field Name Field Description Counterparty Indicates the Counterparty Contract Reference Indicates the contract reference number Booking Date Indicates the date of booking Effective Date Indicates the effective date Maturity Date Indicates the maturity date Derivative Type Buy Or Sell Indicates the derivative type Indicates Buy or Sell Product Code Indicates product type Customer Name In Leg Notional Principal Indicates customer name Indicates In Leg Notional Principal Out Leg Notional Principal Indicates Out Leg Notional Principal Type Description Indicates the type of description Contract Type Indicates the contract type Product Description Indicates the product description In Leg Profit Compon Component ent Details Indicates the component Value Date Indicates the value date 8 7 ORACLE 8 6 Rate Indicates the rate type Rate Code Indicates the rate code Rate Indicates the rate Currency Indicates the currency Out Leg Profit Component Details Component Indicates the component Va
105. e amortization of termina tion gain loss the will be defaulted on to the contract At the product level if you have set this preference as No then you will not be allowed to change this to Yes at the contract level However if you have set the preference as Yes then you can change this to No at the contract level Additional Details tab Once you enter the essential details of the derivative contract you have to enter the additional details that are required to process the contract Click on Additional tab that corresponds to Detail Derivatives Contract Input New amp Enter Query Product BH Reference Number Version Number 4 ot Product Description UOS Source Code FLEXCUBE External Reference Type Reversed Reference Ec Swaption Reference Type Description Main Detail Termination Limits Governed By Master Current Value Agreement Interest Exposure Master Agreement Code FX Exposure Limits Tracking Required Netting Required Fair Value Limits Tracking Fair Value Line Code Notional amp Risk Weighted Limits Notional Limit Tracking Notional Line Code Risk Weighted Limit Risk Weighted Line Code Tracking Risk Weighted Amount Risk Percent Event Brokerage Settlements Advice Charges Tax MIS Fields Principal Profit SubAgreement Commodity Tracking Input By Authorized By Status Date Time Date Time Authorization Status Limits Governed By Master Agreement Check this box to indicat
106. e details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity eu ORACLE 5 2 15 Levying Charges for a Transaction For each leg of the transaction you can specify the charges that you levy Charges are applicable only the for customer legs of a transaction The characteristic feature of a charge is that it is always booked in advance and is not accrued as a charge is collected only when it is due To recall you have defined the attributes of a charge by defining a Charge Rule in the ICCF Rule Definition screen A rule identifies the basic nature of the charge You have further defined a Charge class in the Class Maintenance screen where you have enriched the attributes of a rule We shall refer to these classes as components Each charge component in turn is linked to a product All the charge components linked to a product are defaulted to the contracts associated with it Thus each time you enter a contract you need not specify when and how charges should be collected However while capturing the details of a transaction you can choose to associate a component to the transaction Further you can modify some of the attributes defined for the applicable component From the Islamic Derivatives Contract Input Detail screen click Charges button The Contract Charge Details screen is displayed
107. e outward inward leg of the contract Tenor Code The tenor code refers to the tenor of the floating rate code and currency combination that is to be associated with this leg of the contract Once you select the Rate Code the code assigned to the tenor linked to the particular Rate Code will be displayed in this field You can choose to change it by selecting another code from the available option list Spread on a floating profit rate When the Rate Type of the particular leg of a contract is floating you can choose to specify a spread that is to be applied over the rate maintained in the Floating Rate screen The Spread that you enter should be greater than or equal to the Minimum Spread and less than or equal to the Maximum Spread defined for the product that the contract involves If the spread you apply happens to be greater than the Maximum Spread then the Maximum Spread will be applied on the rate On the other hand if it is less than the Minimum Spread defined for the product the Minimum Spread will be picked up Rate If you specify that the profit rate for this leg of the contract is Fixed then you have to enter the actual rate of profit Flat Amount If you have indicated the Rate Type is Special for this leg of the contract then you need to specify the Flat Amount Trader Identification Specify the trader identification details for both the in leg and out leg of the contracts i ORACLE 5 2 2 5 2 3
108. e that the contract for which you are capturing details comes under the purview of a master agreement that exists between your bank and the counterparty ORACLE Code If you have specified that the contract is governed by a master agreement then you have to indicate the code assigned to the Master Agreement in the Master Agreement Maintenance screen After you choose the MA Code the other details linked to the MA code such as Limits Tracking Required Netting Required and so on will get defaulted to the contract Note If you input the MA Code click MA Details button The system displays the related details for the MA code specified Limits Tracking Required At the MA level if you have indicated that limit tracking is required and while entering the details of the contract you decide that tracking is not required then you will be allowed to uncheck this box However at the MA level if you have specified that limit tracking is not required then you will not be allowed to change this default at the time of entering the contract details Fair Value Line Code This field is the Line Code for the Fair Value Limits tracking and will be defaulted from the master agreement maintenance once the master agreement is chosen This field is mandatory if the Fair Value Limits Tracking option is checked Current Value The Current Value represents the current Mark to Market value of the contract This value will change
109. e this screen by typing IDDTRCNF in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button E Confirmation E New Enter Query Contract Reference Schedule Confirmation 1 041 Schedule Date Component Input By Date Time User Reference Amount Currency Media Receiver Confirmed Authorized Authorized By Status Authorized Date Time The following details are displayed in the screen Remarks Field Description Schedule Date The date on which a particular component falls due Component The various principal and profit components for which the confirmation is being processed The components displayed depend on the rate type associated with them All the components for which the rate type is fixed are displayed In the case of a floating rate type only those components that have undergone a rate revision will be displayed ORACLE 6 2 Amount The amount due towards each schedule If you have opted for netting at the contract level the amount displayed will be netted provided the components due for settlement are in the same currency and have the same schedule date The components are always netted against the main component specified for the In Leg of the contract The netted amount will be displayed against the main com ponent Currency The amount due towards each schedule will be
110. e updated only if the in leg and out leg sched ules coincide Other amount tags will not be applicable in this case DPLQ Contract Principal Liquidation Accounting Entries For profit rate swap products wherein the Asset Movement Required box is checked you need to se up the following accounting entries Accounting Role Amount Tag M DV BRIDGE GL INLEG PRN SALE DEBIT INLEG ASSET INLEG PRN SALE CREDIT OUTLEG LIAB OUTLEG PRN PURC DEBIT DV BRIDGE GL OUTLEG PRN PURC CREDIT INLEG ASSET INLEG PRN PURC DEBIT ORACLE DV BRIDGE GL INLEG PRN PURC CREDIT DV BRIDGE GL OUTLEG PRN SALE DEBIT OUTLEG LIAB OUTLEG PRN SALE CREDIT For currency swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INLEG PRN SALE DEBIT INLEG ASSET SALE CREDIT OUTLEG LIAB OUTLEG PRN PURC DEBIT CUSTOMER OUTLEG PRN PURC CREDIT INLEG ASSET PRN DEBIT CUSTOMER INLEG PRN PURC CREDIT CUSTOMER OUTLEG PRN SALE DEBIT OUTLEG LIAB OUTLEG PRN SALE CREDIT For products wherein the Asset Movement Required box is not checked you may set up the following entries Accounting Role Amount Tag Dr Cr Indicator CONT ASSET INLEG PRN DECR CREDIT CONT ASSET INLEG PRN INCR
111. eatment 2200 200000 0 00 0000000 5 8 5 2 4 Defining Principal Schedules seen 5 10 5 2 5 Viewing Schedule Details sse 5 11 5 2 6 Maintaining Profit Details osse 5 11 5 2 7 Contract Rate 51 iniinis ieii anii ei re A E Rai E 5 20 5 2 8 Indicating Commodity Details 5 20 5 2 9 Indicating other Details of the Derivative 5 22 5 2 10 Limits Processing deae edi ben b iin 5 27 5 2 11 Processing Brokerage on a 5 27 5 2 12 Specifying Advices for the 2 2 2 00000010000000 5 29 5 2 13 Viewing Event Details isses esie ede innate 5 30 5 2 14 Selecting the User Defined 2 2020 0200000000 5 31 5 2 15 Levying Charges for a 1 2 1 2 2 000000000004 5 32 5 2 16 Maintaining Settlement Instruction Details 5 34 5 2 17 Levying Tax on a Contract 5 37 5 2 18 Saving the Details of a Contract 5 38 5 2 19 Generating Payment Messages on Authorization 5 39 5 2 20 Viewing different versions of a 5 39 5 3 Uploading Contracts for 5 39 5 3 1 Op
112. ed By Status Date Time Date Time Authorization Status Assuming If the contract you are processing has been assumed from another counterparty you are required to indicate so before you begin to specify the other details Uncheck the box if you are processing a fresh contract Customer If the counterparty from whom you are assuming the contract is a customer of your bank indicate the name of the customer When the counterparty is not in any way connected to your bank you need not specify the name Base Currency Since you can maintain different currencies for both the in and out legs of the contract you have to identify one single currency as the Base Currency of the contract The base currency you specify will be used to compute the contract fair value to be used for revaluation purposes Revaluation Details Revaluation is typically applicable to trade deals The revaluation preferences that you made at the product level will be defaulted to the contract You may change these preferences while processing the contracts If indeed revaluation is required for the contract being processed it will be done according to revaluation method that you choose Note Each of the revaluation methods have been thoroughly explained in the chapter on Defin ing the Fair Price revaluation methods ORACLE Netting Required This field indicates whether contracts with positive and negative MTM values can be netted for comp
113. eg of the contract When the currencies of both the in and out leg of the contract are the same you have to calculate the net fair value of the contract by deducting the out leg amount from the in leg amount Example The Fair Value in the In Leg field amounts to USD 1 000 000 00 The Fair Value in the Out Leg field amounts to USD 500 000 000 Since both the values are in the same currency USD 500 000 000 deducted from USD 1 000 000 00 amounts to USD 500 000 000 Thus you can enter USD 500 000 000 as the Net Fair Value Supposing the currencies of both the legs of the contract are different then the Base Currency specified at the time of Contract Input will be the accepted as the default currency for the Net Fair Value You have to compute the Net Fair value using the existing exchange rates Note After indicating the respective values you must indicate your confirmation of the same Only confirmed records will be picked up and processed for revaluation by the End of Day batch process Operations on the Contract Fair Price Maintenance record Apart from maintaining a new fair price for a particular contract you can perform any of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record on an existing record e Amend the details of a record e Authorize a record Refer to the Oracle FLEXCUBE User Manual on Common Procedures for details of these opera
114. eks twelve times Adhere To Month End If the profit liquidation schedule is in terms of a month you can choose to indicate whether the schedule days should adhere to Month Ends Check this box to indicate that profit schedules should adhere to month ends Amount If the profit schedules you are defining are for a special type of profit component then you have to indicate the profit amount for the particular special component Compounding Indicator Check this box to indicate that the profit amount should not be repaid but should be added on to the principal amount at the end of the contract period Leave it unchecked to indicate that the profit repayment should be liquidated on the schedule end date 9 7 ORACLE 5 2 6 3 Revision Details Tab The revision schedules are maintained in the REVISION tab of the screen Islamic Derivatives Contract Profit Details Contract Reference Leg Type Component Main Schedule EGYEK Revision Holiday Treatment Holiday Treatment Currency Financial Centre Reset Date Details Reset Date Basis Reset Days Forward Forward Forward Backward Forward Backward Allow External Rate Move Across Month Cascade Schedules Amand Revision Exnlade Holiday Treatment Currency Financial Centre Revision ETT Holiday Revision Schedules 10f1 StartDate Frequency Unit Schedules Adhere To Month End View Interest View Revision Revision Holida
115. en During liquidation the information that is collected using the batch process is used to post adjustment entries to the previous year adjustment GL You must ensure that you execute this batch process prior to executing the Year end P and L balance transfer batch The balances pertaining to the unrealized income booked for each contract during the year will be stored at the Contract Component and Currency level For unrealized accruals the batch process stores data for the in leg and out leg interest components and for the unrealized accrual of termination gain loss For advance contracts unrealized accrual signifies accruals for those schedules which have liquidated but for which accruals have not been completed For arrears contracts unrealized accrual is indicative of the amount accrued until date for those profit schedules which are yet to be liquidated For termination gain or loss unrealized accrual is the amount accrued for a terminated contract which has not yet reached maturity Upload of DV Contracts Oracle FLEXCUBE provides the facility of holiday treatment for principal schedules profit and profit revision schedules of a DV online contract based on Multiple currency and Multiple financial center if the following conditions are satisfied e derivative type for the product allows combined holiday treatment ma ORACLE e holiday treatment at the contract level for principal profit or revision schedules
116. encies or financial institutions involved in the contract You specification will be automatically inherited by the product associated with the derivative type and consequently by any contract entered using the respective product oe ORACLE Profit Details Netting Required If two or more accounting entries for an profit schedule payment are to be passed in the same currency on the same Value Date then in Oracle FLEXCUBE you are allowed to net these entries However netting of entries is allowed only in the case of single currency derivative types If you are maintaining details of a cross currency type you will not be allowed to net entries Asynchronous Schedules Netting for asynchronous schedules is allowed only for derivative types that do not define a cross currency swap The in leg and out leg payment methods should also be synchronous both Advance or both Arrears for selecting the Netting required option for Asynchronous schedules In Out Leg Profit Details Profit Schedules Allowed for the Leg Type While maintaining the derivative type you are required to indicate whether contracts linked to the derivative type can have multiple schedules or whether the schedules have to be bulleted In Oracle FLEXCUBE you can choose to have multiple schedules for one leg and bullet schedules for the other leg For instance you can indicate that the in leg schedules have to be bulleted and the out leg schedules have to be multiple
