Home

Money Market User Manual

1. 7 13 8 AUTOMATIC PROCESSING 0 8 testes eene setas tassa thats sone ta sons eta sane tassa enses asao suse tasa 8 1 8 1 INTRODUCTION e 8 1 8 2 AUTOMATIC EVENTS IN THE LIFE CYCLE OF een enne nre nnne enne innen enne 8 1 6 2 1 Beginning of Day processes 6 1 6 2 2 of Day DFOGOSSOST I Cres 6 1 8 3 SPECIFYING BRANCH PARAMETERS en vtevsoscevavaecusesncersoscesecuasensessegtetsesesunsecencesseebepussurevtiey 8 2 8 4 INITIATING THE AUTOMATIC CONTRACT UPDATE 8 7 8 4 1 Processing during beginning of eren emet nete 6 7 6 4 2 Processing during end Of d y hon eee deep tke pre tue ce een eine 6 7 6 4 3 Processing Jor holidays eee t e ene us 6 8 8 5 INITIATING A FUTURE VALUE DATED 00 teint tests insti anas 8 8 8 6 PROCESSING AN AUTOMATIC 8 9 6 6 1 Advices generated for 6 10 8 7 GENERATION OF BILLING ADVICES cseisssosscessntesnconse
2. eene nne nennen ren 5 16 5 8 3 Specifying the rate revision dates eerie 5 16 5 8 4 Repayment schedule ee 5 17 5 8 5 Interest repayment schedules as different from rate revision schedules esses 5 17 5 8 6 Specifying schedules for a deal with a fixed interest rate see 5 19 5 0 REDEFINING SCHEDULES esros isores eee eere voee eee e oe EEE ESA Ea 5 20 5 9 1 Authorizing a redefined schedule seen nennen een ee enne 5 21 5 10 VIEWING SCHEDULE DETAILS 22 2 iE 5 21 5 11 VIEWING REVISION SCHEDULE DETAILS csscecssccesscecsceeeneecaeeeseeecsaceeeneecsaeeeaeecsaeeeeneeceaeeeeaeecsaeeeeneeeas 5 21 5 12 8 9 0 5 22 5 12 1 Rr TEE ERES U EE Le koc aepo rU da soe 5 23 9 19 n 5 25 5 14 USING THE S
3. nennen nennen 5 5 5 5 DEFINING REPAYMENT SCHEDULES scescceesseceseeeesseceseeeesaececeecsaeceseeeenaecesceecsaecesneecsaeceeeeecsaeceneeenaeeeneees 5 9 5 6 SETTING DEAL SCHEDULE PREFERENCES s csescecsssceseeecesecesncecaceeceeceaeeeneecsaeeecaeecaeeeeneecaeeseeeecaeesneesnas 5 9 5 7 SPECIFYING THE CONTRACT 85 12 21 5 11 5 7 1 Liquidating back valued schedules eee eee eene tente nennen rennen 5 11 27 2 When the repayment schedule date is a holiday esses enne 5 11 5 7 3 Moving schedules forward or backward eese nennen nennen eene ens 5 12 5 7 4 Moving schedule dates across the month eese eene nennen ene 5 13 3 7 3 Specifying the holiday currency eese eene tentent retener tree a 5 13 5 7 6 Specifying the mode of liquidation esee eene enne nennen trennen 5 14 5 7 7 Cascading Schedules ees eee MUR ERREUR eee vergente te doge uod debts 5 14 5 7 8 Ascertaining the availability of funds 5 14 5 8 REVISION AND REPAYMENT 5 8 2 2 2 0 si on Seini ii ente tnr en nene tne nns 5 15 5 6 1 Interest rate revision schedule eese esses eese eene 5 16 5 8 2 Specifying the rate revision
4. 2 2 10 000 en 4 2 4 3 2 Specifying the Contract Details a skate Fee de SU Uus eiue ed 4 5 4 3 3 Specifying the Schedule details of the contract eene 4 18 4 3 4 Indicating the Rollover Details ye i HOY LH E RETRO YE 4 19 4 3 5 Stating your preferences for a deal 4 19 4 3 6 Modifying a placement or a borrowing eese eee enne trennen rennen 4 22 4 4 FINANCIAL DETAILS THAT CAN BE CHANGED sssscccccceceesesececececsessaececececseseauesecececseseaeaeceeeceesenneaeeeeees 4 23 4 5 REVERSING AND REBOOKING CONTRACTS cccessessscecececeessaececececeesessececececeeneaaesececeeseseasaeeeeeceesennsaeeeeecs 4 23 4 6 VIEWING THE OTHER DETAILS OF A 1 4 24 4 7 ADVICES FOR DEAL INITIATION e iret er Erba reU EC Eo AE ERES SEE LESE REP 4 24 4 8 VIEWING EVENT DETAILS erectis dos RENE ERE UA ESO E ERE U SERVA VASE 4 25 4 9 VIEWING ACCOUNTING ENTRIES FOR DEAL 2 22 2 220000000 0 0000000000000000000000 00 4 26 4 10 VIEWING THE DIFFERENT VERSIONS OF A 0 2 0000100 000000000000 4 27 4 11 INITIATING A FUTURE VALUE DATED DEAL e eecccccecesssssececececeessauececececses
5. account Cera v Settlement Details Webpage Dialog essor Ostals Pates Pater Cose ates Otter Details Clearing Details Local Crane 4 12 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 4 30 ORACLE If booking initiation or deal amendment is not authorized the Contract Online screen is displayed If a payment of a deal is unauthorized the Payment screen is displayed If a value dated amendment is unauthorized the Value Dated Amendment screen is displayed Tel 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 or 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
6. ORACLE 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 4 3 2 5 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 Example You have made a placement USD 100 000 for Greenville Global Bank at 2096 interest for a month Now under the bearing type of interest payment method the nominal 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 Discounted In this interest payment method the interest is deducted at the time of initiating the deal Example You have made a placement of USD 100 000 at 20 interest for a month for Greenville Global Bank 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 deducte
7. 1 1 1 ee tese KERA E REE EEE EEE Se 6 6 7 ROLLING OVER A DEAL 5 7 1 7 1 INTRODUCTION CE bite een 7 1 7 2 SPECIFYING ROLLOVER FOR A PRODUCT ssccesscesssseeeeeecacceseeecsacessneeceaeeeneecsacesaeecsaeeeaeecaeeseneecaeeeeneesas 7 2 7 2 1 Mode of rollover manual or automatic eese esee eerie entente enne 7 2 ORACLE 7 2 2 Impact of liquidation mode on rollover eee eene nennen rem eere 7 2 7 3 SPECIFYING CONTRACT ROLLOVER een 7 7 7 3 1 7 7 7 3 2 Rolling over a contract manually eese eene nennen nennen trennen eren ens 7 10 7 3 3 Specifying the maturity 4 eene nre nnne rene eene nennen nennen nen 7 11 7 4 PROCESSING OF ROLLED OVER MM 7 11 7 5 ROLLINGOVER A DEAL MANUALLY cssccesevessecensensviesnanbeensosnstevsnenteonsvacestestessensentestansesnteensveerttensnetenestenitey 7 12 7 6 ADVICES FOR A ROLLED OVER entente 7 12 7 1 AUTHORIZING A MANUAL ROLLOVER
8. SI Event Event Description Remarks No Code 1 BOOK Booking a contract Mandatory All Types 2 INIT Takedown or Initiation Mandatory All Types 3 ACCR Accrual Mandatory for products with interest payment All Types frequency 4 LIQD Liquidation Mandatory All Types 5 CONF Confirmation of contract All Types 6 CAMD Amendment All Types 7 NOTC Billing Notice Generation Placements 8 ROLL Rollover execution treated as a liquidation new booking All Types 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 Revision All Types 14 REVP Reversal of Payment All Types 15 STCH Status Change Placements 10 1 ORACLE 10 3 SI Event Event Description Remarks No Code 16 VAMB Value Dated Amendment Booking All Types 17 VAMI Value Dated Amendment Initiation All Types 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
9. Description Amount CCY Rate Interest Basis INTEREST AUD 13 5 Actual 365 SUBJECT TO CHANG Transaction on Initiation Component Value Date Account Amount CCY m ORACLE Component Description Acc ount Branch INTEREST USD MM INT PLACEMENT 01 2 98 BNKCUL US1009 017 8 798 75 YOUR PAYMENT SCH Component Amount EDULE WILL BE AS GIVEN BELOW CCY Schedule INTEREST Date PRINCIPAL 04 JAN 98 13 315 50 12 000 000 00 AU AU D D SETTLEMENT D ETAILS A ccount CCY PRINCIPAI PRINCIPAI 002 AMT L INCR R 000 R 000 P 000 P 000 9 7 UL US1009 017 USD UL US1009 017 USD UL US1009 017 USD UL US1009 017 USD ORACLE PRINCIPAL LIQD 000 BNKCUL US1009 017 USD 9 1 4 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 som bak GB1003 Endsleign Court 24 Upper Woburn Place London WC1H OHA THE CONTRACT HAS B I EN ROLLED OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount 10 000 000 00 GBP Principal Amount 10 046 916 25 GBP Value Date 31 JAN 98 Maturity Date 01 MAR 98
10. If you have not specified that schedules have to be cascaded the date originally specified will be the date for drawing up the schedules Even if the April month end schedule has been moved to 29 April 1998 the next schedule will remain 7 May 1998 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 The funds in the repayment account are insufficient If the availability of funds has to be ascertained e components which are due will be liquidated only if funds are available in the repayment account and TUS ORACLE 5 8 If there are insufficient funds a partial liquidation of components will be done to the extent of funds in the account If this is the case gt payment schedules for those components which have not been liquidated or which have been part
11. 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 revision 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 interes
12. 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 f 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 12 1 Authorizing the deals 4 28 ORACLE You can either opt to authorize all the deal that are displayed or choose only certain contracts for authorization e To authorize only specific deals check against 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
13. Line Amount Local Currency Amount Booking Date Payment Method Value Date Credit Account Schedule Type Original Start Date Debit Account Reporting Details User Maturity Date Dealer Amount Maturity Date Notice Days Liquidation Auto Out Amount Manual Tenor Rollover Yes Broker x Holiday Currency Events Brokerage Advices Input By Date Time Authorized By Date Time Contract Status Authorized Effective Interest Rate Change Log Revision Details Settlement Split Messages Interest Charges Tax MIS Fields ORACLE You need to enter the following information The template ID if you are using one The base number of the counterparty customer The currency of the contract The principal amount for a deal with True Discounted interest you should enter the nominal The credit line under which the placement has to be tracked The tenor related details for the deal The code of the broker involved The dealer involved The default settlement account The maturity details The related reference number if any The interest details Whether the deal can be rolled over The status of the placement if it is to be changed manually The following details are displayed They cannot be changed Product type Default tax scheme Schedule payment method Interest type Rollover count 4 3 1 1 Entering deal details without using a template If you do not want to use a template do
14. Rollover Amount component LIQD CY Current year Unrealized accrual amount for a component component LIQD PY Previous year Unrealized accrual amount for a component INTEREST COMPONET ROLL The outstanding interest will be stored in a bridge account PRINCIPAL ROIN This is the principal of the rollover child contract It equals the amounts of PRINCIPAL ROLL and INTEREST COMPONET 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 ORACLE 10 4 Accounting Roles In this section we have provided two separate lists of sample accounting roles List contains accounting roles that can be set up for a Placement product List 1 contains samples of accounting roles that are applicable for a Borrowing product 10 4 1 List Acct Roles for a Placement product Accounting Description Role Type Role 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
15. Date 29 DEC 97 Reference Number 0003P05973630002 From To Ej MAIN BRANCH BOMBAY ROAD FORT BOMBAY 400 001 INDIA CITIBANK Moscow 39 Sadavo Spasskaya Street Moscow 107078 CIF CONFIRM THAT A MM PLACEMENT 05 HAS BEE ACCEPTED AS PER THE DETAILED BELOW BOOKING DATE 29 DEC 97 VALUE DATE O1 JAN 98 9 2 ET LOAN CONTRACT CONFIRMATION ADVIC ORACLE 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 MAIN BRANCH BOMBAY DN ROAD FORT BOMBAY 400 001 INDIA To TANAKA amp TANAKA GUTSHAUS 37133 RECKERSHAUSEN GERMANY WE CONFIRM THAT Money market borrowing 07 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW 9 3 ORACLE 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 DUPLICAT Lt AMERICAN BANK AUTHORI
16. Debit ComponentINC 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 10 21 ORACLE 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 In case a contract spans over multiple years any event Back dated Rate revision Principal Change etc back dated booking of contract etc which causes the accrual balances of the previous year to be recomputed the accrual entries will be posted to the current year unrealized income and expense GL only This movement of balance is applicable only for components that require accruals ee ORACLE 11 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 Br
17. 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 Required 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 fthe demand basis is Billing Notice the system will liquidate the Notice amount 4 3 6 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 ORACLE 4 4 4 5 However the inputs to some fields that contain financial
18. notice days You should also indicate if e Only the outstanding principal is to be rolled over e The outstanding principal is to be rolled over with interest or e lfaspecial 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 dn ORACLE 7 2 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 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 rollover facility You can indicate this when processing the deal 7 2 1 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 7 2 2 Impact of liquidation mode on rollover The mode of liquidation of a deal automatic or manual has the following impact when the rollover is carried out Specification Treatment Auto liquidation and The old deal will be liq
19. 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 Example 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 nominal 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 Discounted In this interest payment method the interest is deducted at the time of initiating the deal Example You have made a placement of USD 100 000 at 20 interest for a month for Greenville Global Bank A ORACLE 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 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 Example You have made a placement of USD 100 000 at 20 interest for a month for Greenville
20. 00 25 000 00 zi 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 Example Consider the borrowing by Cavillieri and Barrett Finance Corporation An Interest payment of USD 10 000 was due on 1 October 1997 Another payment of USD 15000 was due on 15 October 1997 Now the bank repays USD 12500 on 20 October 1997 Since there was no schedule due on this date you decide to do a manual payment Now since you have indicated the amount paid as USD 12500 in an earlier field in this screen the system will display against the 1 October schedule as USD 10000 in the Amount Paid column ied ORACLE 5 15 5 16 Against the 15 October schedule you the system will display the amount as USD 2500 in this column You can also see the Amounts which are due on a particular date Component Due Date Basis Amount Amount Paid Interest October 1 10000 10000 October 15 15000 2500 Amount Due The amount outstanding for the component being liquidated is displayed here Amount 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
