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Oracle FLEXCUBE Universal Banking

1. 4 21 4 6 Viewing the Other Details of a 4 21 4 7 Advices for Deal Mator nene 4 21 4 8 Viewing Event Detalls eraris 4 22 4 9 Viewing Accounting Entries for Deal Initiation 4 23 4 10 Viewing the Different Versions of a 4 24 4 11 Initiating a Future Value Dated Deal sss 4 24 4 11 1 Initiating Future Dated MM deals 4 24 4 12 Authorizing a Contracts iti iet a fee Lb e iie Pei deu 4 24 4 13 Multilevel Authorization of a 1 emen 4 25 4 14 Authorizing Bulk MM contracts sssssseseeeee eem 4 25 4 14 1 Authorizing the Deals 1 4 27 4 14 2 Viewing the EMOS eiiis esatta ETE E iii eaa 4 27 4 14 3 Viewing the Settlement 4 27 4 14 4 Viewing the Details of the 4 28 4 15 Reassigning a Contract to Another User 4 28 4 16 Amending Money Market Transactions sssse 4 29 4 16 1 Saving and Authorizing Leasing 4 30 Processing Repayments
2. IBAN Account Number Settlement Details E E Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code BE 1 1 P azl Jas Settlement Direction Component Description D Debit C Credit Signature Verification For details on settlement instructions please refer to the Settlement chapter in the Modularity User Manual Deleting Value Dated Changes You can delete the value dated changes that you have made on a deal provided e change is yet to be authorized and e change has not yet been effected in case of a future value dated change All the value dated changes have to be authorized before the End of Day operations begin All the future valued dated changes are applied by the automatic contract update program when the changes become due If the value date of the change is earlier than or the same as today s date the changes are applied immediately To delete value dated changes call the deal on which you have made value dated changes that are still to be authorized through the Value Dated Changes screen by entering the reference number The details of the contract will be displayed Choose delete from the oe ORACLE 6 5 Application toolbar or click Exit or Cancel button on the toolbar The value dated changes will be deleted Uploading the Contr
3. 10 6 11 6 Maturity Report cence eet egt qe oS 10 7 11 6 1 Contents of the 10 8 Function ID Glossary iiniu iiien nenidir 11 1 1 1 1 2 1 3 1 4 1 Preface Introduction This manual is designed to help you quickly get acquainted with the Money Market Module of Oracle FLEXCUBE It provides an overview to the module and takes you through the various steps involved in processing an MM deal You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard Audience This manual is intended for the following User User Roles Role Function Back office clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day Financial Controller Product Generation of reports Managers 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 Organization This manual is organized into the following chapters Chapter 4 About this Manual gives information on the i
4. nennen nennen 5 1 bz dnt oduction oue tto Eph P Em ERE ae 5 1 5 2 Defining Schedules for a emm een 5 1 5 3 Setting Product Schedule Preferences sssssssssseee eee 5 2 5 3 1 Mode of Liquidation sssssssssssessese eene 5 2 9 3 2 Liquidating Back Valued Schedules During Initiation 5 3 5 3 3 Specifying the Payment Method sse 5 3 5 8 4 Indicating the Schedule Type sss eene 5 4 5 4 Features of the Product Default Schedules Screen 5 4 5 Defining Repayment Schedules enm nennen 5 6 5 6 Setting Deal Schedule Preferences ssssssssseeeeeeen 5 7 5 Specifying the Contract 5 8 5 7 1 Liquidating Back Valued Schedules seen 5 8 5 7 2 When the Repayment Schedule Date is a 5 8 5 73 Moving Schedules Forward or 5 8 5 7 4 Moving Schedule Dates Across the 5 8 5 75 Specifying the Holiday Currency sees 5 9 5 76 Specifying the Mode of Liquidation sseeeneeee 5 9 5 7
5. ssse 10 4 10 5 1 MM Placement with True Discounted 10 4 10 5 2 MM Borrowing with Fixed Discounted 10 8 10 5 3 MM Placement Fixed Bearing Interest 10 12 10 5 4 REVN Rate Revision snae tenen nta a donant 10 15 10 5 5 MM Borrowing with Fixed Bearing 10 16 10 5 6 ROLL Rolv iiit tate uo ERR 10 19 10 6 Entries for contracts liquidated with Previous Year Adjustment option 10 20 Reports in Money Market Module een 10 1 WAST Introduction Ue e tp Ete tue opis 10 1 11 2 MM Brokerage Details ena 10 1 T1 2 1 Report Options ed dedere epa da ah 10 1 11 2 2 Contents of the Report sssssssssssssssssssee eren 10 2 11 3 MM Broker Confirmation Pending Report sssssse 10 3 11 3 1 Contents of the Report ssssssssssssse serena 10 3 11 4 MM Counterparty Confirmation Pending sm 10 4 11 4 1 Contents of the Report sssssssssssssssse enne nna 10 4 11 5 Overdue Schedules Report sssssssssssssssssesseeenne eee 10 5 11 5 1 Contents of the
6. 4 Contract Details Amount Tag Tag Currency Branch Account Pay Receive Intermediary Reimbursement Institution R View Error In the Unauthorized Contracts screen you can indicate the following parameters e The module MM or FX whose deals or contracts have to be authorized e Onselection of the module all unauthorized deals or contracts pertaining to that module will be displayed in the grid e Whether the system should ignore the overrides generated at the time of authorization e If the overrides of the deals are not authorized system displays an error message Check against Ignore Overrides to ignore the overrides associated with the contracts For example if the maturity date of a contract is 30 December 2001 and is a holiday for your bank system will display an override 30 DEC 2001 is a holiday However you can opt to ignore such overrides by checking against Ignore Overrides e Whether the messages associated with authorization should be generated On authorization of a contract the messages associated with the deal will be generated To generate the messages check against Generate Messages 4 26 ORACLE 4 14 1 4 14 2 4 14 3 Authorizing the Deals You can either opt to authorize all the deal that are displayed or choose only certain contracts for authorization e authorize only specific deals check ag
7. 9 1 9 1 6 Liquidation Advice for a Placement sse 9 1 9 2 Advices Generated during Contract Confirmation 9 2 9 3 Advice Generated for the Roll over of a Placement 9 4 9 4 Advice Generated for the Roll over of a 9 6 9 5 Advice Generated for the Initiation of a 9 8 9 6 Advice Generated for the Initiation of a Placement 9 9 9 7 Advice for Liquidation of Placement 9 11 9 8 Payment amp amp 9 12 9 9 Deal Confirmation Matehing emnes 9 13 Annexure Accounting Entries and Advices for the MM Module 10 1 10 1 Accounting entries for Money Market emen 10 1 10 2 MM Events nasi bi dane ee deae diet 10 1 10 3 Amoun n ttt tea 10 2 10 4 ACcountIng Roles o eren ei oret 10 2 10 4 1 List Acct Roles for a Placement 10 3 10 4 2 List I Acct Roles for a Borrowing 10 3 10 5 Event wise Accounting Entries and Advices
8. Maturity Report You can invoke the Maturity Report by typing MMRPMATR in the field at the top right corner of the Application tool bar and click the adjoining arrow button Maturity Report Selection Criteria Product Type Value Date Liquidation Mode Borrowing From Value Date Manual To Value Date Product Code Non Maturity Schedule Maturity Type Yes Call Contract Currency No Schedule Date From Date To Date Customer ReportFormat PDF Printer At Client Report Output Print Printer Product Type Select the product type from the adjoining drop down list From Value Date Specify a valid date from when you wish to generate the report from the adjoining calendar To Value Date Specify a valid date till when you wish to generate the report from the adjoining calendar Liquidation Mode Select the mode of liquidation from the adjoining drop down list Non Maturity Schedule Select the non maturity status ORACLE 11 6 1 Maturity Type Select the maturity type from the adjoining drop down list Product Code Specify the product code from the adjoining option list Contract Currency Specify the contract currency from the adjoi9ning option list Customer Select the customer number of the customer whose details are required in the report Schedule Date From Date Specify a valid date from when you wish to generate the report from the adjoining calendar T
9. 8 7 8 7 Generation of Billing emen 8 8 8 8 Automatic Rollover of a Deal sse emm 8 8 8 8 1 Advices for Rollover sse enne 8 9 8 8 2 Automatic Status Changes sss eene 8 9 8 8 8 Automatic Status Change sss 8 10 8 8 4 Advices to be Generated for a Status 8 10 8 9 Accrual of ICCF eene errem nnn 8 10 8 9 1 Contents of the Accrual Control Journal see 8 11 8 10 Interest Rate Revision on a 8 11 8 11 Value Dated Changes nsistiet enean assai a 8 12 8 11 1 Advices Generated for Value Dated 8 12 Customer Correspondence s eeeeeeeeeeeeeeeeeeeeeeeeeeneseneeeeeeeeeeeeeeeeeees 9 1 9 1 _IntrOduCtiOn t tend der e 9 1 10 11 12 9 1 1 Confirmation AdViCES rossis nanana 9 1 9 1 2 Rollover Advice for a 9 1 9 1 3 Rollover Advice for a 9 1 9 1 4 Initiation Advice for a eene 9 1 9 1 5 Initiation Advice for a
10. Account Statement If the User Ref No in messages option is checked in the MM Branch Parameter screen then in the Field 61 statement line the user ref no would be populated in sub field 8 account servicing institution s ref no If it is left unchecked then it will be picked up from the child contract reference number Initiating the Automatic Contract Update Function You can invoke the Automatic Contract Update function from the Application Browser Click MM and then on the Automatic Daily Update option For any event involving accounts in a foreign currency this function will use the conversion rate in the Currency table for converting the amount to local currency Note Ensure that you update the conversion rates in the Currency table with the rates for the day before you execute the Automatic Contract Update function ORACLE 8 4 1 8 4 2 8 4 3 8 5 Processing During Beginning of Day All the automatic events scheduled for the day except the accrual of ICCF components will be carried out when the Automatic Contract Update function is executed during the beginning of day operations In addition all the activities scheduled for the holidays will be carried out if the current system date follows a holiday s and you have specified that events falling on holidays should be processed on the immediate working day succeeding the holiday Processing During End of Day When the functi
11. Description Amount CCY Rate Interest Basis SUBJECT TO CHANGE Transaction on Initiation Component Value Date Account Amount CCY Component Description Account Branch PRINCIPAL 29 DEC 97 BNKCUL US1009 017 8 469 791 00 USD SET ORACLE 9 7 Principal Amount 000 YOUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 01 JAN 98 INTEREST 12 329 00 AUD PRINCIPAL 12 000 000 00 AUD SETTLEMENT DETAILS Component Dr Cr Br Account CCY INTEREST R 000 BNKCUL US1009 01USD 17 MMR002 AMT 000 BNKCUL US1009 01USD 17 PRINCIPAL P 000 BNKCUL US1009 01USD 17 PRINCIPAL INCR P 000 BNKCUL US1009 01USD 17 PRINCIPAL LIQD R 000 BNKCUL US1009 01USD 17 Advice for Liquidation of Placement LOAN BILLING NOTICE Date 31 DEC 97 Reference No 0003P02973630001 AU1002 AU1002SW 9 1 ORACLE 9 8 Jayanagar 4th Block Bangalore India The Details of the Schedules falling Due as follows COMPONENT DUE DATE AMOUNT MM INT PLACEMENTS 31 JAN 98 271 50 AUD PRINCIPAL 31 JAN 98 21 560 00 AUD THIS IS A COMPUTER GENERATED ADVICE NO AUTHORIZED SIGNATURE IS REQUIRED Payment Messages Payment messages or SWIFT messages are generated at takedown for placements and at the time of contract maturity and interest liquidation for deposits Swift confirmation message MT320 is generated for contracts whose maturity type is FIXED and for contracts with maturity type NOTICE Swift conf
12. Ignore Apply charge on Rollover Amount New Components Allowed Version Number 4 Contract Reference Number User Reference Number External Reference Number Reversal Reference Number Outstanding Amount Maturity Roll By Method Mechanism Mode ICCF Rollover Schedule Basis Maturity Days Maturity Date Maturity Type Days Normal New Version Auto Manual Product Contract Product Contract Fixed v Notice c 7 Liquidate Overdue Srhadiiloc Holiday Currency Events Maker Date Time Checker Date Time Contract Status Authorization Status The process of rolling over of contracts is explained in detail in the Rolling Over a Deal chapter 4 3 5 Preferences Tab Preferences are options For instance for a product you have the option of e Making liquidation automatic or manual e Allowing or disallowing rollover e Applying tax or waiving it e Applying prepayment penalty or waiving it etc For a contract you have the option preference of e Liquidating automatically or manually the principal of the deal being input This defaults from the product but you can change it for a specific deal e Verifying of funds in case of automatic liquidation of repayment schedules If you indicate that funds have to be verified the components that will leave the repayment account with a debit
13. Cumulative field is checked in the Product Transaction Limits Maintenance screen the transaction amount is greater than the authoriser s authorisation limit if the Cu mulative field is unchecked in the Product Transaction Limits Maintenance screen 4 13 Multilevel Authorization of a Contract High value contracts may require multilevel of authorization The levels of authorizations are defined in the Product Transaction Limits screen You can use the Multilevel Authorization Detailed screen for authoring a contract n 1 times However final authorization can take place only in the contract screen For more details refer the Multilevel Authorization of Contract Loan Account section in the Procedures User Manual 4 14 Authorizing Bulk MM contracts Money market deals must be authorized in the respective Contract Online screens This method of authorizing the deals can be quite cumbersome especially if the volume of transactions is large In view of that Oracle FLEXCUBE allows bulk authorization of all 95 ORACLE unauthorized money market deals from the Unauthorized Contracts screen Invoke this screen from the Application Browser Unauthorized Contracts E Enter Query Module Ignore Overrides Unauthorized Contracts Generate Messages ContractReference User Reference Counterparty Customer Name Short
14. and distributes the amount paid between the component and the tax For example if a customer owes USD 1000 in interest tax inclusive the tax rate is 10 and he pays you USD 1000 the payment is automatically distributed into USD 909 09 interest and USD 90 91 the tax component The customer will still owe you USD 90 91 in interest and USD 9 09 tax in tax Total tax is always calculated on the full schedule Therefore if there is a rounding difference it will be adjusted in the last liquidation In the above example the tax component has come to USD 90 91 for that schedule Suppose the total tax component is USD 273 If this is paid in three schedules the total will come to USD 272 73 90 91 90 91 90 91 272 73 During the last liquidation the system will round off the total of such schedules for tax to the nearest decimal point i e USD 273 Using the Settlements Screen When the deal and the accounts for payment are in different currencies you may enter the Foreign Exchange rate for conversion in the Settlements screen If the customer account for a component was expressly not defined at the time of deal input you will have to specify an account at the time of payment through the Settlements screen The payment accounts can also be changed for the various components at the time of payment The new payment accounts will only be used for that particular session of the manual payment function For instance you have na
15. have elapsed in the year For example 31 January 1998 translates into the Julian Date 98031 Similarly 5 February 1998 becomes 98036 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those that elapsed in February 3145 36 User Reference You can enter any reference number for a deal that you enter into The deal will be identified through this number in addition to the Contract Reference Number generated by the system No two deals can have the same User Reference Number By default the Contract Reference Number generated by the system will be taken as the User Reference Number You can use this number besides the deal Reference Number to retrieve information relating to a deal Product Every deal that you enter into would involve a specific service that you offer which you have defined as a product When processing a deal that you enter into you should specify the product that it involves All the attributes of the product that you specify will apply to the deal However you can change some of these attributes while entering the details of the contract When you specify the product the product type placement or borrowing will be displayed Source You have to indicate the source from which contracts have to be uploaded If this value is left null then you will not be able to amend the contract Amendment for the contract can be uploaded only through the same source as that
16. initiated If you are entering a deal that has already been initiated you should enter the date on which the deal began In this case the date will be for information purposes only and for all accounting purposes the Value Date will be considered as the date on which the deal was initiated Status The status of a placement is indicative of the status of repayments on it If you have specified automatic status movement for the placement it will be moved automatically to the status as per your definition However if you indicated that the status change will be made manually on the placement you can change the status manually in this screen Even if you have defined a placement with automatic status movement you can still change the status manually before the automatic status change is due 412 ORACLE 4 3 2 6 There is yet another scenario where you have defined a placement with automatic status movement forward but manual status movement in the reverse direction That is when the conditions for a placement being in a particular status no longer exist if you have specified manual reverse movement then you will have to manually move the placement to the appropriate status A placement on which the latest repayment has been made will be in the Active status If a payment is outstanding on a placement its status can be changed based on your requirements of reporting placements with outstanding payments The different status
17. Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 CAMD Amendment Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 NOTC Billing notice generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 11 ORACLE 10 5 2 10 ROLL Contract Rollover Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER_LIQD Credit INTERPIA INTER_LIQD Debit LIABGL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 MM_ROLL_ADV Rollover Advice 10 5 3 Placement Fixed Bearing Interest The preferences set for this product are as follows e payment type for this product is of Bearing type e Forward dating is allowed for the product 10 5 3 1 BOOK Booking Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FWDASSETGL PRINCIPAL_FWD Debit FWDASSETOFF PRINCIPAL_FWD Credit Advices Advice Name Description MMCONPLA MM Placement Confirm
18. Authorizing Manual Payments sss 5 21 Making Interest Rate Changes 6 1 Oo introduction eene pera ene dtd eiat 6 1 6 2 Navigating to the schedule definition screen sssee 6 1 6 2 1 Changing the maturity date 6 2 6 2 2 Making Changes in the Credit Line sse 6 2 6 2 8 Making changes in interest essen 6 2 6 3 Settlement instructions tnnt hens tnnt essent 6 3 6 4 Deleting Value Dated Changes sssssssee eem eem ennemis 6 3 6 5 Uploading the Contracts for Amendment ssssssssee em 6 4 6 6 Authorization of Changes ssssssssseeeee een ennemis 6 6 Rolling Over a Deal eret cine enter eee cocco eee adn nnn 7 1 CMe Introduction iit io aei aet 7 1 7 2 Specifying Rollover for a 7 1 7 2 1 of Rollover Manual or Automatic seen 7 2 7 22 Impact of Liquidation Mode on Rollover sss 7 2 7 3 Specifying Contract Rollover Details 2 2 em 7 5 7 3 1 Special Rollover Amount ssssssssssssssssss eene 7 6 7 3 2 Rolling over a Contract Manually sse 7 8 7 3 8 Specifying the Maturity Det
19. Automatic Contract Update function If you have not specified that the funds be verified and there are insufficient funds in the repayment account e repayment account will be put into a debit balance if you have allowed overdraft and the schedules for the components liquidated to the extent of the debit balance that you have allowed for the account You can liquidate beyond the allowed debit balance for an account after overriding a warning message This override will be recorded for audit trail purposes Debit interest as specified for the type of account current or savings will be applied on the debit balance e If the repayment account has not been defined with overdraft the liquidation will not be processed If you specify manual liquidation for deals involving the product then you will have to do the liquidation manually through the Manual Liquidation screen Liquidating Back Valued Schedules During Initiation You have to indicate whether for a backdated deal that has schedules prior to today s date the schedules have to be liquidated when the deal is initiated A back dated deal is one which has an initiation date which falls before today s date Specifying the Payment Method You have to specify whether the payment method for the main interest is to be bearing discounted or true discounted This cannot be changed at the time of processing a deal Bearing The interest is liquidated on schedule payment date
20. Codes Details screen At the time of inputting a deal select the dealer who will have the requisite rights to enter into an MM deal on behalf of your bank Broker If the deal was entered through a broker select the broker code Reversed Reference The reference number of the contract that is being reversed and rebooked is displayed here To enable amendment of MM Contract details Oracle FLEXCUBE will reverse the old contract and rebook a new contract with the old user reference number and external reference number The old contract is reversed and a new contract is booked with Reversed FCC ref as the parent contract For further details on reversing and rebooking of a contract refer the section titled Reversing and Rebooking a Contract of this user manual External Reference If the transaction is being uploaded from an external source you can specify the identification for the transaction in the external source as the external reference number You cannot amend this value post contact save In ascenario where your customer is tracking a deal in her system she would probably assign it a unique reference number If she offers the number for reference purposes it can be recorded in this screen This reference number will be printed on the advices sent to the customer to enable her to identify and track the deal with ease Maturity Type The Maturity Type you have specified for the product is displayed by default in the scre
21. Entries Accounting Role Amount Tag Dr Cr Indicator FRTAX4 PAY FRTAX1 AMT Credit CUSTOMER FRTAX1 AMT Debit CUSTOMER FRTAXS AMT Debit FRTAXS PAY FRTAXS AMT Credit INTERPIA INTER LIQD Debit CUSTOMER INTER LIQD Credit LIABGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit FWDLIABGL PRINCIPAL FWD Debit FWDLIABOFF PRINCIPAL FWD Credit 10 9 ORACLE Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 2 3 ACCR Accrual of interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTEREXP INTER ACCR Debit INTERPIA INTER ACCR Credit PENL1EXP PENL1 ACCR Debit PENL1PAY PENL1 ACCR Credit Advices No advices allowed for this event 10 5 2 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator LIABGL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit CUSTOMER INTER_LIQD Credit INTPIA INTER_LIQD Debit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 PAYMENT_MESSAGE Payment Message LIQDNOTC Liquidation Notice 10 5 2 5 VABM Value Dated Amendment Booking Accounting Entries Nil 10 10 ORACLE 10 5 2 6 10 5 2 7 10 5 2 8 10 5 2 9 Advices Advice Name Description MMAMDADV Amendment Advice VAMI Value Dated Amendment Initiation
22. For a floating rate the spread will be applied over the market rate applicable for the day Fixed Interest Rate If the deal involves a fixed interest rate product the default rate defined in the Product ICCF screen will be displayed here This rate can be changed through this screen only for the main interest component This changed rate should be greater than or equal to the Minimum Rate and less than or equal to the Maximum Rate defined in the Product ICCF screen The rate specified for the deal along with the spread can exceed the interest rate specified for the product only within the variance rate specified for the product For example suppose that the variance you have specified in the product ICCF screen is 2096 Assume the interest rate which defaults from the product is 1096 You can change the interest rate for the deal while processing to 12 The changed rate will be accepted as it exceeds the default rate only by 2096 which is the maximum variance that you have defined for contracts involving the product But if you add a spread of 0 5 to the rate the rate for the deal becomes 12 5 This will not be accepted as it exceeds the maximum variance limit defined for the product which is 2096 Special Interest Amount If the product involved in the deal has been defined with a special interest the interest amount applicable for the deal will be displayed in this screen You can change it Rollover While setting up a
23. In architecture Oracle FLEXCUBE is modular yet integrated That is front end modules such as Money Market function around a Core consisting of the Security Management System the Limits Service the Management Information System etc This architecture eliminates replication of commonly accessed information in every module Information that is common to several modules is maintained in the Core of the system for example currency related information This is accessed by front end modules such as MM FX LC BC Loans Deposits etc The architecture thus ensures that all front end modules use reliable and consistent data drawn from the Core Oracle FLEXCUBE s architecture also ensures that you can constantly monitor real time your exposure Crucial services such as Limits reside at the Core of Oracle FLEXCUBE This means that your liability towards a customer is tracked real time across front end modules Quick and Easy Retrieval of Information The facility to retrieve accurate information quickly is a key benefit that Oracle FLEXCUBE offers Oracle FLEXCUBE supports standard financial reports In addition you can customize reports to suit your specific requirement You can generate these reports at any time during the day The powerful query facility that Oracle FLEXCUBE offers is another useful management tool This facility not only functions as a search tool you to drill down to the very details of a contract or transaction it
24. MT350 NOTC Billing notice generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil ROLL Rollover Accounting entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER_LIQD Credit INTER_PAY INTER_LIQD Debit ASSET GL INTER_ROLL Credit INTER_PAY INTER_ROLL Debit ASSET GL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit Advices Advice Name Description LD ROLL ADV Rollover advice 10 19 ORACLE 10 6 Entries for contracts liquidated with Previous Year Adjustment option You will need to maintain the following accounting entry set up when an MM contract is liquidated with previous year adjustment option During liquidation of an schedule contract the unrealized accruals for the previous year are liquidated before liquidation of unrealized accruals for the current year For liquidating the interest components the system posts the following entries during Liquidation LIQD for a bearing contract Accounting Role Amount Tag Dr Cr Indicator ComponentREC Component_LIQD Credit Customer Component_LIQD Debit ComponentUNRL Component_LIQD_PY Debit ComponentINC Component_
25. Maturity Date e f you have postponed the Maturity Date the schedules that have not been liquidated and which fall due before the new maturity Date will be redefined to the new Maturity Date You have to authorize the change in Maturity Date before you redefine the schedules as per your new requirements through the Contract Schedules screen When you extend the Maturity Date of a deal the time code of the credit line to which the deal is linked should be beyond the new Maturity Date If not the system will seek an override The new Maturity Date will be applicable to the deal from the Value Date of the deal Making Changes in the Credit Line When you make changes in the Credit Line the Central Liability tracking for the deal will be done against the new line The Value Date and Maturity Date will be taken into consideration during the time code calculation of the deal Making changes in interest If you want to make value dated changes in the interest rate the rate code the spread or the interest amount you have to invoke the Contract Interest Charge and Fee screen of the ICCF module through the Value Dated Changes screen You can make value dated changes only to the following components in the Contract ICCF screen Interest Rate Enter the new interest rate However you will not be able to e Change the interest rate if you have defined zero interest for the deal e Change the interest type Rate Code If a floating typ
26. Rekeyed during Authorization 3 5 3 2 3 Specifying Tenor Related Details essen 3 5 3 2 4 Specifying Exchange Rate Variance 3 9 3 2 5 Indicating Holiday een 3 9 3 2 6 Maintaining Rollover Details sees 3 11 3 2 7 Specifying Component Schedule Details 3 11 3 2 8 Prioritizing the Liquidation of 3 12 3 2 9 Specifying Grace Days to 3 12 Processing an MM Deal 4 1 4 1 Introduction iiie Poit tr ertt e e rinm eed paa tee dd 4 1 4 2 Capturing Deal 4 1 4 3 Features of the Contract Details 4 2 4 3 1 Entering Deal Details 4 4 43 2 Gontract Tab HE RU ERROR gi 4 5 4 3 9 Schedules Tabs oS a niic 4 16 43 4 Rollover Tab ii d a T AR ER 4 17 4 3 5 Preferences Tab eia cue att nne et AE 4 17 4 3 6 Modifying a Placement or a Borrowing seen 4 20 4 4 Financial Details that can be 4 20 4 5 Reversing and Rebooking
27. September 1998 s ORACLE 5 9 e 31 December 1998 You have to specify for the same component the interest the Start date as 31 January 1999 the frequency as monthly the unit as 1 and the number as 3 if you want to fix three monthly repayment schedules after 31 December 1998 They will be calculated as falling due on e 31 January 1999 e 28 February 1999 e 31 March 1999 Redefining Schedules Repayments that are scheduled for a date later than today can be redefined This redefinition can be done even after the deal has come into effect and a few schedules have been liquidated However schedules with a date earlier than today s date that are yet to be liquidated cannot be rescheduled You have to liquidate them through the Manual Liquidation function Aging analysis and penalty processing will be done on such overdue schedules if they are borrowings The redefinition of schedules will be done automatically on the following occasions e When the Maturity Date is changed a change in the Maturity Date will be handled in the following manner Extension of the Maturity Date The principal repayment schedule that was defined for the earlier Maturity Date will be moved to the new Maturity Date Other components interest commission or fee that are dependent on the tenor of the deal will be recalculated and spread equally over the rest of the repayment schedules for these components Advancement of the M
28. View Events screen You can access this screen by clicking on the view events button in any of the Contract On line screens All the events that have taken place on the deal so far will be listed in this screen according to the sequence in which they have taken place The Date on which the event took place will also be displayed Mis ORACLE 49 For example this list contains events like Booking Initiation Interest Accrual etc Event Details o gt Reference Number Events HE Maker Id Ch EventNumber EventDate Event Code Description Authorization Status A Message Accounting Entries Viewing Accounting Entries for Deal Initiation To view the accounting entries passed for a specific event select the event and click Accounting Entries button on the Event Details screen The accounting entries and overrides for that event will be displayed View Details Reference Number E See Position Entries Accounting Entries E Event Branch Account Amount Tag T Currency Foreign Currency Amount Rate Local Currency 4 Overrides E overrides 4 23 ORACLE 4 10 4 11 4 11 1 4 12 Viewing the Different Versions of a Deal When a deal is input it is assigned a version number of 1 From then on each