117. ent wise Accounting Entries and Advices In this section we will discuss the suggested accounting entries and advices that should be generated for each event in the life cycle of Derivative contracts Note Also note that some of the Amount Tags linked to the Accounting Roles are user defined DBOK Contract Booking Accounting Entries For currency and profit rate swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Accounting Role Amount Tag Dr Cr Indicator BROK PAID BROKAMT DEBIT BROK PAYABLE BROKAMT CREDIT 9 8 ORACLE CONT ASSET INLEG DEBIT CONT ASSET OFS INLEG PRN CREDIT CONT LIAB OUTLEG PRN CREDIT CONT LIAB OFS OUTLEG PRN DEBIT For products wherein the Asset Movement Required box is not checked you may additionally set up the following entries Accounting Role Amount Tag Dr Cr Indicator CONT FAIR VAL INCP GAIN DEBIT CONT FAIR VAL INCP GAIN DEF DEBIT CONT FAIR VAL INCP LOSS CREDIT CONT FAIR VAL INCP LOSS DEF CREDIT INCP EXP INCP LOSS DEBIT INCP GAIN DEF INCP GAIN DEF CREDIT INCP INC INCP GAIN CREDIT LOSS DEF INCP LOSS DEF DEBIT IV TAX COD IV TAX LIQD CREDIT CUSTOMER IV TAX LIQD DEBIT IV CHARGE INC IV CHARGE LIQD CREDIT CUSTOMER IV CHARGE LIQD DEBIT ORACLE 9 5 2 Advices Advice N
118. er the following steps are required Product Code Indicate the product associated with the contract You can select a product code from the option list which contains a list of the authorized products that you have created Contract Reference Indicate the contract reference number of the derivative you wish to reassign to another user You can select a reference number from the option list which contains a list of all the active derivative contracts Current User Identity Specify the user id of the current user New User Identity Select the User ID of the user to whom you are assigning the contract Note This user to whom you reassign a contract should have access rights to enter derivative contracts Your User ID will be defaulted from the login screen Select Save from the Actions menu in the Application toolbar or click save icon to save the specifications you have made Click Exit or Cancel button if you do not want to save the details that you entered oe ORACLE 7 1 7 2 7 2 1 T Batch Processing Introduction The End of Cycle process constitutes a set of programs that mark the logical beginning or end of a cycle of events You are required to execute many routine functions everyday as part of the End of Cycle process These functions can be classified as e Beginning of Day BOD programs e End of Day programs EOD The various BOD and EOD functions that are processed b
119. erations on a Islamic Derivatives Contract Record 5 40 5 3 2 Uploading Derivative Rates sse 5 40 5 3 3 A Note on DV Contract Amendment Upload 5 40 54 Viewing Contract Summary 5 42 5 5 Maintaining Revaluation Contract Rates 00 5 43 5 6 Viewing Revaluation Contract Rates Summary 5 44 5 7 Reassigning Contracts 11 1 01 5 45 5 7 1 Processing Profit Rate 2222 0002000 2000 0000 5 45 Confirmation of Profit and Principal Schedules 6 1 dntroductionis iere orti eta 6 1 6 1 1 Confirming Schedule Details essen 6 1 6 2 Reassigning a Contract to another 6 2 Batch Processing tee oe 7 1 t Untroductionasn siii mtn one Suh edd ed oe inim 7 1 7 2 Processing Daily Events sic oo ore ee Pi Dei Gelder eie dus 7 1 7 2 1 Invoking the Automatic Daily sse 7 1 7 3 Triggering the Year end Batch process for collecting Contract wise Data 7 2 7 3 1 Upload of DV 22 eene nnn 7 2 ninpg qe 8 1 9 1 Introduction eor E tte
120. es the Current Out Receivable Current Out Payable Indicates the Current Out Payable Net Revaluation Currency Previous Net Revaluation Income Indicates the Net Revaluation Currency Indicates the Previous Net Revaluation Income Previous Net Revaluation Expense Indicates the Previous Net Revaluation Expense 8512 ORACLE 8 9 8 9 1 Current Net Revaluation Income Indicates the Current Net Revaluation Income Current Net Revaluation Expense Indicates the Current Net Revaluation Expense Settled Deals Report The Settled Deals report gives settled deals details You can invoke this screen by typing the code IDRPSTLD in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Settled Deals Report Selection Criteria Settled Term Booking Dated From Date To Date Value Date From Date To Date Report Format lt Printer At Client Report Output Printer Specify the following details Selection Criteria Check the options as per requirement From Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date To Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date Click OK to generate the report Contents of the Report The parameters specified while generating the report are printed at the beginnin
121. escription A brief description of the Module is displayed in this field Product Type The product type identifies the basic nature of a product The derivative types for which the option Islamic Derivative is checked in the Derivative Type Maintenance screen are displayed in the adjoining option list A derivatives product that you create can belong to any one of the following types e Profit Rate Swaps e Cross Currency Swaps Description A brief description of the product type is displayed here Slogan You can enter a slogan for the product that you are creating that suitably announces the product to your customers Product Group Grouping products according to the common features they share helps you organize information relating to the services you provide Product Groups also help you retrieve information easily You can invoke a list of the product groups that you have maintained in your bank and choose the product group to which the product that you are creating belongs Product Group Description A brief description of the product group is described here Start Date When you create a product you must specify a date from which it can be offered Enter this date in the Start Date field End Date You can choose to specify the date up to which a product is open Enter this date in this field You cannot enter a date that is earlier than the current system date s ORACLE 3 2 1 Note You cann
122. f the automatic processes run during beginning of day BOD or End of day EOD Note The method and basis for liquidation are as specified for profit accruals Schedule Details tab After you specify the profit accrual preferences you have to indicate the repayment schedules for the following components e Principal Repayment of principal schedules e Profit Repayment of profit schedules e Revision Revision of profit rates for a contract with periodic profit rates 957 ORACLE schedule preferences for each of these components have to be defined separately for both the In and Out legs Click the Schedules tab in the Product Preferences screen Derivatives Product Preferences Product Code Product Description Product Type Product Type Description Main Profit 03 1 Amortization Details Product Schedules 10f 1 Component Schedule Method Start Reference Frequency i Start Weekday Default Product Schedule Details Component Specify the component for which you are defining the schedule Leg Type You need to indicate whether the component that is displayed is an In leg component or an Out leg component Schedule Type You should indicate the schedule type to which the component belongs The component can belong to any one of the following types e Principal Repayment of principal schedules e Profit Repayment of profit
123. fields or you will not be able to save the contract After you have made the mandatory entries save the contract by either clicking Save icon in the toolbar or selecting Save from the Actions menu On saving the contract your User will be displayed in the Entry By field at the bottom of the screen The date and time at which you saved the deal will be displayed in the Date Time field A contract that you have entered should be authorized by a user bearing a different login ID before the EOD is run Once the contract is authorized the ID of the user who authorized the contract will be displayed in the Auth By field The date and time at which the deal is authorized will be displayed in the Date Time field positioned next to the Auth By field The current status of the contract is also displayed in the field Deal Status The field will display one of the following active closed expired reversed cancelled and on hold 3 49 ORACLE 5 2 19 5 2 20 5 3 Generating Payment Messages on Authorization During the authorization of the contract the system generates payment messages by applying the floating profit rate at that point of time The system handles the payment messages in two different ways e case maturity liquidation date falls before the settlement days of the currency the messages are generated after authorization e Incase maturity liquidation date is after the settlement days the messages ar
124. filiates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents Preface onn ostia iot 1 1 ie e Po Cott ne Gr rte c e c o ee M b mts 1 1 1 2 ZAUdIence s i ie A tte bre e t p des 1 1 1 3 Documentation Accessibility sees nennen 1 1 1 4 Acronyms and 7 1 1 1 5 OrganiZation s ied eI e ED Mane 1 1 1 6 Related Documents 1 2 1 7 s Glossary ot160D8 eoe T oet edere oi te gd DEED erat 1 2 General Maintendatice ioo ou eee eee 2 1 2 1 InttoductlOri cereus n a OE ebat qi e et eas 2 1 2 2 Maintaining Derivative Types 2 1 2 2 1 Maintaining User Defined Fields sss 2 5 2 3 Maintaining Branch Parameters 2 5 2 4 Maintaining Counterparty Master Agreement 2 6 2 5 Maintaining Clearing 2 9 2 6 Maintaining Messaging Party 2 10 2 Maintaining Limits Processing Details 2 13 Defining Attributes Specific to Islamic Derivative Products 3 1 3 1 Introduction 3 1 32 Maintaining Derivative
125. g of the report Other content displayed in the Settled Deals Report is as follows Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code us ORACLE 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated Body of the Report The following details are displayed as body of the generated report Field Name Field Description Counterparty Customer Name Indicates the Counterparty and customer name Contract Reference Indicates the contract reference number Booking Date Indicates the date of booking Effective Date Indicates the effective date Maturity Date Indicates the maturity date Contract Status Indicates the contract status Termination Type Indicates Termination type Termination Date Indicates termination date In Leg Principal Indicates In Leg Principal Out Leg Principal Indicates Out Leg Principal Type Description Indicates the type of description Contract Type Indicates the contract type Termination To Indicates the Termination To In Leg Indicates In Leg Out Leg In Leg Profit Details Indicates Out Leg Component Indicates the component
126. g the report are printed at the beginning of the report Other content displayed in the Revaluation Log Report is as follows Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated Body of the Report The following details are displayed as body of the generated report Branch Code Indicates the branch code Revaluation Sequence Number Indicates the Revaluation Sequence Number Revaluation Date Indicates the Revaluation Date Transaction Date Indicates the Transaction Date Contract Reference Number Indicates the Contract Reference Number Product Code Indicates the Product Code In Revaluation Currency Indicates the In Revaluation Currency Previous In Receivable Previous In Payable Indicates the Previous In Receivable Indicates the Previous In Payable Current In Receivable Indicates the Current In Receivable Current In Payable Out Revaluation Currency Indicates the Current In Payable Indicates the Out Revaluation Currency Previous Out Receivable Indicates the Previous Out Receivable Previous Out Payable Indicates the Previous Out Payable Current Out Receivable Indicat
127. h Amortization Start Month The Product Code and Product Type are defaulted from the Product Maintenance screen In this screen you can specify the following Amortization of Inception Termination Gain Required You have to indicate whether inception termination gain needs to be amortized Check the respective box to indicate that amortization is required for inception termination gain Leave it unchecked if amortization is not required Note If you choose these options then amortization of inception termination gain will be made applicable to all contracts associated with the product You can however change it while entering the details of the contract But if you indicate that amortization is not required then you will not be allowed to change this preference while processing the contract Amortization of Inception Termination Loss Required You have to indicate whether inception termination loss needs to be amortized Check the respective box to indicate that amortization is required for inception termination loss Leave it unchecked if amortization is not required Note If you choose these options then amortization of inception termination loss will be made applicable all contracts associated with the product You can however change it while en tering the details of the contract Amortization Level Here you can indicate the level at which the amortization entries for inception termination gain and or loss should
128. h of the Receiver s Correspondent e and address of the Receiver s Correspondent e Other identification codes for example account number Ordering Institution The Ordering Institution is the financial institution which is acting on behalf of itself or a customer to initiate the transaction This field corresponds to 52a of SWIFT In this field you can enter one of the following e ISO Bank Identifier Code of the Ordering Institution e branch or city of the Ordering Institution e Name and address of the Bank Ordering Customer The Ordering Customer refers to the ordering customer of the transaction Here you can enter the name and address or the account number of the Customer ordering the transaction This field corresponds to field 50 of SWIFT You will be allowed to enter details in this field only if you have initiated a customer transfer MT 100 and MT 202 Beneficiary Institution Here you can enter details of the institution in favor of which the payment is made It is in reality the bank that services the account of the Ultimate Beneficiary This field corresponds to field 58a of SWIFT You will be allowed to make entries into this field only for Bank Transfers when the remitter and beneficiary of the transfer are financial institutions MT 100 or MT 202 Here you can enter either e ISO Bank Identifier Code of the Beneficiary Institution e Name and Address of the Beneficiary In
129. he details specified for the broker including the brokerage rule linked to the per ORACLE broker is defaulted However you change some details like whether brokerage should be booked in advance in arrears or whether it should be waived altogether Click Brokerage button to define the brokerage details that are applicable to the contract leg you are processing You will be allowed to enter details of a broker only if brokerage was allowed for the product to which the contract is associated Brokerage Contract Reference Broker Broker Name Payable Currency Amount Liquidation Brokerage Currency Amount Booking Status Booking Reference Number Advance Arrears Consider For Discount The code assigned to the broker through whom the deal was brokered is displayed along with the broker s name If the brokerage payable currency is the same as the brokerage paid currency then the same amounts brokerage paid and brokerage payable are displayed against the currencies You have the option to change these currencies While you cannot input the brokerage payable amount the brokerage paid amount can be changed The following brokerage details are displayed e brokerage liquidation status If it has been liquidated the liquidation reference number is also displayed e The rule code and description that has been linked to the broker Indicating when brokerage should
