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Securities User Manual

1. Event Code Event Description Remarks SPLP Sec Purchase from Long Position All types SSLP Sec Sale from Long Position All types ACRD Accrual of Sec Discount Earned All types ACRP Accrual of Sec Premium Paid All types ACRR Accrual of Redemption Premium Earned All types FACR Sec Forward Deal P amp L Accrual All types DVIN Securities Dividend Initiation All types DVCD Securities Dividend Collection All types DVLQ Securities Dividend Liquidation All types BRVL Securities Revaluation of Positions Deals All types SSKC Safe Keeping Custodial Charges All types WRLL Warrants Sec Tear Off Processing All types WROL Warrant Detachment from Parent Sec All types WELL Warrants Sec Exercise Processing All types WXLL Expiry of Un Exercised Warrants All types RGLL Rights Security Tear Off Processing All types RGOL Rights Detachment from Parent Sec All types 32 1 ORACLE 32 2 2 Event Code Event Description Remarks RELL Exercise of Rights for New Equity All types RXLL Expiry of Un Exercised Rights All types CANG Corporate Action Notice Generation All types IACR Securities Coupon Interest Accrual All types CPCD Coupon Collection All types CPIN Coupon Initiation All types CPLQ Coupon Liquidation All types SCIN Securities Stock to Cash Initiation All types SCCD Securities Stock to Cas
2. Error Message Code BA0090 SE Unhandled exception in fn_periodic_accrual for Forward P L BA0091 SE Failed to do product level FPL accruals for 1 BA0092 SE Unhandled exception in fn_pass_product_entries for Forward P L BA0093 SE Unable to lock cstb_contract for 1 BA0094 SE Unhandled exception in fn_accrue_for_aleg BA0095 SE Unhandled exception in fn_reverse_for_a_leg BA0096 SE Unhandled exception in fn_complete_fpl_accrual BA0097 SE Failed to insert into setb_event_log for 1 BA0098 SE Unhandled exception in function fn_right_tearoff_RGLL BA0099 SE Unhandled exception in function fn_pass_product_entries BA0100 SE Unable to do product level accruals for portfolio 1 and ccy 2 BAO101 SE Unable to update the setb_fwdpnl_master for portfolio 1 and ccy 2 BA0102 SE Unhandled exception in function fn_update_opening_bal BA0103 SE Unhandled exception in function fn_msg_handoff BA0106 SE Next process date 1 gt Process till date 2 for product 3 BA0107 SE Unable to get record from 1 for record 2 BA0108 SE Unable to lock record from 1 for record 2 31 36 ORACLE Error Message Code BA0109 SE Unhandled exception in function fn_settlements BA0110 SE Error updating processed flag in setbs_caevent_log to W work in BAO111 progress for Action ID gt gt 1 SE Collectio
3. Error Message Code SE Security Definition Closed Successfully 00522 SE Unhandled Exception in Security Definition Function 00523 SE Security Definition is Open Already SO00524 SE Unable to Post in Security Definition Function 00525 SE Unable to Commit in Security Definition Function O00526 SE Security Definition Reopened Successfully SO00527 SE Unhandled Exception in Security Definition Function 00528 SE Product is Unavailable in the Current List 00551 SE Market of Issue is Unavailable in the Current List 00552 SE Issuer ID is Unavailable in the Current List 00553 SE Security Currency is Unavailable in the Current List SO00554 SE Payment Currency is Unavailable in the Current List SO00555 SE Collateral Type is Unavailable in the Current List SO0556 SE Revaluation Price Code is Unavailable in the Current List SO00557 SE Unhandled Exception in Security Definition Function SO0601 SE Unhandled Exception in Security Definition Function SO0602 SE Unhandled Exception in Security Definition Function SO0603 31 27 ORACLE Error Message Code SE Unhandled Exception in Security Definition Function S00604 SE Unhandled Exception in Security Definition Function SO0605 SE Unhandled Exception in Security Definition Function SO0606 SE Unhandled Exception in Security Definition Function
4. Error Message Code SE This position has 1 balance DO0183 SE Failed to validate the deal DO0184 SE Error codes could not be retrieved correctly DO0185 SE 1 2 3 is 4 holiday Continue DO0186 SE Failed to duplicate the overrides DO0187 SE Reversed contract can not be unlocked DO0188 SE Money Settlement can not be done for bank leg DO0189 SE Interest Value Date should be between 1 and 2 DO0190 SE Variance is not maintained for the security product in security currency D00191 SE MIS maintenance is not done for security portfolio D00192 SE Failed to get security trading dates D00193 SE Incorrect format for SWIFT address D00194 SE First line of address is mandatory D00195 SE Medium is mandatory for walk in customer DO0196 SE Deal quantity should be greater than the minimum allowed quantity for DO0197 exercise SE Counterparty confirmation is not allowed for this deal DO0198 SE Divide by zero condition Cannot calculate yield CALCO1 31 58 ORACLE Error Message Code SE Unhandled exception in function sepkss_calc fn_tbill_pricetoyield CALC02 SE Divide by zero condition Cannot calculate price CALCO03 SE Unhandled exception in function sepkss_calc fn_tbill_yieldtoprice CALC04 SE Error condition while calculating Present Value of cash flow s CALCO05 SE Unhandled exc
5. SEC DISC TBACRD BROK_DISC Debit SEC BRIDGE GL BROK_DISC Credit SEC BRIDGE GL DR_CHG_DISC Debit SEC PREM TBACRD DR_CHG_DISC Credit SEC DISC TBACRD CR_CHG_PREM Debit SEC BRIDGE GL CR_CHG_PREM Credit Advices No advices allowed for this event 32 4 3 5 FACR Security Forward Deal P amp L Accrual Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC FWD LOSS FWD_DEALEXP_ACR Debit SEC FWDEXP OFST FWD_DEALEXP_ACR Credit SEC FWD PROFIT FWD_DEALINC_ACR Credit SEC FWDINC OFST FWD_DEALINC_ACR Debit Advices No advices allowed for this event 32 4 3 6 ACRD Accrual of Security Discount Earned Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC DISC EARNED SEC_DISC_ACCR Credit SEC DISC TBACRD SEC_DISC_ACCR Debit tere ORACLE Given below is the sample accounting entries that will be posted if you use the alternative accounting roles for this event Accounting Roles Standard Amount Standard Dr Cr Alternative Tags Alternative Indicator Discount Accrued Standard Standard Debit Discount TBACRD can be SEC_DISC_ us ACCR Accrual of Disct Inc Memo Alternative Standard Credit SEC_DISC_ ACCR Advices No advices allowed for this event 32 4 3 7 ACRP Accrual of Security Premium Paid Accounting Entries Accounting Role Amount Tag Dr
6. Total Sold Interest INT_PUCMA INTCOMP_TIAC INTCOMP_PUCMA will have value only if the security is bought and sold in the same coupon period SPLP Capitalized Bonds In addition to the normal accounting entries you will need to specify the entries to move the purchased interest into offset GL Sale option or the Bought Interest GL Sale and coupon SSLP Redemption Accounting Standard Amount Tags Standard Dr Cr Roles Alternative Alternative Indicator Premium Standard Alternative Debit Accrued SEC_PREM_TOTALACCR Deal Alternative Alternative Credit Premium SEC_PREM_TOTALACCR Premium Standard Alternative Debit Expense SEC_PREM_TOTALACCR k ORACLE Accrual of Prem Exp Memo Alternative SEC_PREM_TOTALACCR Alternative Credit Deal Discount Alternative SEC_DISC_TOTALACCR Alternative Debit Discount Accrued Standard SEC_DISC_TOTALACCR Alternative Credit Accrual of Disct Inc Memo Alternative SEC_DISC_TOTALACCR Alternative Debit Discount Income Standard SEC_DISC_TOTALACCR Alternative Credit 32 19 ORACLE You will need to maintain the following accounting entry set up when a securities contract is liquidated with previous year adjustment option Accounting Role Amount Tag Debit Credit Indicator For Interes
7. Accrual Frequency Monthly v Accrual Method Actual 360 xj Accrual Start Day Accrual Start Month Interest Accrual Interest Accrual Accrual Frequency Monthly v Input By Date Time Authorized By Date Time _ Description q Revaluation of Positions Revaluation Method Revaluation Frequency Revaluation Start Day Revaluation of Settled Positions Revaluation of Unsettled Positions MTM v Monthly v Revaluation Start Month Revaluation Method LOCOM Basis Revaluation Frequency v Realized Revaluation MTM vv Holding Cost hall Monthly w Revaluation Start Day Revaluation Start Month Accrual Start Day Exchange Rate Code Modification Number 11 18 Limits Tracking Bonds Equities Rights Warrants Treasury Bills Forward Profit amp Loss Accrual Accrual Method Actual 360 Accrual Frequency Monthly Accrual Start Day Accrual Start Month Accrual Start Month Authorized Open Market Price w Market Price x Market Price x Market Price Market Price x v Forward P amp L Accrual v v v ORACLE 11 3 1 Premium Discount Accrual The premium or discount on coupon bearing instruments can be accrued over a period If you indicate that accrual of discount or premium is applicable to a portfolio product preference class
8. Local Currency Dividend Basis Warrant Basis Right Basis Safe Keeping Location Id Price Code Yield Calculation Parameters T Bills YTM For T Bills Day Count Method Use Bond Formula Numerator Reinvestment Period Day Count Method Days Denominator Annualizing Method v Yield Calculation Parameters Bonds Annualizing Method Reinvestment Period Days Day Count Method x Numerator E Day Count Method Denominator Premium Discount for Current Interest Period Input By Authorized By Modification Authorized Date Time Date Time emner Open If you are maintaining details of a new market place choose New from the Actions Menu or click on from the tool bar The Market Definition detailed screen will be displayed If you are calling a market place maintenance record that has already been defined choose the Summary option under Market Codes From the Summary screen double click a record of your choice to open it his ORACLE 4 5 1 Specifying Main details 4 5 1 1 Prior to maintaining the interest calculation method and the relevant spot and ex dates etc certain basic details about the market place need to be maintained Country Code You need to specify the country to which the market belongs Local Currency You need to specify the local currency of the country in which the market is situated Safe Keeping Location Id T
9. Month Indicator Future Months Spot Day Weekday of Spot Date Holiday Treatment Input By Authorized By Modification Authorized Date Time Date Time Number Open There are two methods for calculating the spot date It can be calculated as a certain number of days from the trade date of the security It can also be fixed for a market place for a specific range of trade dates Rolling If the spot date calculation method indicated is rolling then you can specify the spot day count basis Spot Day Count Basis There are two options available for this field e Calendar days spot days will be expressed as calendar days e Working days spot days will be expressed as working days eee ORACLE Weekday of Spot Date You can indicate your preference of weekday for the spot date if you have specified the calculation method as rolling If the weekday of the spot date computed is different from the preferred weekday then the spot date computed will be moved forward to the preferred weekday Holiday Treatment Once you indicate a preferred weekday for the spot date you are required to specify the holiday treatment for the preferred weekday If you choose to ignore this option the spot date will be retained on the holiday If not as specified by you it will be moved forward to the next working day or moved backward to the previous working day When the spot day method specified is Fixed
10. Coupon Event Date Coupon 01 Feb 2003 USD 42 47 The computation of net present value for the deal is done in the following manner Date Ci Vd 1 Yo Vd P 1 yo Vd P Disc C 01 Feb 03 42 47 17 1 21351 0 046575 1 009054 42 09 27 Feb 03 9995 43 1 21351 0 117808 1 023060 9769 71 9811 80 The accrued interest as of the revaluation date is excluded from the NPV computed and the Flat NPV as of revaluation date is derived Flat NPV NPV Al 9811 80 19 18 9792 62 Revaluation profit or loss is computed by marking the flat NPV obtained against the flat market price Using the formula mentioned above the Revaluation Profit Loss 102 100 9792 62 407 38 Revaluation Profit USD 407 38 sone ORACLE 26 2 2 2 Unsettled CUM Sell Deal Revaluation Date after Deal Settlement Date Deal Settlement Date 15 Jan 2003 Record Date 25 Jan 2003 Revaluation Date 20 Mar 2003 Deal Quantity 100 Deal Price USD 100 25 Annual YTM 15 54504 Periodic YTM 15 54504 Accrued Interest as of Revaluation date from previous coupon date 01 Mar 2003 to 20 Mar 2003 USD 26 03 Market Price as of Revaluation Date USD 102 During revaluation of past unsettled cum deals all the coupons between the deal settlement date and the revaluation date are discounted to the revaluation date Therefore the effective coup
11. Total cost price of the securities sold 14375 arrived at thus 4750 for 50 95 4800 for 50 96 4825 for 50 96 5 Total sale proceeds 14550 for 150 Realized profit 175 The remaining securities would be held as gt 50 remaining out of deal A 95 gt 50 remaining out of deal B 96 gt 50 remaining out of deal C 96 5 11 5 ORACLE 11 2 4 Processing Processing preferences refer to specifications that you indicate for the functioning of Oracle FLEXCUBE Based on the preferences that you indicate Oracle FLEXCUBE will validate or perform functions The processing preferences that you can specify include Automatic Liquidation of Corporate Actions The corporate actions that are applicable for securities in the portfolio can be automatically liquidated on the Event date the date on which the corporate action is due Check against this option to indicate that the corporate actions applicable to securities in a portfolio should be automatically liquidated on the due date Leave it unchecked to indicate that it should be manually liquidated If you select the automatic option the corporate action will be automatically liquidated on the liquidation date as part of the automatic processes run as part of beginning of day BOD or End of day EOD Short positions allowed A short position is when you sell more than your holding in a security As a preference you can indicate whether w
12. On A later date 10 Sep 02 Yield 13 D3 Holding Quantity 50 000 000 00 Days to Mature 332 D5 Present Cost 89 4257 D6 ROUND 100 1 D3 D5 365 4 Present Value 44 712 85000 D7 D4 D6 100 Present Discount 5 287 150 00 D14 Discount to Be 127 800 D15 B14 D14 Amortized DPRP Accrual for Bonds with quantity redemption schedules For securities which are redeemable on call and with redemption type Quantity you can choose to redeem a specific amount of the face value by entering the requisite percentage in the Redemption Percent field in the Securities Corporate Action Maintenance Redemption screen Refer to the chapter on Maintaining and Processing Corporate Actions in this manual For such securities the DPRP accrual takes into account the weighted average of the days to redemption eve ORACLE Example Face value 1 000 000 USD Purchase Price Discount 100 000 USD Purchase Date 30 redemption on 70 redemption on 900 000 USD April 15 2003 April 18 2003 January 01 2004 Day Discount to No of Days Days Weighte Total be Accrued days in between between d days Accrual accrual accrual accrual to period date and date and maturity first second quantity quantity redempt redemptio ion date n date 15 Apr 100 000 00 1 3 261 183 60 544 6623 03 16 Apr 99 455 34 1 2 260
13. Click the adjoining option list and select the series for which the transfer is being initiated Quote By After the security code is specified the manner in which the security is quoted whether Units or Nominal is picked up and displayed in the Quote By field Depending on the quotation method used you can specify the quantity of securities to be transferred If the manner in which the security is quoted is units enter the number of units to be transferred If the quotation method used is Nominal enter the amount of securities to be transferred Transaction Date This by default is the System Date Current date on which the transaction is being entered and cannot be changed By default action date and the trade date will be the same Quantity If the manner in which the security is quoted is Units enter the number of units to be transferred If the quotation method used is Nominal enter the amount of securities to be transferred Trade Date This by default is the System Date Current Date but can be changed as applicable This will be the date on which the trade is input Settlement Date Enter the date on which the securities transfer is to take place This date can either be today s date or a date in the future ane ORACLE Portfolio Every portfolio that you define in the Portfolio Definition screen would involve a product that you have already defined You can specify the portfolio associated with the particular p
14. Currency Code Select the Currency Code from the List of Values Available for which the Interest Rates are to be maintained Rate Details Update the Interest Rate by adding the required rate types maintained and providing the Interest rates pertaining to the particular rate type selected oo ORACLE 4 5 Maintaining Market Details It is necessary to maintain certain standard details relating to the markets where securities are traded The information relates to issues such as the interest calculation method the relevant spot and ex dates and the default safe keeping location Only the Head Office of your bank can define and maintain market place related details The other branches of your bank can refer to these details every time a security is processed The advantage of defining market place details is that at the time of defining a security you only need to specify the code assigned to the market All the details maintained for the particular market will be automatically picked up You can invoke the Market Definition screen by typing SEDMKTCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Market Definition Market Code Market Type v Description Market Identifier Code Over The Counter Category i x Option System Narrative Main Interest SpotDate Ex Date Holiday Type Country Code Holiday Currency Coupon Basis