29. a unique code to identify the product throughout the module This code should have four characters You can follow your own conventions for devising this code While defining a new product you should enter a code which is unique across the different modules of Oracle FLEXCUBE For instance if you have used MMO1 for the Money Market module you cannot use it as a code in any other module Product Description Enter a unique code and a brief description for the product that you want to set up Enter a brief description of the product The description will be associated with the product for information retrieval purposes Slogan Enter the marketing punch line to be associated with the product This slogan will be printed on all the advices that are sent to the customer for a deal involving this product For example if you have a borrowings product called Money Multiplier you could enter the slogan Watch your money grow with Money Multiplier Product Type A product that you are defining can belong to any of the following categories e Placement e Borrowing These product categories are referred to as product types When you create a product you must specify the type to which it belongs For example you should specify the product type as Placement if you are defining a placement product and Borrowing if you are defining a borrowing product Product Group Each product is classified under a specific group The diffe
30. a valid date till when you wish to generate the report from the adjoining calendar Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the report is as follows Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report Due Date Indicates the due date Overdue Days Indicates the overdue days Customer Indicates the name of the customer Contract Indicates the reference of contract Reference Status Indicates the status of the overdue Component Indicates the component Currency Indicates the currency Overdue Indicates the overdue amount Amount Euro Indicates the Euro equivalent of the overdue amount Equivalent Tire ORACLE 11 6 Overdue Summary Due Date Indicates the due date Overdue Days Indicates the overdue days Product Indicates the product for which the amount is overdue Component Indicates the component Currency Indicates the currency Status Indicates the status of the overdue Cumulative Indicates the cumulative overdue amount for the product Overdue Amount Euro Indicates the euro equivalent of the overdue amount Equivalent
31. amendment of the deal results in its next version When you come to the Detailed View Screen for a deal the latest version will be displayed To see the previous version click previous icon from a previous version clicking next icon displays the next version Initiating a Future Value Dated Deal A future dated deal is one that has a Value Date that is later than the date on which it is booked The Automatic Contract Update function will initiate the deal on the Value Date of the deal A future Value Date falling on a holiday will be initiated either on the previous working day or the next depending on your definition for automatic processing at your branch All the initiation related entries specified for the product involved in the deal will be passed automatically If currency conversions are involved the conversion rates as of the date on which the deal is initiated will be picked up from the Currency Table To recall the rates that are applicable for a deal are defined for the product involved in the deal If there is a rate revision applicable for the future dated deal on the day it is initiated that is on the future Value Date the rate revision will also be applied on the deal This rate revision could either be due a Floating Rate change or a Value Dated Change Initiating Future Dated MM deals Manually In a situation where the Initiation event for an MM deal has not been triggered during the BOD processes you can
32. any tax is applicable for the MM product that you are creating If tax is specified for a product you can waive it for specific deals However if you specify that tax is not applicable to a product you cannot levy tax on any deal involving the product Forward Dating Allowed The Value Date That is the date on which it is initiated for a deal can be e date on which it is input e A date in the past or e A date in the future You should indicate whether a deal involving a product could have a Value Date in the future A deal can have a value date in the future only if you have allowed it for the product that it involves An Initiation date in the past or today can be indicated for any deal When a deal with a Value Date in the future is stored no accounting entries will be passed on the date of input The deal will be initiated by the Automatic Contract Update function during the Beginning of Day BOD processes on the Value Date initiation date All the necessary accounting entries will be passed on this date ad ORACLE However if the Value Date falls on a holiday the deal will be initiated as per your holiday handling specifications in the Branch Parameters screen e f you have specified that automatic processes are to be carried out for holidays the deal slated for initiation on the holiday will be initiated during end of day processing on the last working day before the holiday e f you have specified that the
33. 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 affiliate
34. balance will not be liquidated If not all the components will be liquidated leaving the repayment account with a debit balance if a debit balance has 4 17 ORACLE been allowed for the repayment account The payment schedule will be marked as liquidated If a debit balance has not been allowed the schedules will not be liquidated and aging analysis will take over Ignoring holidays If you choose this preference the schedule dates will be calculated ignoring the holiday The automatic processing of the schedule that falls due on a holiday however will be determined by your holiday specifications for the product If you indicated for example that the processing should be done till the day before the next working day the schedule will be liquidated during the end of day run of the Automatic Contract Update function If you specified though that processing should be done only till the System Date then the schedule falling on the holiday will be processed during the beginning of day run of the Automatic Contract Update function on the next working day Choosing to ignore holidays If you choose not to ignore holidays you can move a repayment schedule forward or backward to the next or previous working day You can also specify whether the schedule is allowed to move across the month in case of a holiday Cascading schedules This means that if one schedule has been moved backward or forward in view of a holiday the other schedules
35. choose to trigger it manually using the Reopen option in the Toolbar or from the Actions Menu A typical instance when the system does nottrigger the initiation event is due to insufficient funds You can manually trigger the Initiation event for all uninitiated MM deals with value date less than or equal to the system date Note If your user profile has been granted the Auto Auth privilege such a deal gets authorized automatically after initiation Otherwise it has to be authorized by a different user from the MM contract online screen Authorizing a Contract You have to save a contract after entering all the required details in the system Click Save icon on the Toolbar or choose Save from the Actions menu to save an account The system updates this as an unauthorized contract To authorize an account click Authorize icon on the Application toolbar Note You cannot authorise a contract from the Money Market Contract Input screen in the fol lowing cases Aaa ORACLE contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen the level of authorization is greater than or equal to N the Nth or the final level of the users authorisation limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the
36. codes applicable for a placement are defined for a product and it applies to the placement by default However you can change the status for the contract through this screen When you are capturing placement details the system allots the status of Active by default You may change it to any of the status codes as per your requirement While doing manual status changes ensure that you change the status in the order they are defined For example the status codes are defined as follows in that order 1 Active 2 Past Due 3 Non accrual 4 Write off You cannot change the status of a placement from Active to Non accrual by passing Past Due If the requirement is that the placement has to be put in the Non accrual status from the Active status you should first change the status to Past Due store and authorize this status change and then change it to the Non accrual status If a status change has been defined with a change in the GL the entries will be passed for the GL movement Payment Method The payment method defined for the main interest for the product whether bearing discounted or true discounted applies to the contract as well The method defined for the product is displayed here Bearing Interest is liquidated on schedule payment date s Discounted In this interest payment method the interest is deducted at the time of initiating the deal True discounted In this interest payment method the interest i
37. create a Money Market product in the Money Market MM Product Definition screen You can invoke this screen by typing MMDPRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button In this screen you can enter basic information relating to a Money Market product such as the Product Code the Description and so on Main Screen EX New Enter Query Product Code Product Description Product Type Description Slogan Product Group Product Group Description Start Date End Date Remarks Accounting Roles Events Branch Customer MIS Preferences DiscountAccrual Interest Charges Tax Fields Status Maker Date Time Checker Date Time Mod No Record Status Authorization Status For a Money Market product you can define other generic attributes such as branch currency and customer restrictions etc by clicking on the appropriate icon in the horizontal array of icons in this screen In addition to these generic attributes you can define attributes specifically for a money market product These attributes are discussed in detail in this chapter For further information on these generic product attributes please refer the following Oracle FLEXCUBE User Manuals under Modularity e Product Definition e Interest e Charges and Fees e Tax e User Defined Fields e Settlements ORACLE Defining a Money Market Product Product Code Enter
38. customer of the status change and possibly urge him to make the payments to liquidate the schedules that are aging The advice will be generated during beginning of day when an automatic status change happens Accrual of ICCF Components When you are defining the interest commission charge or fee components ICCF components for an MM product you should also specify whether accruals have to be done for the accruable ICCF components You can specify this through the Product ICCF Details Screen el ORACLE 8 9 1 8 10 If accruals should be done the frequency of accrual should also be specified for the product through the Product Preferences screen at the time of product definition For all deals for which accruals fall due today the Automatic Contract Update function will pass the accrual entries Accrual of interest commission charge or fee is done during the end of day processing of the Automatic Contract Update function In some cases for example if a manual liquidation is done the accrual entries will be passed immediately by the system If this falls on a holiday the accruals will be done as per your holiday handling specifications for automatic processes in the Branch Parameters screen e f you specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the events falling on the holiday will be processed during end o
39. day Deal Multiple Penalty Components Currency Value Date Contract Amount Maturity Date Product Description Accrual Frequency Start Month Start Date Minimum Default Maximum Unit Rate Variance Normal Maximum Holiday Treatment Holiday Currency Schedule Movement Cascade Schedules Ignore Holidays Move Across Month Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days The advantage of defining a product The product definition facility is a one time effort When defining a money market deal type or scheme as a product you can specify amongst other details e tenor e rate of interest e The repayment schedules e The tax details e accounting entries to be passed e The advices to be generated The user does not have to specify these details every time a deal is entered The product definition facility thus reduces the time required to capture a deal The product definition feature also facilitates e Quick retrieval of information relating to deals of a particular type e Standardization of money market schemes across branches e Modification of standard features of a scheme to suit specific requirements Automatic Processing Features Oracle FLEXCUBE completely automates and tracks all the events in the lifecycle of a money market deal It e Generates deal tickets 22 ORACLE e Accrues interest e Liquidates due schedul
40. details e The ICCF details e events for the deal e accounting entries for the deal e brokerage details Advices for Deal Initiation The advices that have to be generated for any event are specified for the product involved in the deal and are generated after the product is authorized at product level For example you may have specified the following advices for the product e When a deal is initiated an advice addressed to the customer Su ORACLE 4 8 e If any components like discounted interest tax on principal etc Are liquidated on takedown an advice for each of them e While processing the deal initiation you can do the following e Suppress the generation of any of these advices e Specify the priority of generation In the Advices screen you can make these changes Contract Reference Advice Name Receiver Medium Suppress Priority Charges No v Normal Suppress By default all the advices that have been defined for a product will be generated for a deal However you can suppress the generation of an advice for a deal by specifying so in this screen Priority Priority applies to payment messages that have to be sent over S W I F T By default such advices will be sent on a Normal priority You can change it to Urgent Viewing Event Details You can view all the events that have take place on a loan through the
41. during Contract Input If a new payment account was specified for a component during the input of the payment the reversal will be done to the new account If the new account is in a currency different from that of the deal and a conversion rate was specified the rate from the payments function will be used for the reversal The reversal of a payment may sometimes entail a change in the status of a borrowing If the borrowing is set for automatic status change this change will be made by the system automatically Automatic payments made by the Automatic Contract Update program can also be reversed through the manual payments function Reversal of payment will not be allowed if the Rollover Instruction Status of the contract is Complete Saving and Authorizing Manual Payments You have to save a manual payment after entering all the required details in the system Click Save icon on the Toolbar or choose Save from the Actions menu to save an account On saving the transaction the amount is validated against the product transaction limit and the user input limit maintained in the system The system displays an appropriate override error message if the amount exceeds the allowed input limit It also indicates the level of authorization required if the transaction the amount is in excess of the transaction limit maintained The system converts the contract amount using the standard mid rate to the transaction limit currency and check
42. on maturity you can roll it over into a new deal The outstanding principal of the old deal is rolled over with or without the interest outstanding on it When a deal is rolled over renewed it is processed in the following manner e The original deal is liquidated and e Anew deal is initiated You can rollover a deal that you are processing provided it is allowed for the product the loan involves For a product with rollover defined you can specify if deals involving the product should inherit e The attributes defined for the ICCF components interest charges and fees from the product or e Those defined for the initial deal This gains significance if you changed the attributes that the initial deal acquired from the product The rolled over deal will acquire the changed attributes In addition you have to specify the following for a product defined with rollover e Whether it is to be rolled over along with outstanding interest e Whether the interest that has been accrued on a placement is to be considered a part ofthe utilized amount for the purpose of risk tracking if you are rolling over a placement with interest e Whether tax has to be applied on the rolled over deal e Whether the principal of the rolled over interest should be taxed However when processing a deal you can change the attributes that the deal acquires from the product At the time of processing the deal you can indicate if a rollover is to be aut
43. product if you specified that deals involving the product should be automatically rolled over all deals involving the product will be rolled over on their respective Maturity Dates if they are not liquidated This feature is called auto rollover If auto rollover is specified for the product the deal involves it will be indicated on this screen However if you do not want the deal whose details are being captured to be rolled over you can disallow rollover for the deal If rollover has been disallowed for a product you cannot rollover deals involving the product Note For rollover to be applicable for the deal it has to be defined for the product Count You will see the rollover count in this screen For a deal that has been rolled over this count indicates the number of times it has been rolled over Tax Scheme The tax scheme which has been specified for the product will be displayed in this screen The tax scheme cannot be changed at the time of deal processing ORACLE Internal Remarks You can enter information describing the deal that you are processing This will be available when you retrieve information on the deal However this information will not be printed on any advice printed for the customer s benefit This information will be displayed whenever you retrieve information on the deal either as a display or in print 4 3 3 Schedules Tab The contract inherits the schedule details from the
44. provided two separate lists of sample accounting roles List contains accounting roles that can be set up for a Placement product List II contains samples of accounting roles that are applicable for a Borrowing product i ORACLE List Acct Roles for a Placement Product Accounting Role Description Role Type BROKEXP Brokerage Expense Expense BROKPAY Brokerage Payable Liability BROKPIA Brokerage payable in advance Asset ASSETGL Asset GL for Placements Asset FWDASSETGL GL for Future Dated Placements Contingent Asset FWDASSETOFF Offset for Future Dated Placements Contingent Liability INTERINC Fixed Interest Rate Income INTERRIA Fixed Interest Rate Liability PENL1INC Penal Int on Ovd Principal Income PENL1REC Penal Int on Ovd Principal Asset CHARGINC Common Flat Amt W o Slab Income ComponentUNRL Unrealized Income Income ROLL WASH Bridge account to wash the original Asset parent s outstanding balances to the child contract 10 4 2 List Il Acct Roles for a Borrowing Product Accounting Role Description Role Type LIABGL Liability GL for Borrowings Liability FWDLIABGL GL for Future Dated Borrowings Contingent liability FWDLIABOFF Offset for Future Dated Borrowings Contingent Asset INTEREXP Fixed Interest Rate Expense INTERPIA Fixed Interest Rate Asset INTERPAY Fixed Interest Payable Liability CHARGEXP Common Flat Amt W o Slab Expense F
45. residual balance when a placement with zero principal balance but with other outstanding components can be automatically liquidated The residual amount interest commission or fees will be checked against the amount that you specify The placement will be liquidated only if the pending components are individually less than or equal to the amount specified Note The amount that you specify as the residual amount is expressed in local currency For placements in foreign currencies the standard exchange rate will be picked up from the Exchange Rate Table The exchange rate that is used for conversion is defined for the product the deal involves While automatically liquidating the placement the outstanding amounts will be reversed to the accounts to which the accruals have been booked These amounts are however retained in the corresponding fields for information purposes The following are the maximum limits accepted e Foran amount with two decimals 99 99 e Foran amount with three decimals 9 999 e Foran amount with no decimals 99 999 Enter 0 if you do not wish to allow residual amounts This means that all the components should have zero balances for the placement to be marked as liquidated xs ORACLE When this amount is increased or decreased all placement meeting the conditions will be liquidated during the next Automatic Batch Update Residual Transaction Code This is the transaction code for the acc
46. s Discounted In this interest payment method the interest is deducted at the time of initiating the deal True discounted In this interest payment method the interest is calculated on the principal in a manner differing slightly from the Discounted method The interest rate is applied on the Principal instead of the Nominal as it is done in the Discounted method s ORACLE 5 3 4 5 4 To go to the Product Default Schedules screen click on the Schedules button in the Product Preferences screen Indicating the Schedule Type You can define schedules for each component for the product through the Product Default Schedules screen This involves specifying the reference date the frequency the month and date for each component Features of the Product Default Schedules Screen When creating a product in the Product Default Schedules screen you can define schedules for all deal components This involves specifying the reference date the month and the date for each component etc All deals involving the product will acquire these attributes Product Default Schedules Product Code Product Description Component Schedules 1 Of 1 E Component Refer x Frequency Unit Date Period Unit o Component You can define different repayment schedules for the different components according to your needs First of all you should specify the component for which you want to define the schedule All componen
47. the authorizer of a contract at the time of authorization The liquidation order of various components in case of auto liquidation Repayment schedules Aging analysis details such as the movement of deals from one status to another the mode of status change whether forward and reverse movements should be automatic or manual reversal or stoppage of accruals upon change of status the transfer gl upon status change the messages to be generated and the transfer days for interim schedules and maturity schedules Specifying rollover details like updating credit limit utilization on rollover for a placement tax on rollover rolling over with interest or without deduction of tax on rollover Details of interest charge and fee Other tax details like the component being taxed the type of tax and the event booking liquidation etc Upon which it is applied The accounting roles and the general ledgers for accounting purposes when an event initiation liquidation etc Takes place and the advices or messages to be generated The customer categories and customers who can be counterparty to a deal involving the product The branch and currency restrictions 42 ORACLE A deal that you enter into acquires the details specified for the product However you also need to enter information that is specific to the contract You can enter details specific to a contract in the Contract Details screen You can invoke the Money Market Contra
48. the original deal e Initiation of the new deal 7 19 ORACLE When you call such a deal for authorization the details of the liquidation of the original deal will be displayed eH ORACLE 8 1 8 2 8 2 1 8 2 2 8 Automatic Processing Introduction While discussing the various events in the life cycle of a deal we have referred to the Automatic Contract Update function that carries out these events In this chapter we shall discuss the features of this function The Automatic Contract Update function should be executed at least twice during the day once before you begin transaction related activities for the day that is as a part of the beginning of day activities and once after you have finished all the transaction related activities for the day If any transaction related activities are carried out after the function has been run as part of end of day EOD activities you have to execute it again so that the processing that may be necessitated by the transaction related activity is carried out Automatic Events in the Lifecycle of a Deal The following are the various events in the life cycle of a deal that could be carried out automatically They can be grouped into automatic events that take place Beginning of Day BOD and those that take place End of day EOD Beginning of Day Processes Below are the processes e Initiation of a deal with a Value Date in the future e Application of the appr
49. to PDO from Active status then to NAB and lastly to WRO status You can also indicate the change of GL if any when a component comes to a particular status and the messages to be generated at each status change ORACLE 8 8 3 8 8 4 8 9 Automatic Status Change A forward status change is one in which the status changes from one to the next In our example the movement from Active to PDO PDO to NAB and NAB to Write Off are all forward changes A reverse status change is one in which the status changes from one to the previous Such a situation arises when a payment is made on a placement with a status other than Active If you specify that reverse changes have to be carried out automatically the status will be changed when a payment is made on a placement with a status other than Active If you specify that reverse changes should not be automatic the status remains unchanged even if a repayment is made on the placement The status has to be changed by you through the Contract Processing function A reverse change may also become necessary when the number of days of default is increased for a product If you specify that forward changes or reverse changes have to be carried out automatically the status changes will be carried out by the Automatic Contract Update function when it is run either during Beginning of Day processes on the day the change falls due If the day on which the forward or reverse status
50. to be deleted and the user who has created it is not around to do it then you may reassign the contract to another user The newly assigned user can delete the contract Typically this situation may arise during End of Day operations when an unauthorized contract has to be deleted and the user who created it has left the office for the day You can reassign a contract only if you have sufficient access rights to do it Mis ORACLE 4 16 You can reassign a contract through the Reassign User Prior to Authorization screen You can invoke this screen by typing MMDCONRE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen is displayed below LBL_MMDCONRE_MAIN FX New Enter Query Product Code Contract Reference Current User New User Id Specify the following details Product Code Specify the product code associated with the contract that you want to reassign to a different user Select the product code from the adjoining option list Contract Reference Number Specify the reference number of the contract that you need to reassign Select the appropriate one from the adjoining option list Current User The user ID of the person who has created the contract is displayed in this field New User Specify the user ID of the person to whom you need to reassign the contract Click Ok button to save the details you entered The system will rea
51. to be done on the last working day before the holiday e f you have specified that processing has to be done only up to the System Date then the events scheduled for the holiday will be processed only on the next working day after the holiday during beginning of day processing If you have defined verification of funds for the product it will have an impact on the automatic liquidation If you specify Manual liquidation you should give specific instructions for liquidation through the Manual Liquidation screen on the day you want to liquidate the schedule Track Accrued Interest You have to specify whether the accrued interest of earlier placements that has not been paid should also be considered as the utilized amount for the purpose of credit administration You could have more than one interest type of component applicable on a product In such a case you should designate one as the main interest The following example illustrates how this concept works If you optto track accrued interest then the interest accrued on deals will be added on to the amount utilized by the customer for credit administration The utilization will be shown as the sum of the principal and the accrued interest in the reports generated by the credit administration Limits sub system Outstanding interest if any will also be shown in these reports Tax Applicable As part of the preferences that you define for a product you can specify whether
52. to the next working day or move backward to the previous working day Check against this field to indicate that security maturity date of the contract should be move forward to the next working day Move Backward The schedule date maturity date should move forward to the next working day or move backward to the previous working day Check against this field to indicate that security maturity date of the contract should be moved backward to the previous working day 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 and e schedule has been defined with a definite frequency If you check this box to cascade schedules the schedule date following the changed date will be shifted in accordance with the changed date as per the frequency If you opt not to cascade schedules even if one of the schedule dates is changed the schedules which follow will be fixed as per the original definition Move Across Month If you have chosen to move a schedule falling due on a holiday either forward or backward to the next or previous working day and it crosses over into a different month the schedule date will be moved only if you so indicate in this field If not the schedule date will be kept in the same month on the last or first working day of the month depending on whether the schedule is over the month end or the begin
53. used for creation T ORACLE 4 3 2 Contract Tab Settlement Details The contract details like the customer currency amount etc are maintained as Contract Details The Contract Details are entered in the Contract tab Customer When entering the details of a deal you should specify the customer counterparty involved in the deal The category of customers or the customers themselves that can be counterparty to a deal is defined for the product Specify the code of an authorized customer who falls into a category allowed for the product Customer Name The system displays the name of the specified customer ID based on the details maintained at Customer Maintenance level Currency When processing a deal you should specify the currency of the deal You can select any currency that is allowed for the product which the deal involves Amendment to this field will be considered a financial amendment Amount If a product has bearing or discounted type of interest you should enter the principal of the deal in this screen For a deal involving a true discounted product you should enter the face value nominal of the deal You can enter or to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million Amendment to this field will be considered a financial amendment Note that the amount which you enter would be taken to be in the currency that you speci