21. 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 23 October 11 5 In the deal we are discussing the rates applied for the interest liquidation on 15 October will be as follows From To Rate 1 October 7 October 12 8 October 14 October 12 15 October 11 5 one ORACLE 5 8 6 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
22. 2 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 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 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
23. 365 method Level 1 will be active until level 2 comes into effect This will happen only after 10 days grace period associated with this level from the actual due date 31 t Dec 2001 Hence the duration for level 1 will be 10 days Jan 9 2002 Level 1 penalty Interest 50 000 x 8 x 10 100 x 365 109 58 USD Formula for interest calculation Basis Amount Rate Duration 1 00 Therefore as on 9 January 2002 penalty interest is USD 109 58 For Level 2 component Penalty 2 Basis Amount Overdue Normal Component Overdue Penalty of level 1 50 000 4109 58 Interest Rate 6 Duration 10 days 10 365 Level 3 will come into effect after 20 days from the actual due date 31 t Dec 2001 which means the duration for level 2 is 10 days since level 1 will be active from the due date till the expiry of the grace period associated with level 2 In other words level 1 will calculate interest from 31 Dec 2001 to 9 Jan 2002 and level 2 will be applicable from 10 Jan to 19 Jan 2002 Level 2 penalty Interest 50 000 109 58 x 6x 10 365 x 100 82 37 USD For Level 3 component Penalty 3 Basis Amount 50 000 109 58 82 37 Interest 496 eus ORACLE Duration From 20 Jan to 31 March 2002 i e 71 days 71 365 Level 2 will cease to exist after 20 January Subsequently level 3 will begin calculations till the system date i e 31 March 2002 Level penalty Interest 50 000 109 58 82 37 x 4 x 71 3
24. Date The maturity date of the contract Outstanding Brokerage The brokerage amount of the particular deal in the brokerage currency Amount Method The method by which the brokerage amount is collected Advance Arrears 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 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 Report Output Printer At Client Print Printer ORACLE 11 3 1 11 4 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 d
25. FWDLIABOFF PRINCIPAL FWD Credit Advices Advice Name Description MM CONT ADV Contract Advice Accounting Role Amount Tag Dr Cr Indicator INTEREXP INTER_ACCR Debit INTERPAY INTER_ACCR Credit Advices No advices allowed for this event 10 18 ORACLE Accounting Entries 10 5 5 4 LIQD Liquidation 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 Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice Accounting Entries 10 5 5 5 VABM Value Dated Amendment Booking 10 5 5 6 VAMI Value Dated Amendment Initiation 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 19 ORACLE 10 5 5 7 CAMD Amendment Accounting Entries Nil Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 5 8 NOTC Billing notice generation Accounting Entries No accounting entries allowed for this event Advices Advic
26. 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 Example If the Value Date of a borrowing is 10 December 1997 and you indicate the frequency as weekly and unit as 1 then the first schedule will be liquidated on 17 December 1997 the next one on 24 December 1997 and so on Frequency For a periodic schedule you can indicate the frequency of repayment for each component This could be Daily e Weekly e Quarterly e Monthly 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 Example If you want a payment every 15 days you will have to specify frequency as Daily and e the units as 15 For payments every three weeks you will have to define e frequency as weekly and ad ORACLE 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
27. Placement Fixed Bearing Interest esee eene nennen nemen eene 10 13 LOS REVN Rate Revisioh esseri rere eene EE ere EE EU PB ee Ei 10 16 10 5 5 Borrowing with Fixed Bearing Interest eese eee 10 17 LONGO ROLE ROM OVE is iiie etr ri eerte ees E ER PIENE Pg ere YS 10 20 10 6 ENTRIES FOR CONTRACTS LIQUIDATED WITH PREVIOUS YEAR ADJUSTMENT OPTION 10 21 11 REPORTS IN MONEY MARKET MODULE scere setas esae setas eese seen seta 11 1 INTRODUCTION ERES EE etre eee eee Ne edo 11 1 112 MM BROKERAGE IDETATUS E 11 1 112 1 Report Options m EERE 11 2 112 2 CONRLENIS OF Me e doy dca tous 11 2 113 MM BROKER CONFIRMATION PENDING 11 000 02000000000000000000000000000000 00 11 3 LEB A Contentsof the Report e epe reine 11 4 114 MM COUNTERPARTY CONFIRMATION PENDING 11 4 LII Contents OF Me Report tite REDE OLEI duos oberon s eR 11 5 ORACLE 1 About this Manual 1 1 Introduction This manual is designed to help you quickly get
28. 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 22 ORACLE Example A borrowing is initiated on 15 September 1997 and the frequency of repayment is weekly If the Reference is specified as Value Date the next weekly schedule date will fall due on 22 September 1997 30 September 1997 and so on till Maturity If the Reference is specified as Calendar Date and the Start Date is fixed as 1 October 1997 the first repayment date will be 1 October 1997 The subsequent repayment dates will be 8 October 1997 15 October 1997 and so on If Reference is set to Value Date deal initiation date you need to specify only the
29. actual principal of the loan To go to the Product Default Schedules screen click on the Schedules button in the Product Preferences screen 5 3 4 Indicating the schedule type 5 4 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 ix ORACLE Product Default Schedules Webpage Dialog oduct Cod e MPT2 Overnight Placement lof 1 Component Scheduies o Component Refer equency o Date Perio Peros 21 v vue Value Date v Suset 1 v vl PRicPAL E Vaue Date Bullet 1 v wl 2 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 components 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
30. any when a component comes to a particular status and the messages to be generated at each status change 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 ium ORACLE 8 8 4 8 9 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 change is due happens to be a holiday then the processing depends upon your specifications in the Branch Parameters screen e lf
31. are defining a borrowing product Group Each product is classified under a specific group The different 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 we ORACLE 3 2 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 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
32. 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 Example You have specified the normal variance as 3 and the maximum variance as 6 for Product 01 Now if you apply an exchange rate on a contract involving 01 that varies from the applicable rate maintained for the day by less than 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 1 that varies from the day s rate by more than 6 the system will not store the contract 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 du
33. 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 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 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 de
34. 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 Actions Menu or click Exit or Cancel button on the toolbar The value dated changes will be deleted Uploading the contracts for amendment From an external system you can upload contracts that require amendment in Oracle FLEXCUBE The system will distinguish between the new and the contracts that require amendment based on the action code of the uploaded record For a contract requiring amendment the action code will be If the action code is 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
35. day processing on the working day immediately after the holiday that is 22 June 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 SM ORACLE 8 8 8 8 1 8 8 2 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 f 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
36. 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 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 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 at the 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 dea
37. 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 Example For instance you have named 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 can change the payment account e You can specify the exchange rate if the settlement account currency is different from the contract currency e You can capture the ERI Currency e You can capture the ERI Amount 5 14 1 1 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 EHI currency and e The ERI Amount The system defaults to the ERI curre
38. 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 schedule date falls on a holiday and e You have specified through the contract preferences screen that the holiday be ignored while calculating the schedule date 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 f you 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 f you 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 Preferen
39. 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 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 attribu
40. 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 You can specify the liquidation order for all the interest type of components and the principal 18 ORACLE 3 2 9 3 2 9 1 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 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 Example An interest repayment on Mr Brian William s borrowing deal is due on 15 June 1998 You have specified a grace period of 5 days after which a penalty interest of 296 will be imposed Now if Mr Williams makes the interest payment on 18 June which falls within the grace period he will not have to pay penal interest But if he makes the payment after the expiry of the grace period that is after 20 June then he will be charged penal interest It will be calculated from 16 June onwards and not from
41. option applies only if you want to roll over deal with interest Apply tax For tax to be applicable on a rolled over deal e t should be applicable to the product involving the deal e 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 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 Example To carry forward the example of your customer Cavillieri and Barrett Finance Corporation who has taken a placement of USD 100 000 under from you on 1 June 1997 at 20 interest the placement was to be liquidated at maturity on 31 December 1997 But Cavil
42. 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 in 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 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 xis ORACLE 3 2 2 e f you have specified that the automatic events are to be processed for 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 beginning of day processing Start Month In the case of monthly quarterly half yearly or yearly accruals you should specify the start mont
43. 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 4 11 1 1 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 choose to trigger it manually using the Reopen option in the Toolbar or from the Actions Menu A typical instance when the system does not trigger 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 If your user profile has been granted the Auto Auth privilege such deal gets authorized automatically after initiation Otherwise it has to be authorized by a different user from the MM contract online screen 4 12 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 unauthorized money market deals from the Unauthorized Contracts screen Invoke this screen from the Application Browser ORACLE Bulk Authorization Detailed Webpage Dialog Name eS Authorize nt nsttution ignore Overrides C Generate Messages Receiver Correspondent View Error
44. 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 es ORACLE 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 Manual e Status Control Auto Manual e Exposure Category e Risk Free Exposure Amount e Internal Remarks 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 Booking Date e Value Date e Branch Code e Cr Dr Account Number e Holiday Currency Commitment Revolving Non revolving e Maturity Type e User Input Maturity Date In case the request is a financial amendment then the contract is reversed and reb
45. 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 The latest activity on the deal has to be authorized e It should be past its maturity date and e should not have been liquidated Two activities take place when a deal is rolled over 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 ORACLE 7 3 3 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 Fixed This type of deal has a fixed Maturity Date For a deal with a fixed maturity date you enter the changed date on which the deal should be liquidated Call The Maturity Date is not fixed The deal can be liquidated anytime Notice 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 information purposes Whenever a report is generated on a notice type of deal the notice
46. 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 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 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 to PDO from Active status then to NAB and lastly to WRO status You can also indicate the change of GL if
47. 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 The settlement details e The tax details e advices that you can suppress or prioritize e The MIS details The ICCF details e events for the deal e The accounting entries for the deal e brokerage details Advices for deal initiation The advices that have to be generated for any event during the life cycle of a deal are specified for the product involved in the deal For example you may have specified the following advices for the product When deal is initiated an advice addressed to the customer e lf 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 m ORACLE 4 8 Advices Webpage Dialog act Reference Advices Name Rece e edum Suppress Priorty Charges E PAYADV High mis PAYMENT_MESSAGE Ne m mO E Ei Suppress By default all the advices that have been defined for a product will be generated for a deal However you can suppress the gene
48. 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 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 documentatio
49. when the schedules are fixed The processing of this is determined by your holiday handling specifications in the Branch Parameters screen If you specified that processing has to be done today on System date for automatic events up to the day before the next working day then on 30 October itself the schedule of 31 October will be liquidated during the EOD run of the Automatic Contract Update function If you have specified that processing has to be done only up to the System Date then on 30 October only the events scheduled for that date will be processed This means that since the schedule date is 31 October which is a holiday the schedule will be processed on 1 November the next working day during the BOD run of the Automatic Contract Update function 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 previous 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 ofthat day Example For a borrowing you have defined weekly schedules falling due on the following dates 31 March 1998 e 7 April 1998 e 14 April 1998 7 April 1998 is a holiday You have the following options in fixing the date for that sche