130. he leap year 366 365 ISDA B Profit accrual Days not falling within the leap year 365 Actual The denominator is the actual number of days in a year Click on 365 ISDA in Numerator Method field click on Actual in Denominator Method field ORACLE 3 2 1 3 The actual number of calendar days for which calculation is done 360 days Click on Actual in Numerator Method field click on 360 in Denominator Method field Actual 360 The General Formula used for the day count method is given below Day count fraction Number of Profit Accrual Days Numerator Days in the specified period Per Annum Per Period Denominator Note Setting the Profit Frequency is done in the same manner as setting the Revaluation Fre quency Include To Date Check this box if you would like to take into account the last day in an accrual period when arriving at the accrual days In Leg Out Leg Profit Liquidation Details Liquidation Method The profit accrued over a specific schedule period or per annum can be liquidated either automatically or manually You have to indicate this preference at the time of product definition Indicate whether the in leg profit accruals due for derivatives within a product should be liquidated automatically or manually If you select the automatic option the profit accruals for the in leg will be liquidated automatically on the liquidation date as part o
131. he level for revaluation you can indicate the method to be used for revaluation The options available are e Fair Price e Contract Rate e Branch specific Profit Rate The revaluation level and method that you specify will determine the manner in which the product will be revalued Note Each of the above methods is explained in detail in the chapter titled Defining Fair Price revaluation methods Revaluation Frequency The frequency with which a product should be revalued has to be specified as a product preference Once you have indicated the level and the method for revaluation you can specify the frequency with which a product should be revalued The frequency can be one of the following e Daily ORACLE 3 2 1 2 e Weekly e Monthly e Quarterly e Half yearly e Yearly Note If the revaluation date falls on a holiday the revaluation is done as per your holiday han dling specifications in the Branch Parameters screen Revaluation Start Weekday In case of weekly revaluation you should specify the day of the week on which revaluation should be carried out For instance if you specify that revaluation should be carried out every Friday then the contract or product depending on the level specified will be revalued every Friday of the week Note The Revaluation Frequency that you specify at the product level cannot be changed while processing the contract Revaluation Start Day
132. hedules E Revision Schedules Revision Schedules Allowed Allowed E interest Schedules Interest Schedules Allowed Allowed Payment Method Advance Payment Method Advance Arrears 5 Arrears Internal Remarks S Fields Input By Authorized By Modification Wi Authorized Date Time Date Time Number Open If you are maintaining details of a new derivative type choose New from the Actions Menu or click New icon from the tool bar The Derivative Type Maintenance detailed screen will be displayed without any details If you are calling a derivative type maintenance record that has already been defined choose the Summary option under Derivative Type From the Summary screen double click a record of your choice to open it Derivative Type The first attribute that you define for the derivative is its type A type defines the basic characteristics of the instrument It indicates whether the e Deal involves a single currency or two currencies e Deal involves multiple profit schedules e Profit will be liquidated in a single payment By suitably defining a derivative type you will be able to define the following basic instrument types and their variants e Cross Currency Swaps CCS e Profit Rate Swaps PRS Type Description You can also assign a brief description for the derivative type that you are defining This description will be associated with the type only for info
133. ils 202 DV CSR DVCNSRV2 Unhandled Exception while amending the contract 211 DV CSR DVCNSRV2 Unhandled Exception while copying the Contract 221 DV CSR DVCNSRV2 Product is not Valid 222 DV CSR DVCNSRV2 No Primary Interest component defined for the In Leg 223 DV CSR DVCNSRV2 No Primary Interest component defined for the Out leg 224 10 6 ORACLE DV CSR DVCNSRV2 Error While copying the MIS details 225 DV CSR DVCNSRV2 Unhandled Exception while reversing the contract 231 DV CSR DVCNSRV2 Unable to obtain Contract Lock 232 DV CSR DVCNSRV2 Unhandled Exception while reversing the Accounting 241 Entries DV CSR DVCNSRV2 Unhandled Exception while populating the handoff table 251 DV CSR DVCNSRV2 Unhandled Exception on handoff of accounting Entries 261 DV IAC DVACCR Unhandled Exception while building the queue array 001 DV IAC DVACCR Unhandled Exception while calculating the periodic 011 accrual date DV IAC DVACCR Unhandled Exception while processing periodic profit 021 accrual DV IAC DVACCR Unhandled Exception while accruing for a contract 101 DV IAC DVACCR Unhandled Exception while calculating the accrual 121 amount DV IAC DVACCR Reset not done for interest rates 122 DV IAC DVACCR No discount rate obtained for the interest component 123 DV IAC DVACCR For Component 1 liquidation for the past period is
134. ined in the system using the Islamic Derivatives Revaluation Contract Rates Summary screen You can invoke this screen by typing IDSCNRAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button T Advanced Search 4 Reset Authorization Status Record Status Contract Reference Profit Revision Transaction Date Revaluation Date Confirmed Records perpage 15 First Previous 4 or 4 Next Last Contract Reference Authorizai Record St Revaluation Date Profit Revision Confirmed Transaction Date Here you can query on records based on the following criteria e Authorization Status e Contract Reference Number e Profit Revision e Transaction Date e Record Status e Revaluation Date 5 44 ORACLE 5 7 5 7 1 Confirmed Click Search button The system will display all records satisfying the search criteria Reassigning Contracts You can reassign an existing contract to another customer using the Reassign Derivatives Contract screen You can invoke this screen by typing IDDTREAS the field at the top right corner of the Application tool bar and clicking the adjoining arrow button E Reassign FX New Enter Query Reassign User Prior To Authorization Product Code Contract Reference Current User Identity New User Identity Date Time Checker Date
135. ing Details You have to indicate whether exposure against the master agreement needs to be tracked for the counterparty limits If you want to track counterparty limits for exposure against the master agreement then you need to specify the default credit line against which the credit limit utilization of contracts under the master agreement will be tracked You can specify whether Notional Limits tracking is required for the Customer and also specify the line code against which the notional limit should be tracked If you have indicated that Fair Value Limit tracking is required for the master agreement then you are required to specify the default fair value credit line against which the credit limit utilization of contracts under the master agreement will be tracked Additionally you can specify whether Risk Weighted Limits Tracking is required and also select the line code against which the Risk Weighted Limit should be tracked is ORACLE 2 5 The options Notional Limits Tracking Fair Value Limits Tracking and Risk Weighted Limits Tracking will be enabled only if the Limits tracking option is selected Subsequently you also have to indicate the utilization currency This currency will be taken as the credit limit utilization currency for the master agreement Agreement Details and Internal remarks After specifying the main details about the master agreement you can summarize the entire agreement and store details about it This
136. ing arrow button LBL DVSCNONL FNDESC Advanced Search Reset Product Code Contract Reference User Reference Contract Status Authorization Status Contract Type Customer In Leg Currency In Principal Amount OutLeg Currency Records perpage 15 v 10f1 Product Code Contract Reference User Reference Contract Status Authorization Status Contract Type Here you can query on records based on the following criteria e Product e User Reference e Authorization Status e Customer e n Principal Amount e Out Principal Amount e Reference Number e Contract Status e Contract Type e In Leg Currency e Out Leg Currency Click Search button The system will display all records satisfying the search criteria 5 42 ORACLE 5 5 Maintaining Revaluation Contract Rates You can invoke the Islamic Derivatives Revaluation Contract Rates screen from the Application Browser You can invoke this screen by typing IDDCNRAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button islamic Derivative Revaluation Contract Rates Enter Query Contract Reference User Reference 25 Rate Code Revaluation Date Rate Source Transaction Date Profit Revision Confirmation Profit Revision Auto Confirmed Manual Contract Rate Details Currency Code C
137. inked to the rate the tenor associated with the rate as well as the spread that is to be applied over the rate maintained in the Floating Rates screen Based on these parameters the discount rate will be calculated Discount Rate Specify the rate at which profit is to be discounted if the discount rate basis is Direct Input Floating Component Indicate the Floating Component based on which profit is to be discounted if you have indicated that the discount rate basis is Contract Floating Component s ORACLE Discount Auto Pickup Check this box to indicate whether the discount rate should be automatically picked up by the system from the Floating Rates screen depending on the other parameters you have specified such as the discount rate source rate code tenor code and the rate spread Discount Rate Source If your choice for the discount rate basis is the Other Floating Component then you have to indicate the Rate Source linked to the Rate Code based on which the discount rate is to be calculated Discount Tenor Code If your choice for the discount rate basis is the Other Floating Component then you have to indicate the tenor code associated with the rate Code based on which the discount rate is to be calculated Discount Rate Spread For the floating component you can specify the Spread that you want to apply over the rate maintained in the Floating Rates screen Note The Spread you apply should always be gre
138. l be used for revaluation e Maintaining Branch Profit Rates whereby you can maintain branch level forward profit rates which will determine the fair price to be used for revaluation e Maintaining Contract Profit Rates whereby you maintain contract specific forward profit rates which will determine the fair price to be used for revaluation Your preference for revaluing contracts linked to the particular product will be defaulted to all the contracts linked to that product However you can change this preference at the time processing the contract Each of these revaluation methods have been explained in detail in the following sections Maintaining Fair Values for Revaluing a Contract If you have indicated that a particular contract should be revalued based on the contract fair price the system automatically inserts a record in the Revaluation Contract Fair Price Maintenance screen for that contract This is done during the Beginning of Day batch process based on the revaluation frequency specified at the product level This concept can be explained with the help of an example For example You have set the revaluation frequency of the contract bearing the reference number 000DV21992950177 to monthly The first revaluation was done on 18 January 2000 The next is due on the 1 of February 2000 On the 1 of February 2000 the system automatically inserts another record in the Contract Fair Price Maintenance screen for the contract 00
139. l those contracts for which you have indicated that branch level profit rates are to be used for revaluation Moreover revaluation will be done for only those contracts with the particular Rate Code Rate Source and Currency combination for the particular Revaluation Date To define a new forward profit rate for a specific profit period click add button from the screen and enter the relevant details To delete an existing rate highlight the rate and click on delete button from the screen Operations on the Branch wise Forward Profit Rate Maintenance record Apart from maintaining a new forward profit rate you can perform any of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record on an existing record TS ORACLE e Amend the details of a record e Authorize a record Refer to the Oracle FLEXCUBE User Manual on Common Procedures for details of these operations 4 4 Viewing Branch Rates Summary Details You can view details of all Branch Rates maintained in the system using the Derivatives Revaluation Branch Rate Summary screen You can invoke this screen by typing DVSBRRAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button CT Advanced Search Reset Authorization Status Record Status Revaluation Date Rate Source Rate Code Transaction Date Confirmed Record
140. lds cannot be null 116 DV MNT DVDCNVAL Mandatory field Contract Ref No is NULL 201 DV MNT DVDCNVAL Mandatory field Reval Date is NULL 202 DV MNT DVDCNVAL Mandatory field In Fair Value is NULL 203 DV MNT DVDCNVAL Mandatory field Out Fair Value is NULL 204 DV MNT DVDCNVAL Mandatory field Net Fair Value is NULL 205 DV MNT DVDCNVAL In and Out fair values are not synchronous with Net Fair 206 Value DV MNT DVDCNVAL No Data found for the Contract Ref No 207 DV MNT DVDCNVAL Reval Date should be before Next Working Date 1 208 DV MNT DVDCNVAL Reval Date should be after the previous reval date 1 209 DV MNT DVDCNVAL Reval Date already exists 210 10 17 ORACLE DV MNT DVDCNRAT Mandatory field Contract ref no is NULL 215 DV MNT DVDCNRAT Mandatory field Reval Date is NULL 216 DV MNT DVDCNRAT Mandatory field Interest rate is NULL 217 DV MNT DVDCNRAT Reval Date cannot be greater than the next working day 218 DV MNT DVDCNRAT Reval date cannot be less than the previous reval date 219 DV MNT DVDCNRAT Reval Date already exists for this contract 220 DV MNT DVDBRRAT Mandatory field Rate Code is NULL 230 DV MNT DVDBRRAT Mandatory field Rate Source is NULL 231 DV MNT DVDBRRAT Mandatory field Reval Date is NULL 232 DV MNT DVDBRRAT Reval Date already exists 233 DV MNT DVDBRRAT Reval
141. les irrespective of the availability of funds Note The entries associated with each event initiation and liquidation in this case will be passed only if they have been defined for the product Further the accounts used will be the ones defined for each entry 5 ORACLE If you are processing deal that involves brokerage indicate the ID of the broker through whom the deal was brokered Click on the option list and select a broker code The list will contain a list of valid brokers with whom you can enter deals You will be allowed to enter details of a broker only if brokerage is allowed for the product to which the deal is associated Dealer Select the name of the dealer involved in the transaction Exchange Rate While maintaining details of Cross Currency Swaps you are required to indicate the Exchange Rate for exchange of principal The rate that you indicate will be used for determining the Out leg amount for the initial exchange in principal given the In Leg amount Note The exchange rate that you indicate will be validated against the exchange rate variance limits Override Limit Stop Limit that you have specified at the time of defining the prod uct If the exchange rate variance exceeds the Override Limit the system will display an appropriate override message If the rate variance exceeds the Stop Limit then you will not be allowed to save the contract until you change the rate Rem
142. lue Date Indicates the value date Rate Type Indicates the rate type Rate Code Indicates the rate code Rate Indicates the rate Currency Indicates the currency Customer Wise Summary Report The Customer Wise Summary report gives summary of customer wise details You can invoke this screen by typing the code IDRPCSSM in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Customer wise Summary Selection Criteria Customer Report Format PDF Printer At Client Report Output Print Printer Specify the following details Customer Select the customer name from the adjoining drop down list Click OK to generate the report ORACLE 8 6 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Customer wise Summary Report is as follows Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated 6 Module Id Indicates the module id Body of the Report The following details are displayed as body of the generated report Counterparty Indicates the counterparty Counterparty I