15. SE MA0493 Failed in populating security details for the new branch SE MA0494 Effective Date should be later than today 31 2 Error Codes and Messages for Securities Online Error Message Code SE Internal Security ID must be Unique 00001 SE ISIN Identifier must be Unique 00002 SE Market of Issue cannot be cleared after having been populated 00003 once SE Security Currency cannot be cleared after having been populated SO00004 once SE Initial Face Value would be cleared Proceed 00005 SE Issue Price would be cleared Proceed SO00006 SE Redemption Price would be cleared Proceed S00007 SE By SWIFT Standards valid day count indicators are A001 A002 S00011 A003 A004 A005 A006 and A007 SE By SWIFT Standards there needs to be necessarily 1 characters 00031 ies ORACLE Error Message Code SE By SWIFT Standards valid characters are A Z 0 9 00032 SE By SWIFT Standards some characters are invalid Proceed with 00033 appropriate substitution SE Internal Security ID is Mandatory 00051 SE Product is Mandatory 00052 SE Market of Issue is Mandatory 00053 SE Issuer ID is Mandatory SO0054 SE Registered Bearer is Mandatory O00055 SE Form Type is Mandatory SO0056 SE Quantity Quotation is Mandatory SO0057 SE Price Quotation is Mandatory SO00
16. The frequency can be one of the following Daily Monthly 11 20 ORACLE e Quarterly e Half yearly e Yearly Accrual Start Day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency 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 31 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 and yearly accrual frequency Accrual Start Month 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 on which the accruals should be done Example You have selected the half yearly option and specified the start date as 31 and the start month as June The system will do the first accrual on 30 June for the period from January 1 to June 30 and the second on
17. If the expiry date calculation method indicated is rolling then you can specify the expiry date count basis Expiry Days Count Basis You can express the expiry days as calendar days or as weekdays Weekday of Expiry Date You can also specify your preference of the weekday for the ex date The concept of weekday of the ex date and of the holiday treatment is the same as that of Spot date 4 6 3 2 Fixed Method If the ex date specified is fixed then you need to maintain certain mandatory details such as the From and To dates the month indicator and the holiday treatment The information that you maintain here is similar to the information entered for the spot date This is so only if the spot date method specified is fixed However in such a case the ex date will be prior to the event date 4 7 Specifying Tax Details With every market place that you define you can associate a Tax scheme When you specify the market code at the time of defining a security the details of the tax scheme associated with the market code are automatically associated with the security Please note that at the market definition level you can only maintain the Issuer tax details You can however change these details at the security definition level To invoke this screen click Tax button in the Market Definition screen The Tax Definition screen will be displayed 4 7 1 Associating Scheme with Issuer Tax To associate a tax scheme with an i
18. Rights Record Date 19 FEB 1998 Identification of Rights Greater Perth Energy Generation Ltd Common Rights Quantity of Rights Eligible 8500 Rights Rights Subscription Ratio 1 Shares for every 5 Rights Exercised through Rights Rights Subscription Price 40 AUD Type of Rights Saleable Indicative Market Price for Rights 25 AUD Pari Passu Date of Securities 15 MAR 1998 Other Information We are holding the above rights at your disposal and await your instructions Please ensure that your instructions reach us before the response deadline as stated above Please quote Our Reference in all further correspondence relating to above Rights announcement Thanking You For National Australia Bank Sydney 27 30 ORACLE 27 2 12 Securities Notice of Event Message Chemical Bank 25 MAR 98 890 Pearl Towers New York Lotus Avenue Tokyo Japan Sub Notice of Securities Event Kind Attention Mr Nomura Shikara Operations Head Securities Department Dear Sir Madam Please be advised and informed about the securities event with details as shown below Our Reference 000SE01980840021 Type of Event Coupon Interest Rate Revision Identification of Securities affected ISIN USFRNICIO007 IC Industries Finance Corporation Guaranteed FRN 1996 Quantity of Securities 2 000 000 00 Face Amount Event Narrative Interest R
19. SEC_REVL_LOSS Securities Revaluation Loss Amount SEC_REVL_PROFIT Securities Revaluation Profit Amt SEC_RRVL_LOSS Sec Revaluation Reversal Loss Amt SEC_RRVL_PROFIT Sec Revaluation Profit Revrsal Amt STK_TO_CSH Stock To Cash Amount STK_TO_CSH_EDIS Stock To Cash Expense for DIBR STK_TO_CSH_EINI Stock To Cash Expense for INIT STK_TO_CSH_ELIQ Stock To Cash Expense for LIQD STK_TO_CSH_ICOL Stock To Cash Income for COLL STK_TO_CSH_IINI Stock To Cash Income for INIT STK_TO_CSH_ILIQ Stock To Cash Income for LIQD TBD_WHT_ACCRA T Bill Discount Tax Arrears Accrued TBD_WHT_ACCRD T Bill Discount Tax Advance Accrued 32 5 ORACLE Amount Tag Description TBD_WHT_ADV T Bill Discount Tax Paid in Advance TBD_WHT_PAY T Bill Discount Tax Payable TBD_WHT_SELL T Bill Discount Tax Sell TBD_WHT_UNACCRB T Bill Disc Tax Unaccrued Sell Disc gt Buy Disc TBD_WHT_UNACCRS T Bill Disc Tax Unaccrued Sell Disc lt Buy Disc UNACCRD_DISCNT Unaccrued Discount Amount UNACCRD_PREMIUM Unaccrued Premium Amount UNSD_BY_MTM_EXP Unstld Buy Deals MTM Reval Expense UNSD_BY_MTM_INC Unstld Buy Deals MTM Reval Income UNSD_MTM_EXP Securities Unutilized Deals MTM Revaluation Expense UNSD_MTM_INC Securities Unutilized Deals MTM Revaluation Income UNSD_R_MTM_EXP Se
20. Sydney Stock Exchange Delivery Date 12 JAN 1998 Next Coupon Due Date 31 JAN 1998 Securities Book Value 4 500 000 00 AUD Quantity of Securities 1 500 000 Face Amount Safekeeping Account to be Deposited USSB7434 540 Securities Certificate Numbers AE 10001 to AE 10015 15 x 100 000 AUD worth Bond Certificates Deliverer of Securities Elders Finance Group Sydney Securities Deliverer s Reference RYZ843 Beneficiary of Securities Fidelity Trust Limited New York Securities Registration Details Securities received have to be registered in the name of the Fidelity Trust Limited New York 27 13 ORACLE Our Reference 00OSSPT980070021 Securities Receipt Certificate Numbers of Bonds delivered should match with Declaration Details the numbers as shown above and the Certificates should be in a good condition Other Information Please confirm the receipt and registration of above securities to us by mail at the earliest and revert to us if the Securities are not received in 2 weeks time after the scheduled delivery date Please intimate us about your transaction charges if any for the above instruction Please always quote Our Reference in all further correspondence regarding the above instruction Thanking you For Salmon Brothers Inc New York USA 27 2 4 Securities Receive Against Payment Instruction CI
21. Tarana rs Input By Authorized By Modification Authorized Date Time Date Time Number Open When you click on the new icon the system automatically assigns a unique internal action ID to the corporate event The system date is defaulted as the date on which the dividend event was announced However the Announcement Date or the date on which the event was declared can be changed to a previous date Corporate Action Identification This is the system generated ID to uniquely identify the declaration of Stock Dividend External Corporate Action Identification This is the Id assigned to the event at the time of event declaration Enter the Id associated with the event to uniquely identify it Security Identification Specify the code or ID of the of equity type security for which the dividend declaration is being defined The codes displayed in the picklist available for this field are picked up from the Security Definition screen Suen ORACLE Security Issuer Reference Indicate the issuer reference number for the stock dividend event Announcement Date This is the date on which the issuer would have declared the stock dividend event Enter the announcement date of the event Event Date Enter the date on which the cash payment will be made by the issuer Record Date Enter the date on which the issuer determines the beneficiary eligible for the dividend based on the registered owner of the securities The Record Dat
22. eee ORACLE Statement of pending transactions You can inform the customer about the pending transaction in the Customer portfolio for a specific period The advice can be generated for all or selected securities in all or selected SK location accounts 27 2Sample of all the Advices A sample of all advices is given below 27 2 1 Securities Trade Confirmation Affirmation Message GS 12684 03 APR 1998 Goldman Sachs Amsterdam 602 South End Towers JFK Avenue New York U S A ZIP 897 643 260 Subject Securities Trade Confirmation Affirmation Kind Attention Ms Andy Ryan Treasury Officer Securities Department Dear Sir Madam We hereby affirm the Securities Deal confirmation sent by you with details as listed below Our Reference 0O0OSSPT980070021 Confirmation Preparation Date amp 02 APR 1998 10 30 20 HRS Time Financial Instrument Attributes Identification of Financial ISIN DE0007236002 Instrument Siemens AG 7 5 PCT Bonds eee ORACLE Our Reference 000SSPT980070021 Financial Instrument Currency DEM Method of Interest Computation Actual Actual Next Coupon Date 01 JUL 1998 Maturity Date 01 JAN 2001 Current Interest Rate 7 5 Percent Per Annum Next Coupon Number 05 Financial Instrument Narrative Siemens Semi Annual Interest Bearing Five Year Bonds Confirmation Details Trade Date 01 MAR 1998 Place of Trade New Yo
23. on ORACLE Yield to Worst It is the lowest potential yield that can be received on a bond without the issuer actually defaulting The yield to worst is calculated by making worst case scenario assumptions on the issue by calculating the returns that would be received if provisions including prepayment call or sinking fund are used by the issuer Yield to Call It is the the yield of a bond or note if you were to buy and hold the security until the call date This yield is valid only if the security is called prior to maturity Current Yield It is the annual income interest or dividends divided by the current price of the security This measure looks at the current price of a bond instead of its face value and represents the return an investor would expect if he or she purchased the bond and held it for a year Nominal Yield The interest rate stated on the face of a bond which represents the percentage of interest to be paid by the issuer on the face value of the bond Yield Curve It is a line that plots the interest rates at a set point in time of bonds having equal credit quality but differing maturity dates Effective Interest Method It is the manner of accounting for bond premiums or discounts The interest expense equals the carrying value of a bond at the beginning of the accounting period times the Effective Interest Rate yield also called scientific amortization MTM It stands for Mark to Market I
24. 8 50 9 1 250 150 8 5 1 275 Since the Revaluation Method adopted is LOCOM and the LOCOM basis chosen is Acquisition Cost the profit 1275 1250 25 is booked and used to offset the earlier Revaluation Loss Therefore in this case the break even price is updated though the Revaluation price is greater than the old break even price The outstanding Revaluation Loss is reduced to the extent of the realized profit 200 25 175 Accounting entries posted on 28 February 2002 Debit Credit Indicator Accounting Role Amount Dr LOCOM_REVAL_ASS 25 LOCOM_REVAL_INC Cr LOCOM_REVAL_INC 25 Revaluation of 31 March 2002 Holdings 250 Book Value Break even Price 9 1 Revaluation Price 9 Revaluation Loss Revised Book Value 1 275 100 10 2 275 250 9 10 9 00 25 2 275 25 2 250 Total Revaluation Loss after this entry 175 25 200 11 31 ORACLE Accounting entries posted on 31 March 2002 Debit Credit Accounting Role Amount Indicator Dr LOCOM_REVAL_EXP 25 LOCOM_REVAL_EXP Cr LOCOM_REVAL_LBY 25 Revaluation of 30 April 2002 Holdings 300 Book Value 2 250 50 7 2 600 Break even Price 8 666667 Revaluation Price 10 If Revaluation is carried out at the price of 10 the revised Book Value is 3 000 300 10 and this results in a Revaluation profit of 400 3 000 2
25. Accrual Frequency The frequency at which interest should to be accrued has to be specified as a portfolio preference Thus the interest components of all securities in a portfolio will be accrued at the same frequency The frequency can be one of the following e Daily ic ORACLE e Monthly e Quarterly e Half yearly e Yearly Accrual Start Date In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency 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 31 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 and yearly accrual frequency Accrual Start Month 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 on which the accruals should be done E
26. Basic Quantity The basic quantity Record Date C A Date The record date and the corporate action date Dividend Rate The rate of the dividend Dividend Amount Resultant Security The dividend amount 34 11 ORACLE 34 8 Corporate Actions Coupons Pending Action You can generate corporate action pending report by using Corporate Action Tracking Ex Date Report screen To invoke the screen type SERCAPEN in the field at the top right corner of the Application tool bar and click the adjoining arrow button Corporate Action Pending Corporate Action Events Pending Select Event Initiation vi Select Branch az Corporate Action Type Coupons Others Report As On Specify the following details Select Event Select the event from the drop down list The following are the options available e Initiation e Collection e Liquidation e Any of the above e All of the above Corporate Action Type Indicate the action type The following options are available e Coupons e Others Report As On The date on which the report is generated is displayed here 34 8 1 Contents of the Report 34 12 ORACLE The contents of corporate action pending have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module date and time at which the report has been generated and the page number of the rep
27. CF0010 CS Unhandled exception in fn_upd_amt_due CF0011 CS Unhandled exception in fn_upd_amt_paid CF0012 CS Unhandled exception in fn_backup_cash_flow CF0013 SE Unhandled exception in fn_cash_flow_redemption CF0001 SE Unhandled exception in fn_cash_flow_dividends CF0002 SE Unhandled exception in fn_cash_flow_coupons CF0003 SE Unhandled exception in fn_populate_amt_due CF0004 SE Unhandled exception in fn_get_sett_acc CF0005 SE Unhandled exception in function BOD001 sepkss_security_batch fn_process_security_batch wile processing security 1 SE Unhandled exception in function BODO02 sepkss_security_batch fn_process_security_batch SE Unhandled exception in function fn_update of sepkss_security_batch BODO03 31 47 ORACLE Error Message Code SE Failed to update setb_caevent_tearoff_log BOD040 SE Failed to lock cstb_ contract BOD041 SE Failed to update setm_corp_actions_due with auto deal reference BOD042 SE When Others of fn_right_tearoff BOD043 SE Error while selecting product for building auto deal BOD044 SE When Others of fn_right_pfolio_processing BOD045 SE No data found in setm_combination_product BOD046 SE Failed to insert into setb_unrel_unmatch BOD047 SE Unhandled exception in fn_deal_detail BOD048 SE Unhandled exception in fn_deal_master BOD049 SE Failed to update setb_caevent_expiry_log BOD0
28. Discount Earned You should not use the memo GLs if you accrue premium discount directly into your income expense GLs Similarly you should not use DEAL_PREMIUM DEAL_DISCOUNT and DEAL INTEREST BOUGHT GLs in a product which is using SEC DISC TBACRD and SEC PREM TBACRD 32 4 2 List 2 Acct Roles for a Customer Buy Sell Type of Product Accounting Role Description CS_REG_INC Chg Class For Cust Sell CB_REG_INC Charge Class For Cust Buy SEC BRIDGE GL Securities Bridge GL Settlement SEC BRIDGE SELL Securities Bridge Sale SEC BRIDGE PUR Securities Bridge Purchase SEC BRIDGE BUY Securities Bridge Buy INTCOMP_BOT Deal interest bought If you are using the Securities Bridge GL SEC BRIDGE GL for settlements you should not be associating the Bridge GLs SEC BRIDGE S SEC BRIDGE PUR with the product However these roles cannot be made applicable on portfolios with Weighted Average as the Costing Method 32 10 ORACLE The suffixes stand for RECV Receivable RIA Received in advance TBACRD To be accrued OFST Offset GL RCPY Receivable Payable RAPA Received in advance Paid in advance AJI Adjustment Income ERND Earned ASS Asset LBY Liability PAY Payable EXP Expense Securities Advices The list of advices that shall be generated in Securities Module of Oracle FLEXCUBE 3 0 is as shown
29. SE MA0196 Deletion of component not possible since the scheme is already attached to a product products SE MA0197 Tax component cannot be null SE MA0198 Module and scheme are mandatory fields SE MA0199 This Scheme already exists for the module SE MA0200 This rate type is a mandatory one So it cannot be closed SE MA0201 Duplicate Tenor Codes are not allowed SE MA0202 Duplicate SK Accounts are not allowed SE MA0203 Duplicate Tax Rate Codes are not allowed SE MA0204 Duplicate Tax Rates are not allowed SE MA0205 Duplicate Market Codes are not allowed SE MA0206 For FIXED as the Spot Date Method All days from 1st to 31st should be handled and spot dates mentioned against them 31 7 ORACLE Error Code Message SE MA0207 For FIXED as the Ex Date method All days from 1st to 31st should be handled and ex dates mentioned against them SE MA0208 Duplicate Issuer Tax Rate Codes are not allowed SE MA0209 This rate code can be maintained only at the head office It will be propagated to the present branch from there SE MA0210 This rate is propagated across branches and can be closed only at the head office SE MA0211 This rate is propagated across branches and can be modified only at the head office SE MA0212 Failed to propagate this rate SE MA0213 For this rate atleast the STANDARD rate type has to be maintaine