50. you have the option of applying tax on a product If you specify that tax is applicable for 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 e ORACLE E Preferences Webpage Dialog 23 2 Overnight Placeme Preterences Accrual ayments e nat ack A eres ate ax A abe Tenor 1 870 Dat 5 365 ac Pay Past Schedules Rate Variance 4 e 10 8 28 ar 5 Authorization Rekey Fields Holiday Treatment scade aue Da 98 act A aturty Date va a Backwa gt R er Detsis Sched Orde Dsys BEI You can maintain the following details in this screen Payments You should 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 Example 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 th
51. 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 Penalty 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 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 Example Let us assume that an amount of USD 500 000 is issued to Mr Silas Manner 15 January 2001 at 1096 Interest per annum The contract spans a year within which the Interest component has to be paid back At the end of the contract i e on 31 December 2001 the amount would earn an interest of USD 50 000 As your bank has chosen to define multiple penalty components it has decided to maintain the following structure for calculating penalty for non repayment of interest as per schedule Components Level No Grace Days Rate Interest Expected Component 0 NA 1096 Overdue Interest Penalty 1 1 2 896 Overdue Interest Penalty 2 2 10 6 Ov
52. 20 MT330 MT335 MT350 10 5 1 7 CAMD Contract Amendment Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 1 8 NOTC Billing Notice Generation Accounting Entries No accounting entries allowed for this event 2 ORACLE Advices Advice Name Description BILLNOTC Billing Notice SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 1 9 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 5 1 11 ROLL Rollover Accounting Entries Accounting Role Amount Tag 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 Debit Interest componentREC Interest Component LIQD Credit 10 8 ORACLE Accounting Role Amount Tag Dr Cr Indicator ROLL WASH PRINCIPAL ROLL Debit ASSETGL PRINCIPAL ROLL Credit ROLL WASH Interest Component ROLL Debit Interest componentREC Interest Component ROLL Credit Advice
53. 65 x 100 390 53 USD The total amount due to your bank as of 31 st March 2002 50 000 109 58 82 37 390 53 50582 48 USD o If a repayment is made towards any component Normal or Overdue the repaid amount will be subtracted from the amount due to arrive at the correct basis amount 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 o Grace days are defined for a level You cannot specify different grace days for the same level for different Basis amount types After the product has been saved and authorize you are not allowed to modify grace days US ORACLE Grace Days Webpage Dialog x n Code 2 Product Deseret Overnight Pla
54. AMI Value Dated Amendment Initiation Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL INCR Debit CUSTOMER PRINCIPAL INCR Credit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 Accounting Entries Nil 10 5 3 7 CAMD Contract Amendment 10 15 ORACLE Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 3 8 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 10 5 3 9 REVC Reversal Accounting Entries No accounting entries allowed for this event Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 4 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 5 4 1 ROLL Rollover Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER LIQD Debit INTER REC INTER LIQD Credit 10 16 ORACLE Accounting Role Amount Tag Dr Cr Indicator ASSET GL INTER ROLL Debit INTER REC INTER ROLL Credit ASSETGL PRINCIPAL LIQD Credit CUSTOMER PRINCIPAL LIQD Debit CUSTOMER PRINCIPAL LIQD Debit ASSETGL PRINCIPAL LIQD Cre
55. D 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 Intra day deal Deals having the same Maturity and Value Date are known as Intra day deals You will be able to capture 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 uM ORACLE 3 2 5 Normal variance If the exchange rate variance exceeds the standard exchange rate specified for the currency the system will
56. ETTLEMENTS SCREEN esseiste ine 1 1 enne nnne enne 5 26 5 15 DELETING MANUAL PAYMENTS 2 212 2 2 2 2 enne nnne nne nE tette ene 5 28 5 16 REVERSING MANUAL PAYMENTS ccecce na ee entes einen tenetis entes enne 5 28 5 17 AUTHORIZING MANUAL PAYMENTS cccccssscesscecsseceseeeceaceeceeceaecesneecsaeeeeneecsaeeesacecsaeeeeaeecaeeeeeeecaeeeeeeecsas 5 29 6 MAKING INTEREST RATE CHANGES csscccssscssssscssscssssscssscssssscnscsssssscnessssssssnsssssssscnsssssssssnessssseces 6 1 6 1 INTRODUCTION e E 6 1 6 2 NAVIGATING TO THE SCHEDULE DEFINITION SCREEN 6 2 6 2 1 CHANGING the mat rity dale eset aie ie gus iege lotus qae esse us 6 2 6 2 2 Making changes in the credit eene rene nenne trennen 6 2 6 2 3 Making changes in secs sesssecisesvbiesonseesscetserovnsesssosdagureossboceaysdpicenaveseseonsioneobbra ER ES 6 2 6 3 SETTLEMENT INSTRUCTIONS vana Ua ee Ee FURY 6 3 6 4 DELETING VALUE DATED CHANGES ceseccesseceseeeceeceseeessaececeecsaeceseeeesaeceneecsaeceaceecaaeceneecsaeceneessaeeeeeeees 6 4 6 5 UPLOADING THE CONTRACTS FOR AMENDMENT eeeeeeeeeen nennen 6 4 6 6 AUTHORIZATION OF 6
57. Global Bank Under the true discounted type of interest payment the interest calculated on the principal USD 98 333 5 arrived at after deducting 2096 interest on the nominal is deducted from the nominal USD 100 000 and USD 98 361 2 is advanced This forms the actual principal 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 which interest is computed over a schedule or interest period in respect of the contract You can choose any of the following options 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 Including the To Date For all schedules the period considered for interest calculation would
58. IPAL Credit FWDASSETGL PRINCIPAL FWD Credit FWDASSETOFF PRINCIPAL FWD Debit 10 5 ORACLE Accounting Role Amount Tag Dr Cr Indicator 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 1 3 ACCR Interest Accrual 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 10 5 1 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator PENL1REC PENL1 LIQD Credit CUSTOMER PENL1 LIQD Debit ASSETGL PRINCIPAL LIQD Credit CUSTOMER PRINCIPAL LIQD Debit me ORACLE 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 Advices Advice Name Description SWIFT_MESSAGE MT3
59. Maturity Date is changed a change in the Maturity Date will be handled in the following manner gt 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 gt Advancement of the Maturity 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 Revisi
60. Money Market deal Chapter 7 Rolling Over a Deal describes how Money Market Deals are rolled over i ORACLE Chapter 8 Automatic Processing discusses the features of the Automatic Contract Update function Chapter 9 Customer Correspondence explains the advices and messages that you can generate in the MM module Chapter 10 Annexure A Accounting Entries and Advices for the MM Module gives an event wise listing of suggested accounting entries and advices that can take place during the life cycle of the MM module Chapter 11 Reports lists the possible reports that can be generated for the Module 1 2 Glossary of Icons This User Manual may refer to all or some of the following icons 1 2 1 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 Deposits e Products e Settlements e interest e Charges and Fees e Tax e User Defined Fields ke 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
61. Money Matket Oracle FLEXCUBE Universal Banking Release 11 6 0 0 0 October 2015 ORACLE FINANCIAL SERVICES ORACLE Money Market Table of Contents 1 ABOUT THIS MANDA Y 1 1 1 1 INTRODUCTION 1 1 1 1 1 LUNIT2I Esa EE 1 1 1 1 2 ONG 1 1 1 2 GLOSSARY OF the OR ere 1 2 1 2 1 1 2 2 AN OVERVIEW OF THE MONEY MARKET MODULE ee eene eee eene een rose ee enne sete ense sete tn esee ena 2 1 2 1 INTRODUCTION 2 1 2 1 1 Ihe Product Definition Facility ipie ere Recte rie REN 2 1 2 1 2 Automatic processing features sese enne nnne nnne E trennen enne nenne 2 3 2 1 3 Setling money marker DRE EHE tubas 2 3 2 1 4 Rolling over deuls cet o Rt ee itti t ER UID Tg iota ts e TON ER RA EH A 2 4 2 1 5 Tracking and retrieval of information 2 4 3 DEFINING THE ATTRIBUTES OF A MONEY MARKET PRODUCT eee eee ee enne 22 3 1 3 1 INTRODUCTION eH P EP 3 1 3 1 1 Defining
62. 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 parent s outstanding Asset balances to the child contract 10 4 2 List I 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 10 3 ORACLE 10 5 Accounting Role Description Role Type INTERPIA Fixed Interest Rate Asset INTERPAY Fixed Interest Payable Liability CHARGEXP Common Flat Amt W o Slab Expense FRTAX1 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 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 Event wise Accounting Entri
63. Tenor 30 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis xis ORACLE INTEREST SUBJECT TO CHANG Transaction on Initiation Component Value Date Account Amount CCY Component Description Account Branch OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 01 98 INTEREST 53 331 75 GBP PRINCIPAL 10 046 916 25 GBP SETTLEMENT DETAILS Component Dr Cr Br Account CCY 9 9 ORACLE 9 1 5 INTEREST P 000 PRINCIPAL R 000 PRINCIPAL INCR R 000 PRINCIPAL LIQD P 000 BNKCUF GB1003 018 BNKCUF GB1003 018 BNKCUF GB1003 018 BNKCUF GB1003 018 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 TC29 GE1000 Q UTSHAUS 37133 RECKERSHAUSEN GERMANY WE CONFIRM HAVING TAKEN FROM YOU Principal Amount Principal Amount Value Date Maturity Date Tenor 99 999 00 DEM 29 DEC 97 28 MAR 98 90 DAYS 9 10 GBE GBE GBE GBE ORACLE INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis INTEREST DEM 10 30 Euro Actual Componen
64. ZED SIGNATORY MONEY MARKET BROKER CONFIRMATION ADVIC Date 29 DEC 97 Reference Number 0003P04973630002 Broker Code SW1001 From MAIN BRANCH BOMBAY D N ROAD FORT BOMBAY 400 001 INDIA To Lucy King 23 Upperway Old Avenue ORACLE 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 CI WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICAT AUTHORIZED SIGNATORY 9 1 3 Advice generated for the roll over of a placement ROLLOVER ADVICE FOR A PLACEMENT MM PLACEMENT 04 Transaction Date 01 98 Our Reference No 0003P04983630002 User Reference No TC8 US1009 516 W 34 St xis ORACLE New York NY 10001 I THE CONTRACT HAS B EN ROLLED OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount 12 000 000 00 AUD Principal Amount 2 12 000 000 00 AUD Value Date 01 JAN 98 Maturity Date 04 JAN 98 Tenor 3 DAYS INTEREST FEE DETAILS
65. a Money Market Product eese eene enne 3 2 3 2 SETTING PRODUCT eerie seo eee ERES ERREUR TREE 3 3 3 2 1 Specifying Accrual E 3 5 3 2 2 Indicating values to be rekeyed during authorization eese eese 3 6 3 2 3 Specifying Tenor related details nekeak a nennen 3 7 3 2 4 Specifying Exchange Rate 3 11 3 2 5 Indicating Holiday Treatment e ee eee reste eee crono tpe ee ees scenvecoattesesoetyh 3 12 3 2 6 Maintaining Rollover Details eee ee eee eene e RR tive 3 13 3 2 7 Specifying Component Schedule Details eee eee eee eee nennen nennen 3 14 3 2 8 Prioritizing the liquidation of components eese eene eene enne tenete enne enne 3 15 3 2 9 Specifying grace days to penalty eee teet Eee Ehe unte orae Re Ee eee ERU VR Re 3 17 4 PROCESSING AN MM DEAL ic se urea ooa nep arae euer inre eb eoe eee aepo Re ba Pa e Ups ot Oo Un ae ee eaa eere ir eura d 4 1 4 1 INTRODUCTION EEEE E 4 1 4 2 CAPTURING DEAL INPUT SCREENS ccessesssseceeeceessseeesecececseueaeseeececeeseaaeseeececseaaesecececeeseaaeseseeeesessaeaeeeeees 4 1 43 FEATURES OF THE CONTRACT DETAILS 5
66. able to the account current or savings will be applied e fthe 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 Es ORACLE 8 6 1 Advices generated for a repayment 8 7 Advices are generated by the Automatic Contract Update function during beginning of day processing While defining a product you may have specified that an advice 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 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
67. 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 beginning 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 3 2 6 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 ate ORACLE 3 2 7 E Rollover Details Webpage Dialog Rollover ICCF Rollover lover Method Rollover Mechanism Spawn Contract Rot By New Version pav oeiract Linked Contract n Overnight Placement 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
68. accrual frequency defined for the product associated with it is ORACLE 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 An entry 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 Asingle 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 o 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 resi
69. 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 obtain information specific to a particular field by placing the cursor on the relevant field and striking F1 on the keyboard 1 1 1 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 Managers Generation of reports 1 1 2 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 An Overview of the Money Market Module is a snapshot of the features that the module provides Chapter 3 Defining the Attributes of a Money Market Product talks about defining 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
70. 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 d ORACLE 8 4 3 8 5 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 f you have specified that processing has to be done only up to the System Date today th
71. al and a conversion rate was specified the rate from the payments function will be used for the reversal nd ORACLE 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 5 17 Authorizing manual payments You have to invoke this function from the Application Browser 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 jus ORACLE 6 1 6 Making Interest Rate Changes Introduction Any change to the terms of a Money Market deal which affects its financial details 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 V
72. al 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 counterparty customer details e The deal amount e The deal currency e The repayment account for the deal and so on Capturing deal input screens 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 54 ORACLE 4 3 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 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 it 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 o