143. maintaining Messaging Party Maintenance details you have to enter Peter in the Receiver ID field and Mail as the medium of sending the message Select DV CANC CCS in the Party Type field Secondly since CHASEBANK has instructed you to send all cancellation messages to Peter you have to select from the list and associate all possible cancellation messages that may have to be sent to CHASEBANK with Peter s ID 2 12 ORACLE 2 7 Default While maintaining receiver details you can identify a particular receiver as the default receiver of messages that need to be sent to the customer All those messages that have been marked for the particular will be sent to the default receiver Maintaining Limits Processing Details You can track the current value and exposure details of a counterparty using the Islamic Derivatives Other Exposures Maintenance screen You can invoke this screen by typing IDDLMVAL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button islamic Derivative Other Exposures Maintenance E3 Enter Query Reference Number User Reference Limit Type Transaction Date Effective Date New Current Value Profit Exposure FX Exposure Input By Authorized By Date Time Date Time The system displays the following details in order to track the current value and exposure details of a counter party
144. mount INLEG PRN DECR In Leg Principal Decrement INLEG INCR In Leg Principal Increment INLEG LIQD In Leg Principal Liquidation IV CHRG DISC Derivatives Charge class IV CHRG LIQD Derivatives Charge class ORACLE IV CHRG Derivatives Charge class NET INT EXP Net Profit Expense NET INT EXPA Net profit expense on Accrual Basis NET INT EXPA RNL Rounding loss for loss deals INT EXPA Rounding profit for loss deals NET INT EXPA URN Net Expense on accrual basis NET INT EXPC Net profit expense on Cash Basis NET INT EXPC URN Net Expense on cash basis NET INT INC Net Profit Income NET INT INCA Net Income on Accrual basis NET INT INCA Rounding loss for profit deals INT RNP Rounding profit for profit deals INT URN Net income on accrual basis NET INT INCC Net Profit Income on Cash basis NET INT INCC URN Net income on cash basis OUTLEG PRN Out Leg Principal OUTLEG PRN CONT Out Leg Contingent Principal Amount OUTLEG PRN DECR Out Leg Principal Decrement OUTLEG PRN INCR Out Leg Principal Increment OUTLEG PRN LIQD Out Leg Principal Liquidation PRV_INRVL_PAY Previous In Leg Revaluation Payable PRV_INRVL_PAY_PY Previous INRVL Payable for Previous Year PRV_IN
145. nce of product groups is done through the Product Group Definition screen You can indicate the product group whose contracts can be linked to the master agreement Version You need to indicate the version number of the master agreement for which you are maintaining details Utilization Currency If you have indicated that Limit Tracking is required then you need to specify the utilization currency The currency that you specify here will be taken as the credit limit utilization currency for the master agreement Agreement Date Specify the date as of which the master agreement was signed Credit Netting Required One of the main advantages in maintaining a master agreement is the credit netting provision While defining the master agreement you can indicate whether the positive and negative contract fair values should be netted for the counterparty This concept can be explained with the help of an example Master Agreement Year Every master agreement that you define will invariably refer to the Book of Definitions ISDA Definition You have to indicate the year of definition which is applicable for the master agreement in this field Collateral Agreement You have to indicate whether collateral agreements are applicable for the master agreement Note The system checks this box by default If you do not want the collateral agreements to be come a part of the master agreement leave this box unchecked Limits Track
146. ndicates the name of counterparty Name ence Contract Refer Indicates the contract reference Type Description Indicates the type of description Value Date Indicates the value date Settlement Date Indicates the settlement date 8 7 Process Exception Report The Process Exception report gives process exception details 8 9 ORACLE 8 7 1 You can invoke this screen by typing the code IDRPEXCP in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Process Exception Report Selection Criteria Branch From Date To Date Report Format Printer At Client Report Output Printer Specify the following details Branch Specify the valid branch name from the given adjoining drop down list From Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date To Date You can select a date from the adjoining calendar icon Click the calendar icon to select a date Click OK to generate the report Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Process Exception Report is as follows Header The following details are displayed in the header section Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code
147. nfirmation Profit Revision Auto 7 Confirmed Manual Contract Rate Details Currency Code Currency Code Description Profit Period Start Date Profit Period End Date Profit Rate 2E Input By Authorized By Modification Date Time Date Time Number Wi Authorized Wi open To indicate the forward profit rates of individual contracts you have to invoke the Contract Summary screen by selecting the Summary option under Contract Rates From the Summary screen double click the record of your choice to open it Click Unlock icon from the tool bar or choose Unlock from the Actions Menu Enter the profit rate s required for each contract and confirm it For an ad hoc revaluation of a particular contract choose New from the Actions Menu or click New icon from the toolbar The Contract Profit Rates Maintenance screen will be displayed without any details Select the reference number of the contract which is to be revalued after you indicate the new revaluation date of the contract you can specify the new profit rate for the profit period Note The profit rate s that you enter here will be used to determine the Fair Value for revaluing that particular contract ga ORACLE 4 5 1 Operations on the Contract Specific Forward Profit Rate Maintenance cord Apart from maintaining a new contract specific forward profit rate you can pe
148. ngerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and its af
149. ning branch wise profit rates is that when there are multiple contracts which require the same rate s for processing revaluation the tenor and currency combination should be the same the BOD function identifies all the required rates and inserts a single record into this screen If you are maintaining details of a new profit rate for your branch choose New from the Actions Menu or click New icon from the tool bar The Branch Profit Rates Maintenance screen will be displayed without any details If you are calling a branch profit rate record that has already been defined choose the Summary option under Branch Rates From the Summary screen double click a record of your choice to open it To modify or update existing profit rates click the Unlock icon from the tool bar or choose Unlock from the menu After indicating the new profit rate the currency of the profit rate and the period for which the new rate is valid save the record Rate Code and Rate Source If you are maintaining the details of a new profit rate for your branch you have to indicate the rate code that is to be associated with the profit rate You can identify a valid code from the 4 ORACLE 4 3 1 list of rate codes available Subsequently you also have to indicate the source to which the rate code belongs When you indicate the codes linked to the rate code and source the description assigned to them will be defaulted in the adjacent fields Reval
150. nsaction in the external source as the external reference number Reversed Reference The reference number of the contract that is being reversed and rebooked is displayed here Source Code You have to indicate the source from which contracts have to be uploaded Type The type of derivative It will get defaulted once you select the product Type Description This is the description associated with the derivative type Main Details tab Counterparty When you are entering the details of a derivative contract you should specify the customer with whom the derivative contract is being entered into Specify the code of an authorized customer who falls into a category allowed for the product linked to the contract Settlement Account Branch You might want to settle these components in an account existing at a branch other than the one where the contract was initiated Therefore you have to indicate the branch code of the branch where the account resides Subsequently indicate the account number of the settlement account If Settlement Instructions have been defined for the customer the settlement accounts will be picked up from those instructions While entering the details of the contract you can change the Settlement Instructions for the derivative contract Note Ifa settlement account has been specified in the settlement instructions for the customer and a different account has been specified for the derivative contract the
151. nt 001 DV ISR DVINTSRV Unhandled Exception While picking up currency rates 011 DV ISR DVINTSRV Unhandled Exception While referring Contract Associa 021 tions DV ISR DVINTSRV Unhandled Exception While fetching floating Rates 031 DV ISR DVINTSRV Rate Code Selection is not Valid 032 DV ISR DVINTSRV Rate Code maintenance is Unauthorized 033 DV ISR DVINTSRV The Selected Rate Code is Closed 034 DV ISR DVINTSRV No Rate Details are found Inconsistent Database 035 10 10 ORACLE DV LM DVLIMITS The Issuer Limits details are incomplete Complete Delete 00001 the Issuer Limits details DV LM DVLIMITS The Line Code is not a Limits Template 00002 DV LM DVLIMITS The Line Code is not entered 00003 DV LM DVLIMITS The Liability is not entered 00004 DV LM DVLIMITS The Line Start Date cannot be later than the Line Expiry 00005 Date DV LM DVLIMITS The Last Available Date cannot be later than the Line 00006 Expiry Date DV LM DVLIMITS The Line Currency is not entered 00007 DV LM DVLIMITS This Tenor has been maintained for the Limit 00008 DV LM DVLIMITS The Tenor details are incomplete Complete Delete the 00009 Tenor details DV LM DVLIMITS The Products Allowed details are incomplete Complete 00010 Delete the Products Allowed details DV LM DVLIMITS The Branches Allowed details are incomplete Complete 00011 Delete the Branches Allowed
152. nt cannot be more than the Cap Rate e For Profit Type Floor if the total floating rate is less than the Floor Rate and if Related Component is specified the final rate will be taken as Floor Rate minus profit rate of the Related Component If Related Component is not maintained final rate will be the Floor Rate minus the spread component e If Profit Type is Corridor then final rate will lie between the Floor Rate and Cap Rate If the final rate is above Cap Rate then final rate is decided as in the case explained for Cap profit type where spread is zero Similarly if the final rate is below Floor Rate final rate is decided as explained for the Floor profit type above e If the profit type is Normal both final rate as well as the spread will be taken as it is Also Related Component will not be applicable in this case Indicating Commodity Details You can maintain principal and profit schedules for the in and out legs of the contract Similarly you can indicate commodity details for every contract that you process You can also invoke this screen by typing IDDCOTRK in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Click Commodity button in the Islamic Derivative Contract Input screen The Commodity Tracking screen will be displayed Commodity Tracking E New amp Enter Query Contract Reference ESN 1 Of 1 Leg Type
153. nt to settle the transaction you should input either Instrument or Message details Specifying Instrument Details For a transaction that is being settled through an instrument you should specify the type of instrument being used It could be Manager s Check Check or a Demand Draft You should also specify the number that will identify the instrument This number will be printed on the instrument If the settlement is through an instrument you cannot specify party details for the transaction Specifying Message Details For a SWIFT message you have to specify e Whether a Cover has to be sent to the Reimbursement Bank along with the payment message to the receiver e Bank to bank payment details these can be in the form of instructions or additional information to any of the parties involved in the transaction e Information from the sender to the receiver Party Details tab To effect a transaction you may have to pass on funds through a series of banks before it actually reaches the ultimate beneficiary Through the two Parties screens you can capture details of all the parties that will be involved in settlement of the transaction These screens contain fields that explore the possible routes in which the transaction components can be transferred Intermediary Reimbursement Institution An Intermediary Reimbursement Institution is the financial institution between the Sender s Correspondent and the Receiver s Corresp
154. nter specific contracts for this module By default a contract inherits the attributes of the product to which it is associated This means that you do not have to define the attributes that default from the product every time you input a contract involving the product However you can change some of the attributes to suit the product you are defining Maintaining the Islamic Derivative Contract Input Screen You can invoke the Derivative Contract Input screen from the Application Browser To enter the details of a new contract choose New from the Actions Menu or click New icon from the tool bar You can invoke this screen by typing IDDTRONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button If you are calling a contract that has already been created choose the Contract Input Summary option The details of all the contracts that you entered earlier will be displayed in a tabular form From the Summary screen you can open an existing deal by double clicking it a ORACLE X New amp Enter Query Product Product Description Swaption Reference Derivatives Contract Input Reference Number User Reference External Reference Reversed Reference Detail Additional Termination Version Number 4 Source Code Type Type Description Of kl FLEXCUBE Counterparty Booking Date Liquidate Past Schedules Description Valu
155. o specify the profit accrual rate for the inward leg of the contract as one of the following Perannum e Per schedule period Out Leg Denominator Basis You need to specify the profit accrual rate for the outward leg of the contract as one of the following Perannum e Per schedule period Allow External Rate Revision Check the Allow External Rate Revision to indicate that for the contracts linked to this product you can allow rate revision based on the rates uploaded from an external system In Leg Out Leg Profit Accrual Details The details that you maintain here are specific to the profit calculation methods to be applied during accruals Any of the following combinations are allowed for calculating profit The Actual number of days in the period The Actual number of days in that year Actual Actual Click on Actual in Numerator Method field click on Actual in Denominator Method field The number of actual calendar days for which calculation is done 365 days in a year Actual 365 Click on Actual in Numerator Method field click on 365 days in Denominator Method field This is similar to the Actual 365 method except that leap days Actual are always ignored in the denominator day count calculation Japanese Actual Click on Actual in the Denominator Method field click on Actual Japanese in the Numerator Method field Sum of A and B where A Profit accrual days falling within t