30. SE MA0351 Announcement Date should be on or before today SE MA0352 Announcement Date should be less than Event Date and Record Date SE MA0353 Rights Exercise End Date should be after Rights Exercise Start Date SE MA0354 Value for the field Minimum Rights Exercise Quantity is mandatory SE MA0355 Value for the field Rights Exercise Price is mandatory SE MA0356 Rights Exercise End Date should be later than today SE MA0357 Value for the field Confirmed Date is mandatory SE MA0358 Do you really want to confirm SE MA0359 Confirmed Date should be on or before today SE MA0360 Cannot Close The record has already been confirmed SE MA0361 Cannot Reopen The record has already been confirmed SE MA0362 Mandatory Field 1 is null SE MA0363 Warrants Exercise End Date should be after Warrants Exercise Start Date SE MA0364 Value for the field Minimum Warrants Exercise Quantity is mandatory SE MA0365 Value for the field Warrants Exercise Price is mandatory SE MA0366 Warrants Exercise End Date should be later than today SE MA0367 Cannot delete a once authorized record SE MA0368 Unauthorized records can be deleted but cannot be closed SE MA0369 Event Date is past Cannot reopen the record SE MA0370 Event Date is past Cannot close the record SE MA0371 Mandatory Field Security Id is null SE MA0372 Mandatory Field Portfolio Id is null SE MA0373 Position Reference No for this
31. Securities Deal Amount 600 000 00 HKD Other Charges Fees 650 HKD Securities Settlement Amount 599 350 00 HKD Our Charges 1 250 00 HKD Net Proceeds 600 600 00 HKD Value Date of Payment 28 MAR 1998 27 28 ORACLE Other Information Our charges for the above transaction is 1 250 00 HKD and has been debited to the payment account value 28 MAR 1998 Please always quote Our Reference in all further correspondence regarding the above instruction Thanking you For Hang Seng Bank Hong Kong 27 2 11 Securities Notice of Rights Message WARBURG 024 24 JAN 1998 Warburg Securities Sydney 892 Traflagar Square Oxford Street London U K ZIP 6780 265 Sub Notice of Rights declared Kind Attention Mr William Smith Operations Head Securities Department Dear Sir Madam Australia Please be advised that Rights have been announced for the following Security with details as shown below Our Reference 000SE01980240004 Safekeeping Account 8745 762 Rights announced for Security ISIN AU0000172510 27 29 ORACLE Our Reference 000SE01980240004 Greater Perth Energy Generation Ltd Quantity of Security Eligible for Rights 8500 Shares Right Expiry Date 20 FEB 1998 Rights Ex Date 01 FEB 1998 Your Response Deadline 18 FEB 1998 1700 HRS GMT Rights Exercise Payable Date 20 FEB 1998
32. Select the User Id of the user to whom you are assigning the deal This user to whom you reassign a deal should have access rights to enter securities deals in Oracle FLEXCUBE Your User Id will be defaulted from the login screen Click Exit button if you do not want to save the details that you entered In either case you will be returned to the Application Browser Seo ORACLE 23 Processing a Block Securities Deal 23 1 Introduction A block deal is one in which either the buy or the sell legs of the deal are associated with more than one portfolio For example in a block securities deal securities can be bought from portfolios PF01 PF02 PFO3 and sold to Portfolio PF04 To recall in the Securities Deal Details screen you can enter deals that involve only two parties the selling and the buying party The Block Securities Deal screen allows you to execute a securities deal in the market and allocate the same to several portfolios Block deals are processed differently for fund and non fund branches In the case of a fund branch you can trade only with bank portfolios For non fund branches block deals can involve customer portfolios 23 1 1 Features of a Block Deal in Oracle FLEXCUBE The following are the features of a Block deal 23 1 2 A block deal can have multiple parties associated with either the buy or sell leg Portfolios of different costing methods can be involved in the multi leg of the block deal Det
33. You can indicate the ratio at which rights are issued Usually rights are issued in proportion to the percentage of ownership This is to ensure that current owners maintain their percentage of ownership if additional shares of the same class are issued The simplest method to achieve this is to issue one right per unit of security owned For instance an owner of 100 units of a security will get 100 rights This however might not be the case always hence you need to specify the rounding fraction The rounding fraction indicates how the fractional entitlements in the parent security should be handled The options that you can indicate are as follows Retain If you choose this option then the fractional units will be retained Round Up The entitlement will be rounded up to the next full unit Round Down The entitlement will be rounded down to the previous full unit Round standard The entitlement will be rounded up to the next full unit if fraction is greater than 0 5 else it will be rounded down to the previous full unit Example Rights are declared in the ratio of 10 1 for the parent security RELIANCE Reliance has 125 units This means that for every ten units of RELIANCE owned one RELIANCE AGRO right will be issued The entitlement is computed as follows Parent Security ID RELIANCE Ratio 10 1 Intermediate security ID RELIANCE AGRO Rights Shares of Reliance Agro 125 x 1 12 5 10 If you choos
34. seseeeesesseseserecceroroesesesoecssoroeseseeceeerosoesesecoeoeseeecoerosorseseseecesorosseseeesoesoeeesoe 19 4 19 1 INTRODUCTION esvcescscessdsscsnesevssccusdes cove suvsassucosecvedsntessencsvecnee sedvasancsvesweuseds costeusvanen seve cavnssnssveversecevagatsvocveontes 19 4 19 1 1 A description of the Security Instrument Definition Screen ccccecccecesseesseeneeeeeeeeeeeeeeecnseensecnaeente 19 3 19 2 ENTERING THE DETAILS OF A SECURITY csccsccenvscessccucovecssvsesvacsntoucocevsevsesstevevsceesousesunsstescevseascssesans dseverveey 19 4 19 2 1 Identifying a Security 0 eseesesesscesecnsesecseeessseescssecssesecsceseenseecesseeasesecaeesesacescesesnaeeeesaseaeseecaeeseesaeees 19 4 19 2 2 Entering the Main Details sou scnsesccssrssrisesnreencesseosivercnsedsrsenscasvsenwonsuasovtinotennesnasiscabansnessna dons iaia 19 6 19 2 3 Identifying the Market and the Issuerf ceccsceseessesscssesessseescusesecsecseencsaecscesecacesecaaeeeeaeeaeeseeaaeeeensenes 19 7 19 2 4 Specifying the material Of a SCCUTILY 0 cccscesessseesceeecesecesecesecaecaaecacecacecaeenseeeeseneeeseeeaeeeesteneneaeenes 19 7 19 2 5 Specifying Redemption Quotation Method cccccesccscsscesseesceseesseseseesecuseeecuseesesaeeeeesecacesecseeeeseaseneeas 19 8 19 2 6 Indicating Corporate Action Preference c scccccsccsscsesesseesceesseeseeseesecasesecasensesseeaeesecacesecseeeneeaeeneegs 19 8 19 2 7 Capturing Trade Related InfOrimation cecccccesceescssesecnseescuses
35. 1000 bond paying 7 interest will mature in 30 years When the investor purchases it for 1200 the bond has twenty years of life left At the end of the 20 years at maturity the corporation is obligated to retire the debt for 1000 face value If the investor paid 1200 today for the bond he will receive only 1000 at maturity Divide the 200 loss or amortize it over the 20 remaining years 200 divided by 20 years equals 10 per year The investor is losing 10 per year which accumulates on this transaction Yet the bond is going to pay him 70 per year in interest So over 20 years the investor actually earned an average of 60 per year every year he owns the bond In dollars this is the yield to maturity Yield to maturity Interest received amortized figure Face value cost 2 Example 70 10 0 0545 1000 1200 2 S ORACLE The yield to maturity is 5 45 Certain bonds like Zero coupon bonds trade with the price being quoted as Yield to Maturity YTM These securities carry a face value but they are usually traded at a discount The YTM for such securities would be quoted in the market Yield to maturity in such scenario can be understood using the following formula YTM Face value Purchase Price Days in a year Current price Days to maturity 2 1 12 Corporate Actions on Securities Corporate actions are various events that happen on the different types of securities during the life cy
36. 23 1 3 A description of the Block Securities Deal screen are ORACLE The securities deal input screen as it appears contains a header and a footer containing fields that are specific to the deal you are entering Besides these you will also notice two tabs along the lines of which you can enter the details of a block securities deal The two tabs are Main Click this tab to enter the essential terms of a block deal This screen along with its fields has been detailed under the head Entering the details of a block deal Additional In the screen that corresponds to this tab you can specify price currency and trade details that are required to process the deal The features of this screen have been detailed under the head Entering additional details of a block deal 23 2 Entering the Details of a Block Deal Through the Securities Block Deal input screen you can process deals that involve multiple parties either in the buy or sell legs You should compulsorily use a securities combination product to process a block deal After you have specified all the details of the buy ands sell legs you should upload the block deal The upload function will automatically create sub deals for each of the parties involved in the multi party leg of the transaction Refer to the title Uploading the details of a block deal in this chapter for more details Product You should necessarily use a prod
37. 2A INTRODUCTION ssvvsiss bicssacteostssreuievacgsssais snchncubestvacsesvebiaurestystescostavaynstvscyessebbaneab evasive uisnsdes EENET EROSA 24 1 24 1 1 Specifying the SK locations ANd ACCOUNTS scsscscessesscssesecnseeseeseeecesecaeesecuceeeesseeseeaecaeesesseeeessesaeeaeens 24 4 24 2 IMOVING ON TO THE OTHER SCREENS sie sccsecsecenvsnesiesncsecossesnovacsetovesnevsedscsbnsiavencesevscasassns sbeveedecubesses csuneveede 24 4 25 MAINTAINING BLOCK SECURITY DETAILS seseseeeesesoroesesesceeesosoesesecceoesoesesececoesoroesesesoeossoroeseeeeeee 25 5 25 TN TRODUCTION iiite eieaeoeaii eaa a ae aE aT a Ee Ea Ea E oe AE a Mavavadenvecucodesveuss shavescedbonesisessesees 25 5 26 BATCH PROCESSEG ccssssccesssescssessssscscsscsssssssssnssssssesssssssescssesesesenessesscssosssssnssssssessessssseseeseess 26 5 26 1 INTRODUCTION pescssscesscocessv sccsccvsscs casegstscesdeses obavstes iquncovecveuscdycestcoucsadestvsdsenencestevscustastetedstevdsebienesees R E REE 26 5 26 1 1 Beginning of Day Processing ccccscscssccscesscesesssesesscesecnsesecceesceseescesesseeseesecseesecaaeeeesaeeaeeaecaeeseeneeeeees 26 5 26 1 2 Processing Daily Event cccceccsccesesssessessesscuseeseeseescesecasesecuceecsseaceeeesseeaessecaeesecuaeeeesaeeaeeaecaeeseeneeseees 26 2 26 1 3 Invoking the Automatic Daily Program n cecccccesccscssscssesceseesseecseessesecseesecuseeecseescesecaeesesaeeeeaeeaeeaees 26 2 26 2 EOD PROCESSING FOR UNREALIZED REVALUATION ccccc
38. ACCRUED_INT_ADJ Debit SEC INT ADJ ACCRUED_INT_ADJ Credit Processing of the Yield accrual for deals bought on par First the system validates the Redemption Premium accrual frequency and Discount premium accrual frequency which needs to be same at the Portfolio Definition level This condition is validated only if the bank level parameter COMMON_YLD_ACCR is set to Yes Secondly the effect of the redemption premium accrued is included in the NPV calculation and the Redemption premium accrual is done prior to Discount Premium accrual Then the YACR event is triggered for accrual only if you have maintained the bank parameter COMMON_YLD_ACCR as Y and the security is a bond or a T Bill During IRR computation the acquisition type should also be identified Acquisition type can be e Discount e Premium or e Par The system displays the corresponding amount tags based on the acquisition type ae ORACLE The NPV is computed as shown below NPV O S Deal Nominal O S Interest Accrual O S Redemption Premium Accrual Premium TBA Premium Accrued Discount TBA Discount Accrued Interest Adjustment Accrued Already Interest Adjustment Accrued While computing NPV the Premium Discount and Interest adjustment On par are mutually exclusive Trading P L At the time of sale discount premium accrued redemption premium accrued is included for calculation of the tradi
39. Accrual Start Month Revaluation Exchange Rate Code Exchange Rate Type Description The accrual method refers to the method to be used to calculate the amount of premium or discount to be accrued Select the accrual method from the adjoining drop down list This list displays the following values e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 e 30 US 364 16 4 ORACLE e Actual 364 The values of accrual method maintained in this screen get defaulted in portfolio creation for the selected product The Other Portfolio Product Preferences screen When defining a portfolio product you can choose to specify preferences for the product either by e Associating the product with a Portfolio Preference Class that you have defined e Entering your preferences specifically for the portfolio product If you would like to associate a portfolio preference class to a product choose Default From Class button in the Portfolio Product Preferences screen A list of the Portfolio Preference Classes that you have maintained will be displayed Choose the preference class that is applicable to the product that you are creating For detailed information on each of the attributes please refer to the chapter called Maintaining a Portfolio Preference Class of this User Manual 17 Defining Attributes of a De
40. BA0196 SE Unable to calculate the no of days BA0197 SE Unhandled exception in fn_constant_yld_dp BA0198 SE Unhandled exception in fn_constant_yld_rp BA0199 SE Unable to select from setm_branch_parameters BA0200 SE Next process date 1 gt Process till date 2 for product 3 BA0201 SE Unable to select from setb_dprp_accr_master BA0202 SE Unable to update setb_dprp_accr_master BA0203 SE Unhandled exception in fn_dprp_batch_accr BA0204 SE Unhandled exception in fn_pass_product_entries BA0205 SE Unable to update setb_dprp_accr_log BA0206 SE Unable to update accrual_entry_flag in setb_dprp_accr_log BA0207 SE Unhandled exception in fn_dprp_memo_accr BA0208 SE Unhandled exception in fn_dprp_reversals BA0209 SE Unhandled exception in fn_accrue BA0210 SE Unable to select from setb_bep BA0211 SE Unhandled exception in fn_accrue_during_settle BA0212 SE Unhandled exception in fn_acc_entry 31 42 ORACLE Error Message Code BA0213 SE Component code not correctly set BA0214 SE Unable to insert into setb_dprp_accr_log BA0215 SE Unhandled exception in fn_update_accr_log BA0216 SE Unhandled exception in fn_dprp_poswac BA0217 SE Unhandled exception in fn_dprp_negwac BA0218 SE Unhandled exception in fn_dprp_dmwac BA0219 SE Unhandled exception in fn_dprp_wac_noaccr BA0220 SE Unable to check future holding BA022
41. Bank Buys Customer Buys or Reversal of Sell Deals the positions are updated on authorization of the respective buy deals In case of Sale Deals viz Bank Sells Customer Sells or Reversal of Buy Deals the positions are updated on saving the respective Sell deals The settlement dated position checks are done for Sell Deals and Reversal of Buy Deals at the time of saving the deal and also during authorization of the deal For contra holdings of type Online if the projected holdings on the settlement date are going short then an error message will be displayed while saving a Sell deal or while reversing a Buy deal If the contra holding is of type EOTI if the projected holdings on the settlement date are going short then system throws up an override while saving a Sell deal or while reversing a Buy deal The projected settlement date holdings are checked again at the time of marking EOTI for the branch If the projected holdings have gone short for any of the settlement dates system displays an error message and stops any further processing You are not allowed to configure this error message as an override Example Consider the following Current system date 16 JUN 2003 Security ID SECO01 Current holding in portfolio 2 000 000 00 Securities flow in portfolio during current system date Security ID Settlement date DSTL date Buy Sell Nominal Value SECO001 16 JUN 2003 Buy 6 000000 00 SECO001 18
42. Choose the event for which you want to view advice details The address of the party who is the recipient of the message will be picked up by default based on the media and address maintenance for the party You can change either of them For a payment message by SWIFT you also have the option to change the priority of the message Suppressing the generation of an advice By default all the advices defined for a product will be generated for the deals involving it If any of the advices are not applicable to the deal you are processing you can suppress its generation Indicating the generation priority For a payment message by SWIFT you also have the option to change the priority with which the message should be generated By default the priority of all advices is marked as Normal You have the option to prioritise a payment message to one of the following options e Normal e Medium AREE ORACLE e High Indicating the medium of generation The medium through which an advice is transmitted and the corresponding address will be picked up based on the address and media maintained for the customer who is the recipient of the message You can however change either of these while processing a deal Typically if changed both of them will be changed Click Exit button to reject the entries you have made or to exit form the screen In either case you will be taken back to the Securities Deal Input screen 22 2 6 4