54. will be accordingly shifted If you do not want to cascade schedules then only the schedule which falls on a holiday will be shifted as specified and the others will remain as they were Specifying the holiday currency Liquidating back valued schedules A deal inherits the attributes defined for the product it involves However for a specific deal you can change these inherited attributes to suit your requirements and those of your customer The attributes that you can change are The liquidation of schedules that fall due before the day on which the deal is booked The liquidation mode auto to manual The change of status for a placement auto to manual or vice versa There are also some parameters you have to set for the repayment schedules for the deal They determine whether a schedule date falling on a holiday should be retained or moved and how it is to be moved if you opt for the latter They also determine whether funds have to be verified if a placement is marked with automatic liquidation 4 18 ORACLE Click Preferences to view the preferences Money Market Contract Input EX New E3 Enter Query Product Code Version Number 4 Product Description Contract Reference Number User Reference Number External Reference Number Ba Reversal Reference Number Dealer Outstanding Amount Broker Contract Schedules Rollover Preferences Holiday Treatment Track Receivable 7 gnore Holidays 7j Manual Liquidation 1 Co
55. you have specified for the deal as during the beginning of day processes If the value dated change falls on a holiday its processing and the generation of the advice will be done as per your holiday handling specifications in the Branch Parameters screen For example if you have so specified e A future dated deal with a value date as of today will be initiated and a deal advice will be generated for the benefit of the customer If any component like discounted interest tax on principal etc is liquidated on takedown an advice will be generated for each of them e Incasea change entered through the value dated changes function is due today and is executed an advice notifying the customer about the new terms of the deal will be generated e Incase a floating periodic rate that affects a deal has changed an advice notifying the customer of the new rate applicable for the deal will be generated pete ORACLE 9 1 9 1 1 9 1 4 9 Customer Correspondence Introduction Transfer of funds between parties is always confirmed and corroborated with the exchange of messages advices or receipts The MM module incorporates the generation of various notices to the parties involved in the contract into its deal processing This chapter explains the types of messages generated at each stage for each type of contract that the MM module handles Once the event is authorized you can generate various types of advices and notices a
56. 1REC PENL1 LIQD Credit CUSTOMER PENL1 LIQD Debit ASSETGL PRINCIPAL LIQD Credit CUSTOMER PRINCIPAL LIQD Debit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message 10 5 1 5 VAMB Value Dated Amendment Booking Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice 10 5 1 6 VAMI Value Dated Amendment Initiation Accounting Entries Nil Te ORACLE 10 5 1 7 10 5 1 8 10 5 1 9 Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 CAMD Contract Amendment Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 NOTC Billing Notice Generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 5 1 10 REVC Reversal Accounting Entries No accounting entries allowed for this event Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 7 ORACLE 10 5 1 11 ROLL Rollover Accounting Entries Accounting Role Amount Ta
57. 7 Cascading 5 amp eene enn 5 9 5 7 8 Ascertaining the Availability of Funds sse 5 9 5 8 Revision and Repayment Schedules sse 5 10 5 8 1 Interest Rate Revision Schedule seen 5 10 5 8 2 Specifying the Rate Revision 5 11 5 8 3 Specifying the Rate Revision 5 11 5 8 4 Repayment Schedule 5 11 5 8 5 Interest Repayment Schedules as Different from Rate Revision Schedules 5 11 5 8 6 Specifying Schedules for a Deal with a Fixed Interest Rate 5 13 5 9 Redefining 5 14 5 9 1 Authorizing a Redefined Schedule sene 5 15 5 10 Viewing Schedule Details sseee nme 5 15 5 11 Viewing Revision Schedule Details sn e 5 15 5 12 Making Manual Payments S sirrinin EE aA A AAE E EE T 5 15 5 12 1 Input of Manual Payments sse enne nnns 5 17 5 12 2 Paying T8 cete dece da Hei cue vea gne nda 5 18 5 12 3 Using the Settlements Screen 5 18 5 13 Deleting Manual Payments ssssssseeeeeee enm eene nennen ener 5 20 5 14 Reversing Manual Payments ssssssssssseeeen mener nnns 5 20 5 14 1 Saving and
58. 8 System Date Next Working Day 1 8 Schedule Amount Liquidation Amount Product Contract Settlement Message At Manual Liquidation F Annual Percentage Yield Calculation Required User Reference in Messages Maker Date Time Checker Date Time Mod No Record Status Authorization Status System Date If you specify that processing of automatic events should be done upto the System Date automatic events scheduled till inclusive of the current system date will be processed Next working day 1 You can indicate whether events should be processed till the day before the next working day when the Automatic Batch Update function is run If you do so all the events that fall on days between the current system date and the next working date will be processed Tax basis On a deal you may have to pay tax to the Government on the interest earned The tax can be paid on the basis of the following e On the liquidated amount e Onthe schedule amount For your branch you can specify the amount on which tax has to be applied in the Branch Parameters screen Accrual level To recall at the time of creating a product you specify e Whether accrual of interest is allowed for the product e The accounting entries that should be passed for the accrual event e frequency at which the accrual entries should be passed in ORACLE An MM deal will inherit the accrual frequency defined for the produc
59. 9 GE1000 GUTSHAUS 37133 RECKERSHAUSEN GERMANY WE CONFIRM HAVING TAKEN FROM YOU Principal Amount Principal Amount 99 999 00 DEM Value Date 29 DEC 97 Maturity Date 28 MAR 98 Tenor 90 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis INTEREST DEM 10 30 Euro Actual Component Value Date Account Amount CCY 99 ORACLE 9 6 Component Description Account Branch INTEREST 29 DEC 97 CORCUL GE1000 011 1 436 25 USD Interest Component 000 MMRO003 AMT 29 DEC 97 CORCUL GE1000 011 1 000 00 USD Tax amount Tag MMR003 AMT 000 PRINCIPAL 29 DEC 97 CORCUL GE 1000 01 1 59 041 50 USD Principal Amount 000 OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 28 MAR 98 INTEREST 2 433 00 DEM PRINCIPAL 99 999 00 DEM SETTLEMENT DETAILS Component Dr Cr Br Account CCY INTEREST P 000 CORCUL GE1000 011 USD MMRO03_AMT 000 CORCUL GE1000 011 USD PRINCIPAL R 000 CORCUL GE1000 011 USD PRINCIPAL_LIQD P 000 CORCUL GE1000 011 USD Advice Generated for the Initiation of a Placement INITIATION ADVICE FOR A PLACEMENT MM PLACEMENT 04 ae ORACLE Transaction Date 29 DEC 97 Our Reference No 0003P0497 3630002 User Reference No TC8 US1009 516 W 34 St New York NY 10001 WE CONFIRM HAVING PLACED WITH YOU Principal Amount Principal Amount 12 000 000 00 AUD Value Date 29 DEC 97 Maturity Date 01 JAN 98 Tenor 3 DAYS INTEREST FEE DETAILS
60. 97 and for the second time on 31 December 1997 for the period from 1 July 1997 to 31 December 1997 Indicating Values to be Rekeyed during Authorization Specify the values that the authorizer of an MM deal has to rekey at the time of authorization All operations on a deal input modification reversal manual liquidation or manual rollover have to be authorized e By auser other than the one who carried out the operation e Before you can begin the end of day operations When you invoke a deal for authorization as a cross checking mechanism to ensure that you are calling the right deal you can specify that the values of certain fields should be entered before the other details are to be displayed The complete details of the deal will be displayed only after the values to these fields are entered This is called the rekey option If no re key fields have been defined the details of the deal will be displayed immediately once the authorizer calls the deal for authorization The re key option also serves as a means of ensuring the accuracy of inputs You can specify any or all of the following as re key fields e Currency e Value Date e Contract Amount e Maturity Date Specifying Tenor Related Details You can set the minimum and maximum tenor limits for a product that you are creating You can also set a default tenor This is the tenor that is normally associated with a deal involving the product However the de
61. Active Liquidated Status Elapsed Days The number of days elapsed since counterparty confirmation is pending Amount The money market deal amount Currency The deal currency Maturity Date The date on which the deal would attain maturity 11 5 Overdue Schedules Report You can invoke the Overdue Schedules Report by typing MMRPOSCH in the field at the top right corner of the Application tool bar and click the adjoining arrow button Overdue Schedules Report Selection Criteria Product Type Value Date Borrowing From Value Date To Date Product Code Contract Currency Schedule Date From Date Customer mnm Report Format Printer At Client Report Output Printer Product Type Select the product type from the adjoining drop down list From Date Specify a valid date from when you wish to generate the report from the adjoining calendar To Date Specify a valid date till when you wish to generate the report from the adjoining calendar Product Code Specify the product code from the adjoining option list Contract Currency Specify the contract currency from the adjoining option list Customer Specify the customer number whose details are required in the report You can select the customer number from the option list Ws ORACLE 11 5 1 Schedule Date From Date Specify a valid date from when you wish to generate the report from the adjoining calendar To Date Specify
62. BAY D N ROAD FORT BOMBAY 400 001 a ORACLE 9 3 INDIA To Lucy King 23 Upperway Old Avenue WE CONFIRM THAT A MM PLACEMENT 04 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW BOOKING DATE 29 DEC 97 VALUE DATE 29 DEC 97 MATURITY DATE 01 JAN 98 CALCULATION METHOD Actual 365 AMOUNT 12 000 000 00 AUD THE BROKERAGE INFORMATION DETAILED BELOW VALUE DATE 29 DEC 97 METHOD ADVANCE AMOUNT 25 000 00 USD WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICATE AUTHORIZED SIGNATORY Advice Generated for the Roll over of a Placement ROLLOVER ADVICE FOR A PLACEMENT MM PLACEMENT 04 Transaction Date 01 JAN 98 Our Reference No 0003P04983630002 User Reference No TC8 US1009 516 W 34 St New York NY 10001 pe ORACLE THE CONTRACT HAS BEEN ROLLED OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount 12 000 000 00 AUD Principal Amount 12 000 000 00 AUD Value Date 01 JAN 98 Maturity Date 04 JAN 98 Tenor 3 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis SUBJECT TO CHANGE Transaction on Initiation Component Value Date Account Amount CCY INTEREST 01 JAN 98 BNKCUL US1009 017 8 798 75 USD MM INT PLACEMENTS 000 YOUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 04 JAN 98 a ORACLE 9 4 INTEREST 13 315 50 AUD PRINCIPAL 12 000 000 00 AUD Component Dr Cr Br Account CCY INTEREST R 000
63. BNKCUL US1009 017 USD MMR002 AMT 000 BNKCUL US1009 017 USD PRINCIPAL P 000 BNKCUL US1009 017 USD PRINCIPAL INCR P 000 BNKCUL US1009 017 USD PRINCIPAL LIQD R 000 BNKCUL US1009 017 USD Advice Generated for the Roll over of a Borrowing ROLLOVER ADVICE FOR A BORROWING Money market borrowing 08 Transaction Date 31 JAN 98 Our Reference No 000MB08980010001 User Reference No TC51 GB1003 Endsleign Court 24 Upper Woburn Place London WC1H OHA THE CONTRACT HAS BEEN ROLLED OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount 10 000 000 00 GBP Principal Amount 10 046 916 25 GBP ae ORACLE Value Date 31 JAN 98 Maturity Date 01 MAR 98 Tenor 30 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis SUBJECT TO CHANGE Transaction on Initiation Component Value Date Account Amount CCY OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 01 MAR 98 INTEREST 53 331 75 GBP PRINCIPAL 10 046 916 25 GBP SETTLEMENT DETAILS Component Dr Cr Br Account CCY INTEREST 000 BNKCUF GB1003 018 GBP PRINCIPAL R 000 BNKCUF GB1003 018 GBP 9 7 ORACLE 9 5 PRINCIPAL_INCR R 000 BNKCUF GB1003 018 GBP PRINCIPAL_LIQD P 000 BNKCUF GB1003 018 GBP Advice Generated for the Initiation of a Borrowing INITIATION ADVICE FOR A BORROWING Money market borrowing 07 Transaction Date 29 DEC 97 Our Reference No 000MB07973630001 User Reference No TC2
64. ER_ROLL Debit INTER_REC INTER_ROLL Credit ASSETGL PRINCIPAL_LIQD Credit CUSTOMER PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Debit ASSETGL PRINCIPAL_LIQD Credit CUSTOMER Interest Component LIQD Debit Interest componentREC Interest Component LIQD Credit ROLL WASH PRINCIPAL ROLL Debit ASSETGL PRINCIPAL ROLL Credit ROLL WASH Interest Component ROLL Debit Interest componentREC Interest Component ROLL Credit Advices Advice Name Description LD ROLL ADV Rollover Advice 10 5 5 MM Borrowing with Fixed Bearing Interest The preferences set for this product are as follows e payment type for this product is of Bearing type e Forward dating is allowed for the product 10 5 5 1 BOOK Booking a Borrowing with fixed bearing interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FWDLIABGL PRINCIPAL FWD Credit FWDLIABOFF PRINCIPAL FWD Debit 10 16 ORACLE Advices Advice Name Description MMBRKCON Broker Confirmation MMCONDEP MM Borrowing Confirmation MM DEAL SLIP Deal Slip SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message 10 5 5 2 INIT Initiation of a Borrowing with fixed bearing interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FRTAXC_EXP FRTAXC_AMT Debit FRTAXC_PAY FRTAXC_AMT Cr
65. F screen If you change the Main Interest details the changed values will be applied on the deal along with the specifications for the other components fee charge etc defined for the product If you want to change the details for any other ICCF component you have to invoke the Contract ICCF screen by clicking on the ICCF button and make the changes there Rate Type The rate type applicable for the product involved in the deal will be displayed It can be one of the following e Fixed a fixed interest rate e Floating rate an interest rate that changes periodically or automatically as per your specifications in the Floating Rate Table e Special an amount instead of a rate Floating Rate Code If a Floating Rate Code has been specified for the product involving this deal it will be displayed in the screen You can change it to suit the needs of this specific deal 4 14 ORACLE Spread For a deal with a floating interest rate you can specify the Spread that you want to apply over the rate maintained in the Floating Rates table 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 involved in the deal 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
66. If you have not specified the order of liquidation for the principal and the interest type of components the amount will be allocated for liquidation in the following order e Penalty interest if one has been applied e Interest e Principal Note If a payment that covers both past and future schedules is made the system will force you to pay out the past schedules before the future schedules are paid If an ICCF component is based on the outstanding principal you will not be able to make a payment where the amount is more than what is due for the component as of the system date 9 ORACLE 5 12 2 5 12 3 In the Contract Schedule payment screen you have a set of icons using which you navigate to the following screens Settlements Click to go to the Settlement Message Details screen Tax Click to see the Tax details screen Advices Click to see the Advices screen You can suppress advices using this screen Breakup Click to view the Schedule Breakup screen Events Click to view the Events screen Paying Tax When there are taxes charged on the interest etc the payment of the component will always include the corresponding tax amount If the payment does not include the full amount due the proportional tax amount must be liquidated You should input the total amount to be applied to the component The system then calculates the corresponding tax amount based on the tax rate
67. LE 11 4 11 4 1 Elapsed Days The number of days elapsed since broker confirmation is pending Amount The money market deal amount Currency The deal currency Maturity Date The date on which the deal would attain maturity MM Counterparty Confirmation Pending Counterparty confirmation pending report provides details of deals that are pending for counterparty confirmation To generate the report type MMRPCPON in the field at the top right corner of the Application tool bar and click the adjoining arrow button Money Market Counterparty Confirmation Pending Report ReportFormat PDF Printer At Client Report Output Print Printer Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the report is as follows Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report Reference The reference number of the deal for which counterparty confirma Number tion is pending Counterparty The unique ID of the counterparty linked to the deal Name The name of the counterparty Tis ORACLE Contract The status of the deal like To be Initiated
68. LIQD_PY Credit ComponentUNRL Component_LIQD_CY Debit ComponentlNC Component LIQD CY Credit If the interest has been collected in advance the following entries are passed Accounting Role Amount Tag Dr Cr Indicator ComponentUNRL Component LIQD PY Debit ComponentINC Component_LIQD_PY Credit ComponentUNRL Component_LIQD_CY Debit ComponentINC Component_LIQD_CY Credit When the Amount Tag is of type component_LIQD_PY and 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 In case a contract spans over multiple years any event Back dated Rate revision Princi pal Change etc back dated booking of contract etc which causes the accrual balances ofthe previous year to be recomputed the accrual entries will be posted to the current year unrealized income and expense GL only 10 20 ORACLE 11 1 11 2 11 2 1 11 Reports in Money Market Module Introduction Reports provide details of various events in the life of a specific contract or across contracts at a specific point of time For every module in Oracle FLEXCUBE you can generate reports This chapter details out the reports that you can generate from Money Market module of Oracle FLEXCUBE You can generate the following report for the Money Market module MM Brokerage Details Thi
69. Manual e Status Control Auto Manual e Exposure Category e Risk Free Exposure Amount e Internal Remarks e Demand Basis e Schedule Details e Settlement Details The amendments of the following fields are considered as financial amendment e Currency e Counterparty e Amount e Booking Date oa ORACLE e Value Date e Cr Dr Branch Code e Cr Dr Account Number e Holiday Currency e Commitment Revolving Non revolving e Maturity Type e User Input Maturity Date e Broker Note In case the request is a financial amendment then the contract is reversed and rebooked If itis non financial amendment then the normal amendment procedure is followed and version number is changed each time the contract is amended In case of financial amendment Settlement Instructions requires a special handling Note Note the following Ifthe request received has settlement details then the values sent as part of the upload should be uploaded If Settlement Details are not sent then the details corresponding to the parent con tract will be copied to the child contract if they are not specified at the time of cre ation However if the SGEN message is already generated then financial amendment upload is not allowed 99 ORACLE 6 6 Authorization of Changes To authorize the value dated changes you have to invoke the authorization screen by selecting Authorise option in the Application t
70. ORACLE Money Market User Guide Oracle FLEXCUBE Universal Banking Release 12 0 2 0 0 Part No E49740 01 October 2013 Money Market User Guide October 2013 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 2013 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 dangerous
71. Prioritizing the Liquidation of Components If you have defined automatic liquidation for the product you can specify the order of liquidation of the various components which have e schedules that fall due on the same day and e the same repayment account You can specify the order in which you would like to liquidate components in the Component Liquidation Order screen Component Liquidation Order Product Code Product Description Liquidation Order 1 Of 1 E Component Liquidation Order For a contract defined with manual liquidation of components the Liquidation Order will be considered when a payment has to be automatically distributed among the various outstanding components For a contract with automatic liquidation the order of liquidation becomes important when funds are insufficient in the repayment account on the day of liquidation and more than one component has a schedule falling due on that day Under such circumstances you may want to allot priority to the recovery of certain components For example you may want to recover the interest or interest type of components first and then the principal The aging analysis function takes over once a component is overdue and an appropriate penalty is applied For a component on which penalty interest has been applied you may wish to recover penalty interest first the interest next and finally the principal Note You can specify the liqu
72. RTAX1 PAY Tax payable role forFRTAX1 Liability FRTAXS PAY Tax payable role for FRTAXS Liability ComponentREAL Realized Income Income The component is the ICCF component that you have created 10 3 ORACLE Note In the accounting roles listed above the prefixes INTER Interest PENL Penalty BROK brokerage CHARG Charge FRTAX1 Tax and FRTAXS are ICCF components The suffixes stand for AQP Acquired interest payable AQR Acquired interest receivable EXP Expense PAY Payable PIA Payable in advance REC Receivable RIA Received in advance 10 5 Event wise Accounting Entries and Advices In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life cycle of an MM deal Samples of accounting entries advices and events have been given for four different types of MM deals They are e MM Placement with True Discount Interest e MM Borrowing with Fixed Discounted Interest e MM Placement with Fixed Bearing Interest e MM Borrowing with Fixed Bearing Interest Also note that some of the Amount Tag s linked to the Accounting Roles are user defined 10 5 1 MM Placement with True Discounted Interest The preferences set for this product are as follows e The payment type for this product is of True Discounted type e Forward dating is allowed for the product e Brokerage is not payable 10 5 1 1 BOOK Boo
73. Revision All Types 14 REVP Reversal of Payment All Types 15 STCH Status Change Place ments 16 VAMB Value Dated Amendment Booking All Types 17 VAMI Value Dated Amendment Initiation All Types 10 1 ORACLE 10 3 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE Amount Tag Description PRINCIPAL Principal Amount PRINCIPAL_DECR Decrease in principal on amendment PRINCIPAL_FWD Forward takedown amount PRINCIPAL_INCR Increase in principal on amendment PRINCIPAL_LIQD Principal Amount Liquidated PRINCIPAL_ROLL Principal Amount Rolled over PRINCPAL_XFWD Principal Amount Reclassified PRINCPAL_XREV Principal Amount Unclassified ROLLOVER_AMT Rollover Amount component_LIQD_CY Current year Unrealized accrual amount for a com ponent component LIQD PY Previous year Unrealized accrual amount for a com ponent INTEREST gt The outstanding interest will be stored in a bridge OLL account PRINCIPAL ROIN This is the principal of the rollover child contract It equals the amounts of PRINCIPAL ROLL and INTEREST gt ROLL PRINCIPAL ADDL The incremental Principal amount that has to be paid to borrower in a Loan rollover In addition to these you can define amount tags as per your requirements for interest and charges that will be attached to the product 10 4 Accounting Roles In this section we have
74. SAGE Payment Message 10 5 3 5 VAMB Value Dated Amendment Booking Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice 10 5 3 6 VAMI Value Dated Amendment Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL INCR Debit CUSTOMER PRINCIPAL INCR Credit 10 14 ORACLE 10 5 3 7 10 5 3 8 10 5 3 9 10 5 4 Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 CAMD Contract Amendment Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 NOTC Billing Notice Generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVC Reversal Accounting Entries No accounting entries allowed for this event Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 15 ORACLE 10 5 4 1 ROLL Rollover Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER_LIQD Debit INTER_REC INTER_LIQD Credit ASSET GL INT
75. The Automatic Contract Update function executed as part of the MM Batch Daily routine automatically liquidates schedules that you have marked for auto liquidation If schedules are marked for manual liquidation you will have to liquidate them through the Contract Schedule Payments function Once you specify the attributes of schedules in the Product Preferences screen the default schedules which you want applied to the deals involving the product and are specified through the Product Schedules screen At the time of deal processing you can change the schedules which have been inherited by the deal to suit your needs If the interest specified is an amount and not a rate Special type of Interest you should enter this amount for the interest component You should specify the number of schedules for the component interim schedules and maturity schedule You can give the Start Date Frequency and Unit afresh or let the details inherited from the product remain a ORACLE 5 3 5 3 1 Note If schedules are not defined for the product then the borrowings or placements under it will have bullet or balloon schedules by default That is all the components will be liqui dated on maturity Since for a money market deal the principal is always repaid at Maturity you need not define a schedule By default the principal will have a bullet schedule Setting Product Schedule Preferences You should define the attributes o
76. User Manual may refer to all or some of the following icons Icons Function Ed Exit Add row Delete row EE Option List Related Documents You may need to refer to any or all of the User Manuals while working on the Money Market module e Core Services e Core Entities e Deposits e Procedures e Products e Settlements e Interest e Charges and Fees e Tax e User Defined Fields 12 ORACLE 2 1 2 An Overview of the Money Market Module Introduction The Money Market module of Oracle FLEXCUBE is versatile and efficient With it you can handle all kinds of placements and borrowings whether Call Notice or Terms of varying tenors interest types and interest payment methods The module is efficient in that it automates processing accounting and messaging of deals captured in your dealing room system Automatic Deal Upload The corner stone of this module is the Deal Upload facility With this facility you can automatically upload the deals captured in your dealing room system On upload you can enrich the deals with additional information relating to accounting and messaging such as interest accrual brokerage tax rollover customer advice generation details etc This information determines how deals are handled by the automatic processes that you execute Processing thus requires minimal manual intervention and is efficient Architectural Advantages
77. acts 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 If the action code is AMND Oracle FLEXCUBE will first check whether the contract exists in the system or not If the contract does 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 it is a new contract or if it is 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 CAMD event The same event is triggered even when you make the amendment in the MM Contract Online screen The fields that can be amended for the Money Market module are as follows e Verify Funds For Principal e Verify Funds For Interest e Verify Funds For Penalty Amount e Verify Funds e Holiday Currency e Holiday Months e Move Forward e Move Payment Schedules e Move Revision Schedules e Move Disbursement Schedules e Receivable tracking Parameters e Liquidation Auto
78. against the transaction limit amount maintained for the product if the contract currency is different from the transaction limit currency The payment becomes effective only after authorization To authorize click Authorize icon on the Application toolbar You should enter the Reference number the value date of the payment and the amount paid The payment details are displayed along with the overrides and authorization is sought If you choose not to authorize the manual payment the authorization screen is dismissed You cannot authorise a manual payment in the following cases e contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen 9221 ORACLE e transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen im ORACLE 6 1 6 2 6 Making Interest Rate Changes Introduction Any change to the terms of a Money Market deal which affects its financial deta
79. age amount is collected Advance Arrears ie ORACLE 11 3 11 3 1 Status The status of the brokerage Outstanding Liquidated NO of Deals The number of deals linked to the specific broker Total The total liquidated brokerage amount Liquidated Total The total Outstanding brokerage amount Outstanding MM Broker Confirmation Pending Report Broker confirmation pending report provides details of deals that are pending for broker confirmation To generate the report type MMRPBRCF in the field at the top right corner of the Application tool bar and click the adjoining arrow button Money Market Broker Confirmation Pending Report ReportFormat PDF Printer At Client Report Output Print Printer Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the report is as follows Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report Reference The reference number of the deal for which broker confirmation is Number pending Broker The unique ID of the broker linked to the deal Name The name of the broker Tig ORAC
80. ails sss 7 8 7 4 Processing of Rolled over MM em 7 9 7 5 Rolling over a Deal 7 10 7 6 Advices for a Rolled Over Deal sssssseene emen 7 10 7 7 Authorizing a Manual Rollover sesse eene 7 10 Automatic Processitg eso sie ee 8 1 ST Introduction o e qe cet betonte 8 1 8 2 Automatic Events in the Lifecycle of a 8 1 8 2 1 Beginning of Day Processes 8 1 8 2 2 End of Day 5 5 nennen nnn 8 1 8 3 Specifying Branch Parameters aoea RA AA emere rennes 8 2 8 4 Initiating the Automatic Contract Update Function 8 5 8 4 1 Processing During Beginning of 8 6 8 4 2 Processing During End of Day 8 6 8 4 3 Processing for Holidays sse eene 8 6 8 5 Initiating a Future Value Dated Deal eese 8 6 8 6 Processing an Automatic 8 7 8 6 1 Advices Generated for a
81. ainst the boxes positioned before each deal reference number e If all the deals that are displayed have to be authorized check against the box positioned before Contract Ref No After selecting the deals click Authorize to authorize the deals Viewing the Errors If the system encounters any errors during the authorization of a particular deal it will record the error and move on to the next contract Among the deals selected for authorization there may be certain deals which are created by the user who is authorizing As the maker and checker cannot be same system will record an error as it cannot authorize the deal Errors in Authorization Authorized Errors Contract Reference Error Messages Click View Error to view the details of the errors recorded In this screen system will display the reference number of the deals which could not be authorized and the reason for the failure of deal authorization Viewing the Settlement Details The settlement account details of each deal will be displayed in the Settlement Instructions screen Click on the contract for which you want to view the settlement details and it will be displayed in the Settlement Instructions section For each amount tag the following settlement details are displayed e Settlement account e Currency of the settlement account e Settlement account branch e Payable or Rece
82. an 3 the system will NOT display an override message If you apply an exchange rate on a contract involving MMO1 that varies from the Standard Rate by between 3 and 6 the system will display an override message If you apply an exchange rate on a contract involving MMO1 that varies from the day s rate by more than 6 the system will not store the contract Note The exchange rate variance is a percentage Indicating Holiday Treatment The schedule or maturity date of a contract might fall on a local holiday defined for your branch or on a holiday specified for the currency involved in the contract Therefore you need to specify how the system should handle holidays Ignore Holidays You have defined automatic repayment schedules but there is a chance that one or more schedules may fall due on a holiday In such a case you have two choices e Ignore the holiday and retain the schedule date on that day e Move it either backward or forward by specifying so the subsequent fields in this screen Check this box if you wish to ignore holidays at the time of drawing up schedules ORACLE Currency The movement of schedule date or maturity date will be based on the holiday treatment that you specify for the currency you specify here Move Forward If you have indicated that a currency holiday should not be ignored for the contract you need to specify whether the schedule date maturity date should move forward