156. ode Description Profit Period Start Date Profit Period End Date Profit Rate E L _ Input By Authorized By Modification Date Time Date Time Number Wi Authorized Open Contract Reference Number Specify the contract reference number of the contract that has to be revalued Revaluation Date Specify the revaluation date of the contract Transaction Date Specify the date of transaction for the contract User Reference Number The system displays the user reference number for the contract that has to be revalued Rate Code The system displays the rate code of the contract that has to be revalued Rate Source The system displays the rate source of the contract that has to be revalued Profit Revision Auto The profit revision for the contracts will be automatically updated Manually The profit revision for the contracts will be manually updated 3 43 ORACLE 5 6 Confirmation Rate Details Date When confirm field is checked the current system date will be displayed in the date field Confirmed Check this option to confirm that the transactions are performed However you can get more details about contracts and you can also update these fields e Currency Code e Currency Code Description e Profit Period Start Date e Profit Period End Date e Profit Rates Viewing Revaluation Contract Rates Summary Details You can view details of all contracts mainta
157. ofit Rate Swap is checked you should not select the Advance option Internal Remarks When creating the derivative type you can capture additional information about the type intended for the internal reference of your bank Your remarks will not be printed on any correspondence with the customer However you can choose to include these remarks in the reports that you generate e ORACLE 2 2 1 2 3 Note You will not be allowed to change the details of an existing derivative type except change the Description Type and the Internal Remarks Maintaining User Defined Fields You can associate values to all the User Defined fields created and attached to the Derivative Type Maintenance screen You can view the list of User Defined fields associated to this screen by clicking Fields button in the Derivative Type Maintenance screen User Defined Fields Details 118 Field Value LBL FIELD VAL DES You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity Maintaining Branch Parameters You can maintain branch level parameters that govern the processing of Islamic Derivatives in a particular branch of your bank through the Islamic Derivative Branch Paramete
158. on Sr No Field Name Field Description 1 Branch Indicates Branch name 2 Branch Date Indicates Branch code 3 User ID Indicates User ID 4 Module Indicates Module name 5 Run Date Indicates Date on which report is generated Body of the Report The following details are displayed as body of the generated report Field Name Field Description em ORACLE CIF Id Customer Indicates the CIF Id and customer name Contract Ref No Contract Type Indicates the contract reference number and type of the con tract Booking Date Value Date Indicates the date of booking and value date Maturity Date Indicates the maturity date Maker Id Indicates the maker id and maker date Maker Date Checker Id Indicates the checker id and checker date Checker Date In Leg Profit Compon ent Details Component Indicates the component Value Date Indicates the value date and rate type Rate Type Currency Rate Code Indicates the currency rate code Rate Spread Indicates the rate speed In Leg Profit Compon ent Details Component Indicates the component Value Date Indicates the value date and rate type Rate Type Currency Rate Code Rate Spread Indicates the currency rate code Indicates the rate speed 8 4 Contract Activity Report The Contract Activity report gives details contract activities
159. ondent through which the reimbursement of the transaction will take place Intermediary The Intermediary in a transaction refers to the financial institution between the Receiver and the Account With Institution through which the transaction component must pass ORACLE Intermediary may be a branch or affiliate of the Receiver or the account with Institution or an entirely different financial institution This field corresponds to field 56a of SWIFT Here you can enter either the e 50 Bank Identifier Code of the bank e and address of the Bank Receiver s Correspondent The Receiver s Correspondent is the branch of the Receiver or another financial institution at which the funds will be made available to the Receiver This field corresponds to field 54a of SWIFT You can enter one of the following e ISO Bank Identifier Code of the bank e branch of the Receiver s Correspondent e and address of the Receiver s Correspondent Account With Institution An Account With Institution refers to the financial institution at which the ordering party requests the Beneficiary to be paid The Account With Institution may be a branch or affiliate of the Receiver or of the Intermediary or of the Beneficiary Institution or an entirely different financial institution This field corresponds to field 57a of SWIFT You can enter one of the following e ISO Bank Identifier Code of the bank e branc
160. ontract Revaluation Reversal DOPT Event for Swaption Contract SGEN SETT MESSAGES UIDB Upfront Profit Booking PCON Purchase Confirmation SCON Sale Confirmation ORACLE 9 3 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE Amount Tag Description AMNDDV DISC charge for DV amnd AMNDDV LIQD charge for DV amnd AMNDDV PREM charge for DV amnd BROKAMT Brokerage Amount CUR INRVL PAY Current In Leg Payable CUR INRVL REC Current In Leg Receivable CUR NETRVL EXP Current Net Revaluation Expense CUR NETRVL INC Current Net Revaluation Income CUR OUTRVL PAY Current Out Leg Payable CUR OUTRVL REC Current Out Leg Receivable DV IN INTO DLIQ Profit in Advance DV IN INTO DLIQ CY Current Year Unrealized Income DV IN INTO DLIQ PY Previous Year Unrealized Income DV IN INTO Income Accrual DV IN INTO NLSS Expense Accrual on Net Loss Deal DV IN INTO NPRF Income Accrual on Net Profit Deal DV IN INTO ILIQ Profit Income DV IN INTO JEAC Adjustment Expense Accrual DV IN INTO JELQ Adjustment Profit Expense DV IN INTO JIAC Adjustment Income Accrual DV IN INTO JILQ Adjustment Profit Income DV IN INTO RAC Receivable Accrual DV IN INTO RLIQ Profit in Arrears DV IN INTO RLIQ CY Current Year Unrealized Income DV IN INTO RLIQ PY
161. ot offer a product beyond the specified end date If you do not specify an end date for a product you can offer it for an indefinite period Remarks You can enter any remarks relating to the product for your reference here Exchange Rate Variance in You can define the exchange rate variance that you would like to allow for a derivatives product This variance is expressed in terms of a percentage For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all contracts associated with the derivatives product Override Limit If the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit you can save the transaction involving the product by providing an override Stop Limit If the variance between the default rate and the rate input varies by a percentage greater than or equal to the Stop Limit you cannot save the transaction involving the product Rate Code For every Currency Pair and Rate Type combination you are required to maintain Buy Sell and Mid Rates You need to specify whether the Mid Rate should be used for all Cross Currency transac
162. other You can choose to have asynchronous schedules for both the in and out legs of the contract You can also indicate whether cross currency transactions should be allowed or not Additionally you can also indicate whether an exchange is required for the transactions under this product However if the option Islamic Profit Rate Swap is checked you should not check the Cross Currency Allowed and Exchange required options Amortization Start Date In the case of termination of hedge deals you have to indicate the date from which the amortization of gains and or losses should start While terminating swaps amortization should start as of the termination Holiday Treatment You can indicate the way in which a particular schedule date should be treated if it falls due on a holiday The holiday movement of the principal profit and revision schedules for each of the in and out legs can be based on e holiday table maintained for a single financial center or single currency specified at the leg level e combination of holiday tables of multiple financial centers currencies Select the Combined option in this screen if you want the movement of schedules to be based on the combination of holiday tables maintained for multiple financial centers currencies at both the legs of the contract This will be applicable if the holiday treatment specified at the contract level is based on the holiday calendars of the curr
163. ou want to fix the amortization date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the amortization will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the amortization date as 31 amortization will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly amortization frequency If the amortization date falls on a holiday the amortization is done as per your holiday handling specifications in the Branch Parameters screen Amortization Start Month If you set the amortization frequency as quarterly half yearly or yearly you have to specify the month in which the first amortization has to begin besides the date on which the amortization should be done For example you have selected the half yearly option and specified the start date as 31 and the start month as June ORACLE 3 3 The system will do the first amortization on the 30 of June for the period from January 1 to 30th June The second one will be done on the 31st of December for the period from 1st July to 31st December Viewing Product Summary Details You can view details of all Islamic Derivative products maintained in the system using the
164. payable schedule will depend on how the schedule date was moved for a holiday The following example illustrates how this concept of cascading schedules functions a ORACLE 5 2 4 Defining Principal Schedules Start Date Enter the date on which the particular principal schedule should start Frequency In addition to indicating the holiday treatment you also need to specify the periodicity or the frequency of the schedules for each principal component You can indicate that the frequency of schedules can either be Periodic or Bullet If you choose to have bullet schedules for a particular component liquidation for the component will be done only as of the Maturity Date In the case of periodic schedules you have to specify whether the frequency should be daily weekly monthly quarterly half yearly or yearly Frequency Unit In addition to specifying the frequency of schedules you are also required to indicate the number of units of the frequency The number of units that you indicate will determine the actual schedule frequency For instance for a particular schedule you want to have a bi weekly frequency The list of choices available for the Frequency field does not have this option In the Frequency field indicate the option Daily Enter 2 as the Frequency Unit the particular schedule will be due once in every two weeks No of Schedules For a particular Frequency and Frequency Unit combination you can choose to have a
165. r Indicator CUSTOMER INLEG PRN CREDIT CUSTOMER OUTLEG PRN DEBIT INLEG ASSET INLEG DEBIT OUTLEG LIAB OUTLEG PRN CREDIT Advices Payment Message DILQ Contract Profit Liquidation Accounting Entries For currency and profit rate swap products wherein the Asset Movement Required box is checked you need to set up the following accounting entries Accounting Role Amount Tag si E CUSTOMER DV IN INT RLIQ DEBIT DV IN INT REC DV IN INT RLIQ CREDIT DV OUT INT PAY DV OUT INT RLI DEBIT Q CUSTOMER DV OUT INT RLI CREDIT Q For products wherein the Asset Movement Required box is not checked you may set up the following entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER DV IN INT DLIQ DEBIT CUSTOMER DV IN INT ILIQ DEBIT CUSTOMER DV IN INT RLIQ DEBIT CUSTOMER DV OUT INT DLIQ CREDIT CUSTOMER DV OUT INT ELIQ CREDIT CUSTOMER DV OUT INT RLIQ CREDIT CUSTOMER NET INT EXPC CREDIT CUSTOMER NET INT INCC DEBIT 9 11 ORACLE DV IN INT CREDIT DV IN INT REC DV IN INT ILIQ CREDIT DV IN INT REC DV IN INT RLIQ CREDIT DV IN INT RIA DV IN INT DLIQ CREDIT DV OUT INT PAY NET INT EXPC DEBIT DV OUT INT PAY DV OUT INT ELIQ DEBIT DV OUT INT PAY DV OUT INT RLIQ DEBIT DV OUT INT PIA DV OUT INT DLIQ DEBIT You will need to maintain the following accounting entry set up when an arrears cont
166. ract is liquidated with previous year adjustment option i DUET Accounting Role Amount Tag eg Indicator In Debit Customer Component RLIQ Credit Component REC Component RLIQ Out Debit Component PAY Component RLIQ Credit Customer Component RLIQ In Debit Component INC UNRLZ Component RLIQ PY Credit Component INC Component RLIQ PY Debit Component INC UNRLZ Component RLIQ CY Credit Component INC Component RLIQ CY Out Debit Component EXP Component RLIQ PY Credit Component EXP UNRL Component RLIQ PY 2 Debit Component EXP Component RLIQ PY Credit Component EXP UNRL Component RLIQ PY 2 Advices Payment Message ORACLE Accounting Entry Setup Settlement on Cash basis Advance and Arrears DR CR Accounting Role Amount Tag DR CUSTOMER Customer DV IN INT ILIQ Profit amount Inleg CR DV IN INT INC In leg DV IN INT ILIQ Profit Amount Income GL Inleg DR DV OUT INT EXP Outleg DV OUT INT ELIQ Profit amount Expense GL Outleg CR CUSTOMER Customer DV OUT INT ELIQ Profit amount Outleg DR CUSTOMER Customer NET INT INC Net Income CR DV IN INT INC Net Income NET INT INC DR DV OUT INT EXP Net Expense NET INT EXP Net Expense CR CUSTOMER Customer NET INT EXP Accounting Entry Setup Settlement on Non Cash basis Advance Contracts Accounting Role Amount Tag Role Description
167. requency and so on will be defaulted to the contract You will be allowed to change these preferences for the contract you are processing Profit liquidation process will pass netted entries for in leg and out leg schedules only if the in leg profit liquidation date matches with the out leg liquidation date To facilitate netting for asynchronous schedules netting amount tags should be separately maintained at the product level Please refer to the Annexure A Accounting Entries and Advices manual for details on maintaining the netting amount tags gt ORACLE Note Netting for Asynchronous schedules is possible only for Profit Rate Swaps IRAs and for CCS Islamic Derivatives Contract Profit Details Contract Reference Leg Type Component Revision Schedule Holiday Treatment Forward Forward Move Across Month Holiday Treatment Backward Cascade Schedules Currency Financial Centre Schedule Exolode Schedule Holiday Interest Schedules 10f 1 StartDate Frequency Frequency Units Schedules Adhere To Month End Amount Component Indicator m View Interest View Revision Schedule Holiday Treatment You have to specify the holiday treatment that has to be followed when schedules fall due on a holiday The holiday treatment method has been explained at length in the earlier section on Indicating Principal Schedule Details Profit Schedules Start Date Enter the date on which the par
168. rest schedules not allowed for this 323 derivative type DV MNT DVDPRMNT Asynchronous OUT interest schedules not allowed for 324 this derivative type DV MNT DVDPRMNT Asynchronous IN revision schedules not allowed for this 325 derivative type DV MNT DVDPRMNT Asynchronous OUT revision schedules not allowed for 326 this derivative type DV MNT DVDPRMNT Mandatory field Rate Source is NULL 328 DV MNT DVDPRMNT Mandatory field Frequency is NULL 330 DV MNT DVDPRMNT Mandatory field Start reference is NULL 331 DV MNT DVBAUDLY Batch Processing completed successfully 403 DV MNT DVBAUDLY Unhandled exception while processing the batch 411 DV ONL DVDCNONL Unhandled exception while creating a new contract 001 DV ONL DVDCNONL Unhandled exception while copying the contract 011 DV ONL DVDCNONL Failed to the copy the Contract 012 10 20 ORACLE DV ONL 021 DVDCNONL Unhandled exception while deleting the contract DV ONL DVDCNONL Only the maker of the contract can delete the contract 023 DV ONL DVDCNONL Do you want to delete the contract completely 024 DV ONL DVDCNONL Do you want to undo all the changes made 025 DV ONL DVDCNONL Contract Deleted Successfully 026 DV ONL DVDCNONL Failed to delete the contract 027 DV ONL DVDCNONL Unhandled exception while unlocking the contract 031 DV ONL D