73. al is rolled over if so specified for the product the deal involves Generation of advices upon rollover if specified will be as follows ee ORACLE 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 7 7 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 two authorizations e for the liquidation of the original deal e Two for the initiation of the new deal When you call such a deal for authorization the details of the liquidation of the original deal will be displayed m ORACLE 8 1 8 2 8 Automatic Processing Introduction While discussing the various events in the life cycle of a d
74. al 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 dd ORACLE 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 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 Example To define the default tenor in the Default tenor 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
75. ally 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 es ORACLE 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 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 No fees When rolling over this placement you have two options 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 over 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 h
76. alue Dated Changes A Value Date could be e Today A date in the future e Adate 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 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 i
77. ame 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 TEST ORACLE 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 Advices Advice Name Description MMAMDADV Amendment Advice 10 5 2 6 VAMI Value Dated Amendment Initiation Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 11 ORACLE 10 5 2 7 CAMD Amendment Accounting Entries Nil Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 2 8 NOTC Billing notice generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing N
78. amo aj E Leg interest Detais are Defauted oc utes Settiement Detais Defautec Mea MIS Details Defauted e User C No Credt Line s specifies ORACLE 4 10 Viewing the different versions of a deal When a deal is input it is assigned a version number of 1 From then on each 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 4 11 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
79. 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 itis a flat fee For a loan you can define repayment schedules that e Fall due at regular intervals or e Atirregular intervals Now if you want to define schedules 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 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 Sup
80. 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 Incase a 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 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 dis ORACLE 9 Customer Correspondence 9 1 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 at 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 Outg
81. as 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 Example Deals can be initiated As of today e A date the future or e As ofa date in the past Today s date is 15 October 1997 Suppose you initiate today a borrowing of 15 000 USD with the Value Date the date on which the deal comes into effect as 15 September 1997 the system will pass accounting entries for initiation as of 15 September But if there had been an interest payment schedule for 30 September 1997 for 500 USD 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 borrowing is initiated If you specify that back dated schedules are not to be liquidated only accrual entries will be passed till today o 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 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 s Example You have made a place
82. ate will be processed Example Assume today is 20 October 1997 and 21 October 1997 and 22 October 1997 are holidays If you specify that processing has to be done till the system date during the Automatic Batch Update function run the system will process only the events scheduled for 20 October 1997 The events scheduled for the holidays i e 21 October 1997 and 22 October 1997 will be processed during the Automatic Batch Update function run during beginning of day operations on 23 October 1997 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 iie ORACLE Example Assume that today is 20 October 1997 and 21 October 1997 and 22 October 1997 are holidays If you specify that processing has to be done till the day before the next working day when you run the Automatic Batch Update function during end of day processing on 20 October 1997 all the events scheduled for 21 October 1997 and 22 October 1997 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 Onthe schedule amount For your branch you can specify the amount on which tax has to be applied in the Branc
83. ation Rollover has to be manual The deal will not be liquidated by the Auto of principal 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 ns ORACLE 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 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 Product Rollover details screen using the Rollover button in the Product Preferences screen E Rollover Details Webpage Dialog MPT2 Product Description Overnight Placement Rollover Rolove Auto Manua v Roto ver wen interest ICCF Rollover v Update Utkzatx R C Deduct on tract lover Method clover Mechanism Rol By The following are the features of the product rollover details screen Mode of Rollover For deals involving a product for which a rollover is allowed you should specify the mode of rollover automatic or manual during processing A deal will be automatic
84. ave 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 Example You have made a placement with Cavillieri and Barrett Finance Corporation of USD 100 000 on 1 June 1997 at 20 interest The placement is to be liquidated at maturity on 31 December 1997 The Cavillieri and Barrett Finance Corporation s credit limit is USD 110 000 Now the Bank s placement is not liquidated at Maturity and you plan to renew it by rolling it over into a new contract If you opt to update the credit limit utilization the total liability on 31 December 1997 will be USD 111 670 USD 100 000 USD 11 670 as of 31 December Interest calculation method Actual 365 And since the utilized amount is above the Cavillieri and Barrett Finance Corporation s central liability limit USD 110 000 it will not be eligible for the rollover or renewal of the placement P ORACLE However if you do not opt to update the credit limit utilization Cavillieri and Barrett Finance Corporation will be eligible for the rollover of the placement if it has been indicated for rollover with interest This
85. 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 schedules For a deal on which floating interest has to be applied at periodic intervals you may have to define e Aninterest rate revision schedule for the interest component as well as e Arepayment schedule The following example shows how this is achieved Example You have a deal where for the component interest 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 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 ud ORACLE 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 input
86. bility 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 517 ORACLE P Money Market Contract input Webpage Dialog Reporting 3333A 6 mouse Free Cane Mobdey Currency Events Brokerage Interest Rate Changelog Revision Osta s Semement Spit Messages Tax MIS Aces 5 7 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 cannot be beyond the Maturity Date 5 7 1 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 5 7 2 When the repayment schedule date is a holiday You have specified that repayment schedules should be generated automatically once you indicate the frequency number and the
87. 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 3 14 ORACLE E Product Default Schedules Webpage Dialog L For a detailed explanation on the above screen refer the chapter Processing Repayments in this User Manual 3 2 8 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 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 512 ORACLE 2 Component Liquidation Order Webpage Dialog 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
88. cement lot 1 GRACE DAYS E D Lee e ber of Unts Nominal Value ts 2 i 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 Days e Months or e Years You can select the appropriate option from the drop down list 80 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 Q when you enter into a deal with a customer you enter into a contract Contracts are customer specific Deals contracts inherit the attributes of the product by default This means you will not have to define these general 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 de
89. ces 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 Automatic Contract Update function If you have not specified that the funds be verified and there are insufficient funds in the repayment account The 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 fthe repayment account has not been defined with overdraft the liquidation will not be processed is ORACLE 5 3 2 5 3 3 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 h
90. click Authorize to authorize the deals 4 12 2 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 Example 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 Webpage Dialog Authorised Errors 33 o Contract Ref Number Error Messages 2 El 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 4 29 ORACLE 4 12 3 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 The settlement details for the latest event of the deal will be displayed Settlement account Currency of the settlement account Settlement account branch Payable or Receivable Ordering Institution Ordering Customer Beneficiary Institution Ultimate Beneficiary
91. component Revision Date Apple In this screen you can see the following details for the component e The revision date and Whether it has been applied ze ORACLE 5 12 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 Automatic 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 In the Application Browser click Manual Liquidation and view the Contract Schedule Payments screen v Money Market Payment Input Webpage Dialog Am e Dec rae Payment Breesup n et zi Events Breakup Settlement Split Settiements Messages Charges Tax MIS Fields You can do the following operations the manual payments function e Input of Manual payments e Deletion 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 pr
92. d 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 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 ORACLE 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 When setting up the module you can define the various types of deals you enter int
93. d 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 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 Example You have made a placement of USD 100 000 at 20 interest for a month for Greenville Global Bank Under the true discounted type of interest payment the interest calculated on the principal USD 98 333 5 arrived at after deducting 2096 interest on the nominal is deducted from the nominal USD 100 000 and USD 98 361 2 is advanced This forms the actual principal 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 ORACLE 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 Notice The deal will be liquidated at a certain period of notice The number of days 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 Maturity Date If the Maturit
94. 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 ORACLE 5 7 3 e Move it either backward or forward by specifying so If you specify that holidays 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 Example A daily interest repayment schedule date for Cavillieri and Barrett Finance Corporation s borrowing of USD 100 000 for one week at 1696 interest falls on 31 October a holiday If you have said Ignore Holidays by clicking this field the schedule date will remain on 31 October
95. 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 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 7 44 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 trigger 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 rever
96. 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 used for creation Specifying the Contract 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 ORACLE In order to search the values in the option list you need to enter the minimum number of characters required by the system for search That is to search with the customer number you need to enter at least the f
97. 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 ud ORACLE e Interest rate Incoming messages MT320 and MT330 will be available 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 Jobs Browser Jobs Browser Webpage Dialog Job Module MS Process PR AUTO 100 FT MA az Status is Search Advanoed Search Reset Records per page 15 v 1 of 1 j t Job Module Process Process Sequence Number Status E ms PR AUTO MT100 FT MAN 7 N Start Stop Status N Stopped T Running H Halted dis ORACLE 10 Annexure A Accounting Entries and Advices for the MM Module 10 1 10 2 Accounting entries for Money Market 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
98. dit 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 The 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 17 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 Accounting Entries 10 5 5 2 INIT Initiation of a Borrowing with fixed bearing interest Accounting Entries 10 5 5 3 ACCR Accrual of interest Accounting Role Amount Tag Dr Cr Indicator FRTAXC EXP FRTAXC AMT Debit FRTAXC PAY FRTAXC AMT Credit LIABGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit FWDLIABGL PRINCIPAL FWD Debit
99. dual amount indicates the limit for the 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 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 92 ORACLE The following are the maximum limits accepted e Foran amount with two decimals 99 99 e Foran amount with three decimals 9 999 For an 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 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