83. associated product However you can change at the contract level Click Schedule to view modify the details Money Market Contract Input save Product Code Version Number _4 Product Description Contract Reference Number User Reference Number External Reference Number Reversal Reference Number Outstanding Amount Source Dealer Broker Contract Schedules Rollover Preferences Explode Contract Schedules 10711 Type Component StartDate Number Frequency Contract Linkages 10f1 gt M Pe ees 1 Maker Checker Date Time Date Time Contract Status Authorization Status Refer to the chapter the Processing Repayment in this User Manual for details 4 19 ORACLE 4 3 4 Rollover Tab The rollover details are maintained at the product level You can however modify them at the time of entering a deal Click Rollover to view change the rollover details Money Market Contract Input H Save M Hold Product Code Product Description Source Dealer Broker Contract Schedules Rollover Rollover Amounts Rollover Amount Special Amount Treat Special Amount As Daily Refinance Rate Preferences Preferences Principal Principal Interest Principal Interest Tax Rollover Amount Liquidation Amount Maximum Rollover Amount
84. ate whether a single new contract must be created for the rolled over amount or whether the original contract must be split into multiple contracts or consolidated with other contracts into a single new contract when rolled over using the rollover operation Accordingly select any of the options Normal Split or Consolidated in this field as applicable Rolling over a Contract Manually You can roll over a deal manually through the Rollover Details screen If a deal has to be rolled over e latest activity on the deal has to be authorized e It should be past its maturity date and e t should not have been liquidated Two activities take place when a deal is rolled over e The original deal is liquidated and e Anew deal is initiated However the Reference Number of the renewed or rolled over deal will be the same as that of the old deal Specifying the Maturity Details The Maturity Type which you have specified for the old deal will apply to the deal being rolled over by default However you can change the Maturity Type through this screen If the maturity type is to be changed you have to specify the new Maturity Type for the rolled over or renewed deal It could be This type of deal has a fixed Maturity Date For a deal with a fixed matu Fixed rity date you enter the changed date on which the deal should be liqui dated Call The Maturity Date is not fixed The deal can be liquidate
85. ation e The base number of the counterparty customer e currency of the contract e The principal amount for a deal with True Discounted interest you should enter the nominal e credit line under which the placement has to be tracked e The tenor related details for the deal e The code of the broker involved e The dealer involved e default settlement account e maturity details e related reference number if any e The interest details e Whether the deal can be rolled over e The status of the placement if it is to be changed manually The following details are displayed They cannot be changed Ta ORACLE 4 3 1 e Product type e Default tax scheme e Schedule payment method e Interest type e Rollover count Entering Deal Details Enter values into all the mandatory fields and save the deal details Reference number The Contract Reference Number identifies the deal It is automatically generated by the system for each deal It is a combination of the branch code the product code the date on which the deal is booked in Julian format and a running serial number for the booking date The Reference Number consists 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 Here YY stands for the last two digits of the year and DDD for the number of day s that has
86. ation MM_DEAL_SLIP Deal Slip SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 12 ORACLE 10 5 3 2 INIT Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL Debit CUSTOMER PRINCIPAL Credit FWDASSETGL PRINCIPAL_FWD Credit FWDASSETOFF PRINCIPAL_FWD Debit FWDASSETGL PRINCIPAL_FWD Debit FWDASSETOFF PRINCIPAL_FWD Credit ASSETGL PRINCIPAL_ROIN Debit ROLL_WASH PRINCIPAL_ROIN Credit ASSETGL PRINCIPAL_ADDL Debit CUSTOMER PRINCIPAL_ADDL Credit Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 3 3 ACCR Interest Accrual Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERINC INTER_ACCR Credit INTERREC INTER_ACCR Debit PENL1INC PENL1 ACCR Credit PENL1REC PENL1 ACCR Debit PENL2INC PENL2 ACCR Credit PENL2REC PENL2 ACCR Debit Advices No advices allowed for this event 10 13 ORACLE 10 5 3 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER LIQD Debit INTERREC INTER LIQD Credit PENL1REC PENL1 LIQD Credit CUSTOMER PENL1 LIQD Debit CUSTOMER PENL2 LIQD Debit PENL2REC PENL2 LIQD Credit ASSETGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MES
87. attributes each time you input a deal involving the product These general attributes however can be changed at the time of processing a deal Besides these general attributes which a deal inherits from a product and which can be changed for it there are the specific attributes which you have to define for the deal e The counterparty customer details e deal amount e deal currency e repayment account for the deal and so on Capturing Deal Details The capture of disbursement details of an MM deal involves inputs to the following screens e Contract Details screen e Contract Preferences screen e Contract Schedule Definition screen e Contract Rollover screen You can invoke the Contract Details screen from the Application Browser by typing MMDTRONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Once in the Contract Details screen you will see four other sections each representing a Screen Section Screen Preferences Contract Preferences screen Schedules Contract Schedule Definition screen 1 ORACLE 4 3 Rollover Contract Rollover screen Linkages Contract Linkages screen Features of the Contract Details screen Every product that is created in your bank is endowed with certain general attributes A deal that you enter into acquires the general attributes defined for the product i
88. aturity Date All the schedules that are beyond the new Maturity Date will be advanced to the new Maturity Date The amount of other components interest commission or fee that are dependent on the tenor of the deal will be recalculated and spread equally over the rest of the repayment schedules for these components e When the Principal is increased the increased amount is added on to the last principal schedule Other components interest commission or fee that are dependent on the principal of the deal will be recalculated and spread equally over the rest of the repayment schedules e When there is a prepayment of interest and you have defined recalculation of schedules on repayment There may be some situations wherein you would want to redefine the schedules i e you may want to change the payment dates or amounts In such cases you can change the schedules by invoking the Contract Input screen and going to the Schedule Redefinition Screen by clicking on the Revision Details button If you click the redefinition button on the schedules screen all the schedules with today s date or a date in the future will be erased and you will be allowed to enter a new set of schedules To redefine a schedule for only one component highlight the schedule and make the changes If the schedules have already been authorized then you will have to make the changes through the Modify function After making the changes you can save the redefined sched
89. automatic processes are to be carried out only till System Date today s date the deal slated for initiation on the holiday will be initiated on the next working day immediately after the holiday during beginning of day processing Allow Rollover You should specify whether a deal involving the product you are defining can be rolled over into a new deal if it is not liquidated on its Maturity Date If you specify that rollover is allowed for the product it will be applicable to all the deals involving the product However atthe time of processing a specific deal involving this product you can indicate that rollover is not allowed However if you specify that rollover is not allowed for a product you cannot rollover deals involving the product The terms of the rolled over deal can be the same as those of the original deal or they can be different If the terms should be different they should be specified during deal processing Allow Brokerage You can specify whether brokerage should be applied on deals involving this product If brokerage is specified for the product you can waive it for specific deals but if you have specified that brokerage is not applicable to the product you will not be able to levy brokerage on a specific deal involving the product Consider Brokerage for Discount You can check this option if the component is to be considered for discount accrual on a constant yield basis Note This option will
90. ays and 28 or 29 for February The schedule repayment dates will be computed using the Frequency Start Month and the Start Date A schedule date e should be later than or the same as the Value Date e It cannot be beyond the Maturity Date ORACLE 5 5 Period Unit You need to specify the unit for the interest period The available options are as follows e Days e Months e Years Defining Repayment Schedules The payment schedules defined for a product will apply to all deals involving the product When you process a deal in the Contract Schedules screen the details defined for the product which the deal involves will be displayed You can change the schedules that a deal acquires when processing it in the the Money market Contract Input screen Schedules tab MMDTRONL You can redo the schedules defined for the product by clicking on Schedules in the Money market Contract Input screen The schedules that have not been liquidated and which fall due on the current system date or later than the current system date will be erased and you can go on to define the new repayment schedules Money Market Contract Input EX New E3 Enter Query j Product Code Version 4 Of 3 Product Description Contract Reference Number User Reference Number External Reference Number Source Reversal Reference Number Dealer Outstan
91. be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday will be processed on the next working day after the holiday during beginning of day processing If you have defined that the deal be liquidated manually you cannot roll it over automatically When a deal is rolled over or renewed for the interest commission charge or fee components it can assume the following attributes e Those of the product involving the deal being rolled over e Those of the original deal itself ORACLE 8 8 1 8 8 2 You can specify this at the time of deal processing of the old deal Advices for Rollover When creating a product you can opt to generate an advice that you would intimate your customer that a deal involving her has been rolled over or renewed This specification will apply to all deals involving the product refer chapter on product definition However for a particular deal you can suppress this advice If an advice for renewal of the deal has been specified it will be generated during BOD processing Automatic Status Changes A placement that is yet to reach a repayment date or on which repayments are being made regularly will be considered as having a Active status When a repayment is not done on the schedule date you may want to do aging analysis for the placement If you have specified statu
92. be enabled only if brokerage applicable is Yes Pay Past Schedules You have to indicate whether for a backdated deal that has schedules prior to today s date those schedules have to be liquidated when the deal is initiated A back dated deal is one which has a Value Date initiation date falling before the date on which it is booked For example a money market deal can be initiated as of today a date in the future or as of a date in the past Today s date is 15 October 1997 Suppose you initiate a deal of 15 000 USD today with the Value Date date on which the deal comes into effect as 15 September 1997 the system will pass accounting entries for initiation as of 15 September 1997 But if there had been an interest payment schedule for 30 September 1997 for 500 USD and then if you specify that back values schedules should be liquidated you can make the system pass accounting entries to liquidate this schedule also when the deal is initiated If you specify that back dated schedules are not to be liquidated only accrual entries will be passed till today Please note that 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 as ORACLE 3 2 4 3 2 5 Intra day deal Deals having the same Maturity and Value Date are known as Intra day deals You will be able to captur
93. change is due happens to be a holiday then the processing depends upon your specifications in the Branch Parameters screen e lf you have specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the events falling on the holiday will be processed during end of day on the last working day before the holiday e lf you have specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday are processed on the next working day after the holiday during beginning of day processing If you specify that the forward or reverse changes should not be carried out automatically the status remains unchanged till you specifically change itfor a placement through the Contract Processing function At the time of processing a placement you can change the automatic mode of status change you have specified for the product to the manual mode or vice versa However this will apply to all status Advices to be Generated for a Status Change You can specify that an advice is to be generated to inform the customer about the status change of the placement You can also specify the kind of advices to be generated You can generate advices when the placement components move forward from one status to the next to notify the
94. chedule it would exclude both the Value Date as well as the end date of the schedule No interest would be calculated for the Value Date For all other schedules it would exclude the end date No interest would be calculated for the Maturity Date This option would work similar to the Include From Date option that is interest would be calculated for the period between the start date including the start date and the end date excluding the end date of the schedule 4 11 ORACLE 4 3 2 5 Remarks You can enter information describing the deal that you are processing This will be available when you retrieve information on the deal However this information will not be printed on any advice printed for the customer s benefit This information will be displayed whenever you retrieve information on the deal either as a display or in print Specifying the Tenor Booking Date The date on which the deal details are entered would be displayed in this screen This defaults to the system date today s 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 Amendment to this field will be considered as a financial amendment Value Date This is the date on which a deal takes effect The accounting entries for the initiation of the deal will be passed as of this date The tenor of the deal will begin from this date and all calculations f
95. count 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 e placement amount would be drawn down e repayment for all the components would be done e Fora borrowing all repayments be made to this account If Settlement Instructions have been defined for the customer the settlement accounts will be picked up from those instructions While entering the deal details you can change the Settlement Instructions for the deal Note If a settlement account has been specified in the settlement instructions for the customer and a different account has been specified for the deal the account specified for the deal will take precedence T ORACLE Credit Account Description The system displays the description of the specified credit account number based on the details maintained at Customer Account Maintenance level Debit Account Description The system displays the description of the specified debit account number based on the details maintained at Customer Account Maintenance level Counterparty Account Description The system displays the description of the specified counterparty account number based on the details maintained at Customer Account Maintenance level Dealer When processing a deal you must specify the code of the dealer The dealers are maintained in the Dealer
96. counting entries In keeping with its flexible design Oracle FLEXCUBE offers you the option to process maturities manually Rolling Over Deals The Money Market module provides an extensive feature for rollover of contracts on maturity The rollovers could be with or without interest with the option to net withholding tax on rollover Tracking and Retrieval of Information The interface with the Limits module ensures online counter party exposure tracking The module gives you a better handle over your Money Markets portfolio by constantly providing you with real time and relevant information for efficient asset liability and maturity management During the day or end of the day you may want to retrieve information on any one of the several operations that were performed at your bank This information can be generated in the form of reports The following are some of the reports that you can generate for the Money Markets module e Contract schedules and maturities report e Forward contracts report e Value dated amendments report e Contract events report e Contract retrieval report oe ORACLE Memo accrual control journal Accrual control journal Accrual control journal summary Activity journal ORACLE 3 Defining the Attributes of a Money Market Product 3 1 Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Money Market product You can
97. ct Input screen by typing MMDTRONL the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Money Market Contract Input E 5 Enter Query Product Code Version Number 4 Of Product Description Contract Reference Number User Reference Number External Reference Number Source Reversal Number Dealer Outstanding Amount Broker Ims Schedules Rollover Preferences Customer Number Interest Period Basis Include From Date z Customer Name Payment Method A mM j 3 Schedule Type Local Cu Equi ani tease meny ar Contract Derived Status e Remarks Settlement Details Dates and Maturity Debit Branch Trade Date Debit Account Original Start Date Debit Account Description Booking Date Credit Branch Value Date Credit Account User Maturity Date Credit Account Description Maturity Date Liquidation Auto Notice Days Manual Intra Day E Rollover Allowed Yes F ener T Maturity Type Fixed No Notice Call Rounding Details Reporting Details Rounding Required Reporting Currency Roundina Rule Truncate zl Reporting Amount m lt 2 Holiday Currency Events Brokerage Effective InterestRate ChangeLog RevisionDetails Settlement Split Maker Checker Date Time Date Time Contract Status Authorization Status You need to enter the following inform
98. d anytime ORACLE 7 4 The deal will be liquidated at a certain period of notice The number of days of notice should be specified in this screen This is only for informa tion purposes Whenever a report is generated on a notice type of deal the notice days will be mentioned on it For a deal with notice type of maturity you have to enter the Maturity Date once the notice is issued to the counterparty customer Notice For a deal maturing at notice enter the notice period in days in this field This is only for information purposes Whenever a report is generated on a notice type of deal the notice days will be mentioned on it For a deal with notice type of maturity you have to enter the Maturity Date once the notice is issued to the counterparty customer Processing of Rolled over MM Contract As you may recall in case of contract roll over you can create a new child contract and link it to the parent contract In such cases on saving the child contract the system triggers the BOOK event on the child contract and the RAMD event on the parent As a result the instruction status of the child contract gets updated as Complete During the linkage between child and parent the system will update the special amount field of the parent contract with the contract amount of the child contract When a child contract is reversed without the linked parent being rolled over the system will t
99. day then only the events scheduled for the system date the last working day before the holiday will be processed The events that fall due on the holiday will be processed on the working day immediately following the holiday during beginning of day processing Initiating a Future Value Dated Deal A future dated deal is one that has a Value Date that is later than the date on which it is booked The Automatic Contract Update function will initiate the deal on the Value Date of the deal during BOD processing If there were holiday s preceding today future dated deals that were dated for the holiday s will also be initiated if you have specified that events falling on a holiday should be processed on the next working day All the initiation related entries specified for the product that the deal involves will be passed automatically If currency conversions are involved the conversion rates as of today will be picked up from the Currency Table If for some reason a deal scheduled for initiation today is not initiated it will be reported in the Exception Report generated during EOD processing s ORACLE 8 6 8 6 1 For a future dated deal falling due today if there is also a rate change today the interest amounts are also recalculated for the schedules Processing an Automatic Repayment For deals that have been defined with automatic liquidation of repayments the liquidation will be carried out by the Automa
100. ding Amount Broker Schedules Rollover Preferences Customer Number Interest Period Basis Include From Date Customer Name Payment Method x Schedule Type g cs Scheme DEAE CANTER ENO Contract Derived Status run Remarks Settlement Details Dates and Maturity Debit Branch Trade Date Debit Account Original Start Date Debit Account Description Booking Date Credit Branch Value Date Credit Account User Maturity Date Credit Account Description Maturity Date Liquidation Auto Notice Days Manual Intra Day E Tenor Rollover Allowed Yes F Se 5 Maturity Type Fixed No E Notice Call Rounding Details Reporting Details C Rounding Required Reporting Currency i Roundina Rule Truncate i Reporting Amount 4 2 Holiday Currency Events Brokerage Effective InterestRate ChangeLog Revision Details Settlement Split Checker Date Time Date Time Authorization Status Contract Status The attributes of the schedules inherited from the product can be changed for a deal through the Contract Preferences screen 9o ORACLE 5 6 Setting Deal Schedule Preferences Schedule preferences are the attributes of the repayment schedules defined for the deal The attributes that have been defined for the product are inherited by all deals involving the product Some of these attributes can be changed They are e The liquidation of schedules that fall
101. done to the extent of funds in the account If this is the case The payment schedules for those components which have not been liquidated or which have been partly liquidated will be left outstanding Aging analysis on such borrowings will be carried out as specified for the product and an appropriate penalty applied The component s for which funds are available will be liquidated in the order you specified in the Liquidation Order screen Here in you may have allotted priority to 9 ORACLE 5 8 5 8 1 the recovery of certain components For example you may have specified that you would like to recover the interest commission and fees first and then the principal If the liquidation order is not specified for the components then it will be liquidated in the following order 1 Penalty Interest if this has been applied 2 Interest 3 Principal If availability of funds need not be ascertained and the liquidation results in the account going into a debit balance e Allthe components will be liquidated only if you have allowed overdraft for the repayment account The schedules for the components will be liquidated to the extent of the debit balance that you have allowed If the overdraft exceeds the debit balance allowed the liquidation will be done with an overdraft override that is automatically recorded e the repayment account that has a debit balance the debit interest as specified for the type
102. due before the day on which the deal is booked e The liquidation mode auto to manual Click Preferences to specify an additional set of schedule related attributes Money Market Contract Input E New Enter Query Product Code Version 4 Product Description Contract Reference Number User Reference Number External Reference Number Reversal Reference Number Outstanding Amount Source Dealer Broker Contract Schedules Rollover Preferences Holiday Treatment Track Receivable Ignore Holidays E Manual Liquidation E Consider Branch Holidays Partial Manual Liquidation Cascade Schedules Automatic Liquidation Move Across Months Loan Statement 7 Move Payment Schedules TL Cycle Annual Move Revision Schedules Of Holiday Currency Statement Type None Move Forward Detailed Move Backward Summary Others Settlement Message Generation Details C Liquidate Back Valued M Settlement Message Schedules Generation Required pet Holiday Currency Events Brokerage EffectiveInterestRate ChangeLog Revision Details Settlement Split Messages Interest Charges Tax MIS Fields Advices Maker Checker Date Time Date Time Contract Status Authorization Status How liquidation dates falling on holidays should be handled e Whether schedule dates should be cascaded in case you have indicated that they schedule dates be moved f
103. e in the system If the details of an incoming message match with an existing deal in the system then confirmation will happen The system will trigger the CONF event for the respective deals 18 ORACLE 10 Annexure A Accounting Entries and Advices for 10 1 10 2 the M Accounting entries for Money Market M Module This section contains details of the suggested accounting entries that can be set up for the MM module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise MM Events The following is an exhaustive list of events that can take place during the lifecycle of an MM contract In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below NS mid Event Description Remarks 1 BOOK Booking a contract Mandatory All Types 2 INIT Takedown or Initiation Mandatory All Types 3 ACCR Accrual Mandatory for products with interest pay All Types ment frequency 4 LIQD Liquidation Mandatory All Types 5 CONF Confirmation of contract All Types 6 CAMD Amendment All Types 7 NOTC Billing Notice Generation Place ments 8 ROLL Rollover execution treated as a liquidation new All Types booking 9 REVC Reversal Mandatory All Types 10 REAS Reassign User All Types 11 RESD Reversal of Residual Accrual All Types 12 REVC Contract Reversal All Types 13 REVN Rate
104. e intra day deals only if you have indicated that the product for which you are specifying preferences is meant for intra day deals Multiple Penalty Components This is applicable only after the expiry of grace days If this option is checked you will be able to define multiple penalty components with grace days for each component If the payment is done after the due date penalty will be applied Specifying Exchange Rate Variance When a deal involves a currency conversion the standard rates defined for the currency will be picked up by default This default can be changed for specific deals You can impose some restrictions on the changed rate as follows Normal variance If the exchange rate variance exceeds the standard exchange rate specified for the currency the system will ask you for an override before proceeding to apply the exchange rate Maximum variance You cannot apply an exchange rate on a deal involving the product that you are creating that is greater than the value that you specify as the Maximum Variance If the exchange rate variance exceeds the standard rate by the value that you specify as the maximum variance the system will not allow you to store the contract For example you have specified the normal variance as 3 and the maximum variance as 6 for Product MM01 Now if you apply an exchange rate on a contract involving 1 that varies from the applicable rate maintained for the day by less th
105. e of interest has been defined enter the new rate code Spread Enter the new spread here Interest Amount Enter the new interest amount Acquired Interest If the deal was already initiated when it was input the interest amount that has been accrued should be entered here The amount will be taken into account by the system during the next liquidation cycle You can make changes to the acquired interest through this screen Waiver The attributes of an interest component that have been defined for a product will be applied on a deal involving the product If for some reason you do not want to apply the interest oe ORACLE 6 3 6 4 component for the deal you are processing you can do so by checking this field The interest will be calculated but it will not be applied on the deal Note For back valued changes in interest rate the system will take corrective action Accruals will be redone till the last accrual date Also in case of a back valued change the value date should not be beyond the last liquidation date Settlement instructions If you want to make changes to the Settlement Accounts and the currency conversion rates you will have to invoke the Contract Input screen and go to the Settlements screen by clicking the Settlements button settlement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing
106. e to be carried out only till System Date today s date notices slated for generation on the holiday will be generated on the next working day immediately after the holiday during beginning of day processing If the number of days is increased the system checks for deal with a payment date between the old and the new number of days and will send a billing notice If the number of days is decreased the system will check to see if a notice has been sent already to avoid duplication If not it will send the notice Automatic Rollover of a Deal A Rollover is renewal of a deal For a deal to be rolled over it e Should be past its Maturity Date e Should not have been liquidated If you have specified automatic liquidation and automatic rollover for a deal the old deal will be liquidated and a new one initiated on the Maturity Date of the deal during the BOD Beginning of Day run of the Automatic Contract Update function If the Maturity Date falls on a holiday then the liquidation and the rollover will be processed as per your holiday handling specifications in the Branch Parameters screen e f you specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the last working day before the holiday e lf you have specified that processing has to
107. edit LIABGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit FWDLIABGL PRINCIPAL_FWD Debit FWDLIABOFF PRINCIPAL_FWD Credit Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 5 3 ACCR Accrual of interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTEREXP INTER_ACCR Debit INTERPAY INTER_ACCR Credit Advices No advices allowed for this event 10 17 ORACLE 10 5 5 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERPAY INTER_LIQD Debit CUSTOMER INTER_LIQD Credit CUSTOMER PRINCIPAL_LIQD Credit LIABGL PRINCIPAL_LIQD Debit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 PAYMENT_MESSAGE Payment Message 10 5 5 5 VABM Value Dated Amendment Booking Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice 10 5 5 6 VAMI Value Dated Amendment Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator LIABGL PRINCIPAL_INCR Credit CUSTOMER PRINCIPAL_INCR Debit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 5 7 CAMD Amendment Accounting Entries Nil ORACLE 10 5 5 8 10 5 5 9 10 5 6 Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335