43. Corporate Actions Bankers Acceptance Accrual v 7 Corporate Action Notice Required Notice Days Notice Days Type Contra Holding Validate When Portfolio Type Portfolio Type Input By Date Time 11 2 1 Class Code Calendar days x v Contra Holding Allowed Bank Customer O Issuer Authorized By Date Time Description Lo Costing Method Costing Method Transactions Statement Statement of Transactions required Monthly i v Statement Frequency Statement Start Day __ Statement Start Month v Holdings Statement Statement of Holdings required Statement Frequency Monthly v Statement Start Day Statement Start Month v Modification Number Identifying Portfolio Preference Class Treasury Bills Accrual Accrual Frequency Accrual Start Day Accrual Start Month Purchase Interest Wipe Deal Purchase Interest Book Intrinsic Value Rekey for Authorization Required Rekey Fields Authorized Open V Accrue Discount for Treasury Bills Monthly v C v Sale amp Coupon Warrants Rights No O Yes Portfolio Id Portfolio Customer Portfolio Currency You can specify a code to identify a class In Oracle FLEXCUBE each portfolio preference class that you maintain is identified by a unique ten character code called a Class Code
44. Cr Indicator SEC PREM PAID SEC_PREM_ACCR Debit SEC PREM TBACRD SEC_PREM_ACCR Credit Given below is the sample accounting entries that will be posted if you use the alternative accounting roles for this event Accounting Roles Standard Amount Tags Standard Dr Cr Alternative Alternative Indicator Accrual of Prem Alternative SEC_PREM_ACCR Standard Debit Exp Memo Premium Accrued Standard SEC_PREM_ACCR Standard Credit Premium TBACRD can be used Advices No advices allowed for this event 32 27 ORACLE 32 4 3 8 ACRR Accrual of Redemption Premium Earned Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC RDPREM ERND SEC_RDPREM_ACCR Credit SEC RDPREM RECV SEC_RDPREM_ACCR Debit Advices No advices allowed for this event 32 4 3 9 DVIN Securities Dividend Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC DIVDND PAY SEC_CASH_DIVDND Credit SEC DIVDND RECV SEC_CASH_DIVDND Debit Advices Nil 32 4 3 10 DVCD Securities Dividend Collection Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC DIVDND RECV SEC_CASH_DIVDND Credit SEC SETTLEMENT SEC_CASH_DIVDND Debit Advices No advices allowed for this event 32 4 3 11 DVLQ Securities Dividend Liquidation Accounting En
45. E a ESN Event Code Description Security Id Advice Details HAE TPE E rioty E E EE r nares a r afm No 4 Noma si Highlight an event to view the advices associated with it The address to which an advice should be delivered is picked up by default based on the media and address maintained for the party The party type to whom an advice should be sent is also picked up automatically based on the type of portfolio you are entering and the parties involved Suppressing the generation of an advice By default all advices defined for a product will be generated for the portfolios to which it is associated If any of the advices are not applicable to the portfolio being created you can suppress its generation Priority For a payment message by SWIFT you have the option to change the priority with which a message should be delivered By default the priority of an advice is marked as Normal You have the option to prioritise a payment message to one of the following options e Normal e Medium een ORACLE e High After selecting the advices to be generated for the portfolio click add icon to save the entries that you made Click delete icon to reject the entries that you have made In either case you will be returned to the Portfolio Definition screen 21 6 Viewing Event Details Click Events from the Port
46. Formula used for Yield Calculation Discounted Yield Redemption Value Input Price Redemption Value Denom Method No of days True discount Return Yield Redemption Value Input Price Input Price Denom Method No of days Days between DSTL and Maturity Date 81 For Discounted Yield 120 100 120 364 81 0 748971193415638 True discount Return Yield 120 100 100 364 81 0 898765432098765 Premium Discount for Current Interest Period Check this option to specify that the premium or discount should be accrued only for the current period This option will be applicable only if the security is a Floating Rate Bond lf you check this option all the securities whose market code is identical to the one specified in the Market Definition screen will inherit this feature provided the interest rate type of the specified security product is Floating ie ORACLE 4 5 3 Specifying Interest Details The interest details that you define here will be picked up and defaulted in the interest section of the Securities Definition screen However while defining security details you have the option of changing these details Click on the Interest tab to maintain interest related details Market Definition Market Code Description Over The Counter Option System Narrative Main Interest SpotDate Ex Date Coupon Details Frequency Week Day Rounding Basis Day
47. Leg Reference F G ch Leg Reference leme e ch Quantity D Mat h Leg Refi Settlement Dat Match Quantit Bl EJ Total Matched 0 Total Required 1000 Total Remaining 1000 AREA ORACLE 22 2 6 6 Viewing Event Details Click Events button from the Securities Deal Input screen to view the accounting entries and overrides for an event The details of events that have already taken place for the deal leg will be displayed along with the date on which the event took place Leg Events Accounting Entries Web Page Dialog x Bi Leg Reference No CHODLCS001850012 Security ID cust sell Events O Reference Sr No Event Event Date Maker ID Maker DT Stamp Checker ID chec El M CHODLCS001850012 1B00K 7 3 2000 RAC2 7 3 2000 IRS3 72 m CHODL S001850012 2 MSTL 7 3 2000 RAC2 7 3 2000 IRS3 72 EJ e E Accounting Entries Oo Branch Account DriCr Code Date YValueDate Cey Fey Amount Exch Rate LCY Amount EJ EJ Contract Overrides m zJ m T Dealer has not been specified Do you wish to continue T Security series is defaulted to NULL T Limits tracking required is defaulted to 1 x E E gt Ei 22 2 6 7 Accounting Entry Details Highlight the event for which you want to view accounting entries All the accounting entries that were passed and the overrides that were encountered for the event will be displayed The following information is provided for each event e Branch e Account e Dr C
48. SD LM The Expiry Date cannot be earlier than Branch Date 00051 SD LM The Last Price Change Date cannot later than Expiry Date 00052 SD LM The Description is not entered 00053 SD LM The Face Value is not entered 00054 SD LM The Limit Contribution cannot be greater than the Cap Amount 00055 SD LM Report date should be greater than the date today 00056 SD LM The Total Issuer Exposure should be greater than 100 00057 SD LM Collateral exists with the Issuer Code Record cannot be closed 00058 SD LM Securities exist with the Issuer Code Record cannot be closed 00059 SD LM There are Collateral linked to this Limit Record cannot be closed 00060 SD LM There are Collateral linked to this Security Record cannot be closed 00061 SD LM There are Collateral linked to this Price Code Record cannot be 00062 closed SD LM There are Collateral linked to this Collateral Type Record cannot be 00063 deleted 31 65 ORACLE Error Message Code SD LM This Facility is not available at this Branch 00064 SD LM No Details exist for the Reference Number 00065 SD LM Customer Clean Risk Limit cannot be greater than Liability Clean Risk 00066 Limit SD LM Customer Clean Risk Limit cannot be greater than Overall Limit 00067 SD LM Liability Clean Risk Limit cannot be greater than Overall Limit 00068 SD LM L
49. SEC BRIDGE GL DEAL_NOMINALAMT Debit SEC BRIDGE GL FWD_DEAL_LOSS Credit SEC FWDEXP OFST FWD_DEAL_LOSS Debit SEC BRIDGE GL FWD_DEAL_PROFIT Debit SEC FWDINC OFST FWD_DEAL_PROFIT Credit SEC BRIDGE GL REALIZED_LOSS Credit SEC RLZD LOSS REALIZED_LOSS Debit SEC BRIDGE GL REALIZED_PROFIT Debit SEC RLZD PROFIT REALIZED_PROFIT Credit SEC ASSET GL RGHT_INTR_VALUE Debit SEC BRIDGE GL RGHT_INTR_VALUE Credit SEC BRIDGE GL SE_FL_INT_SOCM Debit SE_FL_INT_RCPY SE_FL_INT_SOCM Credit SEC BRIDGE GL SE_FL_INT_SOEX Credit SE_FL_INT_RAPA SE_FL_INT_SOEX Debit SEC BRIDGE GL SE_FX_INT_SOCM Debit SE_FX_INT_RCPY SE_FX_INT_SOCM Credit SEC BRIDGE GL SE_FX_INT_SOEX Credit SE_FX_INT_RAPA SE_FX_INT_SOEX Debit SEC BRIDGE GL UNACCRD_DISCNT Credit SEC DISC TBACRD UNACCRD_DISCNT Debit 32 16 ORACLE Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL UNACCRD_PREMIUM Debit SEC PREM TBACRD UNACCRD_PREMIUM Credit SEC ASSET GL WARR_INTR_VALUE_ Debit SEC BRIDGE GL WARR_INTR_VALUE_ Credit SEC BRIDGE GL ACCRUED_INT_ADJ Debit SEC INT ADJ ACCRUED_INT_ADJ Credit Given below are the sample accounting entries that will be posted if you use the alternative accounting roles for this event SSLP Sale Accounting Standard Amount Tags Standard Dr Cr Roles Alternative Indicator Alternative Premium Accrued Standard Alternative Debit SEC_PREM_TOTALACCR Deal
50. The deal price is the price at which the deal is transacted You can enter the price of the security as a price or a percentage of the price depending on the price quotation method specified for the security that is traded You can enter T or M to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million The deal price would include or exclude the purchased or sold interest depending on whether the security being dealt in is quoted flat or plus accrued For a spot deal if the deal price varies from the market price by more that the sensitivity range specified for the security you will be prompted for an override or will not be allowed to process the deal The price that you enter is taken to be in the currency of the security that is traded Yield This field is applicable only for deals that involve bonds Enter the equivalent yield of the bond for the price that you input It is important to note that no processing is done based on the yield that you enter It is only for reporting purposes sal ORACLE Viewing revised YTMs Deal YTMs are computed for a security on the following occasions Event YTM is computed Effective from When you enter the deal Deal Settlement Date When coupon rates are revised for securities with periodic Rate Effective Date rate revision When the redemption definition is changed Event Date To view details of changes i
51. These details cannot be changed here If a change is necessary you have to go back to the Deal Input screen and specify the change For the other components involved in a deal like charges etc you have to specify the account details in this screen These details include the component the currency in which it is paid the payment account and its currency the branch of your bank to which the account belongs the exchange rate in the case of the component currency being different from the account currency Depending on the component the system will also display whether the account involved in an entry has to be debited or credited e P indicates you credit Pay to the account involved e R indicates you debit Receive from the account involved 22 5 3 Capturing Details of the Deal Output A deal can be settled either in the form of an instrument a Demand Draft a Manager s Check or a Check or a Message a S W I F T TELEX or Mail message to be sent to the receiver The details regarding the instrument or message have to be specified in the Message Details screen Pea ORACLE The message details that you specify here are applicable only for S W I F T The type of S W I F T message that is generated depends on the parties involved in the deal F Settlement Details Web Page Dialog a i x Reference Number CHOCBCS001 850009 Component Account Details Message Details Parties Parties Cover Parties Other Details Clearin
52. This attribute of a security will be reported in Field 17B of the Market Side Securities Trade Confirmation message MT 518 generated for deals involving the security on ORACLE 10 3 Defining Deal Limits for a Preference Class You may not want to sell a security at a deal price that varies beyond a limit with respect to the market price In Oracle FLEXCUBE you can ensure this by defining currency wise deal price variance limits for a security preference class These limits will apply to the securities maintained under products with which you associate the class You can invoke the Currency Wise Limits Definition screen by clicking Limits button in the Security Product Preference Class screen Currency wise Limits Currency wise Limits L Currency Positive Override Negative Override Positive Exception Negative Exception ol l o E Currency When building a Security Preference Class you can define deal price limits in several currencies Deals involving securities in a currency will be governed by the limits that you define for the currency In this screen you can express deal price limits in terms of e Positive and Negative Overrides percentage e Positive and Negative Exceptions percentage Positive Override This indicates the upper override limit IIg ORACLE Negative Override This indicates the lower override limit With respect to the market price if the deal price of
53. Unhandled exception in fn_rights_exercise_ RELL BA0246 SE Error while calculating P amp L for Rights exercise 31 44 ORACLE Error Message Code BA0247 SE Unable to insert into setb_event_log BA0248 SE Unable to insert into setb_dstl_ details BA0249 SE Unable to insert into cstb_contract_event_advice BA0250 SE Failed in function fn_msg_handoff BA0251 SE Error while calculating P amp L for Rights expiry BA0252 SE Unhandled exception in fn_rights_expiry_RXLL BA0253 SE Failed in function fn_build_event_advice BA0254 SE Unhandled exception in fn_bonus_ settlements BA0255 SE ALPL is already running in the current branch BA0256 SE Unhandled exception in Event Selection and Processing and ALPL BA0257 function SE Unhandled exception in fn_SSSP_settlements BA0258 SE Unhandled exception in fn_do_matching BA0259 SE Closing sec balance not equal to settled quantity BA0260 SE Insert to setbs_interest rate failed BA0261 SE Unhandled exception in sepkss_security_rebuild fn_rebuild_interest BA0262 SE Security being traded has already expired BA0263 SE Updation of setws_repo_rrepo_blocks failed 31 45 ORACLE Error Message Code BA0264 SE Select from setws_repo_rrepo_blocks failed BA0265 SE Unhandled Exception in BA0266 sepks_repo_addon fn_cal
54. While setting up a portfolio you can indicate the default account at a safe keeping location SKL that should be used when deals involving securities lodged at the SKL are traded Click SK Location from the Portfolio Definition screen to invoke the Safe Keeping Location screen In this screen you can indicate the default account to be used for each SK location Safe Keeping Location Portfolio Id Portfolio Description Safe Keeping Location To Account Mapping E safe Keeping Location Id Safe Keeping Location Account o az laz The procedure for mapping accounts Indicate the ID of the safe keeping location at the Safe Keeping Location field Alternatively select a safe keeping location from the picklist The picklist will contain details of all valid safe keeping locations maintained in the SKL Maintenance screen Thereafter indicate the default account at the SKL account field Select an account from the picklist The picklist will contain the accounts that the holder of the portfolio maintains with the SK location To add another SK location and account combination for a portfolio click add icon and follow the procedure listed above To delete a mapping that you have made highlight the mapping and click delete icon eee ORACLE Click Exit to cancel the entries You will return to the Portfolio Definition screen 21 9Specifying Accounting Role to Head Mapping P
55. ZIP 654 420 08 Subject Advice of Securities Redemption Kind Attention Mr Charles Dalton Settlements Officer Securities Department Dear Sir Madam Please be advised of Securities Redemption with details as shown below Our Reference 000SES8981 050320 Identification of Securities being redeemed UK Treasury Bonds 7 3 4 Percent 1993 1998 Securities Safekeeping Account BP SK 45678 3890 Quantity of Securities being Redeemed 1 000 000 00 Face Amount Redemption Due Date 01 APR 1998 Redemption Terms At PAR Normal Redemption Redemption Amount 1 000 000 00 GBP Our Charges for Redemption Transaction 250 00 GBP Net Amount 999 750 00 GBP Account for Payment BP CA 45678 2468 Value Date of Payment 01 APR 1998 Other Information We have credited your account with us as per the details shown above Please quote Our Reference in all further correspondence in relation to the above redemption Thanking you 27 35 ORACLE For Midland Bank London UK 27 2 16 Securities Request for Statement Message CC 298402 05 APR 1998 Credit Commercial de Paris London 56A Tuxedo Towers Governor Avenue Paris France ZIP 348 598 02 Subject Request for Securities Statement Kind Attention Ms Paula Felleti Custody Accounts Officer Securities Safekeeping Department Dear Sir Madam We hereby request you to send us a S
56. components that you have associated to the deal leg The following details of the component are also displayed e The basis component on which the charge is levied e The currency of the basis amount e The basis amount e The charge amount and the e The currency in which the charge amount is defined You can change the charge amount that is calculated using the class applicable to the component Waiving a charge on a deal leg You also have the option to waive the component for the deal leg that you are processing If for some reason you want to waive the charge on the deal you are processing you can do so by checking against the waiver option in the application section of the screen The charge will be calculated but not applied You can waive a charge only if it is yet to be liquidated Consider as Discount If the charge component is to be considered for discount accrual on a constant yield basis Consider as Discount option will be checked You cannot modify this value In case the charge currency is not equal to the contract currency and the contract currency is equal to the settlement account currency the exchange rate as specified in the Settlements Screen will be used to convert Charge Amount to Contract Currency Charge liquidation When a charge component that is applied to a deal is liquidated the relevant accounting entries are passed The contract charge screen displays e The charge components that ha