100. dule You can ignore the holiday The schedule date will still be on 7 April 1998 despite the holiday The liquidation of the schedule will be done as per your specifications in the Branch Parameters screen You can move the schedule date forward to the next working day which happens to be 8 April 1998 The schedule will be liquidated during Beginning of Day BOD processes on this date as it is a working day The across the month movement discussed subsequently comes into the picture here SIE ORACLE 5 7 4 5 7 5 You can move the schedule date backward The schedule date will be 6 April 1998 the last working day before the holiday The schedule will be liquidated during BOD processes on this date as it is a working 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 Example Scenario 1 You have defined a repayment schedule that falls due on 30 April 1998 This happens to be a holiday You have indicated that in case of a holiday the schedule date is to be moved forward to the next working day If you also indicated that the schedule can be moved across the month then the schedule will be automatically moved to 1 May 1998 the next working day If you disallo
101. e Name Description BILLNOTC Billing Notice SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 5 9 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 5 6 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 10 20 ORACLE 10 6 Accounting Role Amount Tag Dr Cr Indicator CUSTOMER PRINCIPAL LIQD Credit Advices Advice Name Description LD ROLL ADV Rollover advice 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 Credit Customer Component Debit ComponentUNRL Component LIQD PY Debit ComponentINC Component_LIQD_PY Credit ComponentUNRL Component_LIQD_CY
102. e 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 e Memo accrual control journal e Accrual control journal e Accrual control journal summary e Activity journal du ORACLE 3 1 3 Defining the Attributes of a Money Market Product Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Money Market product You can create a Money Market product in the Money Market MM Product Definition screen invoked from the Application Browser In this screen you can enter basic information relating to a Money Market product such as the Product Code the Description etc Money Market Product Definition Webpage Dialog D ES Aurores Open 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 Products Interest Charges and F
103. e on a holiday In such a case you have two choices e gnore the holiday and retain the schedule date on that day e Move it either backward or forward by specifying so in the subsequent fields in this Screen Check this box if you wish to ignore holidays at the time of drawing up schedules 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 to the next working day or move backward to the previous working day e ORACLE 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 The 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
104. e 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 Discounted In this interest payment method the interest is deducted from the principal at the time of initiating the deal a ORACLE 3 2 1 Example 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 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 Specifying 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
105. eal 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 life cycle 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 8 2 1 Beginning of Day processes Below are the processes Initiation of a deal with a Value Date in the future e Application of the appropriate 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 proc
106. eal for which broker confirmation is pending Number Broker The unique ID of the broker linked to the deal Name The name of the broker 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 es ORACLE Money Market Counterparty Confirmation Pending Report ReportFormat PDF PrinterAt Client Report Output Print Printer 11 4 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the 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 confirmation is Number pending Counterparty The unique ID of the co
107. ed 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 Any Value Dated Change done during the course of the day with the Value Date as today is 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 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
108. een processed due to non availability of funds will appear in the Exception Report generated by the Automatic Contract Update function for the day 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 s ORACLE 5 8 1 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 of 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 t
109. ees Tax 3 1 ORACLE e User Defined Fields e Settlements 3 1 1 Defining a Money Market Product Code Enter 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 01 for the Money Market module you cannot use it as a code in any other module 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 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
110. eme cannot be changed at the time of deal processing 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 Specifying the Schedule details of the contract The contract inherits the schedule details from the associated product However you can change at the contract level Click Schedule to view modify the details s ORACLE gt oc 12720766017 Comec 225 Preferences Contract r aj 2 Y Reetoce 712 laguun 1 futt mI uter Contract Linked Te Account Avs abe Amount Exchange Mate Amps Hobday Currency Events Grokerage Effective interest Rate Changelog Revision Settement Spit Messages kieres Charges Tax MS Acces Refer to the chapter the Processing Repayment in this User Manual for details 4 3 4 Indicating the Rollover Details 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 Webpage Dialog im C
111. en 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 Example The current system date is 30 October 1997 Assume that the repayment schedule for a deal falls due on 31 October 1997 This is a holiday If 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 schedule liquidation for events falling on 31 October 1997 will be done on 31 October during end of day processing If you have specified that processing has to be done only up to the System Date today then only the events scheduled for 30 October will be processed on that day The liquidation scheduled for the holiday 31 October will be done during beginning of day processing on 1 November 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 in
112. ent for 31 July 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 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 in ORACLE 5 13 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 In the Contract Schedule payment screen you have a set of icons using which you can navigate to the following screens Settlements Click here to go to the Settlement Message Details screen Tax Click here to see the Tax details screen Advices Click here to see the Advices screen You can suppress advices using this screen Breakup Click here to view the Schedule Breakup screen Events Click here to view the Events screen Paying tax Whe
113. epayments and they can be made even if the deal has been defined for automatic liquidation of components DER ORACLE 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 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 customer code currency of the deal e Status of the borrowing e The 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 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 t
114. erdue Interest Penalty 3 3 20 4 ae ORACLE According to this structure if the interest normal component is outstanding for 2 days after the schedule date level 1 component will become active It will be calculated from the schedule date 31 Dec 2001 Level 2 component will become active after the interest component has become overdue for 10 days from the schedule date Likewise level 3 will come into effect if the interest component is still outstanding even after 20 days from schedule date This can continue till N levels depending on the number of levels you choose to maintain Once the level 2 component comes into effect level 1 component ceases to calculate interest The sum of the overdue amount of the expected component and the amount overdue in level 1 will now become the basis amount for level 2 calculations In other words the basis amount for a level will be the sum of the overdue amount of the expected component and the overdue amount of all the previous levels which have the Expected component as the Basis Amount type Now Mr Silas Manner fails to repay the interest component USD 50 000 on schedule i e on 31 ui December 2001 and as of March 31 the interest component has still not been paid As of this date your bank will calculate penalty based on the above structure as follows For Level 1 component Penalty 1 Basis Amount 50 000 USD Interest Rate 8 Duration 10 days 10 365 as per Actual
115. es 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 iso note that some of the Amount Tag s linked to the Accounting Roles are user defined be ORACLE 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 Booking Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHARGINC CHARG Credit CUSTOMER CHARG Debit FWDASSETOFF PRINCIPAL FWD Credit FWDASSETGL PRINCIPAL FWD Debit 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 PRINC
116. es importance only if e for principal as well as interest has not been waived on the old deal e has not been waived on the rolled over deal 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 liquidated before it is rolled over 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 Version A new version will get c
117. esaesececececseaeaecececeesesaaeeeeeeeeeenneaees 4 27 4 12 AUTHORIZING BULK MM 8 1 01 1 4044000000000000000000000000000 00 4 27 42 1 Authorizing the deals iiu dee ge e 4 28 412227 Viewing the eEFOFS ger Hee Ug pce to see stab Meee 4 29 412 3 Viewing the settlement Lolo 4 30 ORACLE 4 12 4 Viewing the details of the deal nennen een een nennen 4 30 5 PROCESSING REPAYMENTS ss 555555 5 1 5 1 INTRODUCTION ss es Apt DERE NE Mesue ates ane enon LEBER ERN REA 5 1 5 2 DEFINING SCHEDULES FOR A PRODUCT ccsssscesseecsseceeeeecsaeceeneecsaecesceecaaeceneecsaeeesneecsaeeeeneecsaeeeeeeecnaeenentess 5 1 5 3 SETTING PRODUCT SCHEDULE PREFERENCES ccssccsesceceseeesseeceeeeeneecaeeeeneececeseneecaeeseaeecsaeesenaeceaeeseneeeees 5 2 3 3 4 Mode Of ITO ITI TE ofa REN 5 3 3 3 2 Liquidating back valued schedules during initiation eee 5 4 5 3 3 Specifying the payment 2 00 0000000000000000000000000 tnnt entren nenne ene 5 4 5 3 4 Indicating the schedule type eee e ei n EE t oe S TIEREN DELIA EU YT Re 5 5 5 4 FEATURES OF THE PRODUCT DEFAULT SCHEDULES 5
118. ess e Automatic events falling on a holiday and scheduled to take place on the day after the holiday 8 2 2 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 ORACLE 8 3 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 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 2 Money Market Corporate Deposits Syndication Branch Parameters Webpage Dialog al 8 amp CHO ame SANK FUTURA HEAD OFFICE Use User Reference No in essages Maker OFSSFXMAK3 2007 11 30 18 38 33 2007 11 30 18 39 63 Date Time EN u Open Checker OFSSFXAUTHS Date Time 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 d
119. et as 8 3 1 2 Account Statement 8 4 8 4 1 8 4 2 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 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 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 function is executed during end of day
120. 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 Tus ORACLE 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 For all 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 gt Remarks For the first schedule 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 schedu
121. fault in the screen However you can change it to one of the following iid ORACLE 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 Notice The deal will be liquidated at a certain period of notice The number of days 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 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 Tenor The number of days of placement borrowing is defaulted from the default tenor days maintained at the product level If the user maturity date is specified then the tenor is calculated as the difference between the user maturity date and the value date 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 ve
122. 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 f 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 f you have specified that the automatic processes are 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 Example Assume that while entering into a contract with Ms Yvonne Cousteau you specified 10 days here If today is 20 June 1997 and 21 June 1997 is a holiday the notices will be generated for payments due on 30 June 1997 during BOD on 20 June 1997 The notices meant for 1 July 1997 will be generated during end of day processing on 20 June 1997 if you have specified that all automatic processes falling due right up to the next working date are to be processed on the System Date today s date If not the notices meant for 1 July will be generated during beginning of
123. g 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 Example Greenville Global Bank has taken a money market placement of USD 100 000 from you on 1 June 1997 at 20 interest The deal is to be liquidated at Maturity on 31 May 1998 This customer s central liability limit is USD 110 000 Now Greenville Global Bank approaches you for another placement of USD 10 000 on 31 December 1997 If you have opted to track the accrued interest the Bank s total liability on 31 December 1997 is USD 111 670 USD 100000 USD 11670 as of 31 December Interest calculation method Actual 365 And since the utilized amount is above his central liability limit USD 110 000 he will not be eligible for the second deal of USD 10 000 However if you have
124. g the product and are specified through the Product Schedules screen e ORACLE 5 3 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 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 liquidated 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 of the schedules for a product through the Product Preferences Screen Preferences Webpage Dialog Preferences Accrual Tenor Rate Variance Authorization Rekey Fields Holiday Treatment xs ORACLE 5 3 1 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
125. 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 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 idus ORACLE 8 9 1 8 10 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 of day 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 today