108. en However you can change it to one of the following Fixed The deal has a fixed Maturity Date This date should be specified in the screen Call The Maturity Date is not fixed The deal can be liquidated any time The deal will be liquidated at a certain period of notice The number of days Notice of notice should be specified in the screen For a deal with a Fixed Maturity this date can either be postponed or advanced through the Value Dated Changes function once the deal has been initiated Amendment to this field will be considered a financial amendment Te ORACLE 4 3 2 2 4 3 2 3 Notice Days For a contract maturing at notice you should enter the notice period in days This is for information purposes only When the notice to repay is issued to the counterparty you should indicate the Maturity Date of the deal using value dated amendment screen Liquidation When setting up a product you specify the mode of liquidation whether automatic or manual for the different components of a deal By default all deals 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 deal Indicating the Rounding Details You can maintain the rounding parameters for rounding off or truncating amounts at the contract level The contract level parameters will be applied for the following e Contract A
109. en through the MMAUTDLY batch e Linked Contract In this mechanism a new MM deal will be created manually and linked to the parent deal On the maturity date of the parent contract the contract will get liquidated into a rollover wash GL and the new contract that was input will get initiated automatically You can select Linked Contract only in case you have checked the option Auto for rollover Rollover Method If you have indicated the rollover mechanism applicable for contracts using the product in the Rollover Mechanism field as Spawn Contract you can use this field to indicate whether a single new contract must be created for the rolled over amount or whether the original contract must be split into multiple contracts or consolidated with other contracts into a single new contract when rolled over using the rollover operation Accordingly select any of the options Normal Split or Consolidated in this field as applicable Specifying Contract Rollover Details By default a contract that is marked for rollover will be rolled over with all the terms of the original contract However you can change certain terms by specifying them in the Rollover tab of the Money Market Contract input screen To invoke this screen type MMDTRONL ORACLE in the field at the top right corner of the Application tool bar and click the adjoining arrow button Contract Online New t Pr
110. ency number and the date of first repayment When the system computes the repayment dates based on these values there is a chance that one or more schedules fall due on a holiday In such a case you have two choices e Ignore the holiday and retain the schedule due date or e Move it either backward or forward by specifying so If you specify that holidays are to be ignored the schedule dates will be fixed without taking the holidays into account In such a case if a schedule date falls on a holiday the processing of such a schedule is determined by your holiday handling specifications for automatic processes in the Branch Parameters screen e f you have specified that processing has to be done on the previous working day for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the previous working day e f you have specified that processing has to be done only up to the System Date then only the events scheduled for the System Date will be processed The events of the holiday are processed on the next working day during beginning of day processing Moving Schedules Forward or Backward A schedule date falls on a holiday and you have not specified that holidays are to be ignored at the time of schedule definition In such a case you should indicate the movement of the schedule date forward or backward to the next working day or the pr
111. enter the new maturity date here Maturity Date If the Maturity Type is fixed that is the Maturity Date of the deal is known when the deal is initiated specify the Maturity Date This date should be later than the Start Date of the product If the product has a Default Tenor this date will be defaulted based on the tenor and the From Date of the contract If you change this date you should give an override when you save the deal For a deal with Call or Notice type of maturity the Maturity Date is not entered at the time of deal booking You can get this date updated through value dated amendment This date should be later than the Start Date of the product If the product has a Default Tenor this date will be defaulted based on the tenor and the From Date of the contract If you change this date you will have to give an override when you store the deal If you have specified auto liquidation for the deal liquidation will be done automatically on that date If manual liquidation has been specified you will have to manually liquidate the deal through the Manual Liquidation function For a deal with Fixed Maturity Type this date can either be extended or brought backward through the Value Dated Changes function once the deal has been initiated Indicating the Reporting Details Amount The system displays the amount Outstanding Amount The system displays the total amount due as of the value date Specifying the settlement ac
112. es e Matures contracts due for maturity e Rolls over deals according to your specifications and e Automatically generates the specified messages and advices Using Oracle FLEXCUBE you can process money market deals with fixed floating or period interest rates and with a variety of interest application methods You can also define bullet schedules for all components Oracle FLEXCUBE allows you to define brokerage on a cumulative or slab basis for each currency or currency pair You can automate liquidation of brokerage according to the preferences defined for your broker The transfer of funds between parties is always confirmed and corroborated with the exchange of messages advices or receipts When defining a product in the MM module you can specify the advices and messages that should be generated at different events such as interest liquidation and rollover in the life cycle of deals involving it Once an event defined for message generation occurs in a deal the system automatically generates the advices or notices in the media that you specified You can configure the format and the contents of the advices to suit you requirement Settling Money Market Deals All scheduled component and maturity settlements are handled automatically in Oracle FLEXCUBE by calling the Settlement and Messaging sub systems Further you can generate online all payment transfer messages to correspondent banks together with related settlement ac
113. etion of manual payments and e Reversal of manual payments The manual payments made through this function can be e Scheduled payments which are due e Payments which are made prior to a scheduled payment date these are called prepayments and they can be made even if the deal has been defined for automatic liquidation of components e Back value dated payments The value date for such payments cannot be earlier than the most recent schedule that was due If there is more than one schedule outstanding and you want to assign the value date of each schedule payment you should enter the liquidation of each schedule separately The value date you have entered will be used for all the entries generated by the system 9 16 ORACLE 5 12 1 Input of Manual Payments Once you enter the deal reference number in the Contract Schedule Payments you will see the following details displayed on the screen e Counterparty Name e currency of the deal e Status of the borrowing e total outstanding amount as of the value date the date on which the payment is being made and the deal version The Value Date here is the date on which the liquidation entries will be passed When you enter a Value Date in this screen if there are any payments due on that date they will be displayed and you can liquidate them If there are no schedules due on that date the schedule becomes a prepayment But this is only if the Value Date is
114. evious working day respectively Since the schedule date itself is moved to a working day the payment will be processed on the day it falls due as of that day Moving Schedule Dates Across the Month If you have chosen to move a schedule falling due on a holiday to the next working day or on the previous working day and it crosses over into another month the schedule date will be moved only if you so indicate If not the schedule date will be kept in the same month 958 ORACLE 5 7 5 5 7 6 5 7 7 5 7 8 Specifying the Holiday Currency You can specify the country of the deal currency for which the holiday table should be checked before drawing the payment schedules related to the deal In case a schedule falls on a holiday and you have specified that the schedule be moved forward or backward the movement happens according to the holidays in this country By default the currency to be checked is the deal currency If a currency other than this is specified the holiday table will be checked for both the currencies Specifying the Mode of Liquidation When creating a product you specify the mode of liquidation whether automatic or manual Your specifications will apply to all deals involving the product Through the Contract Preferences screen you can change the mode of liquidation for the deal that you are processing from automatic to manual or vice versa Cascading Schedules The question of cascadi
115. f day on the last working day before the holiday e Ifyou have specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday will be processed on the next working day after the holiday during beginning of day processing The accrual and income accounts will be picked up based on your definition in the Chart of Accounts An Accrual Control Journal is generated by the Automatic Contract Update function reporting the details of the accruals performed For a placement on which there is a default in payment you can specify that aging analysis should be done This analysis involves the change of status of a deal When the status is changed you can also specify that the accruals on the deal should be stopped For such deals the accrual entries will not be passed they will only be calculated and reported in the Accrual Control Journal under Memo Accruals Contents of the Accrual Control Journal The memo accrual function will give you the latest accrual amounts for all components of a live deal without actually passing the accrual entries The memo accrual function generates the Memo Accrual Control Journal that reports the accrued amounts for the various components of the deal like interest commission charge or fee that are due on each deal as of the current system date Interest Rate Revisio
116. f the deal and at the same time you do not have to apply the market rates on a daily basis You can specify whether the latest market rates have to be applied every time they change or if they have to be applied periodically by defining an attribute called the Rate Code Usage through the Product ICCF Details screen for a floating interest type If you specify auto rate code usage all the rate changes made during the liquidation or accrual period will be ORACLE 5 8 2 5 8 3 5 8 4 5 8 5 considered If you specify periodic rate code usage the rates will be periodically refreshed and the rates as of a specific frequency or date will be applied For a deal that has been defined with Periodic Interest that has to be applied at periodic intervals you can specify the following e frequency at which the periodic rate change has to be applied e dates on which the periodic rate change has to be applied Specifying the Rate Revision Frequency In the MM Contract Schedules screen select the component for which the Rate Revision frequency has to be defined say INTEREST 1 Check the Rev box Revision Box to indicate that it is a rate revision schedule Next enter your specifications in the frequency it could be daily weekly etc the number and unit fields Also give the Start Date on which the first revision has to take place For example if you specify the frequency as weekly the revisi
117. f the schedules for a product through the Preferences screen Preferences Product Product Description Preferences Accrual Payments v Frequency Automatic Liquidation Start Month Track Accrued Interest Start Date Tax Applicable Forward Dating Allowed Allow Rollover Allow Brokerage Pay Past Schedules Prepayment Penalty Intra day Deal Minimum Default Maximum Unit Rate Variance Multiple Penalty Normal Components Maximum Authorization Rekey Fields Holiday Treatment Currency Cascade Schedules Value Date Holiday Currency Contract Amount Ignore Holidays Maturity Date Move Across Month Schedule Movement Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days Mode of Liquidation Components of a deal can be liquidated automatically or manually In the Product Preferences screen you should indicate whether the mode of liquidation of repayment schedules is to be automatic Specify Auto liquidation if you want the components of a deal involving a product to be liquidated automatically If you so specify a schedule will be automatically liquidated on the day it falls due during beginning of day processing by the Automatic Contract Update function Now consider the following situation e You have indicated automatic liquidation e The schedule date falls on a holiday and e You have specified through the contract preferences screen
118. fault tenor applied on a deal can be changed during its processing ORACLE Minimum You can set the minimum tenor for the product here The tenor of the deals involving this product should be greater than or equal to the tenor you have specified here Only the number is specified here Maximum You can fix the maximum tenor of the product here The tenor of the deals or commitments involving this product should be less than or equal to the tenor you have specified here Only the number is specified here Default You can specify the default tenor of the product here This default tenor applies to all deals involving the product but you can change it at the time of deal processing Only the number is specified here The unit days months etc is specified in a subsequent field For example you have a Weekly Borrowing product This product is for borrowings from customers for a maximum duration of one week For such a product you can set a minimum tenor of one day and a maximum tenor of one week You can also define a default tenor for the product of say one week This tenor will be applicable to all the deals involving the product if you do not specify any tenor at the time of its processing Unit In the minimum maximum and default tenor fields you set the duration numerically Here you specify the unit of the duration It could be e Days e Months or e Years For example to define the default tenor in the Default te
119. ferent then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user You cannot authorise a contract from the Money Market Contract Input screen in the following cases e contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e level of authorization is greater than or equal to N e Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen n ORACLE 5 1 5 2 5 Processing Repayments Introduction When you make a money market deal you also decide on the terms of the repayment of the placement or borrowing You may have your own repayment schemes for example you may prefer monthly repayments of interest o
120. fy as the deal currency On saving the transaction after entering all the required details in the system the system validates the value of the contract amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user Line By default you will view the placement credit line defined for the customer You can change over to another authorized credit line if you want to track the placement under a different line During an upload the credit lines for the given Counterparty Product Branch Currency combination are fetched by the system If there is only one credit line available the system will display it here If there are multiple lines found the field will be left blank Local Currency Amount If the deal amount is in foreign currency the system displays the equivalent local currency amount v2 ORACLE Trade Date This is the date on which the deal is agreed with the counterparty trade date cannot be modified once authorized The system will display error messages under the following cond
121. fying Accrual Details Apart from the principal you can have other components for a deal The other components of a deal could be the interest charge or fees and they can be accrued over the tenor of the deal before being realized into the income or expense account The attributes of these other components are defined the ICCF sub system of Oracle FLEXCUBE For components that have been marked for accrual you need to indicate accrual details Frequency Define the frequency at which you would like to accrue the components The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly When you run the Automatic Contract Update function at the end of day the system carries out the accruals according to the frequency that you specified However if the accrual date falls on a holiday then the accruals will be done as per your holiday handling specifications in the Branch parameters screen That is e f you have specified that automatic events are to be processed for a holiday s on the working day before the holiday the accruals falling due on a holiday s will be processed during end of day processing on the last working day before the holiday e f you have specified that the automatic events are to be processed for a holiday s on the working day following the holiday the automatic events falling due on a holiday s will be processed on the next working day during the beg
122. g Dr Cr Indicator PENL1REC PENL1 LIQD Credit CUSTOMER PENL1 LIQD Debit CUSTOMER PRINCIPAL LIQD Debit ASSETGL PRINCIPAL LIQD Credit CUSTOMER PRINCIPAL LIQD Debit ASSETGL PRINCIPAL LIQD Credit CUSTOMER Interest Component LIQD Debit Interest componentRE Interest Component LIQD Credit C ROLL WASH PRINCIPAL ROLL Debit ASSETGL PRINCIPAL ROLL Credit ROLL WASH Interest Component ROL Debit L Interest componentRE Interest Component ROL Credit C L Advices Advice Name Description MM ROLL ADV Rollover Advice SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 2 Borrowing with Fixed Discounted Interest The preferences set for this product are as follows e The payment type for this product is of Discounted type e Forward dating is allowed for the product e Brokerage is not payable 108 ORACLE 10 5 2 1 BOOK Booking a Borrowing with fixed discounted interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHARGEXP CHARG Debit CUSTOMER CHARG Credit FWDLIABGL PRINCIPAL_FWD Credit FWDLIABOFF PRINCIPAL_FWD Debit Advices Advice Name Description MMBRKCON Broker Confirmation MM DEAL SLIP Deal Slip SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message MMCONDEP MM Borrowing Confirmation 10 5 2 2 INIT Initiation of a Borrowing with fixed discounted interest Accounting
123. h has been specified for the product will be displayed in this screen The tax scheme cannot be changed at the time of deal processing Payment method The payment method defined for the main interest for the product whether bearing discounted or true discounted applies to the contract as well The method defined for the product is displayed here Bearing Interest is liquidated on schedule payment date s 4 19 ORACLE Discounted In this interest payment method the interest is deducted at the time of initiating the deal True discounted In this interest payment method the interest is calculated on the principal of the deal and not on the nominal All the same like the discounted method here too it is deducted from the principal at the time of initiation of the deal Derived Status This is the status of deal you are viewing A deal bears any of these statuses e Used e Not used e Cancelled e Closed e Rejected e Reversed e Stopped Schedule Type If you have defined repayment schedules for a product they will be applied to a deal involving the product automatically However you can change the schedules while processing a deal under the product When a deal for which the repayment schedules were changed is rolled over the new deal can have the repayment schedules defined for the product or the schedules for the deal Interest Period Basis You need to indicate how the system must consider the tenor basis upon
124. has the following impact when the rollover is carried out Specification Treatment Auto liquidation and The old deal will be liquidated and a new one initiated on the auto rollover Maturity Date of the deal during the BOD Beginning Of Day run of the Automatic Contract Update function If the Maturity Date falls on a holiday then the liquidation and the rollover will be processed as per your holiday handling specifications in the Branch Parameters screen If you specified in the Branch Parameters screen that pro cessing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liq uidated during end of day processing on the last working day before the holiday If you specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events falling on the holiday will be processed on the immediate working day after the holiday during beginning of day processing Auto liquidation of The old deal will be liquidated automatically on the Maturity principal and man Date If the deal has to be rolled over the rollover instructions ual rollover should be specified for the deal before the Maturity Date If the contract has not been liquidated because of lack of funds in the repayment account yo
125. he deal The rollover parameters are explained in detail in the section Features of the product rollover details screen The following are the features of the contract rollover screen 7 3 1 Special Rollover Amount When you roll over a deal you can roll over e The outstanding principal of the deal e outstanding principal and the outstanding interest together or e Anamountthatis different from the total of the outstanding principal and the outstanding interest This is a special amount The special amount is e Less than the outstanding principal interest This is because the amount by which it is less is liquidated against the interest and principal of the old deal and the rest is rolled over e special amount can never be more than The outstanding principal interest of the old deal The outstanding principal If it is then you will have to initiate a new deal 7 6 ORACLE Treat Special Amount As If you specified that the principal of the new loan is meant to be a special amount you also have to indicate the manner in which the special amount is to be treated You can choose any one of the following options e Rollover Amount e Liquidation Amount e Maximum Rollover Amount e Ignore The amount that is rolled over will depend on the treatment that you specify You can choose not to treat the special amount in a specific manner by choosing to ignore this option R
126. he difference in the amounts will be debited from the customer account and a payment message will be sent to the customer indicating the same for the child contract In the MM confirmation message field 23 of the message will be populated as ROLL for the Child Contract i ORACLE 7 5 7 6 7 7 Rolling over a Deal Manually You can roll over a deal manually through the Rollover Details screen If a deal has to be rolled over e latest activity on the deal has to be authorized e lt should be past its maturity date and e t should not have been liquidated Choose Rollover from the Processing sub menu of the Application toolbar when the deal you want to rollover is highlighted in the Contract Summary screen or Contract Detailed screen By default the deal will be rolled over with the same terms as the original deal However you can change certain terms through the Rollover Details Screen e You can apply on the renewed deal the interest charge and fee applicable to the product of the old deal or if these have been changed for the old deal you have the choice of applying the changed terms for ICCF components only of the old deal to the rolled over deal e Youcan change the Maturity Type fixed call or notice the Maturity Date and in case of a notice type of maturity you can change the notice days Two activities take place when a deal is rolled over e The original deal is liquidated and e Anew dea
127. ice is to be generated to intimate the customer every time a payment has been liquidated This will apply to all deals involving the product refer chapter on product definition However for a particular deal you can suppress this advice If a repayment advice has been specified for a deal it will be generated by the Automatic Contract Update function when you run it at the beginning of day ORACLE 8 7 8 8 Generation of Billing Advices A billing notice or advice can be generated for the benefit of the customer as a reminder that a payment on a placement is due When defining a product you can specify the number of working days before the repayment date when a billing notice is to be generated The notice is generated as part of the Automatic Contract Update function when you run it at the beginning of day The billing advice is generated for the mail medium This notice will be generated for repayment of all components If you have specified that a notice is to be generated on a certain day and it happens to be a holiday then the notice is generated depending on your holiday handling specifications in the Branch Parameters screen e If you have specified that automatic processes are to be carried out up to the next working day the notices slated for generation on the holiday will be generated during end of day processing on the last working day before the holiday e If you have specified that the automatic processes ar
128. idation order for all the interest type of components and the prin cipal Specifying Grace Days to Penalty The grace period specifies the period within which the penalty interest if one has been defined for the product will not be applied even if the repayment is made after the due date This period is defined as a specific number of days and will begin from the date the repayment becomes due 14 ORACLE 3 2 9 1 Penalty interest will be applied on repayments made after the grace period and will be calculated for the entire period it has been outstanding that is from the date the payment was due For example an interest repayment on a borrowing deal is due on 15 June 1998 You have specified a grace period of 5 days after which a penalty interest of 2 will be imposed Now if the customer makes the interest payment on 18 June which falls within the grace period he she will not have to pay penal interest But if the customer makes the payment after the expiry of the grace period that is after 20 June then he she will be charged penal interest It will be calculated from 16 June onwards and not from 20 June If the payment is made within the grace period normal interest will be applied as of the scheduled repayment date Grace Days for Multiple Penal Components If your bank has chosen to have multiple penal components you can define grace days in days months or years to be applicable for each level Pena
129. ide will be displayed If the payment messages have been generated then the Cancellation request messages REVSWIFT will be generated At the branch parameters maintenance the option User Ref No in Messages should be checked The user reference number and the external reference number of the parent contract number will be copied to the new contract Deletion of the new contract will delete the reversal of the parent contract and set the value of user ref number and external ref number in the parent contract from the child contract Authorization of the new contract will authorize the parent contract It will not be possible to delete or authorize the reversal of the parent contract reference number without deleting or authorizing the child The Confirmation message of the parent message will be suppressed if the counterparty of the parent contract and the current contract are the same In case the counterparty of the parent and child are the same then in case the parent contract is confirmed then the child will also be marked as confirmed If the parent is not confirmed then it will be marked as confirmed and the incoming confirmation will be matched with the child contract Viewing the Other Details of a Deal Using the buttons that are displayed in the Contract On line screens you can view the following details of a deal e settlement details e The tax details e The advices that you can suppress or prioritize e The MIS
130. ils and the accounting entries can be made through the Value Dated Changes function of Oracle FLEXCUBE Through this function you can make changes to authorized deals on any day before the Maturity Date of the deal The changes to the terms of a deal notified through this function take effect on a date referred to as the Value Date That is why the changes brought about by this function are called Value Dated Changes A Value Date could be e Today e A date the future e A date in the past Using the Value Dated Changes function you can make changes to the various components of a deal like the interest rate or amount You can also change the Maturity Date and the Credit Line to which the deal is linked In addition to changing the values in certain fields you can enter a value into a field which was not used when you captured the disbursement details For example you may not have specified a fee at the time of deal input Using the Value Dated Changes function you can specify the fee so that the fee entries are passed on the Value Date When you make a value dated change only the accrual entries will be passed by the Value Dated Changes function All the other accounting entries are passed by the Automatic Contract Update function The Value Date is the date on which the changes that are going to be defined will take effect This can be a date earlier than today today or a date in the future If the value date is a date
131. in the past it should not be beyond the following dates for any component e Last payment date e Last schedule date Also a value date in the future cannot be beyond the Maturity Date of the deal If it has to be beyond the Maturity Date of the deal you have to first postpone the Maturity Date of the deal so that your proposed future value date falls before the new maturity date Only after this change is authorized can you fix a value date in the future for the deal The system defaults to today s date In the Application Browser click MM Under this you will see MMVD Amendments Click on this and the Value Dated Amendments screen will be displayed Enter the reference number of the deal to which you want to make amendments The main details of the deal will be displayed in the screen Navigating to the schedule definition screen The schedule changes which have come about as a result of value dated changes can be done through the Value Dated Amendments screen For example if the schedule change has 6 1 ORACLE 6 2 1 6 2 2 6 2 3 come about following a change in the maturity date or the interest rate you have to do this through this screen Click Schedules in this screen Changing the maturity date Enter the new Maturity Date in the screen When you change the Maturity Date of a deal e If you have advanced the Maturity Date the schedules falling due after the new Maturity Date will be redefined to the
132. inning of day processing Start Month In the case of monthly quarterly half yearly or yearly accruals you should specify the start month from which the accruals have to be done x ORACLE 3 2 2 3 2 3 Start Date Specify the date on which the accruals have to be done For example if you specify the date as 30 and have selected the month as January accruals will be carried out on the 30th January according to the frequency that you have defined If you want to fix the accrual 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 accruals 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 accrual date as the last day of the month then the accruals 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 accrual frequency If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date For example if you specify the frequency as half yearly the start date as 31 and the start month as June the system will accrue interest for the first time on 30 June 1997 for the period from 1 January to 30 June 19