57. for a security The essential details that you need to capture for a security include the resultant Security ID and the dispose fraction Details like the stock to cash price the issuer pay currency and the end of exercise date can be captured only if you specify that stock is to be converted to cash You can invoke the Securities Stock Dividend Defn screen by typing SEDSDVDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button To maintain details of a new declaration click on New in the Actions Menu or l from the toolbar ae ORACLE If you are calling an event record that has already been created click on Summary view The details of the existing event records will be displayed in a tabular form From the Summary screen you can choose to open an existing record by double clicking on it Securities Stock Dividend Definition Corporate Action Id External Corporate Action Id Security Id Security Issuer Reference J Announcement Date Event Date Record Date Resultant Security Id Parent Security Resultant Security Ratio Dispose Fraction Round Standard v C Stock To Cash Conversion Stock To Cash Price Option End of Exercise Date Stock To Cash Action Id Issuer Payment Currency O Confirmed Confirmed Date Exchange Rate Exchange Rate Fixing Date
58. in Oracle FLEXCUBE 9 3 The Accounting Roles and Heads Class Every product maintained would impact specific accounting heads GLs These heads are unique to a product For instance if you have maintained a head Medium Term Bonds only deals involving medium term bonds would be reflected under the head Similarly you could maintain a head for a specific portfolio All accounting entries relating to the portfolio will be passed to the head maintained for the portfolio You can identify all the heads specific to a product and indicate their roles individually when you build a Class of Accounting Roles and Heads A class in this case identifies the body of GLs unique to a product A class of accounting heads can be associated to a product that you have maintained All deals and portfolios involving the product will be reported under the heads that you specify 9 3 1 The advantage of building Accounting Roles and Heads classes While entering into a deal one or more GLs would have to be debited and one or more GLs would have to be credited For example when you sell securities into a customer portfolio you could do the following e Debit the Customer Account a ORACLE e Credit the Bridge e Credit the Tax Payable GL e Credit the Income Charge Every time you enter into a deal involving a product you do not have to specify the account heads GLs involved The heads identified for the class to which you associate the product will
59. of 1 xi F a lel 22 9 Liquidating a deal 22 9 1 Money settlement Details about liquidating a deal are explained below 22 47 When a financial amendment is done the existing contract is reversed and a new contract with the modified value is created The new contract will contain the reference number of the reversed contract against the field Reversed Contract ref no For cancellations of securities deal on existing transactions a new upload process is created in Oracle FLEXCUBE This upload process will trigger reversal of an existing deal Money settlement for security deals can be either automatic or manual While processing a deal you can indicate the manner in which the deal should be settled Check against the option automatic money settlement from the Securities Deal Main screen to indicate the automatic mode of settlement Leave it unchecked to indicate manual settlement ORACLE If you specify the automatic mode of money settlement the deal will be automatically settled on the settlement date that you specify when the beginning of day operations are run If you specify manual money settlement you will need to give specific instructions for money settlement You can liquidate a deal by choosing Liquidate from the Processing submenu of the Actions Menu on the day you want to settle a deal 22 9 2 Security settlement The settlement of securities in Oracle FLEXCUBE is automatic W
60. option to indicate that the premium on redemption premium bearing instruments in the portfolio should be accrued Example You have purchased a USD 1000 bond with a redemption value of USD 1100 You hold it for 5 years to maturity At the end of five years you are paid USD 1100 USD 100 more than what you paid for it You can choose to accrue this USD 100 over its 5 year tenor or realise it as a whole on the redemption of the bond If you specified that redemption premium should be accrued you can indicate accrual preferences like the e Accrual method e Accrual frequency e Accrual start day e Accrual start month The accrual preferences that you specify will be made applicable to all portfolio products to which the preference class is associated Accrual Method Select the method to be used to calculate the amount of premium that is due for holding the bond from the adjoining drop down list This list displays the following values e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 e 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 e 30 US 364 eee ORACLE e Actual 364 The values of accrual method maintained in this screen get defaulted in portfolio product creation for the selected class code Accrual Frequency The redemption premium can be accrued over the tenor of a security The frequency at which it has to be accrued has to be speci
61. redemption schedule e FV Original Face value of the security The factor for the final redemption date will be zero During modification of redemption schedules the system will validate whether the cumulative factor of all redemption schedules previous period factor current period factor is equal to one or not The factor for each redemption schedule cannot be greater than one If the Redemption quotation is Cashflow then the redemption price will be derived as follows De ORACLE RP CF n Cn Where e CFn Cash flow of nth redemption schedule e Cn Actual coupon cashflow for the nth coupon period e RP Redemption price of the n redemption schedule In case the Redemption Quotation is Percentage the system will allow you to define the percentage as zero for any intermediate schedule However it will validate whether the sum of all percentages is equal to 100 or not At the time of instrument definition for Factor Cashflow type of securities if the Factors Cashflows are unknown the final redemption price will be the initial face value At any point in time if the factor values cash flows for redemption date s are specified then the final redemption price will be calculated as the Face value sum of redemption price of the intermediate schedules If the total redemption price across all schedules is not equal to the initial face value for Factor Cashflow type of securities the system will display an erro
62. s Custodian Name Dresdner Bank AG Frankfurt Address DRESDEFF Deliverer s Custodian Name Deutsche Bank AB Frankfurt Address DEUTDEFF Other Information In case of any discrepancies please revert back to us immediately Please always quote Our Reference in all further correspondence with respect to above securities market side trade confirmation affirmation Thanking you For Goldman Sachs amp Company New York USA PHP 250802 02 APR 1998 27 2 2 Securities Market Side Trade Confirmation 27 8 ORACLE Pierson Heldring en Pierson 45 28 Hanover House Coopers Avenue Amsterdam Holland ZIP 5907 2502 Subject Kind Attention Securities Trade Officer Securities Department Dear Sir Madam Mr William Richards New York Securities Trade Confirmation We hereby confirm the Securities Deal Transaction that we have entered into with yourselves with details as listed below Our Reference 000SSPT980070021 Confirmation Preparation Date amp Time 02 APR 1998 10 30 20 HRS Financial Instrument Attributes Identification of Financial Instrument ISIN DE0007236002 Siemens AG 7 5 PCT Bonds Financial Instrument Currency DEM Method of Interest Computation Actual Actual Next Coupon Date 01 JUL 1998 Maturity Date 01 JAN 2001 Current Interest Rate 7 5 Percent Per Annum Next Coupon N
63. up automatically A security must be maintained under a Security Product created by the Head Office For instance if your bank has defined a Short Term Zero Coupon Bonds security product you would maintain all short term zero coupon bonds that you deal in under this product A security inherits all the attributes defined for the product under which it is maintained This enables efficient maintenance of security 19 2 1 Identifying a Security Security Reference Number In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system This number tag is used to identify the security that you are maintaining It is also used in all the accounting entries generated by transactions involving the security Thus the system generates a unique number for each security The security reference number is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that have elapsed in the year Example 31 January 1999 translates into the Julian date 99031 Similarly 05 February 1999 becomes 99036 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those elapsed in February 31 5 36 Security Id You can identify a security that you are maintaining with a
64. violate the limit set at the product level During coupon date amendment if you change the NCD next coupon date of one schedule then you should also change the PCD previous coupon date of the next schedule accordingly If you do not the system will prompt you with a warning but will not automatically update the PCD of a schedule when the NCD of the previous schedule is changed After authorization coupon dates can only be amended under the following conditions e You can amend only the NCD for the current period provided that there are no active deals after the record date e For future periods you can amend both the NCD and the PCD provided that there are no active deals in that period Any such amendment of PCD NCD will be subject to the validations as mentioned above Specifying Holiday Treatment for Coupon Payments The holiday treatment that you have specified as part of Product Preferences is inherited by the security You can change this treatment for the particular security that you are defining You can also amend it at any point of time the amended parameters will take effect for subsequent coupon events Irrespective of the holiday treatment specified by you the system will not perform any holiday adjustment if in the Product Event Accounting Entries Maintenance you select No as the Holiday Treatment parameter A more detailed explanation is available in the Products manual For details of holiday treat
65. 32 35 ORACLE Accounting Role Amount Tag Debit Credit Indicator SEC COUPON PAY Securities INTCOMP_TIAC Interest Debit Coupon Payable GL Accrued INTCOMP_RCPY Interest INTCOMP_TIAC Interest Credit Receivable Payable Accrued INTCOMP_IMEM Interest Income INTCOMP_TIAC_PY Interest Debit Memo GL Accrued Previous Year s contribution INTCOMP_ Interest Income INTCOMP_TIAC_PY Interest Credit Accrued Previous Year s contribution INTCOMP_IMEM Interest Income INTCOMP_TIAC_CY Interest Debit Memo GL Accrued Current Year s contribution INTCOMP_ Interest Income INTCOMP_TIAC_CY Interest Credit Accrued Current Year s contribution When Wipe Deal Purchase Interest is set to Sale the accounting entries pertaining to Purchase Interest are as follows Accounting Role and Amount Tag and Description Dr Cr Description Indicator SEC COUPON PAY SE Coupon INTCOMP_PUCMA Debit Payable GL Purchased Interest INTCOMP_BOT Deal Purchase INTCOMP_PUCMA Credit Interest SEC COUPON PAY SE Coupon INTCOMP_TIAC Interest Debit Payable GL Accrued Cum INTCOMP_RCPY Interest INTCOMP_TIAC Credit Receivable Payable INTCOMP_IMEM Interest Income INTCOMP_TIAC Interest Debit Memo Accrued INTCOMP_ Interest Income INTCOMP_TIAC Credit 32 36 ORACLE Advices Nil 32 4 3 26 BRVL Securities Revaluation of P
66. 34 ORACLE Security Ccy The currency attached to the security Position Ref No The reference number Portfolio Id The Portfolio Id Sk Location Id The code that identifies the safekeeping location Sk Location Account The account corresponding to the safekeeping location Current Position The position of the security as of the date Current Holding The holding of the security as of the date 34 19 Securities Contracts Overrides Report You can generate securities contracts overrides report by using the Securities Contracts Overrides Report screen To invoke the screen type SEROVDRP in the field at the top right corner of the Application tool bar and click the adjoining arrow button Securities Overrides Report Format Output ut O Print O View Spool Client Server Printer Refer the Reports User Manual for details about fields on this screen 34 19 1 Contents of Report The contents of this report are discussed under the following heads Header The Header carries the title of the report information on the branch code branch date the ID of the user who generated the report the date and time at which it was generated the page number of the report and the module for which the report is generated 34 35 ORACLE Body of the Report The following details are displayed Leg Reference No The reference number of the transacti
67. 4 1 accounting roles that are applicable for a Customer buy sell type of product List I Acct Roles for a Portfolio Type of Product Accounting Role Description SEC DISC TBACRD Security Deal Discount to be Accrued GL SEC PREM TBACRD Security Deal Premium to be Accrued GL SEC FWDEXP OFST Security Forward Deal Loss Offset GL SEC FWDINC OFST Security Forward Deal Profit Offset GL SE_FL_INT_RCPY SE_FL_INT Receivable Payable SE_FL_INT_RAPA SE_FL_INT Recd in Adv Paid in Adv SEC ASSET GL Securities Portfolio Asset GL SEC BRIDGE GL Securities Bridge GL Settlement SEC LIABILTY GL Securities Portfolio Liability GL SE_FX_INT_IC SE_FX_INT Income Cum SE_FX_INT_IX SE_FX_INT Income Ex 32 8 ORACLE Accounting Role Description SE_FX_INT_Aul SE_FX_INT Previous Period Adj Inc SE_FX_INT_RCPY SE_FX_INT Receivable Payable SE_FX_INT_RAPA SE_FX_INT Recd in Adv Paid in Adv SEC RLZD LOSS Security Trading Realized Loss GL SEC RLZD PROFIT Security Trading Realized Profit GL SEC RDPREM RECV Security Redemption Premium Receivable SEC RDPREM ERND Security Redemption Premium Earned GL MTM_ASS Security Positions MTM Reval Asset MTM_LBY Security Positions MTM Reval Liability MTM_EXP Security Positions MTM Reval Expense MTM_INC Security Positions MTM Reval Income SE
68. Account are null PO0065 SE Customer Account needs to be reselected Proceed PO0066 SE Customer Branch and Customer Account need to be reselected PO0067 Proceed SE Closure not allowed as live contracts are present PO0068 SE Failed to open a new record PO0069 SE Failed to copy the record PO0070 SE Failed to delete the record PO0071 SE Failed to close the record PO0072 SE Failed to unlock the record PO0073 SE Failed to reopen the record PO0074 SE Failed to authorize the record PO0075 SE Failed to copy the Product Details PO0076 SE Failed to default from the Template PO0077 SE Record cannot be Modified after the Event Date 31 75 ORACLE Error Code Message POQ0078 SE POQ0079 Record cannot be Closed after the Event Date SE PO0080 Record cannot be Reopened after the Event Date SE PO0081 Failed to Save the Record 31 7 Error Codes and Messages for Others Error Code Message SE BTCH Failed in building array for a function 002 SE BTCH Failed in population of branch batch queue 003 SE BTCH Failed in batch processing for a day 004 SE BTCH Failed in processing task 005 SE BTCH Failed in unmarking end of transaction input 006 SE CFLP Cannot process Coupon Flipping 001 SE CFLP Cannot process Position 002 SE CFLP Cannot populate Securities Movements 003 SE CPOP Failed
69. Bonds e Equities e Rights e Warrants e Treasury Bills You can have different limit tracking methods for the same security type depending on the type of portfolio to which it belongs 11 3 3 Forward Profit and Loss Accrual Forward PL Accrual The forward profit or loss on a deal can be accrued over a period starting from the deal spot date to the settlement date of the deal As a preference for a portfolio you can indicate whether the forward profit or loss should be accrued Your profit or loss in a deal is determined thus e For a Buy deal if strike price is greater than spot price then it is a loss e For a Buy deal if strike price is less than spot price then it is a profit e Fora Sell deal if strike price is greater than spot price then it is a profit e For a Sell deal if strike price is less than spot price then it is a loss Check against the Forward profit and loss accrual option to indicate that the forward profit or loss should be accrued Example You strike a forward deal on 1 January to buy 100 units of a security The settlement date of the deal is 10 January Your deal strike rate is USD 100 and the market price of the security stands at USD 120 Market Value 120 Strike Rate 100 x No of units 100 USD 2000 Profit You have made a profit of USD 2000 You can choose to accrue the USD 2000 over the 10 days or realise it as a profit on the settlement date of the deal If you indicate that accrual of pr