126. h Parameters screen The following example illustrates how this works Example You have the following tax slab for levying tax on interest earned e 5000 396 e gt 5000 to 20000 4 e 220000 and above 5 Now you have a placement which starts on 1 January 1998 and ends on 31 March 1998 It has a fortnightly interest liquidation schedule and at each schedule USD 200 is liquidated Tax on schedule amount Now if you indicate that the tax basis is to be the schedule amount every time the schedule is liquidated you will have to pay 3 tax on USD 200 the schedule amount USD 200 falls into the first slab USD 6 will have to be paid every time an interest schedule of USD 200 is liquidated Tax on liquidated amount If you indicate that the tax basis is to be the liquidated amount then the tax will be calculated on USD 1 200 the total interest which will be liquidated for the placement at Maturity This falls into the second slab and hence 4 is applied on USD 1 200 This works out to USD 48 and is spread out over the six schedules That is you will have to pay USD 8 as tax every time an interest schedule of USD 200 is liquidated 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 frequency at which the accrual entries should be passed An MM deal will inherit the
127. h from which the accruals have to be done 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 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 1997 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 value
128. he 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 Example Say for a particular deal there are two interest schedules pending on Cavillieri and Barrett Finance Corporation s borrowing one on 1 October 1997 and the other on 15 October 1997 The third schedule is due on 30 October 1997 If you give the Limit date as 25 October today s date the system will show you the amounts due for the interest component on the schedule dates of 1 October and 15 October If you give the limit date as 1 November 1997 the system will show you the schedules falling on 1 October 15 October and 30 October and you can liquidate them accordingly Since today s date is 25 October if you liquidate the schedule due on 30 October it amounts to a pre payment You can charge a prepayment penalty rate or an amount which you enter in this screen vem ORACLE Q white 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
129. he tenor and the From Date of the contract If you change this date you should give an override when you save the deal The system defaults the maturity date based on the number of days of placement borrowing On saving the data the maturity date is calculated by adding the tenor Calendar days with value date If the maturity date is specified then the system calculates the number of days of placement borrowing The system validates the maturity date for a holiday along with the minimum and maximum tenor period specified for the product 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 Maturity Type The Maturity Type you have specified for the product is displayed by de
130. 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 Specify Auto liquidation if you want the components of a deal involving this product to be liquidated automatically as ORACLE 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 lfaschedule 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 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 workin
131. ined in the Dealer 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 d ORACLE 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 a scenario 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 Booking Date The date on which the deal details are entered would be di
132. 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 details 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 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 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 Tax details if tax has not yet been liquidated The changes listed do not trigger any accounting entries or the generation of any advices Reversing and Rebooking Contracts While reversing and rebook
133. ing 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 The liquidation of schedules that fall due before the day on which the deal is booked e liquidation mode auto to manual Click Preferences to specify an additional set of schedule related attributes id ORACLE E Money Market Contract Input Webpage Dialog Schedues Roleve Preferences Hobday Treatment for Schedule Loan statement C Consider Branch lt External ietertsce Dotais tere Cu Opre Oas D 2 20 eer Someone 950 Uguoston Holdey Currency Events Brokerage Effectve Interest Rate Changelog Revision Setiement Spit Messsges interest Charges Tax iS e 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 forward or backward in case of a holiday 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 availa
134. ing 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 override 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 ORACLE 4 6 4 7 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
135. irst four characters of the customer number that you need to search Similarly while searching with customer short name you need to enter at least the first three characters If you click Fetch button without entering the minimum characters the system will prompt you to enter the minimum value for at least one of the indexed field 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 T or M 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 specify as the deal currency 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
136. is the deal currency If a currency other than this is specified the holiday table will be checked for both the currencies pus ORACLE 5 7 6 5 7 7 5 7 8 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 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 The 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 Example A weekly schedule has been defined with backward movement and a schedule date falling due on 30 April 1998 was moved to 29 April 1998 30 April 1998 being a holiday The schedule date for May depends on whether you have chosen to cascade schedules If you have the schedule date for May will be set as 6 May 1998 as the frequency has been specified as weekly For subsequent schedules also 6 May 1998 will be considered the last schedule date
137. it 10 13 ORACLE Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL ROIN Debit ROLL WASH PRINCIPAL ROIN Credit ASSETGL PRINCIPAL ADDL Debit CUSTOMER PRINCIPAL ADDL Credit Advices Advice Name Description Contract Advice MM CONT ADV 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 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 10 14 ORACLE Accounting Role Amount Tag Dr Cr Indicator CUSTOMER PENL2 LIQD Debit PENL2REC PENL2 LIQD Credit ASSETGL PRINCIPAL LIQD Credit CUSTOMER PRINCIPAL LIQD Debit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice Accounting Entries 10 5 3 5 VAMB Value Dated Amendment Booking 10 5 3 6 V
138. itiation 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 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 is ORACLE 8 6 Processing an automatic repayment For deals that have been defined with automatic liquidation of repayments the liquidation will be carried out by the Automatic 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 fal
139. l be rolled over with all the terms of the original contract However you can change certain terms by specifying them in the Rollover Details Screen E Money Market Contract Input Webpage Dialog iz 1 3 1164 Holiday Currency Events Brokerage Effective Interest Rate Changelog RevisionDets Spit Messages interest Charges Tax MIS Fields Acces The rollover specified for the product will get defaulted to the 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 Special rollover amount When you roll over a deal you can roll over d ORACLE e The outstanding principal of the deal e outstanding principal and the outstanding interest together or e An amount that is 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 The special amount can never be more than gt outstanding principal interest of the old deal gt outstanding principal If it is then you will have to initiate a new deal Example To carry forward the example of Cavillieri and Barrett Finance Cor
140. l 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 one ORACLE 3 2 4 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 This option will 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 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 US
141. l not be displayed The deal details will not be displayed if e value entered at the time of authorization is different from that entered at the time of deal processing or an erroneous value is entered at the time of authorization Now if Mr Trevor Atkins inputs the deal currency as GBP instead of USD or the interest as 21 instead of 2095 even then Mr Jeffrey Hunt would be denied access to the deal when he attempts to access it by entering the correct data in the re key fields When this happens Mr Hunt can inform Mr Atkins of the mistake and have it rectified It could also be that Mr Atkins has correctly captured the principal of the deal as 1M and the authorizer Mr Hunt makes an error while entering the re key value Assume Mr Hunt enters the value as 10M In such a case also the details of the deal will not be displayed for authorization 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 default tenor applied on a deal can be changed during its processing Minimum You can set the minimum tenor for the product here The tenor of the deals involving this product should be greater than or equ
142. le 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 2 4 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 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 Todays date e Adate in the past A date in the future you can enter a date in the future only if Future Dating has been allowed for the product is ORACLE The Value Date should not be earlier than the Start Date or later than the End Date defined for the product i
143. lieri and Barrett Finance Corporation wants you to renew it roll it over into a new deal You have two options e You can roll it over without the outstanding interest or e You can roll it over along with the outstanding interest If you roll it over without interest the new principal will be USD 100 000 The accrued interest on this placement should be liquidated The placement will be rolled over ONLY if the interest can be liquidated If you roll the old placement over renew it along with the unpaid interest the principal of this renewed placement will be USD 11 1670 USD 100 000 USD 11 670 as of 31 December 1997 The interest on the new placement will be applied on a principal of USD 1 11670 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 dm ORACLE 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 assum
144. 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 Example System date 1 June Payment schedules for a deal are as follows Sch Date 30 June 31 July 30 August Principal 1000 1000 1000 Interest 100 100 100 Commission 50 50 50 Fee 20 20 20 For the above schedule if a prepayment is made as of an amount the system validates it in the following manner Suppose the amount paid is USD 1000 The next available schedule is as of 30 June and the total amount due is USD 1170 This schedule will be picked up for processing and you can make the payments If the amount paid is USD 1170 which is equal to the schedule amount of 30 June again only the schedule for 30 June will be picked up for processing If the amount paid is USD 1270 which is more than the amount due for the schedule of 30 June the schedule of 31 July will be picked up by the system for processing After completely liquidating the schedule of 30 June you can liquidate the interest schedule as of 31 July which is the next schedule If the amount paid is USD 1300 the schedule for 31 July will be picked up for processing The complete schedule of 30 June can be liquidated along with the interest component of 31 July The remaining USD 30 can be used to partially liquidate the commission compon
145. 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 4 3 2 1 Indicating the Reporting Details Amount Explanation required from Dev Testing team Outstanding Amount The system displays the total amount due as of the value date Lis ORACLE Specifying the settlement account You have to specify the settlement account if Settlement Instructions have not been defined for the customer The settlement account that you specify is the account through which e The placement amount would be drawn down e The repayment for all the components would be done 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 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 Cr Select the account that has to be credited in the transaction Dr Select the account that will be debited in the transaction Dealer When processing a deal you must specify the code of the dealer The dealers are mainta
146. ling on the holiday will be liquidated during end of day processing on the last working day before the holiday e f 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 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 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 insufficient 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 The 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 applic
147. ly liquidated will be left outstanding Aging analysis on such borrowings will be carried out as specified for the product and an appropriate penalty applied gt 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 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 All the 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 Onthe repayment account that has a debit balance the debit interest as specified for the type of accounts current or savings will be applied liquidation will be done even for a partial amount if the account has not been defined for overdraft Borrowings with payments which have not b
148. mendment 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 ORACLE 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 ICCF 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 Spread For a deal with a floating in
149. ment with Cavillieri and Barrett Finance Corporation of USD 100 000 at 1096 interest for a year Now under the bearing type of interest payment method USD 100 000 is treated as the principal Here the placement of USD 100 000 is given to Cavillieri and Barrett Finance Corporation and the interest on it is collected over the one year which is the tenor of the loan Discounted In this interest payment method the interest is deducted at the time of initiating the deal ve ORACLE Example Carrying forward the example of Cavillieri and Barrett Finance Corporation s placement of USD 100 000 at 1095 interest a year under the discounted type of interest payment the total interest Actual 365 calculated for the tenor of the loan USD 10 000 is deducted from the principal USD 100 000 and only USD 90 000 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 Example In the case of the placement with Cavillieri and Barrett Finance Corporation of USD 100 000 at 10 interest for a year under the true discounted type of interest payment the interest is calculated on the principal USD 90000 arrived at after deducting 1096 interest on 100 000 is deducted from USD 10 000 and USD 91 000 is advanced This forms the