133. ired You need to indicate whether the SGEN has to be issued for the deal You need to opt for Settlement Required option if you check this box If not checked the payment message will not be generated for the contract Demand Basis Indicate whether the demand amount is based on SGEN or on billing notice e f demand basis is SGEN then the system will liquidate the SGEN amount e If the demand basis is Billing Notice the system will liquidate the Notice amount Modifying a Placement or a Borrowing There are two types of modifications that you can make on a contract e Those that affect the financial details of the contract e Those that do not affect the financial details of the contract Financial details include the accounting entries that have already been passed or the advices that have already been generated For example the changes made to the User Reference Number Auto Rollover and Auto Liquidation flags do not result in changes to the accounting entries that have been passed However the inputs to some fields that contain financial information can be changed only under specific circumstances This is done through the Value Dated Changes function For example the changes in the interest rate increase in the principal etc can be made only through the Value Dated Changes function A deal on which the previous activity has been saved but not been authorized can be modified For example you have captured the de
134. irmation message is MT330 is generated The format of the messages depends on the type of deal entered into The contents of the messages are taken from the Contract Input screen 1 F01ANBKUSWAXXXX4 111111111 2 1324RU1000SWXXXXN 4 20 000MB05993630002 21 000MB05993630002 22 MATURITY ANBKWAO0015RU10SW 30 991229 32R 000101GBP 10000000 34P 000215GBP177610 5 97F 15 ADVANCE 12 ORACLE 9 9 Deal Confirmation Matching Oracle FLEXCUBE allows you to match deal confirmation To do this you need to invoke the Jobs Browser screen by typing CSSJOBBR in the field at the top right corner of the Application Browser and clicking the adjoining arrow button T Advanced Search 9 Reset Job Module Process Status Records 15 First Previous 4 or 1 Last al Job Module ocess Process Sequence Number Stat Stop Status Specify the following details Job Module Select MS from the adjoining drop down list Process Specify PR AUTO MT100 FT MAN as the process Click Start to run the job After running the Job system will process the incoming message and match the following details with those of the existing deals in the system e Counterparty e Book Date e Value Date e Currency e Amount e Maturity Date e Notice Days in case of notice deal e Interest rate Incoming messages MT320 and MT330 will be availabl
135. is rolled over with only the main interest that is outstanding The main interest is that interest component which you specify as the main interest in the ICCF Product Details screen this will be displayed in the Contract Main screen Other interest components and the penalty interest if any will not be rolled over Deduct Tax on Rollover When a deal is initiated tax is applied on the principal of the deal Now when this deal is rolled over or renewed you have two choices depending on the tax laws of your Government e Apply tax on the principal outstanding principal outstanding interest or only the outstanding principal depending on your specifications of the new deal or e Since the principal of the old deal has already been taxed once you can choose to waive the tax on the principal of the rolled over deal However if this principal has the outstanding interest from the old deal incorporated then only this portion will be taxed This option applies only to tax on principal and not to tax on interest This field assumes importance only if e for principal as well as interest has not been waived on the old deal e Tax has not been waived on the rolled over deal 74 ORACLE 7 3 If this tax is not waived for the old deal it will be applied on the new deal if it is waived on the old deal it will not be applied on the renewed deal Specify Deduct Tax on Rollover if tax on the old deal has to be liquida
136. itions e Trade date is greater than current system date e Trade date is holiday as per the deal currency e Trade date is blank e Trade date is later than the value date e Trade date is earlier than the product start date Booking Date The date on which the deal details are entered would be displayed in this screen This defaults to the system date today s 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 Amendment to this field will be considered a financial amendment Value Date This is the date on which a deal takes effect The accounting entries for the initiation of the deal will be passed as of this date The tenor of the deal will begin from this date and all calculations for interest and all the other components based on tenor will be made from this date onwards The system defaults to today s date You can enter a Value Date of your choice here The date that you enter can be any one of the following e Today s date e A date in the past e A date in the future you can enter a date in the future only if Future Dating has been allowed for the product The Value Date should not be earlier than the Start Date or later than the End Date defined for the product involved in the deal In case of a child rolled over contract this value will be the same as the maturity date of the parent contract If the liquidation date for any c
137. ivable e Ordering Institution e Ordering Customer ORACLE e Beneficiary Institution e Ultimate Beneficiary Note The settlement details for the latest event of the deal will be displayed Settiement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing BAN Account Number jaz Settlement Details El Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code les zs II Settlement Direction D Debit C Credit Component Description Signature Verification 4 14 4 Viewing the Details of the Deal The details of the unauthorized deals can be viewed by double clicking on the deal reference number in this screen In case of money market deals the screen that is displayed on double clicking a deal depends on the stage of the deal that is unauthorized e If booking initiation or deal amendment is not authorized the Contract Online screen is displayed e fa payment of a deal is unauthorized the Payment screen is displayed e favalue dated amendment is unauthorized the Value Dated Amendment screen is displayed 4 15 Reassigning a Contract to Another User Normally an unauthorized contract can be deleted only by the user who has created it If a contract has
138. king Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHARGINC CHARG Credit CUSTOMER CHARG Debit FWDASSETOFF PRINCIPAL_FWD Credit FWDASSETGL PRINCIPAL_FWD Debit 10 4 ORACLE Advices Advice Name Description MM_DEAL_SLIP Deal Slip SWIFT_MESSAGE MT320 MT330 MT335 MT350 PAYMENT_MESSAGE Payment Message MMCONPLA MM Placement Confirmation 10 5 1 2 INIT Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERRIA INTER_LIQD Credit CUSTOMER INTER_LIQD Debit ASSETGL PRINCIPAL Debit CUSTOMER PRINCIPAL Credit FWDASSETGL PRINCIPAL_FWD Credit FWDASSETOFF PRINCIPAL_FWD Debit FWDASSETGL PRINCIPAL_FWD Debit FWDASSETOFF PRINCIPAL_FWD Credit ASSETGL PRINCIPAL_ROIN Debit ROLL_WASH PRINCIPAL_ROIN Credit ASSETGL PRINCIPAL_ADDL Debit CUSTOMER PRINCIPAL_ADDL Credit Advices Advice Name Description MM_CONT_ADV Contract Advice 108 ORACLE 10 5 1 3 Interest Accrual 10 5 1 4 Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERINC INTER_ACCR Credit INTERRIA INTER_ACCR Debit PENL1INC PENL1 ACCR Credit PENL1REC PENL1 ACCR Debit Advices No advices allowed for this event LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator PENL
139. l e Currency is the same as that of the child deal e Maturity Date is the same as the value date of the child deal Count For a deal that has been rolled over this field indicates the number of times it has been rolled over faf ORACLE 7 3 2 7 3 3 Rollover Mechanism This indicates whether the rolled over contract will create a new version of the existing contract a new contract or a child contract that can be linked to the parent contract You can choose from the following options e New Version A new version will get created in existing MM deal as part of rollover with the same details specified in the contract Rollover Details screen e Spawn Contract In this mechanism the existing contract will get liquidated and the system will book a new contract as part of rollover with the details specified in the contract Rollover Details screen Booking of the new contract happen through the MMAUTDLY batch e Linked Contract In this mechanism a new MM deal will be created manually and linked to the parent deal On the maturity date of the parent contract the contract will get liquidated into a rollover wash GL and the new contract that was input will get initiated automatically You can select Linked Contract only in case you have checked the option Auto for rollover mode Rollover Method If you have indicated the rollover mechanism as Spawn Contract you can use this field to indic
140. l initiated However the Reference Number of the renewed or rolled over deal will be the same as that of the old deal Advices for a Rolled Over Deal In the Product Events Definition screen you define the events for which advices are to be generated for deals involving a product An advice will be generated when a deal is rolled over if so specified for the product the deal involves Generation of advices upon rollover if specified will be as follows e When the deal is rolled over with interest that is the entire outstanding amount in the original deal is rolled over without any component of the original deal being liquidated the liquidation advice for the original deal will not be generated Instead a rollover advice with the details of the liquidation of the original deal and its subsequent rollover into a new deal will be generated e When the deal is rolled with an amount that is not the entire outstanding amount in the original deal the liquidation advice s for the original deal will be generated along with the rollover advice Authorizing a Manual Rollover The operations on a deal like input modification manual liquidation and manual rollover have to be authorized by a user other than the one who performed the operation All the deals should be authorized before you can begin the end of day operations When a deal has been rolled over manually you have to do the following two authorizations e Liquidation of
141. ld contract needs to be linked This field is applicable only if the contract you are capturing is a child contract created as a result of the parent contract s rollover In this case the following details will be same as the parent contract e Product Code e Counterparty e Currency Manual Liquidation Select this option to track receivables during manual liquidation In case of manual payments the system will display an override if sufficient funds are not available in the settlement account If you say Yes to the override the system will mark the fund as a receivable amount Partial Manual Liquidation During manual liquidation if sufficient funds are not available in the settlement account of the contract you can opt to do a partial payment In this case the deal will be liquidated to the A19 ORACLE 4 3 6 4 4 extent of the amount available in the account The balance due will be tracked as a receivable amount During EOD processing of the contracts based on the availability of funds the deal will be liquidated This process will continue till the deal is recovered fully The deal will be in the active status till full liquidation happens If you do not choose to do a partial payment then the entire amount that is being manually paid will be tracked as a receivable against the settlement account Automatic Liquidation Select this option if you want to track receivables during automatic liquidation SGEN Requ
142. lent Indicates the Euro equivalent of the outstanding amount Fixed Maturity Contracts Due Date Indicates the due date of the contract Customer Indicates the name of the customer Contract Indicates the reference number of contract Reference Maturity date Indicates the contract maturity date ORACLE Component Indicates the component Currency Indicates the currency of the transaction Due Amount Indicates the due amount for the contract Euro Equivalent Indicates the due amount in terms of Euro Outstanding Amount Indicates the outstanding amount Euro Equivalent Indicates the outstanding amount in terms of Euro 11 10 ORACLE 12 Function ID Glossary MMDPRMNT 3 1 ICSREDMN 7 5 1 MMDVAMND 4 29 L MMRPBRCEF 11 3 LDDBRMNT 8 2 MMRPBRDT 11 1 MMRPCPON 11 4 MMRPMATR 11 7 MMDCONON 4 3 5 6 MMRPOSCH 11 5 MMDPAMIN 5 16 12 1 ORACLE
143. lty will not be applied if the payment is done within the grace period that you have defined for each level It becomes applicable only after the expiry of the grace period The penalty if applied will however be calculated from the day the payment becomes overdue Note The number of grace days specified for a level must be more than the number of grace days specified for the previous level Higher the level higher the number of grace days defined for the level For a product you can specify the grace period after which the penalty will start accruing through the Grace Days Definition screen Click Grace Days in the Product Preferences screen to access the Grace Days Definition screen The level numbers get defaulted depending on the number of levels defined in the ICCF Details screen irrespective of the Basis Amount Type i e if you define three levels of penalty for the Basis Amount type Principal and four levels of penalty for the Basis Amount type Interest levels 1 to 4 will be available to you in the Grace days definition screen You will not be able to add levels in this screen Since the level numbers get defaulted from the ICCF Details screen it is imperative that the expected and overdue components are defined at the ICCF Details screen prior to the definition of grace days for the levels Note Grace days are defined for a level You cannot specify different grace days for the same level for different Basis amou
144. lue dated amendment This date should be later than the Start Date of the product If the product has a Default Tenor this date will be defaulted based on the tenor and the From Date of the contract If you change this date you will have to give an override when you store the deal If you have specified auto liquidation for the deal liquidation will be done automatically on that date If manual liquidation has been specified you will have to manually liquidate the deal through the Manual Liquidation function For a deal with Fixed Maturity Type this date can either be extended or brought backward through the Value Dated Changes function once the deal has been initiated Notice Days For a contract maturing at notice you should enter the notice period in days This is for information purposes only When the notice to repay is issued to the counterparty you should indicate the Maturity Date of the deal using value dated amendment screen Component Any number of interest rates charges and fees can be defined for a product through the ICCF Interest Commission Charge or Fee screens By default all these will be applied on the deal involving the product The component defined as the Main Interest by checking the Main Component in the ICCF Product Details screen will be displayed here If you want to make changes to the Main Interest component only you can do so through this screen without having to invoke the Contract ICC
145. med an account A1 for a particular component at the time of deal input but during manual payment you wish to change it to A2 Once this particular payment is carried out the system will show the default account as A1 for that component A2 will be used only for the session that you have specified for manual payment In this screen e currency of the contract components and the branch will be displayed e You change the payment account e You can specify the exchange rate if the settlement account currency is different from the contract currency 9 18 ORACLE 5 12 3 1 5 12 3 2 e You can capture the ERI Currency e You can capture the ERI Amount Furnishing the ERI Value in Messages SWIFT messages MT 100 MT 202 generated towards settlement can furnish the value of the settlement amount in both the settlement account currency and an ERI currency If you opt to furnish the ERI value of the amount you have to enter the following in the Settlement Message Details screen e The ERI currency and e ERI Amount The system defaults to the ERI currency specified for the customer and currency combination You can change the default ERI currency The ERI amount that you specify will be validated against the Tolerance Limit specified for the ERI currency Note On 1 January 19989 eleven countries that are part of the European Union embarked on the first phase of economic integration called the Econo
146. mic and Monetary Union EMU The EMU ushered in a new single European currency the Euro EUR You can handle the Euro in Oracle FLEXCUBE by capturing information such as the ERI information in this screen For a larger picture of the manner in which Oracle FLEXCUBE handles the Euro please refer to the chapter Handling the Euro in the user manual of the Core Services module Suppressing Messages Settlement messages defined for components that fall due will be generated automatically when you execute the Settlement Generation function at the end of day You can suppress the generation of the settlement message defined for a component by clearing the check box in the Gen Message field in the Contract Settlement Message Details screen vue ORACLE 5 12 3 3 Viewing the Schedule Breakup Details 5 13 5 14 In the Schedule Payments screen you will see row of icons Click Breakup to view the Schedule Breakup screen Schedule Details Schedule Details ia Component Due Date Amount Due Amount Paid You will see the following in this screen Component In this screen you can see the schedules being paid on account of this particular payment for which you are doing manual liquidation The component getting paid is displayed Due Date The due date of the component being liquidated is displayed Amount Due The amount outstanding for the component being liquidated is displayed here Amo
147. mount e Principal Schedule e Interest Schedule e ICCF Computations e Interest Accruals e Amount Paid You can specify the following parameters in the Contract Online screen for currency rounding Rounding Required This will allow rounding parameter definition in contract to override the rounding parameters defined in currency If Rounding required at contract is no rounding would be done based on the rounding parameters in the currency maintenance Rounding Rule To apply the rounding rule select from the following values e Up e Down e Truncate e Round Near Decimals You can indicate the number of decimals to which the amount needs to be rounded off or truncated The number of decimals defined here must be less than or equal to the number defined at the currency level Units Indicates the unit to which the amount needs to be rounded off The number of decimals allowed in this field is based on the value maintained in the Decimals field This is a multiple of the unit defined in currency Viewing Interest Details Rate Type The rate type applicable for the selected product will be displayed It can be one of the following e Fixed a fixed interest rate ORACLE 4 3 2 4 e Floating rate an interest rate that changes periodically or automatically as per your specifications in the Floating Rate Table e Special an amount instead of a rate You cannot modify the displayed value Rate Code For Fl
148. n on a Deal The type of interest that is applicable on a deal depends on the definition of the product that it involves If floating interest rates are applicable for a product the frequency at which the changing interest rates should be applied on deals involving it will also be defined for the product The Interest Rate Type of a product can be one ofthe following fixed floating or special The floating interest rates are defined through the Floating Rate Definition screen A Rate Code identifies a set of rates defined for a combination of Currency Amount Limit optional and Effective Date When processing a deal you link it to the floating rate table by indicating the Rate Code The rates defined for the Rate Code will be applied on the deal or in other words the contract The rates will be applied to a deal depending on whether it has been defined with e Auto rate Code Usage all the rate changes made during the liquidation or accrual period will be considered e Periodic Rate Code Usage the rates as of a specific frequency or date will be applied ORACLE 8 11 8 11 1 The Automatic Contract Update does the interest accruals for those deals for which a rate revision becomes due today whatever the way they have to be applied every time the rate changes or periodically If a fixed interest rate or amount for a deal which has been changed through the Value Dated Changes function falls due today then the cha
149. ng schedules arises only if e You have specified that a schedule falling due on a holiday has to be moved forward or backward and e schedule has been defined with a definite frequency If you have indicated that schedules should be cascaded the schedule date for the next 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 When you cascade schedules the last schedule at maturity however will be liquidated on the original maturity date and will not be changed like the interim schedules Hence for this particular schedule the interest calculation days may vary from those of previous schedules as the case may be Ascertaining the Availability of Funds When the customer s repayment account is debited automatically by the system you can specify that the availability of funds for liquidation of the various components of a borrowing has to be ascertained before the liquidation is done This feature is of significance when e The components have the same schedule dates and are serviced by a single repayment account or e The funds in the repayment account are insufficient If the availability of funds has to be ascertained e All the components which are due will be liquidated only if funds are available in the repayment account and e If there are insufficient funds a partial liquidation of components will be
150. nge is effected during BOD processing Value Dated Changes Value Dated Changes are changes to a deal that come into effect on a specific date called the Value Date Examples of value dated changes are changes in interest charge or fee amounts collection of additional fees etc Such changes indicated for a deal through the Value Dated Changes function falling due today i e if the Value Date is today s date are executed by the Automatic Contract Update function during beginning of day All the necessary accounting entries will be passed and advices specified for the event are generated If the Value Dated change is in the rate or amount of any accruable component the accruals are done for the deal with the old rate or amount as of the previous day yesterday If the Maturity Date of a deal has been changed so that the deal matures today the deal will be liquidated provided all the prerequisites for such liquidation are met Note Any Value Dated Change done during the course of the day with the Value Date as today will however be processed during the EOD processing Advices Generated for Value Dated Changes When creating a product you can specify the advices that are to be generated when a value dated change is made on contracts involving the product For a deal involving the product you can suppress these advices if you do not want them generated The Automatic Contract Update function generates the advices
151. ning of the month Check this box if you want to allow movement across the month for a schedule date that has been moved forward or backward R ORACLE 3 2 6 3 2 7 Maintaining Rollover Details If you allow roll over for a product all the contracts involving the product will by default be rolled over You can specify additional details pertaining to rollover in the Rollover Details screen Rollover Details Product Product Description Rollover C Apply Tax Rollover Auto Rollover With Interest Manual Update Utilization C Deduct Tax on Rollover ICCF Rollover ICCF Rollover Product Contract Rollover Method Rollover Mechanism New Version RollBy Days For a detailed explanation on the above screen refer the chapter Rolling over a Deal in this User Manual Specifying Component Schedule Details When creating a Money Market product you can define schedule details such as the reference date the frequency the month and the date for each component You can capture these details in the Product Default Schedules screen Product Default Schedules Product Code Product Description Component Schedules 10f 1 Component x Refer x Frequency Unit Date Period Unit Dx z For a detailed explanation on the above screen refer the chapter Processing Repayments in this User Manual i ORACLE 3 2 8 3 2 9
152. nor field you will define the number and the unit days months years in the Unit field Suppose for a product you want to define the default tenor as 150 days Then you should give the following values in these fields Default tenor 150 Unit Days To define a default tenor of 10 months for a product you should give the following values in the fields Default tenor 10 Unit months To define a default tenor of eight years for a product you should give the following values in the fields Default tenor 8 Unit years Automatic Liquidation The components of a deal can be liquidated automatically or manually In the Product Preferences screen you have to indicate whether the mode of liquidation of repayment schedules is to be automatic ORACLE Specify Auto liquidation if you want the components of a deal involving this product to be liquidated automatically If you opt for automatic liquidation a schedule will be automatically liquidated on the day it falls due during beginning of day processing by the Automatic Contract Update function The manner in which the automatic schedule liquidation date falling on a holiday will be handled is based on your holiday handling specifications in the Branch Parameters table e Ifa schedule falls on a holiday it will be processed on the last working day before the holiday during end of day processing if you specified that processing of such schedules has
153. not a back valued date You can have a back valued date but it cannot be earlier than the last schedule that was due You can also liquidate back valued schedules by entering a Limit amount If the Value Date is today or a date in the future the prepayment is processed The Payment Limit Date or Amount of the payment should be given at the time of payment If you have given a payment limit date the system shows all the components which are due till the limit date If you have given the amount limit in the Amount field it shows all the schedules for the limit amount Note While the Prepayment Limit Date is used to pick up the schedules pending as of that date the Value Date is taken into account by the system for passing accounting entries Alternatively the system picks up a schedule according to the amount being paid You will see the next schedule which is due within the limit of this amount If the amount being paid is more than the total amount payable for the next schedule the next schedule will be considered The total amount due for these schedules is displayed You have to enter in the Amount Paid field the actual amount being paid This amount can either be allocated to the various components manually by entering the break up of the amount against the various components or automatically by clicking the Allocate button The automatic allocation is done based on the Liquidation order you have defined for the product
154. nsider Branch Holidays Partial Manual Liquidation Cascade Schedules Automatic Liquidation Move Across Months Loan Statement Move Payment Schedules Gas EHE Move Revision Schedules Of Holiday Currency Statement Type None Move Forward Detailed Move Backward Summary Others Settlement Message Generation Details 1 Liquidate Back Valued Settlement Message Schedules Generation Required lt i Holiday Currency Events Brokerage Effective Interest Rate ChangeLog Revision Details Settlement Split Messages Interest Charges Tax MIS Fields Advices Maker Checker Date Time Date Time Contract Status Authorization Status The contract inherits preferences from the associated product Refer to the chapter Defining the attributes of a Money Market Product for detailed explanations on the preferences The preferences that are available at the time of entering the contract details are explained below External Reference Number Indicate whether the system must accept external reference numbers or a user entered reference number for contracts entered at the branch If you choose this option for a contract the system will not generate the custom reference number for this deal but will either accept an external custom reference number or a user entered custom reference number Parent Ref No Specify the contract reference number of the parent MM contract to which this chi
155. nt types After the product has been saved and authorize you are not allowed to modify grace days 215 ORACLE Grace Days Product Code Product Description Grace Days 1 Of 1 Level Number No of Units Nominal Value Units Specifying the Grace Days You must specify the grace period for each level Each overdue component will come into effect when the grace period associated with the level expires The grace period can be expressed in e Days e Months e Years You can select the appropriate option from the drop down list ons ORACLE 4 1 4 2 4 Processing an MM Deal Introduction A product is a specific service that you offer your customers For example amongst other financial services you may offer an overnight borrowing facility to your customers By defining the overnight borrowing facility as a product with certain attributes you can categorize all overnight borrowings which share the attributes defined for the product The other advantage of defining a product is that you can define certain general attributes for a product that will default to all contracts placements or borrowings involving it Note When you enter into a deal with a customer you enter into a contract Contracts are cus tomer specific Deals contracts inherit the attributes of the product by default This means you will not have to define these general
156. ntended audience It also lists the various chapters covered this User Manual An Overview of the Money Market Module is a snapshot of the fea Chapter 2 tures that the module provides Chapter 3 Defining the Attributes of a Money Market Product talks about defin P ing the attributes specific to setting up a Money Market product Chapter 4 Processing an MM Deal describes the processing of Money Market deals Chapter 5 Processing Repayments explains how repayment schedules are defined and liquidated Chapter 6 Making Interest Rate Changes describes value dated changes to a Money Market deal t1 ORACLE 1 5 1 6 Rolling Over a Deal describes how Money Market Deals are rolled Chapter 7 over Automatic Processing discusses the features of the Automatic Con Chapter 8 tract Update function Customer Correspondence explains the advices and messages that Chapter 9 you can generate in the MM module Annexure A Accounting Entries and Advices for the MM Module Chapter 10 gives an event wise listing of suggested accounting entries and advices that can take place during the life cycle of the MM module Reports in Money Market Module lists the possible reports that can Chapter 11 be generated for the module Chapter 12 Function ID Glossary has alphabetical listing of Function Screen ID s used in the module with page references for quick navigation Glossary of Icons This
157. o Date Specify a valid date till when you wish to generate the report from the adjoining calendar Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the report is as follows Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report TES ORACLE Call Contracts Customer Indicates the name of the customer Contract Indicates the reference of contract Reference Currency Indicates the currency of the transaction Contract Indicates the contract amount Amount Euro Indicates the euro equivalent of the contract amount Equivalent Outstanding Amount Indicates the outstanding amount Euro Equivalent Indicates the Euro equivalent of the outstanding amount Notice Contracts Notice Days Indicates the notice days Customer Indicates the name of the customer Contract Indicates the reference of contract Reference Currency Indicates the currency of the transaction Contract Indicates the contract amount Amount Euro Indicates the Euro equivalent of the contract amount Equivalent Outstanding Amount Indicates the outstanding amount Euro Equiva