70. Count Accrual Numerator Method Denominator Method Denominator Basis 366 Basis Swift Indicator Input By Date Time Allow Asynchronous Revision v v Adhere To Month End v v v Include To Date v Authorized By Date Time Revision MarketType sw Market Identifier Code Category Periodic Coupon Frequency Week Day Rate Denomination Basis Liquidation Numerator Method Denominator Method x Denominator Basis 366 Basis v Include To Date v C Zero Interest During Ex Modification Period Authorized Number Open Periodic Revision The details maintained here are specific to the interest calculation methods applied during accruals and liquidation It is not necessary to specify the same day count method for calculating interest on accruals as well as on liquidation The system allows you to specify two different day count methods for calculating interest one for accruals and the other for liquidation The following combinations are allowed for calculating interest Actual The Actual number of days in the period The Actual number of days in Actual that year Click on Actuals in Numerator Method field click on Actuals in Denominator Method field Actual The number of actual calendar days for which cal
71. Currency Tax Exchange Rate E Tax Component Tax Exchange Rate Issuer Currency Exchange Rate Oo laz laz You also need to specify the exchange rate between the issuer payment currency and the tax currency You can add or delete a tax component from the list of tax components maintained To add a new component click add icon and select the new component from the picklist To delete an existing tax component highlight it and click delete icon Pon ORACLE 20 9 2 Specifying Event Narrative You can maintain a free format message of the coupon event This narrative or message will be used while generating SWIFT messages Click Narrative button the Event narrative screen is displayed In this screen you can either enter a free format narrative for the coupon event or leave this screen blank If a narrative is defined it will be associated with the security of bond type for which the coupon event has been defined 20 10 Processing Interest Coupons The Coupon Initiation event CPIN is triggered only for those interest coupons with initiation date less than or equal to today and for which initiation has not yet been done After the initiation event is complete the Events table is updated The coupon collection event collects the coupon amount from the safe keeping location The Coupon Collection event CPCD is triggered depending on whether the position is short or long The Eve
72. Day Accrual Start Month while creating a Securities Portfolio that involves it These include e The asset accounting basis e The portfolio costing method 21 9 ORACLE e Whether the intrinsic value of rights and warrants needs to be booked e Accrual preferences like gt Whether withholding tax should be accrued gt Whether the discount for T Bills should be accrued gt Whether withholding tax for discounted T Bills should be accrued gt Whether premium or discount should be accrued gt Whether redemption premium should be accrued gt Whether interest should be accrued gt Whether forward profit or loss should be accrued gt Revaluation preferences such as the revaluation basis LOCOM basis method frequency and start date The LOCOM basis is defaulted from the Portfolio Product and can be changed Subsequently amendment of the LOCOM basis specified in the Portfolio Definition screen is not possible For details about the LOCOM basis refer the chapter Maintaining a Portfolio Preference Class of this User Manual Further you can specify the following preferences for the components that can be accrued gt The accrual method gt Accrual frequency gt Start days gt Start month Premium Discount Specify the following details Accrual Method The accrual method refers to the method to be used to calculate the amount of premium or discount to be accrued You can select one of the followi
73. INStruction cccsccescesecsseeseenseeseeeseeeceesecesecusecuaecaecaaecseeesaeeseesseeaaeeseeeaees 27 16 27 2 6 Securities Deliver Against Payment Instruction c cccccsccesesseeseenseseensesecuseeeeeseeseesecaeeecneeeeenseenseas 27 18 27 2 7 Securities Receipt Free Confirmation ccccsccesccssecsseesseesseesseeceeeecesecesecesecaecaecaeeeseeeasesseesaeeeeeeaees 27 21 27 2 8 Securities Receipt Against Payment Confirmation cccccccceseescetecesecese cess cnseeaseeseeesseeseeeseeeeensees 27 22 27 2 9 Securities Deliver Free Confirmation ccesccesccssecsseesseeseesseeeseesecesecesecusecaecaaecseeessesaecaaeesseeaseenees 27 25 27 2 10 Securities Delivery Against Payment Confirmation c cccccscesceeeseeseeseeeeeeeecesecnsecneeceeeaeeeaeees 27 27 27 2 11 Securities Notice of Rights Message ccsccsccessceseceseceseceseeaceeseeeeceeeseeeeeeeeaecnaeceaecnaeeeeeaeeeaeeas 27 29 27 252 Securities Notice of Event Message ccccccssesscesscesecesecesececeesceeseeeseeeeceseceeeeeaeesaeceaecaeeaeseaesaeeas 27 31 27 2143 Securities Advice of Money INCOME o ssscceceseseseeseeseessesecnsesscseeseesecscesecseeeeenseesesaeeatesesaaeeeeeaeeateas 27 32 27 2 14 Securities Advice of Income in the Form Of Securities 27 33 27 215 Securities Advice Of REdemption sccccsccscesscssesssesecssesecsceescsseessesecseesecaceeeesaeesesaecaeeeesaaeeeesasenseas 27 34 27 2 16 Securities Request for Statement Message s ccsccscccscesece
74. Issuer taxes for securities associated with the product will be calculated by default according to the issuer tax components built into the scheme 3 4 6 Handling brokerage In Oracle FLEXCUBE you can maintain a list of all the brokers with whom you deal with in the Broker Master Maintenance table In this table for each broker you can specify brokerage details such as the broker s name and address a unique code for the broker the brokerage payable currency whether you would like to book brokerage in advance or in arrears etc A centralized brokerage set up means that you do not have to specify brokerage details every time you enter into a deal When processing a security deal the details maintained for the specified broker are automatically picked up You can change the default brokerage details 3 4 7 Tracking Limits The liability details for a customer customer account and product are maintained in the Central Liability module which is at the core of Oracle FLEXCUBE Other modules such as the Securities module access these details online This allows you to constantly track you exposure to e A counterparty in a securities deal e An Issuer Oracle FLEXCUBE also provides you the facility to track your exposure in an SK Location For details relating to limits tracking and monitoring please refer the Central Liability user manual 7 ORACLE 3 4 8 Settling Deals For a customer you can maintain settlement preferenc
75. JUN 2003 Buy 1 000 000 00 SECO001 18 JUN 2003 Buy 2 000 000 00 SECO001 19 JUN 2003 Buy 3 000 000 00 SECO001 19 JUN 2003 Sell 1 500 000 00 A ORACLE The Value Dated Balances will be as follows Portfolio ID Security ID Currency DSTL Date Position as of Value date PORTO1 SECO001 PLN 16 JUN 2003 8 000 000 00 PORTO1 SEC001 PLN 18 JUN 2003 11 000 000 00 PORTO1 SECO001 PLN 19 JUN 2003 12 500 000 00 Assume that one more Sell contract is processed as of 16 Jun 2003 with Nominal value as 9 000 000 00 This deal will go through if the check is on the book dated balances because the book dated balance is 12 500 000 00 But the value dated Balance as of today is 8 000 000 00 So portfolio will be short if this deal is processed 11 3Specifying Detailed Preferences Click on the tab tilted Details from the Securities Portfolio product to define further preferences for the portfolio Securities Portfolio Product Preference Class Maintenance Class Code Module SP Securities Portfolio Module Main Details Premium Discount Accrual V Accrue Premium v Accrue Discount Accrual Method Actual360 Accrual Frequency Monthly v Accrual Start Day Accrual Start Month Accrue Premium Method Accrue Discount Method Straight Line j v Straight Line v Redemption Premium Accrual v Accrue Redemption Premium
76. NEEY YING TAXON ADBA cocc i0sschsessvuevonsveseneeapouerstes coutvkeesdsvetedehursunssieederessebnapsievsnsvecnsbnesmoutebeoeavnevest 22 42 22 6 1 Features of the Tax Details SCre 1 s cesccsscessesseesseeseeeseesecesecesecuaeceseesecuaecuaecsaecaeeesaseseesseeeseeeeeeaees 22 42 22 7 PROCESSING BROKERAGE ON A DEAL ccssceccesescessecssecessoncavsscbssvesotoncencesnonasiecosceagevsosessesuaceecetsonestesvaees 22 44 22 7 1 Features of the Contract Brokerage Details SCr CM ccccccscessseescesecese cess cnsecaseeseeeasenseesseeneeeaees 22 44 22 8 UPLOADING THE DEALS FOR AMENDMENT ccccsscscsescsseesesecssesscsesescseecesssessessscseseseseesesssessussessesenesaees 22 45 229 LIQUIDATING A DHA 535 ccc cies sioasiecccdctezasiacucesceaesaducadcencuaddeandecaceeess saanouceasdcsesssaceeeneeadeuuscuesnucescesnnescbacteees 22 47 229 1 Money Settlement srini E R Sede ueea ceseegas 22 47 22 92 Pecuritysetlement si anea a n E E a E R RE EN 22 48 22 10 REASSIGNING A DEAL TO ANOTHER USER cccscscsescsseeesesecssesscsesesessesesesecseesscsesesesseseseseseuesessesenesaees 22 48 23 PROCESSING A BLOCK SECURITIES DEAL eesesessecererseseseeecoesoroesesecoerosoeseseseeceseseseecesosorseseeeeoseose 23 1 23 1 INTRODUCTION vscsseciecesecccasvevecsecedesscode suns ieevsestendysnestesnes svessusecvacenessesnevsevscusnesesevevveustescescs sbevsudacsbesetdavereeveds 23 1 23 1 1 Features of a Block Deal in Oracle FLEX CUBE 0 c cecccescesseess
77. Netting If two or more accounting entries for a particular event are to be passed to the same account and on the same Value Date these entries can be netted while posting to the account You can specify whether such entries should be netted in this field by choosing either the Yes or the No indicator ou ORACLE Clicking the add icon confirms the association of an accounting role with the corresponding Amount Tag Transaction Code MIS Head and the Debit Credit and Netting indicators If you would like to disassociate a role from the other details click the delete icon 9 4 2 Specifying the Advices to be Generated After defining the accounting entries that should be passed at an Event you can define the advices that you would like to print for the event Click Advices to define the advices that you would like to print at an event a gt Class Code Class Description Event Code Event Description Event Advice Class B Aice name Desaripton GeneratonTime Suppress Pnoy o a Authorize v No High vl Indicating the Advices to be Generated You can define the advices that you would like to generate for an event in the Advice Name column Indicating when the Advice is to be Generated You now need to indicate when the advice that you have chosen needs to be generated To do this you have to choose either the Input or the Authorize option from the Generation
78. Portfolio To Portfolio Deals Report Format Output Output Print O View Spool Print At Client Server Printer Printer Refer the Reports User Manual for details about fields on this screen 34 14 1 Contents of Report The contents of the report are discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the report The report contains information on Deal Reference This is the reference number of the deal Version This is the latest version number Security Code This is the security code 34 26 ORACLE Security Description This is the description of Security Identification Security Currency This is the currency of the security Deal Quantity This indicates the quantity of security that is traded Deal Value This is the total value of the deal Trade Date This is the date on which the deal is transacted Transaction Date This is the date on which the deal was first processed in the system Settlement Date This is the date on which the various components associated with the deal get settled Adjusted Deal Price This is the price of interest bearing instruments exclusive of the interest component Interest Amount This is the amount of accrued interest to be paid or received
79. Premium Alternative Alternative Credit SEC_PREM_ TOTALACCR Sec Bridge S Alternative UNACCRD_PREMIUM Standard Debit Deal Premium Alternative UNACCRD_PREMIUM Standard Credit Premium Expense Standard Alternative Debit SEC_PREM_TOTALACCR Accrual of Prem Alternative SEC_PREM_TOTALACCR Alternative Credit Exp Memo Deal Discount Alternative SEC_DISC_TOTALACCR Alternative Debit Discount Accrued Standard SEC_DISC_TOTALACCR Alternative Credit Deal Discount Alternative UNACCRD_DISCNT Standard Debit Sec Bridge S Alternative UNACCRD_DISCNT Standard Credit Accrual of Disct Inc Alternative SEC _DISC_TOTALACCR Alternative Debit Memo Discount Income Standard SEC_DISC_TOTALACCR Alternative Credit 32 17 ORACLE Sec Bridge S Alternative INTCOMP_PUCMA Alternative Debit SEC BRIDGE SEL This amount tag represents the value of the Bought Interest if any at the time of Purchase for the sold securities Deal Interest Alternative INTCOMP_PUCMA Alternative Credit Bought INTCOMP_BOT Sec Bridge S Alternative INTCOMP_TIAC Alternative Debit SEC BRIDGE SEL This amount tag represents the interest accrual Accrual of Int Rec Standard INTCOMP_TIAC Alternative Credit RCPY INTCOMP_RCPY Accrual of Int Inc Alternative INTCOMP_TIAC Alternative Debit Memo INTCOMP_IMEM Interest Income Standard INTCOMP_TIAC Alternative Credit INTCOMP_1
80. SE RVL1 Failed in population of revaluation details 006 SE RVL1 Failed in population of revaluation details for a position 007 SE RVL1 Failed in passing portfolio level accounting entries 008 SE RVL1 Failed in computing amount tags for revaluation 009 SE RVL1 Failed in populating portfolio level entries 010 SE RVL1 Failed in building account entry list during revaluation 011 SE RVL1 Failed in processing amount tags during revaluation 012 SE RVL1 Failed in population of portfolio revaluation details 013 SE RVL1 Failed in reversal of revaluation for a portfolio 014 SE RVL1 Failed in logging exception during revaluation 015 SE RVL1 Unauthorized unsettled legs exist 051 31 85 ORACLE Error Code Message SE SBRN Failed in populating security details for other branches 001 SE SBRN Failed to delete security details for other branches 002 SE SBRN Failed to authorize security details for other branches 003 SE SKEV Failed to register the event for the position 001 SE SO0008 Duplicate records during coupon population SE SO0013 Failed to get security details during schedule population SE SO00014 Interest revision sequence number does not exist SE SO0015 Failed to delete security details SE SO00610 SE SPOP Failed to get SK settlement account 024 SE SPOP Issuer payment currency is not the same as the SK account 026 currency
81. SE SPOP Failed to get Portfolio Settlement currency 027 SE SPRC Failed in stock to cash processing for branches 001 SE SPRC Failed in stock to cash event processing 002 SE SPRC Failed to get subsystems flags in stock to cash processing 003 SE SPRC Failed in processing stock to cash amount due 004 SE SPRC Failed in processing stock to cash tax amount due 005 SE SPRC Failed in processing charge for stock to cash conversion 006 SE SPRC Failed in processing transaction tax during stock to cash 007 conversion 31 86 ORACLE Error Code Message SE SPRC Failed in processing settlements during stock to cash 008 processing SE SSRV 001 SE SUTL Failed to get security face value period 001 SE SUTL Failed to get coupon period 002 SE SUTL Failed to get the security face value for the date 051 SE SUTL Face value for security not maintained correctly 052 SE SUTL Face value for security not maintained correctly 053 SE SUTL Failed to get the coupon period for this date 054 SE SUTL Coupon period records not correct 055 SE ACCT Failed to pass leg accounting entry 001 SE ACCT Failed to pass position entry 002 SE ACCT Failed to pass portfolio level entry 003 SE ACCT Failed to lookup product accounting entries 004 SE ACCT Failed to lookup position accounting entries 005 SE ACCT Failed to fetch accounting head 006 SE
82. SE_FX_INT_PUCM Credit SE_FX_INT_RCPY SE_FX_INT_PUCM Debit SEC BRIDGE GL SE_FX_INT_PUEX Debit 32 24 ORACLE Accounting Role Amount Tag Dr Cr Indicator SE_FX_INT_RAPA SE_FX_INT_PUEX Credit SEC BRIDGE GL UNACCRD_DISCNT Debit SEC LIABILTY GL UNACCRD_DISCNT Credit SEC BRIDGE GL UNACCRD_PREMIUM Credit SEC LIABILTY GL UNACCRD_PREMIUM Debit SEC BRIDGE GL WARR_INTR_VALUE_ Debit SEC LIABILTY GL WARR_INTR_VALUE Credit Advices No advices allowed for this event 32 4 3 4 SSSP Security Sale from Short Position Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Credit SEC LIABILTY GL DEAL_DISCNT_AMT Debit SEC BRIDGE GL DEAL_NOMINALAMT Debit SEC LIABILTY GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_PREMIUMAMT Debit SEC LIABILTY GL DEAL_PREMIUMAMT Credit SEC BRIDGE GL FWD_DEAL_LOSS Credit SEC LIABILTY GL FWD_DEAL_LOSS Debit SEC BRIDGE GL FWD_DEAL_PROFIT Debit SEC LIABILTY GL FWD_DEAL_ PROFIT Credit SEC BRIDGE GL SE_FL_INT_SOCM Debit SE_FL_INT_RCPY SE_FL_INT_SOCM Credit SEC BRIDGE GL SE_FL_INT_SOEX Credit SE_FL_INT_RAPA SE_FL_INT_SOEX Debit 32 25 ORACLE Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL SE_FX_INT_SOCM Debit SE_FX_INT_RCPY SE_FX_INT_SOCM Credit SEC BRIDGE GL SE_FX_INT_SOEX Credit SE_FX_INT_RAPA SE_FX_INT_SOEX Debit
83. Securities Deal details Main screen 22 2 4 4 Trading in securities that do not belong to a portfolio You may encounter a situation where your customer requests you to sell securities that are not held in any of the portfolios that the customer maintains with the bank When entering the details of this deal in Oracle FLEXCUBE you can indicate this situation by checking against the option Accompany Lodge By checking this option you indicate that the holding of the customer in any of the portfolios maintained with the bank should not be reduced on account of the deal Example Your customer requests you to sell 100 units of a security But these securities do not belong to any portfolio that the customer maintains with the bank eae ORACLE Another such situation is when a customer requests you to buy securities but does not want them to be held in any portfolio that the customer maintains with the bank When entering the details of such a deal check against the option Accompany Withdraw By checking this option you indicate that the holding of the customer in any of the portfolios maintained with the bank should not increase on account of the deal This situation will arise only when the bank is trading securities on behalf of a customer or while processing a deal for a walk in customer 22 2 5 Entering Additional Details of a Deal To recall in the Main details screen you have captured details regarding the deal In th