150. n The start month and date are indicators to the first schedule so that the schedules that follow can be automatically set from that point on A schedule date should be later than or the same as the Value Date e cannot be beyond the Maturity Date Period Unit You need to specify the unit for the interest period The available options are as follows e Days e Months e Years VS ORACLE 5 5 5 6 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 Contract Schedules screen You can redo the schedules defined for the product by clicking on Schedules in this 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 Ce 2 t m aos 5 j Contract Linkages H nec 2j 5 Mebdsy Currency Events Brokerage Effective Interest Rate Changelog Revision Details Settiement Sob Messages interest Charges Tax MIS Fiel s Advices The attributes of the schedules inherited from the product can be changed for a deal through the Contract Preferences screen Sett
151. n 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 affiliates 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
152. n 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 and distributes the amount paid between the component and the tax Example If a customer owes USD 1000 in interest tax inclusive the tax rate is 1096 and he pays you USD 1000 the payment is automatically distributed into USD 909 09 interest and USD 90 91 the tax component He 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 Example In the above instance 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 ia ORACLE 5 14 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
153. ncy 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 1 January 1999 eleven countries that are part of the European Union embarked on the first phase of economic integration called the Economic 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 ORACLE 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 5 14 1 2 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 5 14 1 3 Viewing the schedule breakup details In the Schedule Payments screen you will see a row of icons Click Breakup to view the Schedule Breakup screen 2 Schedule Details Webpage Dialog aj Component Due Date Amount Due Amount Paid El C vun 2007 12 31 10 42 10 42 RNCPAL 2007 12 31 25 000
154. nd amount disbursed Bank Number Enter Bank number that identifies your bank in RB system 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 8 3 1 1 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 ORACLE 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 s
155. nennen 9 5 9 1 4 Advice generated for the roll over of a borrowing eese eene 9 8 9 1 5 Advice generated for the initiation of a borrowing eese 9 10 9 1 6 Advice generated for the initiation of a placement eese etre 9 12 9 1 7 Advice for liquidation of placement 9 15 92 PAYMENT MESSAGES I lise dert rein coh e saves 9 16 9 3 JDEALCONFIRMATION MATCHING oerte e SEED HR MERO e OR Eee dee aee den 9 16 10 ANNEXURE A ACCOUNTING ENTRIES AND ADVICES FOR THE MM MODULE 10 1 10 1 ACCOUNTING ENTRIES FOR MONEY een enn en een 10 1 10 2 MMCEVENTS c 10 1 10 3 AMOUNT TAGS Re SQ 10 2 10 4 ACCOUNTING ROLES MM 10 3 10 4 1 List I Acct Roles for a Placement product esee 10 3 10 4 2 List II Acct Roles for a Borrowing product eese eene teen nennen 10 3 10 5 EVENT WISE ACCOUNTING ENTRIES AND 10 4 10 5 1 Placement with True Discounted Interest eese esee eene enne nente entente 10 5 10 5 2 Borrowing with Fixed Discounted Interest eese eene tentem eene 10 9 ORACLE 10 5 3
156. not specify a Template ID 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 T3 ORACLE 4 3 2 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 have elapsed in the year 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 31 5 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
157. nsaction on Initiation Component Value Date Account Amount CCY Component Description Account Branch wae ORACLE PRINCIPAL 29 DEC 97 USD Principal Amount 000 BNKCUL US1009 017 8 469 791 00 YOUR PAYMENT SCHEDULE WILL BE Component Amount AS GIVEN BELOW CCY Schedule Date 01 JAN 98 INTEREST PRINCIPAL 12 329 00 AUD 12 000 000 00 AUD SETTLEMENT DETAILS Account CCY Component INTEREST R 17 002 AMT R 17 PRINCIPAL P 17 000 000 BNKCUL US1009 01USD BNKCUL US1009 01USD BNKCUL US1009 01USD ORACLE 9 1 7 PRINCIPAL INCR P 000 BNKCUL US1009 01USD L7 PRINCIPAL LIQD R 000 BNKCUL US1009 01USD 17 Advice for liquidation of placement LOAN BILLING NOTIC Date 31 DEC 97 Reference No 0003P02973630001 AU1002 AU1002SW 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 ORACLE 9 2 9 3 THIS IS A COMPUTER GE ERAT NO AUTHORIZED SIGNAT ED ADVICE URE IS R Payment messages EOUIRE Payment messages or SWIFT messages are generated at takedown for placements and at the time of contract maturity and interest liquidation for deposi
158. ntage 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 ids ORACLE 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 a
159. nvolved 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 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
160. o 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 Product Code Preferences Payments zl Automatic Liquidation Track Accrued Interest Tax Applicable Forward Dating Allowed Allow Rollover Allow Brokerage Consider Brokerage for Discount Pay Past Schedules Prepayment Penalty Intra day Deal Multiple Penalty Components 171715171711 SI SI RI SI Holiday Treatment Ignore Holidays ag Move Forward Description Accrual Frequency Monthly Start Month zl Start Date 21 Sa Tenor Minimum 1 Maximum 385 Default 30 Rate Variance Normal fi Maximum Move Across Month Move Backward E MM Product Preferences Web Page Dialog Authorization Rekey Fields Value Date Currency Contract Amount Maturity Date 51515151 unit Days Cascade Schedules 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 The tenor e rate of interest e The repayment schedules The tax details e The accounting entries to be passed e The advices to be generated ORACLE The user does not have to specify these detail
161. o 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 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 frequency at which the periodic rate change has to be applied e dates on which the periodic rate change has to be applied 5 8 2 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 INTEREST1 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 revision will take place every week beginning on the Start Date that you have specified 5 8 3 Specifying the rate revision dates Revision frequency has to be defined say INTEREST1 Check the Rev box Revision box to indicate that it is a rate revi
162. oing Message Browser under Messages in the Application Browser The format and contents of the advices 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 9 1 1 1 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 9 1 1 2 Rollover advice for a placement You can generate this advice to notify the customer about the Roll over of the placement 9 1 1 3 Rollover advice for a borrowing You can generate this advice to notify the customer about the Roll over of the borrowing 9 1 1 4 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 9 1 1 5 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 a ORACLE 9 1 1 6 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 depending upon the data entered The sample advices for each of these are given in the following sections 9 1 2 Advices generated during contract confirmation MONEY MARK
163. okerage Details This 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 Report Period From Date To Date All Brokers Specific Brokers v Include Liquidated Contracts e Report Format Report Output PDF Print PrinterAt Client v Printer ORACLE 11 2 1 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 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 Report Period From Date Specify the start date of the report period In the
164. ommact 5 Roier Preferences Amount Preferences Matury Loree L mts terest Tax Rotever amoun Lamasin mouet Rotover Rollover fs O Fes 1 Relever bd 4 Mobdey Currency Events Brokerage Effective interest Changelog Revision Deisis Spiti Messages terest Charges MIS Advices The process of rolling over of contracts is explained in detail in the Rolling Over a Deal chapter 4 3 5 Stating your preferences for a deal us ORACLE Preferences are options For instance for a product you have the option of Making liquidation automatic or manual Allowing or disallowing rollover Applying tax or waiving it Applying prepayment penalty or waiving it etc For a contract you have the option preference of 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 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 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 been allowed for the repayment account The payment schedule will be marked as liquidated If a debit balance has
165. on 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 schedules by clicking save icon To delete a schedule before authorization click delete icon wed ORACLE 5 9 1 5 10 5 11 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 The 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 2 Revision Schedule Details Webpage Dialog 2 Contract Revision Schedule 8 C
166. ooked If it is 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 6 5 ORACLE 6 6 Note the following e If the request received has settlement details then the values sent as part of the upload should be uploaded e f Settlement Details not sent then the details corresponding to the parent contract will be copied to the child contract if they are not specified at the time of creation However if the SGEN message is already generated then financial amendment upload is not allowed Authorization of changes To authorize the value dated changes you have to invoke the authorization screen Authorization Webpage Dialog Contract Reference Number 8 CM2MPT3073650009 Event VAMB Generate Messages Rekey Fields GBP Amou 250 Valve Oste 07 Dec 91 laturtyOste 08 Jan 15 igeneo eo Field Description Old Value New Value zj eg a 8 A gi Overrides o Confirmed Override Text Checker Kentificaton Auth Time Status El Amount exceeds overa ORACLE 7 1 7 Rolling Over a Deal Introduction A rollover is a renewal of a deal Instead of liquidating a deal on maturity you can roll it over into a new deal The outstanding principal of the old deal is rolled over with or without
167. opted not to track the accrued interest on his deal then he will be eligible for the second deal of USD 10 000 as only the principal amount will be considered as the utilized amount If you opt to 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 any tax is applicable for the MM product that you are creating vM ORACLE 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 Adate in the past or e Adatein 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
168. otice SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 2 9 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 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 1725 ORACLE Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 MM ROLL ADV Rollover Advice 10 5 3 MM Placement Fixed Bearing Interest The preferences set for this product are as follows e The 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 Confirmation MM DEAL SLIP Deal Slip SWIFT MESSAGE MT320 MT330 MT335 MT350 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 Cred
169. poration with whom you have made a placement of USD 100 000 on 1 June 1997 at 20 interest the placement was to be liquidated at maturity on 31 December 1997 but at your customer s request you decide to renew it roll it over Assume that Cavillieri and Barrett Finance Corporation decides to repay USD 20 000 on 31 December 1997 the Maturity Date of the placement Now the entire outstanding interest of USD 11 670 is liquidated along with a part of the principal The outstanding principal now stands at 91 670 and it is renewed or rolled over This is what is termed a Special amount Interest will be calculated on this principal for the renewed placement 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 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 Rollover 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 ne ORACLE If the outstanding amount is 30 000 and the special amount is given as 25 000 the additional 5000 will get liquidated The O
170. pose 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 September 1998 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 uus ORACLE 5 9 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
171. ration 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 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 For example this list contains events like Booking Initiation Interest Accrual etc Tes ORACLE Event Details Webpage Dialog gt Events Event No Event Code Description 2 B ngo zj gt Message Accounting Entries Viewing accounting entries for deal initiation To view the accounting entries passed for a specific event double click on the event in the View Events screen The accounting entries and overrides for that event will be displayed View Details Webpage Dialog 2 Reference N ers T E Accounting Entries C aranca D Amount Currency Foreign Curre 7 2 A GaP mcm G8 El gt See Postion Entries Overrides Authorization Status Auth By Auth Date St
172. reated 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 de ORACLE 7 3 7 3 1 e Linked Contract In this mechanism 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 wil
173. red 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 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 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 Webpage Dialog 2j Accoust Details Uessace Dea Pates Pates Dames Ote Des Locs Cesto Coran D t 2 2 aj Ej t me ORACLE 6 4 6 5 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
174. report the system will include details available from this date Report Period To Date Specify the end date of the report 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 11 2 2 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 2 ORACLE 11 3 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
175. rsa while processing a deal 4 3 2 2 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 Amount 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 one ORACLE 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 4 3 2 3 Specifying the other details of the contract Tax Scheme The tax scheme which has been specified for the product will be displayed in this screen The
176. s Advice Name Description MM ROLL ADV Rollover Advice SWIFT MESSAGE MT320 MT330 MT335 MT350 10 5 2 MM 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 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 10 9 10 5 2 1 BOOK Booking a Borrowing with fixed discounted interest ORACLE Advice Name Description PAYMENT MESSAGE Payment Message MMCONDEP MM Borrowing Confirmation 10 5 2 2 INIT Initiation of a Borrowing with fixed discounted interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FRTAX1 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 Advices Advice N