169. rform any of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record on an existing record e Amend the details of a record e Authorize a record Refer to the Oracle FLEXCUBE User Manual on Common Procedures for details of these operations T9 ORACLE 5 1 5 2 5 Processing an Islamic Derivatives Contract Introduction You can capture the details of the contract through the Contract Input Details screen Before we proceed to discuss the details of the Islamic Derivatives Contract Input screen we shall briefly recall the workflow in the Derivatives module First of all you need to maintain the basic information that is necessary for the successful functioning of the module This information includes the maintenance of e Derivative Types e Bank and Branch Parameter details e Revaluation details e Messaging party details e Counterparty details e Profit Tax and Charge class details The next step in the process is the creation of products for the Islamic Derivatives module Products help you group together or categorize contracts which share broad similarities You have to associate a derivative type with each of the products that you create Thus the product inherits all the attributes of the type Subsequently you associate the various profit charge and tax classes with the product Under each product that you define you can e
170. rmation purposes Under each Derivative Type you can create any number of products Islamic Derivative Check this option to indicate that the derivative should be used for processing Islamic derivatives like currency and profit rate swaps If you check this option the system will validate for synchronous schedules 22 ORACLE Principal Details As part of specifying the principal details you have to indicate whether two separate currencies can be maintained for both the inward and outward legs of all the contracts linked to the derivative type you are creating If you choose allow cross currencies for the in and out legs of contracts linked to the derivative type then you have to also indicate whether the contract principal has to be exchanged upon initiation and maturity Apart from this you also have to indicate whether multiple schedules can be defined for the principal component If you choose to define multiple schedules then the frequency of these schedules can be indicated at the time of specifying the product preferences You can select any one as the frequency for the principal schedules e Daily e Weekly e Monthly e Quarterly Half yearly e Yearly But if you choose not to define multiple schedules then the principal liquidation for all the contracts linked to this type will be done on contract maturity Also the in leg and out leg principal schedules that you define for a contract need not be in sync with each
171. rs 25 ORACLE 2 4 Maintenance screen You can invoke this screen by typing IDDBRNPM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Derivatives Branch Parameters Enter Query Branch Code Description P Process Till Next Working Revaluation Reversal 9 Along with Revaluation Next Day In Beginning Of Day Input By Authorized By Modification Date Time Date Time Number Wi Authorized Open Those events which have to be triggered automatically will be processed accordingly during batch process However you are required to indicate how automatic events falling due on a holiday should be processed Process till Next Working Day You have the option to specify whether the batch process should process automatic events falling due on a holiday either As part of the EOD process on the last working date before the holiday e As part of the BOD process on the next working day after the holiday Revaluation Reversal As a branch level parameter you can indicate the manner in which deal level reversal of Unrealized Revaluation with Previous Year Adjustment should be processed The options available are e Along with Revaluation Reversals of entries for a particular revaluation will be performed at the time of the next revaluation e Next Day in BOD Select this option to indicate that any revalua
172. ry field Out Leg interest Rate Code is NULL 158 DV ONL DVDCNONL Mandatory field Out Leg interest Rate Source is NULL 159 DV ONL DVDCNONL Mandatory field Out Leg interest Tenor Code is NULL 160 DV ONL DVDCNONL Mandatory field Out Leg interest Rate Spread is NULL 162 DV ONL DVDCNONL Mandatory field Out Leg interest rate is NULL 163 DV ONL DVDCNONL Mandatory field Out Leg interest Flat amount is NULL 164 DV ONL DVDCNONL Mandatory field Settlement Account is NULL 165 DV ONL DVDCNONL Unhandled exception while validating the Contract 171 10 23 ORACLE DV ONL 172 DVDCNONL Mandatory field Base Currency is NULL DV ONL DVDCNONL Mandatory field Reval Method is NULL 173 DV ONL DVDCNONL Mandatory field Reval Rate Code is NULL 174 DV ONL DVDCNONL Mandatory field Reval Rate Source is NULL 175 DV ONL DVDCNONL Mandatory field Master Agreement Code is NULL 176 DV ONL DVDCNONL Mandatory field Line Code is NULL 177 DV ONL DVDCNONL Mandatory field Maturity Holiday Treatment is NULL 178 DV ONL DVDCNONL Mandatory field Maturity Holiday Currency is NULL 179 DV ONL DVDCNONL Mandatory field Maturity Financial Center is NULL 180 DV ONL DVDCNONL Unhandled Exception While Terminating the contract 191 DV ONL DVDCNONL The Contract is already terminated cannot terminate 192 again DV ONL DVDCNONL Contra
173. s perpage 15 First Previous 4 of 4 Newt Last 3 Authorization Status Record Status Revaluation Date Rate Source Rate Code Transaction Date Confirmed Branch Code Interest Revisit Authoriza Record St Here you can query on records based on the following criteria e Authorization Status e Rate Code e Profit Revision e Revaluation Date e Record Status e Rate Source e Transaction Date e Confirmed Click Search button The system will display all records satisfying the search criteria T9 ORACLE 4 5 Maintaining Contract Specific Forward Profit Rates for Revaluation You need to maintain contract specific forward profit rates to revalue those contracts whose fair price is to be determined based on the forward profit rates maintained for the particular contract The system creates and stores records in the Contract Profit Rates Maintenance screen for those contracts whose fair price is to be determined based on the forward profit rates maintained for the contract You can invoke Contract Profit Rates Maintenance screen by typing IDDCNRAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button islamic Derivative Revaluation Contract Rates Enter Query Contract Reference User Reference r laz Rate Code Revaluation Date Rate Source 1 Transaction Date Profit Revision Co
174. sage can be sent to the receiver in the language of the receiver You can choose a language code from the picklist available in this field Note Remember that to send a message to a receiver in a particular language you should have also maintained a message format for the language in the Advice Format Maintenance screen Message Party Details Message Type Your customer can identify more than one receiver as the recipient of messages that you need to send the customer as and when required Additionally your customer can also instruct you to send specific messages to different receivers Customer Identification File After you select the list of messages that have to be sent to your customer you have to specify the ID assigned to the particular customer for whom you are maintaining recipient details The picklist available for this field will contain a list of all the CIF ID s you have maintained through the Customer Information Maintenance file Thus every time you send a message to the particular customer it will reach the recipient whom the customer has identified as the official receiver of the message For example CHASEBANK is the customer of your bank CHASEBANK has identified Peter and Yvonne as the recipients of any mail messages that need to be communicated to them You have also been instructed by CHASEBANK that all cancellation messages should be sent to Peter and all other messages can be sent to Yvonne While
175. settled in the currency displayed here Pay Receive Indicates whether the components are payables or receivables The value displayed may be O Outgoing Payable Incoming Receivable In addition to the above fields you are allowed to enter the following details in the screen You need to unlock the record before proceeding to enter these details For each schedule you can indicate the media MAIL SWIFT etc through which the confirmation was received You can select the appropriate media from the option list provided You are also allowed to enter a media type that is not available in the option list You can specify the name of the receiver for instance the name of the Derivatives back office user in your bank who received the confirmation No validation is done for this field If itis desired you can enter additional information for each schedule in the Remarks column The system does not validate the contents of this field Confirming a Schedule You can mark the schedules for which a confirmation is required from the counterparty Select the Confirmation option by checking the C option for each schedule At the time of saving the record the system triggers the Derivative Schedule Confirmation DCON event for the selected schedules on the relevant Derivatives contract You can view this event at the contract level by invoking the Contract Input screen and clicking on the events button After the
176. stitution 229 ORACLE 5 2 17 Ultimate Beneficiary The Ultimate Beneficiary refers to the Customer to whom the transaction amount is to be paid This field refers to field 59 of SWIFT You can make entries into this field only for a customer transfer MT 100 and MT 202 The number of banks involved in the transfer would depend on the e Relationships and arrangements between the sending and receiving banks e Customer instructions e Location of parties e banking regulations of a country Refer to the Settlements User Manual of Oracle FLEXCUBE for more details Levying Tax on a Contract The tax details specified for the product to which the contract is associated will be automatically applied to the contract However while processing a contract you can waive the application of tax on the contract SER ORACLE You invoke the contract Tax Details screen by clicking button from the Contract On line screen Reference No 74 Issuer Tax Association 1 041 Creation ESN Application 1 Of 1 Component Creation ESN Currency Tag Amount Currency 4 Liquidation 1 Of 1 Component Currency Tax Amount Refer to the Tax User Manual of Oracle FLEXCUBE for more details 5 2 18 Saving the Details of a Contract Enter valid inputs into all the mandatory
177. t is 01 January 2000 and the Maturity Date is 31 December 2000 You have specified that the principal schedule frequency is quarterly If you choose the Adhere to Month End option the schedules for this derivative would be due on the following dates e 31 March 2000 e 30 June 2000 e 30 September 2000 e 31 December 2000 If you do not choose the Adhere to Month End option the schedules for this derivative would be due on the following dates e 31 March 2000 e 30 June 2000 e 30 September 2000 e 30 December 2000 The schedule dates for all derivatives maintained under the product will be calculated in a similar manner 9 15 ORACLE 3 2 1 4 Amortization Details tab You can specify your preferences for amortization by clicking the Amortization Details tab in the Product Preferences screen Derivatives Product Preferences Product Code Product Description Product Type Product Type Description Main Profit Schedules ETE Amortization Details of Inception Amortization Details of Termination Amortization of Inception Amortization of Termination Gain Required Gain Required Amortization of Inception Amortization of Termination Loss Required Loss Required Amortization Level Contract Amortization Level Contract Product Product Amortization Frequency Amortization Frequency Amortization Start Weekday Amortization Start Weekday Amortization Start Day Amortization Start Day Amortization Start Mont
178. t Accrual Level 2 Contract Product Out Leg Denominator Basis Per Annum Out Leg Profit Accrual Details Accrual Frequency Amortization Start Month Amortization Start Day Amortization Start Weekday Numerator Method Denominator Method Denominator Basis Include To Date Out Leg Profit Liquidation Details Liquidation Method Manual Auto Numerator Method Actual Denominator Method Actual Denominator Basis Per Annum Include To Date Note If you indicate that profit accrual is required for the contract then you have to specify the accrual related details individually for the In and Out legs At the product level if you indicate that profit accrual is required and you choose not to accrue profit for a contract linked to the product you will be allowed to do so However the opposite will not be allowed Profit Accrual Level Here you can indicate the level at which accrual entries should be passed for the in leg of the contract The options available are e Product ORACLE e Contract At the product level accruals will be passed for the product and currency combination Those contracts for which accrual is required will be identified by the system and accrual entries will be passed based on the accounting entry set up defined At the contract level accruals will be passed for individual contracts linked to the particular product In Leg Denominator Basis You need t
179. t be closed DV LM DVLIMITS There are Collaterals linked to this Collateral Type Record 00063 cannot be deleted DV LM DVLIMITS This Facility is not available at this Branch 00064 DV LM DVLIMITS No Details exist for the Reference Number 00065 DV LM DVLIMITS Customer Clean Risk Limit cannot be greater than Liabil 00066 ity Clean Risk Limit DV LM DVLIMITS Customer Clean Risk Limit cannot be greater than Overall 00067 Limit DV LM DVLIMITS Liability Clean Risk Limit cannot be greater than Overall 00068 Limit DV LM DVLIMITS Limit Currency is not Entered 00069 DV LM DVLIMITS Overall Limit is not Entered 00070 DV LM DVLIMITS Liability Clean Risk Limit is not Entered 00071 DV LM DVLIMITS Line Not Authorized 00100 DV LM DVLIMITS Line Closed 00101 DV LM DVLIMITS Line Not Found 00102 DV LM DVLIMITS Invalid Customer ID 00103 DV LM DVLIMITS Liability ID Not Specified 00104 DV LM DVLIMITS Account ID Not specified 00105 DV LM DVLIMITS Reference Id not specified 00106 DV LM DVLIMITS Amount tag not specified 00107 DV LM DVLIMITS Amount not specified 00108 195 ORACLE DV LM DVLIMITS Currency not specified 00109 DV LM DVLIMITS Branch not specified 00110 DV LM DVLIMITS Line 1 Amount exceeds Limit for specified tenor by 2 00111 DV LM DVLIMITS Line 1 Amount exceeds all available tenor limits by 2 00112 3 3 DV L
180. t details tax details etc by clicking on the appropriate icon in the horizontal array of icons in this screen For a derivative product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to a derivative product in the IV Product Definition screen and the Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals under Modularity ORACLE e Product Definition e Charges and Fees e Tax e User Defined Fields e Settlements Product Code You need to identify the derivative product that you are creating with a unique Product Code This code should be unique across all the modules of Oracle FLEXCUBE Product Description You can briefly describe the product that you are creating in this field The description that you enter here will help you identify the product all through the module Module All the modules like Loans amp Deposits Letters of Credit Bills amp Collections Funds Transfer etc in Oracle FLEXCUBE are represented by a code This code is displayed in the module field The product code that you assign to a product will identify the product throughout this module Module D
181. t from the transaction leg In the Association section of the Contract Charge Details screen click against the waive option positioned next to the component In this case the charge component is attached to the transaction leg but is not calculated Charge Application In the application section of the screen you can indicate the charge components that should be applied to the transaction leg The list of components that is displayed depends on the charge components that you have associated to the transaction leg The following details of the component are also displayed e basis component on which the charge is levied e currency of the basis amount e basis amount e charge amount e currency in which the charge amount is defined You can change the charge amount that is calculated using the class applicable to the component Waiving a charge on a transaction leg You also have the option to waive the component for the transaction leg that you are processing If for some reason you want to waive the charge on the transaction you are processing you can do so by checking against the waiver option in the application section of the screen The charge will be calculated but not applied Note You can waive a charge only if it is yet to be liquidated one ORACLE 5 2 15 1 Viewing Charge Liquidation 5 2 16 When a charge component that is applied to a transaction is liquidated the