84. Start Day Statement of Transaction Required 16 3 Holding Frequency Holding Start Day Holding Start Month Rekey For Authorization Required Statement of Holdings Required Book Intrinsic Value Portfolio Id Portfolio Customer Portfolio Currency Warrants Rights ORACLE The Main Portfolio Product Preferences screen Portfolio Preferences Product Code Class Code Description Main Other Premium Discount Accrue Premium Accrue Discount Accrual Method Accrual Frequency Accrual Start Day Accrual Start Month Accrue Premium Method Accrue Discount Method Limits Tracking Redemption Premium Accrue Redemption Flag Accrual Method Accrual Frequency Accrual Start Day Accrual Start Month Specify the following details Accrual Method Product Description Bonds Equities Rights Warrants Treasury Bills Revaluation of Positions Revaluation Method Revaluation Frequency Revaluation Start Day Revaluation Start Month Revaluation Method LOCOM Revaluation Frequency Revaluation Start Day Revaluation Start Month Revaluation of Settled Positions Revaluation of Unsettled Positions Realized Revaluation Interest Accruals Interest Accruals Accrual Frequency Accrual Start Day Accrual Start Month Forward Profit amp Loss Accrual Forward ProfitLoss Accrual Accrual Method Accrual Frequency Accrual Start Day
85. Time Field You can also set the priority with which the advice should be generated To suppress an advice choose the Yes option in the Suppress column 10 Defining Security Preference Classes 10 1 Introduction Preferences are the options available for defining the attributes of a security The following are some of the preferences that you can indicate for a security we ORACLE e The Market of Issue e The tenor e If there are Call and Put options associated with the security e The type of redemption whether in quantity series or bullet e Ifyou can trade the security in fractional quantities e The lot size in which the security can be traded say multiples of 10 e Ifthe coupon frequency is periodic and if yes the actual frequency e If you would like to automatically initiate Corporate Actions for the security It is your preferences that give a security its distinctiveness You can maintain several sets or classes of security preferences Thus you can maintain a class of preferences for short term zero coupon bonds another for medium term zero coupon bonds a third for long term zero coupon bonds and so on When defining a security product of a certain type say short term zero coupon bonds you only need to associate it with the appropriate preference class defined The product will acquire by default all the attributes defined for the class associated with it You can change these default att
86. USD 100 bond maturing 20 months from the settlement date which you have purchased at a premium of USD 20 We will examine the entry that you will have to make at the input price field while entering the details of the deal Price USD 120 Premium 20 Premium USD 20 Percentage price 120 YTM 12 aoe ORACLE Using any of the above price quotation methods the price of the security amounts to USD 120 Delivery Settlement date DSTL date The delivery settlement date is the date on which settlement of the traded securities should take place Depending on the type of deal spot or forward you are processing you can indicate the security settlement date In the subsequent fields you can indicate the locations from which and to which the security should be delivered Deliver Specify instructions to the safe keeping location as to when the traded securities should be released to the buyer The options available are e Deliver against payment e Deliver free The deliver against payment option has no risk involved as securities will be handed to the buyer only on payment Choose the deliver free option to indicate that the delivery of securities is to be independent of payment As there is a risk involved in choosing the deliver free option while specifying limit details for the deal you can also indicate the undelivered credit line under which your liability to the deal should be tracked Input Price
87. You need to credit the customer account as the customer earns the KEST amount KEST_GL KEST_BSINT_AMT Dr Sec Settlement KEST_DEAL_AMT Cr KEST_GL KEST_DEAL_AMT Dr These accounting entries have to be maintained for the event MSTL Money Settlement of Securities Deal 18 Defining a Product Combination 18 1 Introduction Certain security deals that you enter can involve two legs a buy and a sell leg A product combination is an association of a buy and a sell product To recall you have already defined products that caters specifically to either a buy or sells leg of a deal The advantage of creating a product combination is that at the time of entering a deal you only need to indicate the code assigned to the product combination The attributes defined for the buy and sell products will automatically be applied to the buy and sell legs of deals You can create a product combination only after you have created buy and sell deal products 18 2 Creating a Combination Product The Securities Combination Product Maintenance screen is invoked from the Application Browser To enter the details of a new deal choose New from the Actions Menu or click l from the tool bar You can invoke the Securities Combination Product Maintenance screen by typing SEDCOMBEP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you a
88. an allowed branch can offer a service e The customers who can avail a service A set of restrictions grouped together is referred to in Oracle FLEXCUBE as a Restriction Class You can maintain several restriction classes of branch and currency and several classes of customer restrictions To every product created you can attach these restriction classes If restricted a product can only be used by those branches and offered only in those currencies that you allow Only those customers that you allow can avail a service Example You offer a special portfolio management facility christened Safe Fast Buck Requirement e You would like to offer this facility only in select branches e You would like to offer this facility only in the local currency the GBP e You would like to offer this service only to individuals Set up You can maintain the restrictions as follows e Maintain a restriction class of branches and currencies in this case only GBP that you would like to allow Class_A e Maintain a restriction class of customer categories that you would like to allow Class_B You can associate these classes Class_A and Class_B with the product Safe Fast Buck Result e Only those branches that you have allowed can offer Safe Fast Buck e Allowed branches can offer Safe Fast Buck only in GBP e Only Individuals can avail Safe Fast Buck i ORACLE 8 1 1 The Advantage of Defining Restrictions as Classes By maintaining classes
89. an intermediate revision date click add icon Enter the intermediary Revision Date in the Base Start Date field and choose the Discrete option Exempting interest for the ex period For Purchase Deals and Sell Deals booked in the Ex Period you can specify whether you want to calculate the interest If you check this box the system will not apply interest for such deals In addition the system accrues the holdings as of the ex date and will not pass any interest related accounting entries related to the deals booked in the Ex period In case you do not opt for zero interest facility the system accrues the actual holdings during the accrual period including the buy sell deals booked in the Ex period The system defaults the value maintained in the Market Definition screen You can choose to change this value if required However you will not be allowed to change this value if the security is already authorized 19 2 15 Opting for Automatic Initiation of Corporate Actions Check against the option Auto Initiation of Corporate Action to indicate that corporate actions for a security should be automatically initiated If you choose this option corporate actions for a security will be initiated automatically on the due dates specified as part of the corporate actions for a security If you do not choose this option you will have to manually initiate all corporate actions required for the security 19 2 16 Indicating a Revaluation Price
90. and credit your Bond asset account for USD 1000 Dr Warrant asset USD 1000 Cr Bond asset account USD 1000 Do not include intrinsic value If you indicate that the intrinsic value of the bond should not be included then the above entries will not be booked and consequently there will be no change in the holding cost of the bond or warrant asset 11 2 7 Rekey for Authorization Authorisation is a way of checking the entries made by a user All operations on a portfolio except placing it on hold should be authorised before the end of day operation is begun When a portfolio is invoked for authorisation as a cross checking mechanism to ensure that you are calling the right portfolio you can specify that the values of certain fields should be entered before the other details are displayed The complete details of the portfolio will be displayed only after the values to these fields are entered The fields for which the values have to be given are called the re key fields re ORACLE 11 2 8 Rekey Fields You can specify any or all of the following as re key fields e Portfolio ID e Portfolio customer e Portfolio currency If no re key fields have been defined the details of the portfolio will be displayed immediately when the authoriser calls the portfolio for authorisation The re key option also serves as a means of ensuring the accuracy of inputs Example At your bank Mr Trevor Atkins defines a customer portfolio in t
91. and Charge Classes A class is a specific type of Interest or Charge component A quarterly coupon paid on the current face value is an example of an interest component A charge levied on every extra Statement of Holdings provided is an example of a charge component When building a class you can identify e The Charge Rule in case of a charge class e The event at which you would like to associate the component to a security e The application event for a charge class e The liquidation event for a charge class e The basis amount on which the coupon is paid Typically this is on the current face value of a security for an interest class e The rate type for an interest class e The default rate code for an interest class e The default tenor for an interest class These details default to the products with which you associate the class For instance a security maintained under a product acquires the interest components associated with the product By building classes and associating them to products you remarkably save time and effort Building Tax Classes With the Securities module of Oracle FLEXCUBE you can process two kinds of tax e Issuer tax charged on the coupon or cash dividend paid by the issuer e Transaction tax local taxes for example Issuer tax for a security is calculated on the basis of the Issuer Tax Scheme associated with the product that the security involves Transaction tax for a secur
92. and authorization End of Day Operators Processing during End of Day beginning of day Financial Controller Product Generation of queries reports Managers 1 3 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 Securities Domain gives an overview of the securities domain Chapter 3 Securities an overview explains the snapshot of the features and functionality offered by the module Chapter 4 General Maintenance deals with setting up and maintaining basic information before the Securities module becomes operational Chapter 5 Maintaining Price Details deals with updating the current market price of various securities maintained in the system Chapter 6 Maintaining Market Price Codes deals with maintaining codes for the market 1 ORACLE price of securities including multiple price codes on account of trading in different markets Chapter 7 Maintaining Safe Keeping Locations deals with defining Safe Keeping locations and mainitaining Safe Keeping accounts for trading securities Chapter 8 Bank and Branch parameters details the parameters needed to be defined and maintained for your bank with regard to this module The section on branch parameters details the rules governing
93. and clicking the adjoining arrow button Rate Type Definition Rate Type Rate Type Description Input By Authorized By Modification Authorized exit Date Time Date Time Number Open Here you can capture the following details Rate Type Specify a unique code to identify the rate type you wish to maintain The code cannot exceed 10 characters Description Enter a brief description for the rate type en ORACLE 4 4 1 4 Defining Floating Rates You can maintain floating rates using the Floating Rate Maintenance screen You can invoke this screen by typing CFDFLRAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Floating Rate Maintenance Rate Code Tenor Code Rate Code Description Tenor Code Description Rate Source Currency Code Rate Source Description Currency Code Description Effective Date Rate Details Rate Type Rate Type Description Interest Rate old Input By Authorized By Modification Authorized Date Time Date Time Number Open Here you can capture the following details Rate Code Select the Appropriate Rate Code from the List of Values Available Rate Source Select the Appropriate Rate Source from the List of Values Available Tenor Code Select the Tenor Code created as part of Rate Code Maintenance from the List of Values Available
94. are selected The Events table is updated once the event is complete After DVIN event the cash and stock dividends with collection date less than or equal to today will be picked up Thus the Dividend Collection for long position event DVCD is triggered The collection event collects the stock cash amount and the cash in lieu of stock for those securities with the stock to cash option on from the SK location Once the collection event is done the Events table is updated The Dividend Disbursement for long position DVLQ picks up those events with disbursement date less than or equal to today When the disbursement is through Events table is updated 20 15 Maintaining Bonus to Cash Conversion Details When you specify that stock is to be converted to cash in the Stock Dividend definition screen details of that event will be picked up and stored as a Bonus to Cash conversion record You are only allowed to maintain some additional stock to cash conversion details such as the bonus to be encashed the total bonus encashed the residue bonus due This is maintained so on in the Bonus to Cash conversion screen Invoke this screen by clicking on Bonus to Cash and then on the Detail option under Securities CA Maintenance This is invoked from the Application Browser To view the details of a previously created record go to the Summary View screen The details of existing records are displayed ina tabular form Highlight the record you want t
95. arrow button Corporate Action Id External Corporate Action Id Right Or Warrant Rights Security Issuer Reference Warrant Resultant Security Id Parent Security Id Intermediate Security Id Intermediate Parent Security Intermediate Security Ratio Fraction Round Standard w Resultant Intermediate Security Resultant Security Ratio Fraction Round Standard bd Announcement Date A Record Date Event Date Exercise Start Date Exercise End Date E Intrinsic Value Exercise Price Minimum Exercise Quantity C Confirmed Confirmed Date Input By Authorized By Modification Authorized Exit Date Time Date Time Number Open If you are defining details of a new right or warrant choose New from the Actions Menu or click on l from the tool bar The Rights and Warrants Corporate Action maintenance detailed screen will be displayed without any details If you are calling a record that has already been created click on Summary view The details of existing records will be displayed in a tabular form Highlight the record you wish to view and double click on it You can specify whether you are maintaining details for Rights or Warrants by clicking on the appropriate button as ORACLE 20 2 1 Indicating Rights Ratio and Rounding Fractions
96. at the position level rather than at individual deal level However if P1 were of type FIFO it would be easy to determine that the 12 units that are sold comprise of 10 units from D1 and 2 from D2 Therefore once the sell deal D3 is settled interest accrual will be stopped for D1 as all the 10 units are sold For D2 interest accrual will happen for the remaining units i e 15 2 13 ae ORACLE Revaluation Though interest accrual occurs at deal level the revaluation REVL entries will continue to be posted at the position level The revaluation process will compare the current book value cost of assets in your books with the book value at the market place The price quote at the market place can be e Plus Accrued in which case the value will be devoid of interest which will be subsequently accrued e Flat Value where the interest is built into the value In this case the system will arrive at the clean price of the asset Capitalization Capitalization or compounding of interest interest on interest will result in a new deal and the face value would be considered as the coupon amount for the previous coupon period Therefore IAGR for the new deal would be done with the new face value For Back Dated Deals In the case of back dated deals adjusted entries will be posted As the IACR will be at a deal level for a back dated buy deal a consolidated IACR entry will be posted For a back dated sell deal an adjust