177. s 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 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
178. s 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 6 1 ORACLE 6 2 6 2 1 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 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 f you have advanced the Maturity Date the schedules falling due after the new Maturity Date will be redefined to the 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 On changing the Maturity date the tenor is calculated as the difference between the Maturity date and the value date on save You have to authorize the change in Maturity Date before you redefine the schedules as per your new requirement
179. s 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 6 2 2 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 6 2 3 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 type of interest has been defined enter the new rate code is ORACLE 6 3 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 ente
180. s 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 e Accrues interest e Liquidates due schedules 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 rollo
181. s 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 By a user 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 e ORACLE 3 2 3 Example At your bank Mr Trevor Atkins inputs a deal of 1M USD which has an interest of 2096 and a tenor of one month The deal involves a product for which the re key fields assigned are deal amount currency and rate of interest Now Mr Atkins makes a mistake and enters the deal amount as 10M USD When Mr Jeffrey Hunt who has rights to authorize the deal selects the deal for authorization and specifies deal amount interest rate and currency as 1M 2095 and USD respectively based on the deal document the deal details wil
182. sed 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 the following e Arollover child cannot be linked to a parent contract for which the Rollover Instruction Status is Complete PH ORACLE 7 5 7 6 e Amendment and reversal of a parent contract will not be allowed if the Rollover Instruction 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 the 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 Rolling o
183. sion 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 Example A borrowing of USD 200 000 by Cavillieri and Barrett Finance Corporation has been initiated on 10 December 1997 and is to be repaid at Maturity on 16 December 1997 It has been defined with rate revisions and they are to be performed on the following dates TIE ORACLE 5 8 4 5 8 5 e 12 December 1997 e 14 December 1997 e 16 December 1997 Select the component INT1 indicate rate revision by checking the Rev box and give the date in the Start Date field as 12 December Then select the same component INT1 and specify the date as 14 December Repeat the process for the same component for 16 December The rates applicable on the specified dates will be applied on the borrowing at the time of calculating interest 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
184. splayed 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 Todays date e Adate 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 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 da
185. ssossvenstestenseetsennsssietonnsedsnarseioigintucnsveessesneodsvecstensedacens 8 10 8 8 AUTOMATIC ROLLOVER OF A DEAL eese nein 8 11 6 8 1 Advices for rollover eter rer EH E ee ie YR RP ea Ete te he eem ione 6 11 6 8 2 Automatic status Changes eee ie iter tet terrere iet reta inne nti Pe dear ipee riorem ipeo eiae 6 11 8 8 3 PIU TTOTTTHTERYTITESNHTT TANE 8 12 8 8 4 Advices to be generated for a status 6 13 8 9 ACCRUALOFICCFE COMPONENTS perte 8 13 8 9 1 Contents of the accrual control journal eee eese 6 14 8 10 INTEREST RATE REVISION ON A 8 14 8 11 VAEUEDATED CHANGES iere ter ne b PE ERE PC ERE ee savscubtessonsenvenccustearess 8 15 6 11 1 Advices generated for value dated 000 0000 6 15 9 CUSTOMER CORRESPONDENCE e eee teen tastes thats sens suse ta sens tasas 9 1 9 1 INTRODUCTION TL 9 1 9 1 2 Advices generated during contract confirmation eese 9 2 9 1 5 Advice generated for the roll over of a placement esee
186. 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 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 an
187. t Value Date Account Amount COY Component Description Account Branch INTEREST 29 DEC 97 CORCUL GE1000 011 1 436 25 USD Interest Component 000 MMR003 AMT 29 DEC 97 CORCUL GE1000 011 1 000 00 USD Tax amount Tag MMRO03 AMT 000 PRINCIPAL 29 DEC 97 CORCUL GE1000 011 59 041 50 USD Principal Amount 000 OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY s ORACLE 9 1 6 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 MMROO3 AMT R 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 Transaction Date 29 DEC 97 Our Reference No 0003P04973630002 User Reference No TC8 US1009 9 12 ORACLE 516 W 34 St New York NY 10001 WE CONFIRM HAVING PLACED WITH YOU Principal Amount Principal Amount 3 12 000 000 00 AUD Value Date 29 DEC 97 Maturity Date 01 JAN 98 Tenor 3 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis INTEREST AUD 12 5 Actual 365 SUBJECT TO CHANG IE Tra
188. t 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 of the 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 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 SS ORACLE 8 11 8 11 1 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 change is effected during BOD processing Value dated changes Value Dated Changes are changes to a deal that come into effect on a specific date call
189. te 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 is ORACLE 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 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 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 t
190. tered 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 child 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 oo ORACLE 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 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
191. terest 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 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 TU ORACLE 4 3 3 Example The variance you have specified in the product ICCF screen is 20 Assume the interest rate which defaults from the product is 10 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 onl
192. tes 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 Ten ORACLE e 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 Click Preferences to view the preferences 0 Money Market Contract Input Webpage Dialog Comvact Schedues Role Preferences Modar Treatment foc Schedule Mobdey Currency Events Brokerage Effectve Interest Rate Changelog Revision Deisis Setiement Spit Messages ihierest Charges Tax WES Fields Advices 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 en
193. the interest outstanding on it When a deal is rolled over renewed it is processed in the following manner 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 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 of the 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 automatic or manual the maturity type fixed call or notice the maturity date for a fixed maturity deal and the
194. the transaction code for the accounting 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 Perce
195. ts Swift confirmation message MT320 is generated for contracts whose maturity type is FIXED and for contracts with maturity type NOTICE Swift confirmation 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 FO1ANBKUSWAXXXX1111111111 2 1324RU1000SWXXXXN 4 20 000MB05993630002 21 000MB05993630002 22 MATURITY ANBKWAO015RU10SW 30 991229 32R 000101GBP10000000 34P 000215GBP177610 37 15 ADVANCE 5 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 9 16 ORACLE 2 Jobs Browser Webpage Dialog CJ cd Module MS Process PRLAUTO MT100 FT MA 2 Status Records per page 15 v wots Job Process Process Sequence Number Status E ws PR AUTO MT100 FT MAN Start Stop Specify the following details Job Module Select MS from the adjoining drop down list Process Specify PR AUTO MT100 FT as the process Click Start to run the job After running the Job system will process the incoming message and match the following
196. ual 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 e 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 e Details of interest charge and fee e Other tax details like the component being taxed the type of tax and the event booking liquidation etc Upon which it is applied e 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 e customer categories and customers who be counterparty to a deal involving the product e branch and currency restrictions 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 Money Market Contract Input Web Page Dialog Product Code Reference Number User Reference Source Contract Schedules Rollover Preferences Settlement Details Rounding Details Other Details e Rounding Required Interest Period Basis Dr Rounding Rule Tax Scheme Decimals Contract Derived Status Customer Units Remarks Currency Maturity
197. uidated and a new one initiated on the Maturity auto rollover 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 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 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 Date If the principal and deal has to be rolled over the rollover instructions should be specified for manual rollover the deal before the Maturity Date If the contract has not been liquidated because of lack of funds in the repayment account you can give rollover instructions even after the maturity date saying that the contract has to be rolled over as of the maturity date Manual liquid
198. unterparty linked to the deal Name The name of the counterparty Coniract The status of the deal like To be Initiated 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 us ORACLE ORACLE Money Market Version 11 6 0 0 0 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 2015 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
199. utstanding 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 Daily Refinance Rate 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 deal 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 it ORACLE 7 3
200. ver 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 accounting entries In keeping with its flexible design Oracle FLEXCUBE offers you the option to process maturities manually i ORACLE 2 1 4 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 2 1 5 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 Th
201. ver a deal manually You can roll over a deal manually through the Rollover Details screen If a deal has to be rolled Over latest activity on the deal has to be authorized e It should be past its maturity date and e It should not have been liquidated Choose Rollover from the Processing sub menu of the Actions Menu 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 You can 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 deal 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 de
202. ver 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 the authorizer of a contract at the time of authorization The liquidation order of various components in case of auto liquidation Repayment schedules ix ORACLE e 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 man
203. wed movement across the month but have indicated forward movement for the schedule the schedule date will be automatically moved backward in this case to the last working day of the same month that is to 29 April 1998 despite your having indicated a forward movement into the next working day Scenario 2 You have defined a repayment schedule that falls due on 1 May 1998 This happens to be a holiday You have indicated that in case of a holiday the schedule date is to be moved backward to the previous working day If you have indicated that the schedule can be moved across the month then the schedule will be automatically moved to 29 April 1998 the previous working day If you disallowed movement across the month but have indicated backward movement for this schedule the schedule date will be automatically moved forward in this case to the next working day of the same month that is to 2 May 1998 despite your having indicated a backward movement into the previous working day The idea being that the schedule is not moved across months 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
204. 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 days and 28 or 29 for February The schedule repayment dates will be computed using the Frequency Start Month and the Start Date Example You have defined the frequency as quarterly specified March as the first month and given the date as 31 The repayment schedules will be for 31 March 30 June 30 September and 31 December For a deal starting anytime before 31 March the first liquidation will be on 31 March Number of interest days will be calculated from the Value Date to 31 March From then on it will follow the quarterly cycle Similarly you have defined the frequency for another product s default schedules as half yearly indicated the month as June and given the date as 31 For a deal that is initiated anytime in before June the first liquidation will take place on 30 June and the next one on 31 December For a deal initiated after 30 June the first liquidation will take place on 31 December and so o
205. 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 or e Those of the original deal itself 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 n ORACLE 8 8 3 If you have specified status and indicate that they be changed automatically then the status change will be done during BOD processing on
206. y 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 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 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 a
207. y 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 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 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 sch
208. 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 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 involvin
209. 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 f 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 it for 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 customer of the status change and possibly urge him to make the payments to liquidate the schedules that are aging The advice will be
210. 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 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 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

Money Market User Manual

Contents

Download Pdf Manuals

Related Search

Related Contents