182. tered for the MVBC 00045 DV LM DVLIMITS The Collateral Ccy is not entered for the Collateral 00046 DV LM DVLIMITS Security Code has not been entered 00047 DV LM DVLIMITS The Issuer Exposure Details are incomplete Complete 00048 Delete the Issuer Exposure Details DV LM DVLIMITS The Start Date cannot be greater than the Branch Date 00049 DV LM DVLIMITS The Last Price Change Date cannot be earlier than Start 00050 Date DV LM DVLIMITS The Expiry Date cannot be earlier than Branch Date 00051 DV LM DVLIMITS The Last Price Change Date cannot later than Expiry 00052 Date DV LM DVLIMITS The Description is not entered 00053 DV LM DVLIMITS The Face Value is not entered 00054 DV LM DVLIMITS The Limit Contribution cannot be greater than the Cap 00055 Amount DV LM DVLIMITS Report date should be greater than the date today 00056 DV LM DVLIMITS The Total Issuer Exposure should be greater than 100 96 00057 DV LM DVLIMITS Collaterals exist with the Issuer Code Record cannot be 00058 closed DV LM DVLIMITS Securities exist with the Issuer Code Record cannot be 00059 closed DV LM DVLIMITS There are Collaterals linked to this Limit Record cannot 00060 be closed 10 14 ORACLE DV LM DVLIMITS There are Collaterals linked to this Security Record can 00061 not be closed DV LM DVLIMITS There are Collaterals linked to this Price Code Record 00062 canno
183. the Summary screen double click a record of your choice to open it To modify the in and out leg values click Unlock icon from the tool bar or choose Unlock from the menu Enter the in and out leg values and compute the new net fair value and save the record During bulk upload of these fair values for multiple contracts Oracle FLEXCUBE expects the following information to be present in the upload message e Contract Reference No e Effective Date e InLeg Value e OutLeg Value If any of these values is missing for any record the system will terminate the upload process and raise an error message as Net Fair value will be defaulted from Inleg and Outleg fairvalues The single record and bulk record uploads requests are handled in bulk requests itself for the following DVFairvalue e DV Rate Revision 4 2 ORACLE 4 2 1 4 3 The system will also raise an error if e Contract Reference Number is not valid e Duplicate record exists for the Contract Reference Number and Effective date combination e Revaluation date is greater than the application date You can run the fair value upload process any time before the IDV batch is processed during the day During the IDV batch contract revaluation will be done based on the fair value uploaded Net Fair Value You have to indicate the net fair value of the contract as of the revaluation date The value that you enter includes the effect of the in leg and out l
184. the following criterion e Active and authorized contracts which are yet to be liquidated e Contracts whose accrual date falls on the current processing date or contracts whose accrual date falls between the current processing date and the next working date The date on which accrual is due for a contract is calculated based on the accrual date and accrual frequency defined for the product associated with the contract If the accrual date of a bill falls on a holiday the accruals are done as per your holiday handling specifications for automatic processes Denominator Basis You need to indicate the basis on which the denominator has to be computed The options available are e Perannum e Per period Auto Settlement When setting up a product you specify the whether the mode of liquidation should be automatic or manual for the different components of contracts linked to that product By default all derivatives involving the product will inherit this definition However you can change the mode of liquidation from automatic to manual or vice versa while processing a contract ala ORACLE Include To Date While calculating profit for the accrual period you have to indicate whether you would like to take into account the last day in an accrual period for arriving at the accrual days both for the in and out legs of the contract Similarly you have to indicate whether the last day in a liquidation period should be considered for
185. the Branch Parameter screen 9 22 ORACLE Note When an arrears contract is liquidated DILQ event or an advance contract completes accruals DIAC event the income transfer to the realized income GL from the unrealized GL is performed first using the Previous Year Adjustment GL maintained in Chart of Ac counts This is because the previous year unrealized income would have already moved to the year ends P and L EYPL GL after financial closure The remaining amount if any is debited from the current year unrealized income GL 9 29 ORACLE 9 5 11 Contract R evaluation Reversal Accounting Entries Case Next Day BOD when next day is not the beginning of a new financial year or at the time of the next revaluation Accounting Role Amount Tag Debit Credit In Leg entries INLEG RVL INC PRV INRVL Debit CONT FAIR VAL PRV INRVL REC Credit CONT FAIR VAL PRV INRVL PAY Debit INLEG RVL EXP PRV INRVL PAY Credit Out Leg entries OUTLEG RVL INC PRV OUTRVL REC Debit CONT FAIR VAL PRV OUTRVL REC Credit CONT FAIR VAL PRV OUTRVL PAY Debit OUTLEG RVL EX PRV OUTRVL PAY Credit P In case of Revaluation Netting NET RVL INC NETRVL INC Debit CONT FAIR VAL PRV NETRVL INC Credit CONT FAIR VAL PRV NETRVL EXP Debit NET RVL EXP PRV NETRVL EXP Credit Case II Next Day dur ing BOD if the next day is the beginning of
186. the Frequency Unit of Frequency Start Month and Start Day that you specify Frequency Unit After you specify the frequency you have to indicate the unit of frequency you want to set for the Frequency the Component the Principal Profit or Revision component and Start Reference combination Example Scenario 1 You have indicated that the schedule liquidation should be based on the Calendar Date in the Start Reference field Subsequently you indicate that liquidations should happen on every 25th of the month The Effective Date or the Value Date of the contract is 127 March 2000 Regardless of the effective date the first liquidation will be carried out on the 25 of March Since you want this process to continue i e liquidations should be carried out on the 25t of every month till the contract matures Therefore you need to specify the frequency as Monthly and enter 1 in Unit field Schedules will be repaid once in every month on the 25 till the contract matures Scenario 2 You have indicated that liquidation of schedules should be based on the Value Date and specify that the frequency for liquidation as Monthly Next you specify that the frequency unit should be 2 The schedules will be liquidated once in every two months since the frequency unit is 2 Schedule Start Weekday When you set the repayment schedule frequency as Weekly you have to indicate the day of the week on which liquidation should be carried out
187. the Start Date 001 DV INT DVDINDET Start Date Cannot be before the application Date 002 DV INT DVDINDET Start Date Cannot be before the Value Date 003 DV INT DVDINDET Start Date Cannot be after the Maturity Date 004 DV INT DVDINDET Schedule Date is not Unique 005 DV INT DVDINDET Unhandled exception while validating the Schedule 011 DV INT DVDINDET Mandatory field Start Date is NULL 012 DV INT DVDINDET Mandatory field Frequency is NULL 013 10 ORACLE DV INT DVDINDET Mandatory field Frequency Unit is NULL 014 DV INT DVDINDET Mandatory field No of Schedules is NULL 015 DV INT DVDINDET Mandatory field Amount is NULL 016 DV INT DVDINDET Unhandled exception while amending the Schedules 021 DV INT DVDINDET Unhandled exception while defaulting the Schedules 031 DV INT DVDINDET Unhandled exception while Canceling the changes 041 DV INT DVDINDET Unhandled exception while exploding the Schedules 051 DV INT DVDINDET Unhandled exception while exploding the Schedules 061 DV INT DVDINDET Unhandled exception while validating the Schedules 071 DV INT DVDINDET Mandatory field Discount Rate is NULL 072 DV INT DVDINDET Mandatory field Discount Floating Component is NULL 073 DV INT DVDINDET Mandatory field Discount Rate Code is NULL 074 DV INT DVDINDET Mandatory field Discount Rate Source is NULL 075 DV INT DVDINDET Manda
188. the outward legs of the contract You can select the currency code from the option list available In addition you are also required to indicate the principal amount Actual Notional for both the legs of the contract The amount that you specify will be taken in the currency indicated for the particular leg of the contract Rate Type The profit paid on both the legs of the contract can either be a fixed amount or an profit rate that changes periodically For special cases you are also allowed to maintain a flat amount If you specify that the profit rate for either of the legs is Fixed then you have to indicate the rate of profit for the particular leg of the contract When the rate type is floating you have to indicate the rate code based on which the profit rate should be calculated Similarly when the rate type is special you have to indicate the flat amount that is to be used to calculate profit Rate Code If the contract involves a product defined with floating profit this is the Rate Code that links the contract to the Floating Rate table As is the case with the Rate Type so also the Rate Code linked to the product will be displayed in this field You can choose to change it Rate Source For all contracts with a floating profit rate leg apart from specifying the Rate Code you are also required to indicate the Rate Source The rate source that you indicate here such as Telerate Reuters will be used to pick up the floating rate for th
189. ticular profit schedule should start Frequency If you want to define periodic profit schedules you should indicate the frequency of the schedules for a particular profit component From the option list provided you can select one of the following by clicking on the option e Daily e Weekly e Monthly e Quarterly e Half yearly e Yearly e Bullet Note You can choose to have a bullet schedule for a particular profit component in which case liquidation for the component will happen only as of the Maturity Date 9 16 ORACLE Frequency Units You can specify the number of units of the frequency in this field The number that you specify here will determine the actual schedule frequency For instance for a particular schedule you want to have a bi weekly frequency The option list available for Frequency does not have this option In the Frequency field indicate the option Weekly and in the Frequency Unit field if you enter 2 the particular schedule will be due every once in two weeks No Of Schedules For a particular Frequency and Frequency Unit combination you can choose to have a number of schedules depending on how many you want to define for the particular profit component For instance for a particular schedule you have indicated that the Frequency should be Weekly and the Frequency Unit as 2 Subsequently you indicate that the Number of Schedules as 12 This particular schedule will be run once in two we
190. ties Local Clearing Other Details Settlement Details 1 Of 1 a Component Currency Debit Credit Account Account Description Branch Account Currency Original Exchange Credit Sianahira Verification 5 2 16 1 Account Details tab For the various components involved in a transaction like charges etc you have to specify the account details in this screen These details include the component the currency in which it is paid the payment account and its currency the branch of your bank to which the account ORACLE 5 2 16 2 5 2 16 3 belongs the exchange rate in the case of the component currency being different from the account currency Depending on the component the system will also display whether the account involved in an entry has to be debited or credited e P indicates you credit Pay to the account involved e R indicates you debit Receive from the account involved Message Details tab A transaction can be settled either in the form of an instrument a Demand Draft a Manager s Check or a Check or a Message a SWIFT TELEX or Mail message to be sent to the receiver The details regarding the instrument or message have to be specified in the Message Details screen The message details that you specify here are applicable only for SWIFT The type of SWIFT message that is generated depends on the parties involved in the contract Depending on the method in which you wa
191. tion gain loss should be reversed the very next day during the BOD process If the BOD processing date happens to be the first day of the financial year revaluation reversal will be done from the Previous Year Adjustment GL maintained in the Chart of Accounts Maintaining Counterparty Master Agreement Details Through the Derivatives Counterparty Master Agreement Maintenance screen you can enter the details of the master agreement s with each counterparty 28 ORACLE You can invoke this screen by typing DVDCPMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Counter Party Master Agreement Maintenance EX Enter Query Counter Party Master Agreement laz Master Agreement Type AFB Description Version Agreement Date I m Master Agreement Year L E Collateral Agreement Product Group L Jes Utilization Currency az E Credit Netting Required Limit Tracking Agreement Details Notional Limits Notional Line Code Tracking Fair Value Line Code Fair Value Limits Risk Weighted Line Code Tracking Risk Weighted Limits cking Internal Remarks ej Description Agreement Date Agreement Details II Input By Authorized By Modification Authorized Date Time Date Time Number Open If you are maintaining details of a new master agreement choose
192. tions Maintaining Branch wise Forward Profit Rates Branch level maintenance of forward profit rates is necessary for revaluing those contracts for which you have indicated that revaluation should be according to the Branch Rates T9 ORACLE Oracle FLEXCUBE identifies those contracts which are to revalued according to the forward profit rates maintained at the branch level and creates records in the Revaluation Branch Profit Rates screen based on the revaluation date You have to unlock each record and indicate appropriate profit rates for specific profit periods You can access the Derivatives Revaluation Branch Interest Rates screen from the Application Browser It is available under Derivatives You can invoke this screen by typing DVDBRRAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Derivatives Revaluation Branch Interest Rates Enter Query Rate Code Revaluation Date z Transaction Date Rate Code Description _ Rate Source z Rate Source Description Interest Revision Confirmation Auto Confirmed Manual Rate Details Currency Code Currency Description Period Start Date Period End Date Interest Rate Input By Authorized By Modification Date Time Date Time Number WB Authorized Open advantage in maintai
193. tions or whether the Buy Sell Rate should be used depending upon the nature of the transaction by selecting the appropriate rate from the option list available Rate Type Preferred You have to specify the Rate Type that should be used for Cross Currency transactions Click on the option list for a display of all the Rate Types maintained through the Rate Type Definition screen Specifying Preferences for the Product Preferences are the options that are available to you for defining the attributes of a product The preferences that you define for a product will be inherited by all derivative contracts that are associated with the product s ORACLE 3 2 1 1 Click Preferences button to invoke the Preferences screen Through this screen you can define specific preferences for the product you are creating Derivatives Product Preferences Product Code Product Description Product Type Product Type Description Profit Schedules Amortization Details ContractType Trade Assuming Hedge Principal Settlement Method 0 Automatic DealType 0 Manual Sell Interest Settlement Method 2 Automatic Brokerage Allowed Manual Rekey Fields Revaluation Details Required _ Revaluation Required In Currency _ Revaluation Netting In Principal Amount Required Revaluation Metho Out Currency evaluation Method M Out Principal Amount Revaluation Frequency Maturity D