158. oating Rate the rate code will be displayed You cannot modify it Rate The Rate applicable for the selected product will be displayed You cannot modify it Max Rate amp Minimum Rate The maximum and minimum rate allowed for the selected product will be displayed You cannot modify it Customer Margin The margin specified at customer level will be displayed here You cannot modify it Interest Amount The interest amount for the selected product will be displayed You cannot modify it Spread The spread value for the selected product will be displayed as specified in the product level You cannot modify it Minimum Spread amp Maximum Spread The maximum and minimum spread that can be applied for the selected product will be displayed You cannot modify it Note 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 involved in the deal If the spread you ap ply 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 For a floating rate the spread will be applied over the market rate applicable for the day Margin Margin provided at the product level will be defaulted here You cannot modify it Specifying the Other Details of the Contract Tax Scheme The tax scheme whic
159. oduct Code P Reference Number User Reference Outstanding Amount _ Source Contract Schedules Rollover Preferences Settlement Details Cr Dr Customer Customer Name Currency Line Booking Date Value Date Original Start Date User Maturity Date Maturity Date Notice Days Intra Day Tenor Interest Rate Rate Code Customer Margin Rate Type Minimum Rate Maximum Rate az az A A A E A A Floating Rounding Details Rounding Required Rounding Rule Truncate Y Decimals Units Amount Local Currency Amount Credit Account Credit Account Description Debit Account Debit Account Description Dealer Liquidation Auto Manual Rollover Yes No Interest Amount Spread Margin Minimum Spread Maximum Spread Other Details Interest Period Basis Tax Scheme Contract Derived Status Remarks Maturity Type Payment Method Schedule Type Reporting Details Amount Out Amount Broker External Reference Reverse Reference Include From Date Fixed Notice Call The rollover specified for the product will get defaulted to t
160. of accounts current or savings will be applied e liquidation will be done even for a partial amount if the account has not been defined for overdraft Borrowings with payments which have not been processed due to non availability of funds will appear in the Exception Report generated by the Automatic Contract Update function for the day Note For the final principal payment on maturity the availability of funds in the payment account will always be verified Revision and Repayment Schedules In the Contract Schedules screen you can define two types of schedules e Those for the revision of interest rates for a deal with floating interest rates and e Those for repayment of the various components Interest Rate Revision Schedule A Floating Rate Table that contains the market rates for the day is maintained in the ICCF sub system so that the latest rates can be applied to deals The market rates vary on a daily basis and are maintained in this table The rates can be applied either every time they change or at periodic intervals Usually for Money Market deals floating rates are applied i e the latest market rate is applied see the section on Specifying Rate Code Usage in the chapter Processing Interest Charge and Fee You can also apply these rates on a periodic basis so that you are in tune with the market rates as opposed to fixed interest rates which remain the same for the entire period o
161. ollover Amount If the outstanding amount is 20 000 and the special amount is given as 25 000 the additional 5000 will get added to the loan If the outstanding amount is 30 000 and the special amount is given as 25 000 the additional 5000 will get liquidated The Outstanding Amount is the sum of all the components put together Liquidation Amount If the outstanding amount is 20 000 and the special amount is given as 25 000 you will not be allowed to rollover If the outstanding amount is 30 000 and the special amount is given as 5 000 the additional 5000 will get liquidated Note that the individual components will be liquidated in the liquidation order Maximum Rollover Amount If the outstanding amount is 20 000 and the special amount is given as 25 000 you can rollover the entire outstanding amount If the outstanding amount is 30 000 and the special amount is given as 25 000 only 25 000 will be rollover and the remaining 5000 will be liquidated Parent Reference In the linked rollover scenario Parent Reference Number indicates the parent deal for which the child deal is being booked While booking a new child deal you need to specify the parent deal s contract reference number or select the appropriate on from the adjoining option list You will be able to choose a parent deal that satisfies the following conditions e Product code is the same as that of the child deal e Counterparty is the same as that of the child dea
162. omatic or manual the maturity type fixed call or notice the maturity date for a fixed maturity deal and the notice days You should also indicate if e Only the outstanding principal is to be rolled over e outstanding principal is to be rolled over with interest or e Ifa special amount is to be rolled over if a part of the principal and interest from the old deal has been liquidated and only the outstanding principal with or without interest is rolled over it is called a special amount When a deal is rolled over the new contract continues to have the reference number of the old deal Specifying Rollover for a Product When defining a product you have to specify whether deals involving the product can be rolled over If rollover has been allowed for a product all the deals involving the product can by default be rolled over 7i ORACLE 7 2 1 7 2 2 Note However a deal involving such a product will be rolled over only if it is not liquidated on its Maturity Date You can choose not to rollover a deal that involves a product with the rollo ver facility You can indicate this when processing the deal Mode of Rollover Manual or Automatic For a deal involving a product for which a rollover is allowed you should specify the mode of rollover automatic or manual during processing Impact of Liquidation Mode on Rollover The mode of liquidation of a deal automatic or manual
163. omponent falls before today s date the liquidation entries as defined by you for the product will be passed if you have so specified for the product If the Maturity Date of a deal is earlier than today maturity entries will also be passed Once the deal details have been stored and authorized this date can be amended only if the deposit has bearing type of interest and NO schedule has been liquidated Modification to this field will be considered as a financial amendment An override will be sought if the Value Date falls on a holiday in the country of the deal currency Intra Day Deal Date For intra day deals the system populates the intra day deal date in this field The intra day deal date is populated as value date 1 You can only enter intra day deals using a product meant for intra day deals as set in the Product Preferences Original Start Date For a deal that has been rolled over this is the date on which the deal was originally initiated If a deal has been rolled over more than once this will be the date on which the first deal was initiated T9 ORACLE 4 3 2 1 If you are entering a deal that has already been initiated you should enter the date on which the deal began In this case the date will be for information purposes only and for all accounting purposes the Value Date will be considered as the date on which the deal was initiated User Maturity Date If you want to change the maturity date of the deal
164. on is executed during end of day activities the processing will be carried out for e Accrual of ICCF components scheduled for the day e Any Value Dated change additional disbursements change in interest rates etc that were done during the day with a Value Date as the current system date and e Activities scheduled for holidays if the current system date is preceded by holiday s and you have specified that activities falling on holidays should be processed on the last working day preceding a holiday If an event scheduled to be automatically carried out is not executed for some reason it will be reported in the Exception Report generated by the function Examples of such events could be the non availability of funds in a payment account non availability of funds in a commitment or a deposit to which a deal is linked etc The details of an event that could not be initiated along with the reason will be reported in the Exception Report Processing for Holidays Any automatic event that is scheduled for a holiday will be processed as per your specifications in the Branch Parameters table e f you have specified that processing has to be done on the last working day before a holiday for automatic events that fall due on holidays the events falling on the holiday will be processed during end of day on the last working day before the holiday e lf you have specified that processing has to be done only up to the System Date to
165. on will take place every week beginning on the Start Date that you have specified Specifying the Rate Revision Dates Revision frequency has to be defined say INTEREST 1 Check the Rev box Revision box to indicate that it is a rate revision schedule Then instead of specifying the other schedule details like the frequency the number and unit indicate the date in the Start Date field The rate revision will be done on that date Repayment Schedule For a repayment schedule the amount of repayment needs to be specified only for the Principal The interest commission and fee components will be calculated by the system automatically depending on the repayment date and amount of the principal However if the interest type is Special you should specify the interest amount Similarly if the deal has been defined with any other fixed amount component you will have to enter an amount for this The repayment schedules for the components of the deal will be those defined for the product it involves You can change the schedules for a deal when processing it Interest Repayment Schedules as Different from Rate Revision Sched ules For a deal on which floating interest has to be applied at periodic intervals you may have to define e An interest rate revision schedule for the interest component as well as e Arepayment schedule The following example shows how this is achieved You have a deal where for the component in
166. oolbar Authorize Event Contract Reference Event Date Input By Rekey Fields Customer Currency Value Date Amount Maturity Date Change Log Field Description New Value Old Value 4 Overrides Confirmed Override Text Txt Status ja If the contract involves a product for which some Re key fields have been defined the details of the contract will be displayed only after you input the values in those fields If no Re key fields have been defined the details of the contract will be displayed in the Authorization screen All the overrides that were given during the operation will be displayed when the contract is being authorized If you are authorizing an amendment the old values are replaced by the amended values which will be available for subsequent processing The old values however will still be available in an earlier version of the contract Click on Ok button to authorize the contract Click on Exit button if you do not want to authorize the contract After the contract has been authorized the accounting entries passed during this stage will also be marked as authorized and advises if any have been specified for the operation will be generated 66 ORACLE 7 1 7 2 7 Rolling Over a Deal Introduction A rollover is a renewal of a deal Instead of liquidating a deal
167. opriate interest rates for deals with Floating Interest e Application of rate changes with a Value Date in the future e Generation of a Billing Notice as a reminder of a payment for a placement e Liquidation of a scheduled repayment interim or at maturity e Rollover of a deal e Change of deal status as part of the aging analysis process e Automatic events falling on a holiday and scheduled to take place on the day after the holiday End of Day Processes Below are the processes e Periodic accrual of ICCF components e Generation of reports e Automatic events falling on a holiday and scheduled to take place on the day before the next working day You would have noticed that some activities that can be carried out automatically would be done so only on a specific instruction from you The following are such activities e Liquidation of a scheduled repayment e Rollover of a deal S1 ORACLE 8 3 Specifying Branch Parameters A set of rules that govern the deals that a particular branch of your bank enters into are defined through the Branch Parameters screen You can invoke the Money Market Corporate Deposits Syndication Branch Parameters screen by typing LDDBRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Branch Parameters E New E3 Enter Query Branch Code Branch Name Process Till Next Working Day Tax Basis Accrual Level
168. or interest and all the other components based on tenor will be made from this date onwards The system defaults to today s date You can enter a Value Date of your choice here The date that you enter can be any one of the following e Today s date e Adatein the past e date in the future you can enter a date in the future only if Future Dating has been allowed for the product The Value Date should not be earlier than the Start Date or later than the End Date defined for the product involved in the deal In case of a child rolled over contract this value will be the same as the maturity date of the parent contract If the liquidation date for any component falls before today s date the liquidation entries as defined by you for the product will be passed if you have so specified for the product If the Maturity Date of a deal is earlier than today maturity entries will also be passed Once the deal details have been stored and authorized this date can be amended only if the deposit has bearing type of interest and NO schedule has been liquidated Modification to this field will be considered as a financial amendment An override will be sought if the Value Date falls on a holiday in the country of the deal currency Original Start Date For a deal that has been rolled over this is the date on which the deal was originally initiated If a deal has been rolled over more than once this will be the date on which the first deal was
169. orward or backward in case of a holiday e The holiday table of the country of the deal currency that has to be checked before setting automatic schedules e Whether back valued schedules should be liquidated on deal initiation e Whether in case of a placement the availability funds in the repayment account has to be verified if components have the same schedule date and repayment account and automatic liquidation has been specified The Contract On line screens are available under MM in the Application Browser 9 ORACLE 5 7 5 7 1 5 7 2 5 7 3 5 7 4 Specifying the Contract Preferences Although schedules are inherited by a deal from the product through the Contract Preferences screen you can to define your own schedules for a deal A schedule date e Should be later than or the same as the Value Date e You can have only one schedule for a component for a date and e It cannot be beyond the Maturity Date Liquidating Back Valued Schedules If you have specified while defining the product that a back dated deal with repayment schedules prior to today s date the schedules have to be liquidated when the deal is initiated the same will apply to the deal you are entering However through this screen you can choose not to liquidate back valued schedules When the Repayment Schedule Date is a Holiday You have specified that repayment schedules should be generated automatically once you indicate the frequ
170. ounting entries to be passed when the residual amount is liquidated Consolidate Billing Notice You have the option to generate a consolidated billing notice for a customer consolidating all the loans that have components due on the specified date This is the Billing Notice Days you specify in Product Definition screen All the components which fall due on a particular due date including the Principal is consolidated in the bill notice The messages can also be generated in MT299 Swift message format but for this the advice format will have to contain the SWIFT message tags Settlement Message At Manual Liquidation For all the contracts that are marked for manual liquidation you can specify whether you want to generate settlement messages To do this you need to check the Settlement Msg at Manual Liquidation box Settlement messages will be generated for all the contracts with manual liquidation according to the parameters you have specified in the Loans Branch Parameters screen These messages will be generated on the settlement message days prior to the date of repayment of the contract Each account that is affected by the payment will receive a settlement message Annual Percentage Yield Calculation Required Oracle FLEXCUBE allows you to calculate the Annual Percentage Yield so as to enable your customer to compare interest rates offered by different banks To do this you need to check the Annual Percentage Yield Calculation Re
171. pending upon the data entered The sample advices for each of these are given in the following sections a ORACLE 9 2 Advices Generated during Contract Confirmation MONEY MARKET LOAN CONTRACT CONFIRMATION ADVICE Date 29 DEC 97 Reference Number 0003P05973630002 From MAIN BRANCH BOMBAY D N ROAD FORT BOMBAY 400 001 INDIA To CITIBANK Moscow 39 Sadavo Spasskaya Street Moscow 107078 CIF WE CONFIRM THAT A MM PLACEMENT 05 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW BOOKING DATE 29 DEC 97 VALUE DATE 01 JAN 98 MATURITY DATE 15 FEB 98 CALCULATION METHOD 30 Euro 365 AMOUNT 10 000 000 00 GBP WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICATE AMERICAN BANK AUTHORIZED SIGNATORY MONEY MARKET DEPOSIT CONTRACT CONFIRMATION ADVICE Date 29 DEC 97 Reference Number 000MB07973630001 From 92 ORACLE MAIN BRANCH BOMBAY D N ROAD FORT BOMBAY 400 001 INDIA To TANAKA amp TANAKA GUTSHAUS 37133 RECKERSHAUSEN GERMANY CIF WE CONFIRM THAT A Money market borrowing 07 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW BOOKING DATE 29 DEC 97 VALUE DATE 29 DEC 97 MATURITY DATE 28 MAR 98 CALCULATION METHOD _ 30 Euro Actual AMOUNT 99 999 00 DEM WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICATE AMERICAN BANK AUTHORIZED SIGNATORY MONEY MARKET BROKER CONFIRMATION ADVICE Date 29 DEC 97 Reference Number 0003P04973630002 Broker Code SW1001 From MAIN BRANCH BOM
172. picking up the same component INTEREST from the picklist each time Defining a repayment schedule for the same component Now to define a repayment schedule for the same component INTEREST do not check the Rev box Choose the same component interest from the picklist Now draw up a repayment schedule for this component Give a value in the Start Date field say 15 October 1997 The first interest liquidation will be done on this date In the frequency field enter monthly and in the unit field specify 2 This means the interest repayments will be done every fortnight beginning 15 October That is for a deal defined with frequency based periodic rates the rates prevailing on the refresh dates will be used for accruals and liquidation In the deal we are discussing with the refresh frequency defined as weekly and the Start Date as 15 October the rate applied for the interest liquidation on 15 October will be as follows From To Rate 1 October 8 October 12 9 October 15 October 11 5 For a deal with Periodic rate code usage date based the rates prevailing on the specific refresh dates will be used for accruals and liquidation Shown below are the rates applicable on the specified revision dates Revision Date Rate Applicable 7 October 12 15 October 11 5 ala ORACLE 5 8 6 23 October 11 5 In the deal we are discussing the rates applied for the interest liq
173. ple you have made a placement USD 100 000 for Greenville Global Bank at 20 interest for a month Now under the bearing type of interest payment method the placement of USD 100 000 is advanced to Greenville Global Bank and the interest on it is collected over the one month which is the tenor of the placement s ORACLE 3 2 1 Discounted In this interest payment method the interest is deducted from the principal at the time of initiating the deal Carrying forward the example of the placement for Greenville Global Bank of USD 100 000 at 20 interest for a month under the discounted type of interest payment the total interest calculated for the tenor of the deal that is one month USD 1 666 5 is deducted from the principal USD 100 000 and only USD 98 333 5 is advanced True discounted In this interest payment method the interest is calculated on the principal in a manner differing slightly from the Discounted method The interest rate is applied on the Principal instead of the Nominal as it is done in the Discounted method For example in the case of Greenville Global Bank s placement of USD 100 000 at 20 interest for a month under the true discounted type of interest payment the interest calculated on the principal USD 98 333 5 arrived at after deducting 20 interest on the nominal is deducted from the nominal USD 100 000 and USD 98 360 66 is advanced This forms the actual principal of the deal Speci
174. quired box For a contract Annual Percentage Yield is calculated during takedown or during Value Dated amendments or contract amendments resulting in change of cash flows change of schedule only if this parameter has been enabled at the Branch as well as the Product level The rates would also be re calculated whenever there is either liquidation partial pre payment or full liquidation or rollover Reporting Currency Currency that will be displayed in the syndication contracts This is the currency in which the principal contract amount outstanding balance is expressed Reporting Rate Type Oracle FLEXCUBE allows you to calculate the Annual Percentage Yield so as to enable your customer to compare interest rates offered by different banks To do this you need to check the Annual Percentage Yield Calculation Required box For a contract Annual Percentage Yield is calculated during takedown or during Value Dated amendments or contract amendments resulting in change of cash flows change of schedule only if this parameter has been enabled at the Branch as well as the Product level The rates would also be re calculated whenever there is either liquidation partial pre payment or full liquidation or rollover Rounding Participant The system creates a new participant contract to route the rounding difference amount that was created due to the rounding difference between the amount collected and amount disbursed Bank Number En
175. r old placement be made applicable to the new one In this case the new placement will have only one interest payment schedule on Maturity Date and will have no fee In addition you have to specify the following details for a product for which rollovers are permitted Update Utilization Whether the credit limit utilization is to be updated when a placement is rolled over That is the interest that has been accrued on a placement is also considered as a part of the utilized amount for the purpose of risk tracking The following example illustrates how this concept works This option applies only if you want to roll over a deal with interest Apply Tax For tax to be applicable on a rolled over deal e It should be applicable to the product involving the deal e It should not have been waived for the old deal You should indicate whether tax has to be applied on the rolled over deal also Rollover with Interest You have to specify whether the deal that you are rolling over should be rolled over along with the outstanding interest If you so specify the principal of the new deal will be the sum of the outstanding principal and the outstanding interest on the old deal This applies only to deals with a bearing add on method of interest liquidation If all the outstanding interest is paid out then the deal can be renewed without the interest If not it will be rolled over with the interest that is still outstanding on it A deal
176. r a product the deal involving the product will inherit the attribute However you can waive tax if it has been defined for the product the deal involves at the time of deal processing Similarly you choose between the automatic liquidation of schedules and manual liquidation you can choose to allow rollover of deals involving the product or deny it and so on Preferences Product Product Description Preferences Accrual Payments Frequency Automatic Liquidation Start Month Track Accrued Interest Start Date Tax Applicable Forward Dating Allowed Minimum Allow Rollover Default Allow Brokerage Maximum Pay Past Schedules Unit Prepayment Penalty Intra day Deal Multiple Penalty Normal Components Maximum Rate Variance Authorization Rekey Fields Holiday Treatment Currency Cascade Schedules Value Date Holiday Currency Contract Amount Ignore Holidays Maturity Date Move Across Month Schedule Movement Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days You can maintain the following details in this screen Payments Specify whether the payment method for the main interest specified while defining attributes for the interest commission charge or fee components is to be bearing discounted or true discounted This cannot be changed at the time of processing a deal Bearing The interest is liquidated on scheduled payment date s For exam
177. r the repayment of the principal on maturity and so on Or you may design repayment schedules to suit the convenience of your customer Your customer may want the repayments done daily instead of every week for example In Oracle FLEXCUBE you can customize your repayment schedules for a money market product The same schedules will by default apply to the deals involving the product However when processing a specific deal you can change the repayment schedule which it inherits from the product it involves Defining Schedules for a Product You can define repayment schedules for the interest or interest type of ICCF components like a tenor based charge or fee and the principal of a Money Market deal while defining a product The attributes of the schedules for a product are defined through the Product Preferences screen The following are the attributes of a repayment schedule e Mode of liquidation auto or manual This can be changed at the time of deal processing e Liquidation of back valued schedules upon initiation of a deal This can be changed at the time of deal processing However for a deal you can have e Only a maturity schedule for the principal and no interim schedules e Interim schedules for the interest e Only normal type of schedules for interest Schedules cannot be capitalized or amortized e schedules for commission charge or fees A discussion on these attributes follows in this chapter
178. rent groups are defined in the Product Group Definition table Select a Group ID from the option list The product will belong to this group Start Date A product is set up to be used over a particular period The Start Date for this product is specified in this field The Value Date initiation date of a deal involving this product should be e same as or later than this date and e same as or earlier than the End Date End Date Specify the End Date for the product The Value Date initiation date of a deal involving this product should be the same as or earlier than the End Date If you do not specify an End Date the product can be used till it is closed The start and end dates of a product come in handy when you are defining a product for a scheme which is open for a specific period Remarks Click Free Format Text button Enter information about the product intended for your bank s internal reference This information will not be printed on any correspondence with the customer Click OK after you enter the information s ORACLE 3 2 The remarks are displayed when the details of the deal are displayed or printed Setting Product Preferences Preferences are the options that are available to you for setting the attributes of a product The options you choose ultimately shape the product For example you have the option of applying tax on a product If you specify that tax is applicable fo
179. retrieves information along the select criteria that you specify The Product Definition Facility A central feature of the front end modules of Oracle FLEXCUBE is the product definition facility This feature drastically reduces marketing time thus allowing your bank to focus on and take advantage of the opportunities in the market Defining Money Market schemes as Products A product is a specific type of deal that a bank enters into or a scheme that a bank offers its customers An MM product can imply a specific type of placement borrow deal that a bank enters into For example your bank may offer customers an overnight borrow facility This facility can be defined as a product in Oracle FLEXCUBE If your bank offers several types of overnight borrow schemes each of these schemes can be defined as a product 2 ORACLE 2 1 2 When setting up the module you can define the various types of deals you enter into as products For each product you can define attributes such as interest interest accrual liquidation rollover tax brokerage details etc When you enter into a deal the deal acquires the attributes defined for the product that it involves Preferences Product Preferences Payments Authorization Rekey Fields Automatic Liquidation Track Accrued Interest Tax Applicable Forward Dating Allowed Allow Rollover Allow Brokerage Pay Past Schedules Prepayment Penalty Intra
180. rigger the RAMC event on the parent and the Rollover Instruction Status will be updated as Incomplete Rollover of a contract will be allowed only if the Rollover Instruction Status is Complete If the parent contract has already been rolled over and the child contract has been reversed then the system will trigger the REVC event on the child contract As a result the child contract will be reversed successfully However since the parent contract has been rolled over it will not be impacted by the reversal of the child contract You can view details of the ROLL event in the Payments screen where you can manually reverse the contract This will in turn trigger the REVP event which will update the Rollover Instruction Status of the contract as Incomplete Note Note the following A rollover child cannot be linked to a parent contract for which the Rollover Instruction Status is Complete Amendment and reversal of a parent contract will not be allowed if the Rollover In struction Status of the contract is Complete If the amount on the child contract is less that that of the parent contract for a placement contract then the difference in the amounts will be credited to the customer account and a receive notice will be sent to the customer indicating the same for parent contract If the amount on the child contract is greater that that of the parent contract for a placement contract then t
181. roduct for which a rollover is allowed you should specify the mode of rollover automatic or manual during processing A deal will be automatically rollover on the maturity date if Auto is selected at the product level If you choose Manual on the maturity of a deal you will need to manually indicate for rollover ICCF Rollover The interest charge and fee components of the new rolled over deal can be picked up either from the old deal or from the product involving the old deal Choose the option e Product if you want the system to pick up the components from the product involving the old deal e Contract if you want the system to pick up the components from the old deal The following example illustrates this point For example when defining a placement product you specified that all placements involving it will have interest schedules every month and a processing fee Assume you have processed a placement involving this product with the following attributes e Interest payment only on Maturity Date e fees When rolling over this placement you have two options is ORACLE You can indicate that the interest and fee details specified for the product are to be applied to the new rolled over placement In such a case the new placement will have interest payment schedules every month and a processing fee You can specify that the interest and fee details defined for the placement being rolled ove
182. s and indicate that they be changed automatically then the status change will be done during BOD processing on the day the aging is due You can do aging analysis by changing the status of a placement on which payment s are defaulted At any time you can generate reports of deals with details of aging to facilitate the follow up process for repayment For example you could define the following status for the product Three month Placements e Active This is when repayments on a placement are done as per schedule e Past Due Obligation PDO This is when repayments on a placement have been stopped but the accruals on the accruable components are still being done There is still a chance of repayment of the deal e Non accrual basis NAB When the placement acquires this status all accruals for the placement are stopped The chances of repayment diminish further e Write off WRO This is when the placement is written off and all accrual entries are reversed Status Sequence PDO 1 NAB 2 WRO 3 You want a placement under this product to move from status to status in the order in which they are mentioned here For such a condition you can indicate the number of days after which each component should move to the status being defined these can differ for a maturity schedule and an interim schedule According to the number of days of default defined for each component a placement will first be moved
183. s calculated on the principal of the deal and not on the nominal All the same like the discounted method here too it is deducted from the principal at the time of initiation of the deal Maturity type The Maturity Type you have specified for the product is displayed by default in the screen However you can change it to one of the following Fixed The deal has a fixed Maturity Date This date should be specified in the Screen Call The Maturity Date is not fixed The deal can be liquidated any time The deal will be liquidated at a certain period of notice The number of days Notice ae of notice should be specified in the screen ORACLE For a deal with a Fixed Maturity this date can either be postponed or advanced through the Value Dated Changes function once the deal has been initiated Amendment to this field will be considered a financial amendment Maturity Date If the Maturity Type is fixed that is the Maturity Date of the deal is known when the deal is initiated specify the Maturity Date in this screen This date should be later than the Start Date of the product If the product has a Default Tenor this date will be defaulted based on the tenor and the From Date of the contract If you change this date you should give an override when you store the deal For a deal with Call or Notice type of maturity the Maturity Date is not entered during deal booking You can have it updated using va
184. s report provides information such as maturity date brokerage amount and deal status with regard to money market deals You can set preferences as to generation of the report using Money Market Brokerage Details Report Options screen To invoke the screen type MMRPBRDT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Money Market Brokerage Details Report Report Name Report For 3 All Brokers Specific Brokers Report Period Include Liquidated Contracts From Date To Date Report Format PDF Printer At Client Report Output Print Printer Report Options You can set the following preferences as to generation of the report Report For Indicate whether you wish to generate the report for all the brokers of for a set of selected brokers If you wish to generate the report for a selected set of brokers you need to maintain the list of brokers under Brokers List 11 1 ORACLE 11 2 2 Report Period Include Liquidated Contracts You can get the details of liquidated contracts in the report being generated If you wish to include liquidated contracts check this option If you do not check this option the system will generate the report for active contracts only From Date Specify the start date of the report period In the report the system will include details available from this date To Date Specify the end date of the repor
185. s that fall due at regular intervals all you have to do is for a component specify the start date the frequency the unit and the principal amount Since you would have already registered the Maturity Date of the loan for a fixed maturity type in the Contract Details screen the schedules would automatically be spread out into equal intervals Based on this information the system calculates the dates on which the repayments or interest revisions fall due For example consider the following details for a deal A borrowing of USD 100 000 comes into effect on 1 January 1998 and matures on 31 October 1998 Suppose you want to have 10 monthly schedules for principal repayment you have to specify the Start Date as 31 January 1998 the frequency as monthly the unit as 1 and the principal amount as 10 000 The schedules would be spread out over 10 months and would fall due every month end Now you have a 15 month borrowing beginning 1 January 1998 and ending 31 March 1999 Suppose you want to define four quarterly schedules and three monthly schedules for interest repayment of this loan these are irregular schedules and the Number field assumes importance here Here for the component interest you have to give the Start Date as 31 March 1998 the frequency as quarterly and the unit as 1 The number of such schedules will be four Hence your quarterly schedule dates will be calculated as e 31 March 1998 Start Date e June 1998 e 30
186. s 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 AIRE 1 1 TT introduction ie Pe GP a ne e e c ede ee M Ho bt mls 1 1 1 2 AUdIence e eter eet e e b EE et eet et UE 1 1 1 38 Documentation Accessibility esee enne 1 1 1 4 Organizat x eet ette nien tuse teer te abeo ERRARE na e eene 1 1 1 5 Glossary ot eoris d d coo ep e e et En cR oe use tace de 1 2 1 6 Related Documents 1 2 An Overview of the Money Market Module 2 1 2 1 Introduction snau editt ade ender tegen ee Ll E ek do E i dd E Le d d Lu 2 1 2 1 1 The Product Definition Facility esee 2 1 2 1 2 Automatic Processing 2 2 2 1 3 Settling Money Market 2 3 2 1 4 Rolling Over Deals einen inet ni ihe teen nhan 2 3 2 1 5 Tracking and Retrieval of Information seen 2 3 Defining the Attributes of a Money Market Product 3 1 9 1 Introduction eiii beet Aen 3 1 3 1 1 Defining a Money Market Product sene 3 2 3 2 Setting Product Preferences eese nnne RGA 3 3 3 2 1 Specifying Accrual Details sss 3 4 3 2 2 Indicating Values to be
187. ssign the contract to the new user Click Exit button if you do not want to save the details Amending Money Market Transactions Once a MM contract is authorized changes to this can be done through the Money Market Value Dated Changes Input screen You can invoke this screen by typing MMDVAMIN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 4 29 ORACLE 4 16 1 Money Market Value Dated Amendments Contract Reference Amendment Date Counterparty Start Date Counterparty Description Product Currency Product Description Latest Version Number Amendments Schedules Current Values Modification Principal Maturity Date eal Rate Change in Principal Maturity Date Local Currency Equivalent Revision Details CIF Breakup Split Settlements Payment Details Messages For more details on the field explanation of each tab refer section Features of the Contract Details screen section of this User Manual Saving and Authorizing Leasing Amendments After entering the amended details click Save icon to save the details On saving the transaction after entering all the required details in the system the system validates the value of the transaction amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are dif
188. t any time of the day You can also specify the media through which these advices can be sent For all the advices and notices discussed here the samples are given below To generate the advice click on Outgoing Message Browser under Messages in the Application Browser Note The format and contents of the advices can be configured for your requirements However the default advice formats are available when Oracle FLEXCUBE is shipped to you In the MM module you can generate the following advices Confirmation Advices The Contract Confirmation advices are given by the bank to the customer on confirmation of the contract A Contract Confirmation advice gives details of the deal Rollover Advice for a Placement You can generate this advice to notify the customer about the Roll over of the placement Rollover Advice for a Borrowing You can generate this advice to notify the customer about the Roll over of the borrowing Initiation Advice for a Borrowing You can generate this advice on the initiation of a borrowing to inform the customer about the details of the contract borrowing Initiation Advice for a Placement You can generate this advice on the initiation of a borrowing to inform the customer about the details of the contract placement Liquidation Advice for a Placement You can generate this advice to inform the customer when a payment is due The format of the generated advices varies de
189. t associated with it Since the accounts the accrual account and the income account are defined for a product the accrual entries for all deals involving the product will be passed to the same accounts These entries can be passed in two ways e Anentry for each deal The same accrual and income account will be involved for each entry with the Reference Number of the deal indicated for each deal e A single consolidated entry for all deals involving a product Since the same accrual and income account will be involved in all accrual entries a single consolidated entry will be passed with a unique reference number generated for each product The idea of generating a single entry for all deals involving a product is to reduce the number of entries and thus the processing time The details of entries passed for each deal will be available in the Accrual Control Journal a report that should be generated after the accruals have been made Whether interest accrual entries are passed as a single consolidated entry for a product or as an individual entry for each deal should be specified for a branch Note This specification is applicable only for automatic periodic accrual entries When there is an accrual necessitated by a payment or a change in the terms of a deal the entries will be for the specific deals affected by the change Residual Amount The value that you specify as the residual amount indicates the limit for the
190. t involves To recall a product is endowed with the following general attributes The product code description slogan start and end date for the product and remarks The frequency of interest accrual The tenor limits for the product The liquidation mode manual or automatic Whether a deal involving the product can be rolled over into a new deal if it is not liquidated on its maturity date Whether the accrued interest of earlier placement s should be considered as part of the utilized amount while tracking credit utilization for a customer Whether tax has to be applied Whether brokerage has to be applied The exchange rate variance for a special customer you can choose to apply a rate that is greater than the standard exchange rate defined for the currency You can impose some restrictions on the special rate by way of specifying a variance Whether a penalty is to be imposed if there is an advance repayment Whether interest schedule amounts have to be recomputed in case of an advance payment Whether a deal involving a product can be booked to be initiated on a date in the future Whether for a backdated deal that has schedules prior to today s date the schedules have to be liquidated when the deal is initiated A back dated deal is one which has an initiation date which falls before the date on which it is booked The payment type for main interest bearing discounted or true discounted The values to be rekeyed by
191. t period In the report the system will include details available till this date Brokers List In order to generate reports for a specific set of brokers you need to maintain the list of brokers Click add button to add rows to the list You can add as many rows as you need In each row select the unique ID of the brokers for whom the report is being generated To delete a row from the list of brokers check the adjoining box and click delete button Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the report is as follows Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report Broker The unique broker ID and name of the broker Broker Name The name of the broker is displayed here Contract The reference number of the contract whose details are fetched Reference Product Type The product type associated with the contract Value Date The value date of the contract CCY The currency of the transaction Maturity Date The maturity date of the contract Brokerage The brokerage amount of the particular deal in the brokerage cur Amount rency Method The method by which the broker
192. tails of a deal The details have been saved but not yet authorized when you realize that some of the details have been wrongly entered You can unlock the contract make the modifications and Save it The uploaded contracts can be amended by any valid user the contract maker or others Note Any type of change however has to be authorized before it takes effect Financial Details that can be Changed Inputs to the following fields can be changed through the contract processing function e Takedown Account if the placement has not yet been initiated and Customer Account if a borrowing has not been initiated e Maturity Account if the deal is yet to mature 4 20 ORACLE 4 5 4 6 4 7 e Interest Payment Account if the entire interest on the deal has not yet been liquidated The new account will be used for future interest payments e Contract End Date for a notice or call type of deal e details if tax has not yet been liquidated Note The changes listed do not trigger any accounting entries or the generation of any advices Reversing and Rebooking Contracts While reversing and rebooking the parent contract details including the subsystems will be copied to a new contract and the parent will be reversed and the screen will be in new mode so that any details of the contract can be changed It will be validated that no payment messages have been sent for the Reversed FCC ref no A configurable overr
193. ted before it is rolled over Note If Rollover is of type P Principle P I Principle Interest and P I T Principal Interest Tax the tag 32H in MT 320 will be populated with a value 0 Zero If Rollover Type is Special Amt the tag 32H will be populated with difference in Principal Interest liquidated in the same cash flow Roll By Indicate the tenor basis upon which the maturity days specified for the rolled over contract will be reckoned The options are Days Months Quarters Semi annuals and Years If you specify the days maturity basis and do not specify the maturity days the system rounds the tenor of the original contract to the nearest maturity days basis The rounded tenor is considered as the new tenor of the rolled over contract Rollover Mechanism This indicates whether rolling over a contract using the product must create a new version of the existing contract a new contract or a chills contract that can be linked to the parent contract You can choose from the following options e New Version A new version will get created in existing MM deal as part of rollover with the same details specified in the contract Rollover Details screen e Spawn Contract In this mechanism the existing contract will get liquidated and the system will book a new contract as part of rollover with the details specified in the contract Rollover Details screen Booking of the new contract happ
194. ter Bank number that identifies your bank in RB system 2 ORACLE 8 3 0 1 8 3 0 2 8 4 Identification Number Identify the owner of the claim on whose behalf you operate Nostro Account Specify the account of the loan issuing institution with the RB system Part Payment Allowed If the person to whom the loan is issued has the option to repay a schedule in part indicate it here User Reference Number in Messages If this option is checked then the user reference number will be used instead of the contract reference number in the following messages Confirmation Messages SWIFT e Field22A If the event is BOOK and the parent FCC ref no is not null and the counterparty of the parent and child contracts are same then type of operation will be set as AMND and Field 21 will be populated as the user reference number of the contract This is applicable to both MT320 and MT330 e Field21 In case of reversed Contract if the confirmation for CANC is not suppressed then the user reference no will be picked up from the child contract and populated Mail e User ref no In case of reversed Contract if the confirmation for CANC is not suppressed then the user reference no will be picked up from the child contract and populated e Event text If the event is BOOK and the Reversed FCC ref no is not null and the counterparty of the parent contract and child are the same then type of operation will be set as AMND
195. terest you have to define an interest rate revision schedule for revisions every week as well as a fortnightly interest repayment schedule The Start Date of the deal is 1 October 97 and the End Date is 31 October 97 The deal has been defined with a periodic rate and the rates in the floating rate table change in the following manner Date Rate 9 11 ORACLE 1 October 97 12 12 October 97 11 5 25 October 97 11 15 November 97 12 30 November 97 12 5 Defining a frequency based rate revision schedule To define a schedule with periodic rate code usage through the Contract Schedules screen mark the component as a revision schedule by checking the Rev box and specify the component say INTEREST from the picklist Give the frequency at which the interest rate has to be refreshed say weekly Give the Start Date say 8 October The first revision will happen on this day and every week from then on Save the inputs Defining a date based rate revision schedule If you were to define specific dates 7 October 15 October and 23 October for the rate revision to happen then through the Contract Schedules screen mark the component as a revision schedule by checking the Rev box and specify the component say INTEREST from the picklist Specify the date on which the rate revision is to be done in the Start Date field as 7 October Similarly define the other dates but by
196. that the holiday be ignored while calculating the schedule date 9 ORACLE 5 3 2 5 3 3 In such a situation a repayment falling on a holiday would be processed according to your specifications for holiday handling in the MM Branch Parameters screen It would be as follows e Ifyou have specified that processing has to be done on the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the last working day before the holiday e Ifyou have specified that processing has to be done only up to the System Date today then only those events scheduled for today the last working day before the holiday will be processed The events falling due on the holiday are processed on the next working day after the holiday during beginning of day processing If a borrowing has been defined for verification of funds before automatic liquidation through the Contract On line Preferences screen those components whose schedule dates fall on the same day will be liquidated in the order you have specified when defining the product If the funds are insufficient the liquidation is done to the extent of the available balance in the repayment account The components will be liquidated in the order that you specify This will be reported in the Exception Report generated at the end of every day automatically by the
197. tic Contract Update function It could be an interim repayment schedule liquidation or a maturity schedule liquidation The schedule whether an interim schedule or a maturity schedule will be automatically liquidated on the day it falls due during beginning of day processing Now if you have indicated automatic liquidation the schedule date falls on a holiday and you have specified that the holiday be ignored through the Contract Preferences screen the liquidation falling due on the holiday would depend on your holiday handling specifications in the Branch Parameters screen e f you specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the last working day before the holiday e Ifyou specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events falling on the holiday will be processed on the working day immediately following the holiday during beginning of day processing If a placement has been defined for verification of funds before automatic liquidation the components whose for which the schedule dates fall on the same day will be liquidated in the order that you specified while defining the product If the funds are ins
198. tic Contract Update program Even if you have defined a deal with automatic liquidation you can liquidate it manually a day before the schedule date However payment will not be allowed if the Rollover Instruction Status for the contract is Complete op ORACLE You can invoke the Money Market Payment Input screen from the Application Browser by typing MMDPAMIN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Money Market Payment Input E Enter Query Contract Reference Number 4 Of Syndication Reference Number Counterparty Counterparty Name Status Outstanding Amount Currency Outstanding Principal Amount Outstanding Amount for Payment Effective From Date and Amounts for Population of Components Due Allocation of Amounts Paid Value Date Total Paid Limit Date Local Currency Equivalent Limit Amount Total Pre paid Local Currency Equivalent Local Currency Equivalent Other Details Liquidated Nominal Local Currency Equivalent Discount Rate Payment Breakup 1 Of 1 Component Amount Due Overdue AmountPaid InterestPrepaid Events Breakup Settlement Split Messages Charges Tax MIS Fields Makerld Authorized By Date Time Date Time Contract Status Authorized You can do the following operations the manual payments function e Input of Manual payments e Del
199. ts the principal and any other component depending upon your ICCF definition for the deal are available in the adjoining option list You will have to define schedules for each of them When defining repayment schedules for specific deals the amounts for components like interest commission and fee will be calculated by the system automatically depending on the repayment date and amount of the principal However for deals with special interest you will also have to provide the interest amount Refer Indicate whether the dates of repayment schedules should be calculated based on the Value Date date of initiation of the deal of the deal involving the product or a Calendar Date If you specify that the Reference is the Value Date date of initiation of the loan the dates for schedule repayments will be based on this date and the Frequency If the Reference is specified as the Calendar Date the dates for schedule repayments will be based on the Start Date specified by you the Month and the Frequency The following example illustrates this concept a ORACLE If Reference is set to Value Date deal initiation date you need to specify only the Frequency monthly quarterly etc and the unit of frequency if you specify the frequency as weekly and the unit as 1 it means once a week The system will set the schedule according to the Frequency and Unit of Frequency you have specified beginning on the Value Date Frequenc
200. u can give rollover instructions even after the maturity date saying that the contract has to be rolled over as of the maturity date Manual liquidation Rollover has to be manual The deal will not be liquidated by of principal the Auto Liquidation function You can either liquidate it or specify that it has to be rolled over This can be specified at any time before or after the Maturity Date of the deal if the contract has not yet been liquidated If you have defined that the deal be liquidated manually you cannot roll it over automatically When a deal is rolled over or renewed for the interest charge or fee components it can assume the following attributes e Those of the product involving the deal being rolled over or ma ORACLE e Those of the old deal itself You can specify this at the time of deal processing of the old deal Specify the rollover details for the product you are defining by invoking the Rollover details screen using the Rollover button in the Product Preferences screen Rollover Details Product Product Description Rollover Apply Tax Rollover Auto Rollover With Interest Manual Update Utilization Deduct Tax on Rollover ICCF Rollover ICCF Rollover Product Contract Rollover Method Rollover Mechanism New Version v Roll By Days The following are the features of the product rollover details screen Mode of Rollover For deals involving a p
201. ufficient the liquidation will be done to the extent of the available balance in the repayment account again following the order of liquidation of components specified by you If this is so it will be reported in the Exception Report generated at the end of every day automatically by the Automatic Contract Update function If you have not specified that the funds are to be verified and the funds are insufficient e repayment account will be put into a debit balance if an overdraft is allowed and the schedules for the components will be liquidated to the extent of the debit balance allowed If it crosses the extent of debit balance allowed the liquidation will be done with an overdraft override that is automatically recorded The debit interest that is applicable to the account current or savings will be applied e Ifthe repayment account has not been defined with overdraft the liquidation will not be processed The liquidation order is helpful when you want to liquidate the dues in a certain order say interest or interest type of components first and then the principal If the deal has been defined with Floating interest and an interest revision falls due today the revised rate will be applied before the repayment is processed Advices Generated for a Repayment Advices are generated by the Automatic Contract Update function during beginning of day processing While defining a product you may have specified that an adv
202. uidation on 15 October will be as follows From To Rate 1 October 7 October 12 8 October 14 October 12 15 October 11 5 Specifying Schedules for a Deal with a Fixed Interest Rate For components of deals with a fixed rate of interest you will not have to define interest rate revision schedules That is you will have to keep the Rev box unchecked while you define the schedules for each component The schedules defined for each component at the time of product definition apply to the deal However you can change the frequency number unit and the start date to suit the specific requirements of the deal that you are processing You will have to specify the amount only if the schedule being defined involves the principal component or a special interest But in the case of Money Market deals the principal is usually repaid at Maturity and rarely has repayment schedules The amount for interest commission and fee components if they are rates will be calculated by the system automatically depending on the start date number of schedules frequency and repayment amount of the principal However an amount can be entered here for interest only if the Interest Calculation Method has been defined as Special The fee amount can be input only if it is a flat fee For a loan you can define repayment schedules that e Fall due at regular intervals or e At irregular intervals Now if you want to define schedule
203. ules by clicking save icon To delete a schedule before authorization click delete icon aM ORACLE 5 9 1 5 10 5 11 5 12 Authorizing a Redefined Schedule A redefined schedule has to be authorized before it can be used Viewing Schedule Details When you click Schedules in the Contract On line Schedule Definition screen you will see the Payment Schedule Details screen Here you can view the details of the schedules for a particular deal In this screen you can see the following details for the component e Due date of the Schedule e The Amount Due as of the due date e The amount liquidated against the schedule Viewing Revision Schedule Details When you click Revision Details in the Contract On line Schedule Definition screen you will see the Revision Schedule Details screen Here you can view the details of the revision schedules for a particular deal Revision Schedule Details Contract Revision Schedule Component Revision Date Applied In this screen you can see the following details for the component e The revision date and e Whether it has been applied Making Manual Payments The various components in a deal can be liquidated either automatically or manually The mode of liquidation of each component is specified at the time of defining a product and then again at the time of deal processing An automatic liquidation is done on schedule payment days by the Automa
204. unt Paid You can see here the amount paid for the component as of the value date the current system date Deleting Manual Payments Payments made using the Manual payments function can be deleted before the payment is authorized All the entries passed during the payment will also be deleted All the schedules will be restored to the original status In short the prepayment status of the deal will be restored From the Actions Menu select Delete or click Exit or Cancel in the toolbar You will be prompted to confirm the deletion Once you confirm it all the entries that have been saved but not authorized will be deleted Reversing Manual Payments You can reverse authorized manual payments The system makes the following validations before reversing a payment pu ORACLE 5 14 1 e A principal payment can be reversed only if the payment date is equal to or later than the last interest and commission schedule due date e Aninterest payment can be reversed only in the chronological order of its payment In the Contract view screen to reverse a payment you have to invoke the manual payments function and specify the Contract Reference Number You have to enter the Amount Paid You have to click on Reverse in the Processing sub menu of the Actions Menu If the payment involves accounts in different currencies the conversion rates to be used for reversal will be picked up from the deal as specified
205. which interest is computed over a schedule or interest period in respect of the contract You can choose any of the following options e Including the From Date For all schedules the period considered for interest calculation would include the start date and exclude the end date Therefore the value date of the deal is considered for interest calculation and the maturity date is excluded e Including the To Date For all schedules the period considered for interest calculation would exclude the start date and include the end date Therefore the value date of the deal is excluded but the maturity date is included for interest calculation e Including both From and To Dates The period considered for interest calculation would include both the value date and the maturity date This would mean For the first schedule it would include the Value Date as well as the end date Interest would be calculated for the Value Date Forall other schedules it would include the end date Interest would be calculated for the Maturity Date This option would work similar to the Include To Date option that is interest would be calculated for the period between the start date excluding the start date and the end date including the end date of the schedule e Excluding both From and To Dates The period considered for interest calculation would exclude both the value date and the maturity date This would mean Forthe first s
206. y For a periodic schedule you can indicate the frequency of repayment for each component This could be e Daily e Weekly e Quarterly e Monthly e Half yearly e Yearly e Bullet By default the frequency will be Bullet meaning all the repayments will be made on maturity If the frequency is defined as Bullet you cannot enter a value into the subsequent fields Unit You can specify the number of units for the frequency you have set for a particular component For example if you want a payment every 15 days you will have to specify e frequency as Daily and e the units as 15 For payments every three weeks you will have to define e frequency as weekly and e the unit as three Day If you have set the Reference as Calendar Date and the frequency as weekly quarterly half yearly or annual indicate the day on which the first schedule falls due Based on this the subsequent schedule dates will be calculated Month If you have set the Reference as Calendar Date and the frequency as weekly quarterly half yearly or annual indicate the month in which the first schedule falls due Based on this the subsequent schedule dates will be calculated Date If you have set the Reference as Calendar Date you should indicate the date on which the schedule should fall due Specify 31 to indicate that the schedule should fall due on the last day of the month that is 31 for months with 31 days 30 for months with 30 d

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