194. tory field Discount Tenor Code is NULL 076 DV INT DVDINDET Mandatory field Discount Rate Spread is NULL 077 DV INT DVDINDET Mandatory field Interest Rate is NULL 078 DV INT DVDINDET Mandatory field Interest Rate Code is NULL 079 DV INT DVDINDET Mandatory field Interest Rate Source is NULL 080 DV INT DVDINDET Mandatory field Interest Tenor Code is NULL 082 DV INT DVDINDET Mandatory field Interest Rate Spread is NULL 083 109 ORACLE DV INT DVDINDET Mandatory field Flat Amount is NULL 084 DV INT DVDINDET Unhandled exception while validating the Schedules 091 DV INT DVDINDET Mandatory field Schedule Holiday Currency is NULL 092 DV INT DVDINDET Mandatory field Schedule Financial Center is NULL 093 DV INT DVDINDET Unhandled exception while validating revision schedules 101 DV INT DVDINDET Mandatory field Revision Holiday Currency is NULL 102 DV INT DVDINDET Mandatory field Revision Financial Center is NULL 103 DV INT DVDINDET Mandatory field Reset Date movement Days is NULL 104 DV INT DVDINDET Mandatory field Reset Date Holiday Currency is NULL 105 DV INT DVDINDET Mandatory field Reset Date Financial Center is NULL 106 DV INT DVDINDET Unhandled exception while defaulting the schedules 111 DV INT DVDINDET Unhandled exception while defaulting the schedules 121 DV ISR DVINTSRV Unhandled Exception while defaulting for a eve
195. u may want to revalue your deal portfolio on a periodic basis to account for the gains and losses due to changes in the market profit rates or the exchange rates Oracle FLEXCUBE provides a feature to revalue the worth of derivative contracts linked to the product based on the Fair Price the Contract Rate or the Bank Rate Revaluation Required You can revalue the worth of contracts associated with the product at regular intervals Check this box to indicate whether revaluation is required for the product you are defining Else leave this box unchecked Note At the time of processing a contract if you decide that revaluation is not required then you can choose to waive this option even if at the product level you have specified that reval uation is necessary for contracts involving the product However if at the product level you have specified that revaluation is not required then while processing the contract you will not be allowed to choose the revaluation option Revaluation Netting Required If you have indicated that revaluation is required for the product then you can also indicate whether accounting entries should be passed at the leg level or at the contract level Check this box to indicate that revaluation entries should be passed at the contract leg level Revaluation Level and Method In Oracle FLEXCUBE revaluation entries can be passed either at the product level or at the contract level After you indicate t
196. uation Date All those contracts which should be revalued as per the profit rates maintained at the branch level will be revalued as of the revaluation date While maintaining details of a new profit rate you have to indicate the date based on which contracts should be revalued Profit Revision The system revises profit rates automatically when the daily batch for derivatives is run using the Branch specific Profit rate revaluation method Confirmation Check this box to confirm that the profit rate entered is correct Once you check this box the current system date will be displayed in the Date field Note If you leave this box unchecked then this record will not be taken up for revaluation pro cessing Rate Details Since the system identifies the currency and tenor of forward rates required for each revaluation date on the Revaluation Date only those contracts with the particular Rate Code Rate Source and Currency combination will be considered for revaluation Currency Code Choose the currency in which you want to maintain the Profit Rate Once you select the Currency Code the description assigned to it will be displayed in the adjacent field Period Start and End Date Specify the start and end dates for the profit rate you are defining Profit Rate Enter the profit rate for the particular rate code The profit rate that you specify here is meant for your branch and will be used to determine the Fair Value of al
197. uilding tags for Booking 071 Event DV CEV DVCNTEVO Unhandled Exception While building tags for Initiation 081 Event 10 4 ORACLE DV CEV DVCNTEVO Unhandled Exception While building tags for Termination 091 Event DV CSR DVCNSRVO Unhandled Exception While registering a event 001 DV CSR DVCNSRVO Inconsistent Database No record found for the contract in 002 contract table DV CSR DVCNSRVO Unhandled Exception While Locking the Record 011 DV CSR DVCNSRVO Unhandled Exception While authorizing the Contract 021 DV CSR DVCNSRVO Unable to obtain Contract Lock 022 DV CSR DVCNSRV1 Unhandled Exception While Saving the contract 101 DV CSR DVCNSRV1 The Value Date 1 should be within the Product Start 102 Date 2 and the Product End Date 3 DV CSR DVCNSRV1 The Maturity Date 1 should be within the Product Start 103 Date 2 and the Product End Date 3 DV CSR DVCNSRV1 The Exchange Rate exceeds the allowed Maximum Vari 104 ance 1 96 DV CSR DVCNSRV1 The Exchange Rate exceeds the allowed Normal Vari 105 ance 1 96 DV CSR DVCNSRV1 In Leg Principal Details are Defaulted 106 DV CSR DVCNSRV1 OutLeg Principal Details are Defaulted 107 DV CSR DVCNSRV1 In Leg Interest Details are Defaulted 108 DV CSR DVCNSRV1 Out Leg Interest Details are Defaulted 109 DV CSR DVCNSRV1 Brokerage Details Defaulted 110 DV CSR DV
198. unt Note You can change the details of existing schedules by clicking Amend button 5 2 6 Maintaining Profit Details Just as you maintain principal schedule details for the in and out legs of the contract so also you are required to indicate the profit schedule profit revision schedule and accrual related details for every contract that you process Click Profit button while maintaining details of either the in leg or the out leg The Derivative Contract Interest Details screen will be displayed Islamic Derivatives Contract Profit Details Contract Reference Leg Type Component Schedule Revision Accrual Details Liquidation Details Accrual Required C Auto Settlement Numerator Method 30 US Numerator Method Actual X Denominator Method Denominator Method Actual Denominator Basis gt Denominator Basis Include To Date C Include To Date Payment Details Rate Denominator Basis Discount Rate C Discount Auto Pickup Payment Method Discount Rate Source Discount Tenor Code Discount Rate Code Discount Rate Spread Floating Component Discount Rate Basis Profit Rate Details C Main Component C Waiver Flat Amount Rate Type Rate Code Tenor Code Interest Rate Rate Source Interest Spread View Interest View Revision 9 11 ORACLE 5 2 6 1 As a result of linking a product to a contract all the product specific preferen
199. uting credit limit utilization After you specify the MA Code the other details linked to the code such as Limits Tracking Required Netting Required and so on get defaulted to the contract Note At the MA level if you have indicated that Netting is required and while entering the details of the contract you decide that netting is not required for that particular contract then you will be allowed to uncheck this box However at the MA level if you have specified that netting is not required then you will not be allowed to change this default at the time of entering the contract details Similarly the way in which revaluation entries should be passed whether at the leg level or at the contract level will also be defaulted from the Product Preference screen At the product level if you have specified that revaluation netting is not required then you will not be allowed to change this at the contract level However at the product level if you have indicated that revaluation netting is required then you can change this to Not Required at the contract level Rate Code If you indicate that the revaluation should be based either on the Contract Specific Rate or on the Branch Specific Rate then you have to indicate the Rate Code which should be used for the same purpose Rate Source This is the Rate Source to which the Rate Code belongs Select from the option list and indicate the Rate Source to which the Rate Code is to
200. ve and Maturity Date exclusive Any deviation from these conditions will result in an error message e Ifyou are specifying a back dated termination for an IRS CCS contract ensure that the termination date is not greater than the most recent schedule settlement date that has been executed e termination date is defaulted as the System date You can modify this date Ensure that you do not leave this field blank 24 ORACLE 5 2 9 1 e When you save the contract after specifying the Termination Date DTRB event is triggered No accounting entries are passed for this event The contract status remains active after DTRB and a new version is created e If the DTRB event has been triggered for a contract you cannot terminate the contact again e Foraback valued termination or termination on application date the Termination event DTER is triggered along with the event DTRB when you save the contract The SGEN for Termination is fired on authorization e For future dated termination the termination event is triggered during EOD BOD on the respective date e Settlement Message generation SGEN is triggered for the termination event Therefore you must maintain the Payment Message for settlement message generation at DTER If the settlement message generation batch has not been executed then SGEN will trigger along with DTER Note Your specification in the Product Preferences screen about th
201. vents involved in the transaction The details of events that have already taken place for the transaction leg will be displayed along with the date on which the event took place E New Enter Query Reference Number Events 1 Of 1 Event Number Event Code Description Event Date Authorization Status LBL_MAKER2 Accounting Entries Messages en ORACLE You view the accounting entries details for a specific event by choosing the event and clicking on Accounting Entries button Accounting Entries 9 Enter Query Reference Number Event See Position Entries Accounting Entries Hi 4 b X ia El Event Branch Account Account Description Dr Cr Amount Tag Currency Foreign Currency Amount Rate 4 Overrides 10f1 1 _1 Overrides Override Status Authorized By Auth Date Stamp ut 5 2 14 Selecting the User Defined Fields The user defined fields that have been linked to the product will be defaulted to the contract You need to capture the relevant information pertaining to these fields Click Fields button in the Contract Input screen The User Defined Fields screen will display fields for which information needs to be captured Fields Field Name x Value Description Value Description For mor
202. xpense INCP GAIN DEF Inception Gain Deferral Account INCP INC Inception Income INCP LOSS DEF Inception Loss Deferral Account INLEG ASSET In Leg Asset INLEG RVL EXP In Leg Revaluation Expense INLEG RVL INC In Leg Revaluation Income NET RVL EXP Net Revaluation Expense NET RVL INC Net Revaluation Income OUTLEG LIAB Out Leg Liability OUTLEG RVL EXP Out Leg Revaluation Expense OUTLEG RVL INC Out Leg Revaluation Income TRMN EXP Termination Expense TRMN INC Termination Income ORACLE 9 5 9 5 1 TRMN GAIN DEF Termination Gain Deferral Account TRMN LOSS DEF Termination Loss Deferral Account Component REC Receivable Component PAY Payable Component INC Realized Income Component EXP Realized Expense Component INC UNRLZ Unrealized Income Component EXP UNRLZ Unrealized Expense TRMN INC UNRLZ Unrealized termination income TRMN EXP UNRLZ Unrealized termination expense NET INT INC Net profit income NET INT EXP Net profit expense NET INT RIA Netted profit Received in advance NET INT PIA Netted profit paid in advance NET INT INC UNRLZ Unrealized Net profit Income NET INT EXP UNRLZ Unrealized Net profit Expense DV BRIDGE GL Derivatives Bridge GL IV TAX COD Tax Collected IV CHARGE INC Islamic Charges Ev
203. y Treatment You have to specify the holiday treatment that has to be followed when schedules fall due on a holiday The holiday treatment method has been explained at length in the earlier section on Indicating Principal Schedule Details Holiday Treatment Reset Date Details Reset Date Basis Since the floating profit rates are entirely dependent on the market conditions you can periodically reset the floating rate for each profit component over the tenor of the contract For this purpose you need to specify the date basis on which profit rates should be reset The following options are available e Start Date The rate will be refreshed as of the start date of the schedule depending in the reset movement and the reset days e End Date The rate will be refreshed as of the start date of the schedule depending in the reset movement and the reset days indicated e Other You can also specify any other date basis as the reset date basis Reset Date Movement After you specify the basis on which rate should be reset you have to indicate whether the reset movement should be backward or forward from the schedule Start End Date or any other date Allow External Rate Revision Checking this option indicates that for a contract you can allow rate revision based on the rates uploaded from an external system If the option is checked but no rate is uploaded for the contract the rate would be picked up from the maintenance 9 18 ORACL
204. y purchased Payment Instrument Specify the details of the payment instruments Commodity Settled Check this option to indicate that the commodity has been sold or purchased Operations on the Record The following operations are allowed for the commodity tracking screen e Unlock e Save 9 21 ORACLE 5 2 9 Indicating other Details of the Derivative Contract Once you enter the essential details of the derivative contract you have to enter the additional details that are required to process the contract Click on Detail tab that corresponds to Detail Derivatives Contract Input New Enter Query Product B User Reference External Reference Reversed Reference Product Description Swaption Reference Reference Number Version Number ot Source Code FLEXCUBE Type Type Description Main Additional Termination Assuming Base Currency Inception Details Customer Description Account Description Inception Value Amortize Inception Gain Amortize Inception Loss Revaluation Details Maturity Date Details Revaluation Required Netting Required Revaluation Method Rate Code Rate Source Forward Forward Backward Holiday Treatment Holiday Currency Financial Centre Move Across Month Event Brokerage Settlements Advice Charges Tax MIS Fields Principal Profit Sub Agreement Commodity Tracking Input By Authoriz
205. y the system are documented in this chapter Processing Daily Events As part of the batch processes the following are the events that will be selected and processed e Settlements e Accruals Amortization e Revaluation population e Revaluation processing The batch function identifies the previous process till date the date till which the previous batch was run and the current process till date the date till which the current batch is being run for the current batch run It then considers the type of batch being run This be either Beginning of Day BOD batch run or End of Day EOD batch run Based on the parameters you have specified at the time of maintenance the function selects the various events in the following order e Events that have to be processed only once in a batch run and are applicable for the type of batch being run whether BOD or EOD e Events that have to be run for all holidays falling between the previous process till date and the current process till date e Events that have to be run on every processing date and are applicable for the current type of batch being run for all the working days of the batch Invoking the Automatic Daily Program To run the Islamic Derivatives Daily Events program it is necessary that you first maintain it as a Mandatory Program For example you need to maintain the function VBAUDLY to execute the End of Day batch You can then invoke it by choosing Start

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