97. automatically be picked up 9 3 2 Maintaining an Accounting Roles and Heads Class Classes of accounting roles and heads can be built in the Accounting Role to Head Mapping Class Maintenance screen In this screen you can e Specify a list of accounting roles e Map these roles to the appropriate account heads GLs You can invoke the Accounting Role to Head Mapping Class Maintenance screen by typing CSDRHMCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Role to Head Mapping Class Maintenance Class Code Description Module Description Role To Head Mapping ea L Map Type Accounting Role Accounting Role Description l Role Type AccountHead Accounting Hea Static v laz az Input By Authorized By Modification Authorized exit Number Date Time Date Time Open Each class that you maintain can be identified by a unique Class Code and a brief description Ideally this description facility would be used to specify the product for which you are building the class This would help you easily associate a product with the class built for it Example You would like to offer a portfolio maintenance facility to individuals a ORACLE An accounting role and head class can be built specifically for this service When building the class you can ass
98. be debited for charges if there are any e The accounts to be debited for interest that the deal involves e The method in which the deal is to be settled whether it is an instrument or a Message as in a SWIFT or TELEX message and e Details about the rout through which the money settlement should take place eee ORACLE The information that is related to the settlement method and route applicable for a transfer is referred to as Settlement Instructions 22 5 1 Capturing Settlement Instructions The Settlement Instructions are captured through four different screens Click Settlements button on the Deal Input screen to invoke the Settlement Instructions screen Through the four screens you can capture the following information e Account details details about the accounts involved in the deal that have to be either debited or credited in your branch e Message details e Party details details about the various parties involved in the deal Fund Asset Management The settlements processing is enabled only if Allow Corporate Access has been checked while defining branch parameters in the Branch Parameters Detail View screen If Allow Corporate Access is checked for a fund branch and the fund is Portfolio type then during settlement processing the settlement account is chosen based on the settlement instructions maintained for the counterparty If Allow Corporate Access is not checked for a fun
99. be greater than or equal to Expiry Date of Resultant security SE MA0140 Value for field Resultant Security Id is mandatory SE MA0141 Non Zero Value for field Resultant Ratio is mandatory SE MA0142 Announcement Date should be less than exercise end date when stock cash option is YES 31 5 ORACLE Error Code Message SE MA0143 End Trading Date cannot be NULL SE MA0144 Call Indicator cannot be NULL SE MA0145 Redemption Type cannot be NULL SE MA0146 For Quantity Redemption dispose fraction cannot be NULL SE MA0147 Dispose Fraction should be NULL for Bullet or Series Redemption SE MA0148 For Quantity Redemption percentage cannot be NULL SE MA0149 Redemption Price cannot be NULL SE MA0150 Issuer Payment CCY cannot be NULL SE MA0151 Announcement date should not be greater than end trading date SE MA0152 End Trading Date cannot be greater than event date SE MA0153 Restart trading date cannot be less than event date SE MA0154 End Trading Date should not be greater than Record Date SE MA0155 For fractional units not allowed dispose fraction cannot be of Retain type SE MA0156 Security Redemption has to authorized atleast once for unlocking SE MA0157 Record already processed cannot be unlocked SE MA0158 Delete option disallowed for system generated Redemption Event SE MA0159 Copy option disallowed for system generated
100. cannot be NULL SE MA0110 Resultant Security Id cannot be NULL 31 4 ORACLE Error Code Message SE MA0111 Resultant Ratio cannot be NULL SE MA0112 Stock To Cash Price cannot be NULL when stock to cash option is YES SE MA0113 Exercise Date cannot be NULL when stock to cash option is YES SE MA0114 Record Date for the event has elapsed Record cannot be reopened SE MA0115 Event Date should br greater than Exercise end date when stock to cash option is YES SE MA0116 For Fixed Rate type Revision Rate has to be entered SE MA0117 Announcement Date has to be less than Event Date SE MA0118 End of Trading Date is mandatory SE MA0119 End of Trading Date has to be less than Event Date SE MA0120 Announcement Date cannot be null SE MA0121 Mandatory fields are missing SE MA0131 Cannot Retain Fractional Units not allowed for this security SE MA0132 Value for field Intmdt Security Id is mandatory SE MA0133 Non Zero Value for field Rights Ratio is mandatory SE MA0134 Value for field Exercise Start Date is mandatory SE MA0135 Value for field Exercise Price is mandatory SE MA0136 Value for field Exercise End Date is mandatory SE MA0137 Exercise Start Date cannot be less than Event Date SE MA0138 Exercise End Date cannot be greater than or equal to Expiry Date of intermediate security SE MA0139 Exercise End Date cannot
101. class that you specified will become applicable to all securities in the portfolio Level three You have either accepted the default role to head mapping from the product or have associated a new role to head mapping class for the portfolio However for a specific security product you want to use a different role to head mapping class Indicate the role to head mapping that is applicable to the portfolio and specify a Role to Head Mapping Class that is to be applied to specific securities products Level four Besides the Accounting Role To Head Mapping class defined for the portfolio you can also define an accounting role to head mapping class for a particular security within a security product eR ORACLE 21 10 Maintaining Security Revaluation Prices for a Portfolio You can choose to maintain different price codes for each security within the portfolio The prices associated with these price codes will be used to revalue the portfolio Thus for the same security you could specify different revaluation price codes in different portfolios To maintain price codes for each security within the portfolio click SP Price button in the Securities Portfolio Definition screen Security Portfolio Price Portfolio Id Portfolio Description el Security Id To Price Mapping l CETME ol Jaz az In this screen you can maintain set of securities and associate appropriate price codes with eac
102. could create a combination for a bank buy and a customer sell After this indicate the sell product that constitutes the combination Indicating the preferred leg When creating a product combination indicate the Preferred Leg of the combination under the preferred leg option The attributes defined for the preferred leg will be inherited by all deals associated with the product combination Indicating that a product combination can cater to rights and warrants exercise You can create a product combination to cater to the exercise of rights or warrants When you choose to exercise rights that arise out of your holding you should make a combination product with the rights exercise option applicable to the deal we ORACLE If you select the rights exercise option you should also indicate the counter product that should be used when rights are exercised A counter product is a product combination with a buy and sell leg that will be applicable when rights are exercised You can select a counter product from the picklist available In Oracle FLEXCUBE the exercise of rights involves four steps 6 The selling of rights 7 The buying of rights 8 The buying of the resultant securities 9 The selling of resultant securities The buy leg of the combination product will cater to the buying of resultant securities and the sell leg to the selling of the resultant securities by the SK location The sell leg of the counter product cat
103. date After the collection the Events table is updated to indicate that the collection is complete for the event After WELC the Warrants Exercise Disbursement for long positions WELL is triggered Those events with the disbursement date less than or equal to today will be picked up for liquidation Once the disbursement is complete the Events table is updated to indicate that liquidation is complete for the event 20 5 Maintaining Rights and Warrants Expiry Details The Rights and Warrants Expiry definition screen allows the capture of some additional details of an expiry event for a security of rights warrants type You can invoke the Rights Warrants Expiry Event screen by typing SEDEXPDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button A ORACLE If you are calling a record that has already been created click on Summary view The details of existing records will be displayed in a tabular form To open a record double click on it Rights Warrants Expiry Event Corporate Action Id Security Id Security Id Description Event Date External Corporate Action Id Security Issuer Reference Confirmed End Of Trading Date Confirmed Date Narrative Fields Input By Authorized By Modification Authorized exit Date Time Date Time Number Open You can amend the details of an existing rights warrants type
104. deal The Interest Rate Type This defaults to the value Special The other attributes of the loan MM contract are determined by the product under which it originates After authorization of the securities deal the loan MM contract and the securities contract follows their respective life cycles Pere ORACLE The Reference Number of the Loan MM contract created due to the processing of a BA deal is displayed in the Securities Deal Input screen You can click V icon next to the display field to call up the Loan MM contract screen corresponding to this Reference Number Setting up a BA deal The steps involved in setting up a BA deal are listed below Refer to the other relevant chapters in this User Manual for details of relevant data inputs e Define a security product with the Banker s Acceptance option enabled and with the product type as Zero Coupon Bond e Define a security under the above product Keep the Banker s Acceptance option enabled and quantity quotation as Nominal e Define an SK Location with the Banker s Acceptance option enabled e Specify a GL as the settlement destination for the above SK location customer e Define a portfolio product of type Issuer with the Banker s Acceptance option enabled e Define a bank portfolio Map this portfolio to the same SK location as mentioned above e Define a portfolio under the above portfolio product and keep the Banker s Acceptan
105. deal Accounting Entries Nil Advices No advices allowed for this product 32 4 4 3 CANC Cancellation of securities deal Accounting Entries Nil Advices No advices allowed for this product 32 4 4 4 CCON Counterparty confirmation Accounting Entries No accounting entries allowed for this event Advices Nil 32 4 4 5 DACF Deliver Versus Payment Confirmation Accounting Entries No accounting entries allowed for this event Advices Nil 32 4 4 6 DFCF Deliver Free Confirmation Accounting Entries No accounting entries allowed for this event 32 40 ORACLE Advices Nil 32 4 4 7 DSTL Settlement of Securities Deal Accounting Entries Nil Advices No advices allowed for this event 32 4 4 8 EXTN Extension of Deal Settlement Date Accounting Entries Nil Advices No advices allowed for this event 32 4 4 9 MSTL Money Settlement of Securities Deal Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT_ Debit SEC SETTLEMENT DEAL_DISCNT_AMT Credit SEC BRIDGE GL DEAL_NOMINALAMT Credit SEC SETTLEMENT DEAL_NOMINALAMT Debit SEC BRIDGE GL DEAL_PREMIUMAMT Credit SEC SETTLEMENT DEAL_PREMIUMAMT Debit SEC BRIDGE GL FWD_DEAL_LOSS Credit SEC SETTLEMENT FWD_DEAL_LOSS Debit SEC BRIDGE GL FWD_DEAL_PROFIT Debit SEC SETTLEMENT FWD_DEAL_PROFIT Credit SEC BRIDGE GL INT_GS_PUCM Credit SEC SETTLEMENT INT
106. disbursement events are synonymous eos ORACLE 20 7 1 Redemption Processing based on Quotation Type If the redemption quotation type is Factor then the redemption amount due for the intermediate redemption schedules will be calculated as follows Redemption Amt Holdings Redemption factor of previous period Redemption factor of current period If redemption quotation type is Cashflow then the redemption amount due for the intermediate redemption schedules will be calculated as follows Redemption Amt Holdings Redemption price Initial FV For final redemption the remaining holdings are redeemed On running the YTM recalculation batch the system recalculates the price of the redemption schedules based on the current coupon rate in case of coupon rate revision Batch processing is applicable only for securities under Cashflow type of redemption quotation Recalculation is done only for the redemption schedules on or after the current coupon period 20 7 2 End of Trading Processing Securities which are due to mature end of trading days before the maturity date will be picked up for the End of Trading processing Those securities with the end of trading date less than or equal to today are picked up and the EOTR event is triggered 20 8 Processing of Amendment on Redemption Schedules You can amend future dated redemption schedules In such a scenario accruals linked to DPRP event are c
107. entries made by a user As across checking mechanism to ensure that the right deal is invoked for authorization you can specify that the values of certain fields should be entered before the other details are displayed The complete details of the deal will be displayed only after the values to these fields are entered The fields for which the values have to be given are called the re key fields sao ORACLE You can specify any or all of the following as re key fields e Trade date e Security ID e Deal price e Settlement date e Portfolio ID e Money settlement date e Nominal Units If no re key fields have been defined all details of the deal will be displayed when the authorizer calls the deal for authorisation The re key option also serves as a means of ensuring the accuracy of inputs Example At your bank Mr Trevor Atkins enters a deal to sell 100 units of a bond that belongs to the customer portfolio PFO1 The deal involves a product for which the re key field assigned is the Portfolio ID Now Mr Atkins makes a mistake and enters the Portfolio ID as PF02 When Mr Jeffrey Hunt who has authorisation rights selects the deal for authorisation and indicates the re key field of Portfolio ID as PF01 the details of the deal will not be displayed When this happens Mr Hunt can inform Mr Atkins of the mistake and it can be rectified The deal details will not be displayed if e _ The value in the field that has to be
108. exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all portfolios associated with the portfolio product The Override Limit If the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit you can save the transaction involving the portfolio by providing an override Stop Limit If the variance between the default rate and the rate input varies by a percentage greater than or equal to the Rate Stop Limit you cannot save the transaction involving the portfolio 12 ORACLE 15 2Specifying Preferences for a Product Preferences are the options that are available for defining the attributes of a product The preferences that you define for a product will be inherited by all securities that are associated with the product Click Preferences button to invoke the Preferences screen Through this screen you can define preferences for the product you are creating Security Preferences Product Code Product Description Class Code Class Description Security Type Holiday Check Required Interest Type Market of Issue Call Option Restricted Market Description Put Option Covered Renounceable Redemption Type Convertible Fractional Quantity Allowed Mi
109. exchange that are issued and guaranteed by a bank for payment within one to six months The funds raised through their sale provide manufacturers and exporters with operating capital between the time of production or exporting and the time of payment y purchasers effect the bank accepts evidence of the value of goods being either manufactured or exported For that evidence it issues its acceptance in the form of a certificate which can then be bought and sold as security 2 1 8 8 Municipal Bonds And Notes Municipal bonds or munis are debt instruments issued by state and local governments to raise capital to finance their projects and other needs Income that is interest earned on municipal securities is free from federal income tax For a resident of the issuing municipality interest from the bonds is also free from state and local income taxes 2 1 9 Rights and Warrants From time to time a company may need to raise additional capital by issuing common stock It may do so either through the usual underwriting methods or through the issuance of rights or warrants to current stockholders Rights and warrants are similar in that both permit their holders to subscribe to the new shares They differ in that rights are generally short term whereas warrants have much longer lives Also a corporation may have several warrant issues outstanding at one time but it may offer only one rights issue at a time 2 1 9 1 Rights A right
110. from the market price 2 1 12 6 Stock Splits Stock split increases the total number of shares outstanding without changing the total market value of shares The companies usually issue stock splits if the price of the stock is too high and is not affordable for the common investor Essentially stock split increases the liquidity of the stock among common investors For example in a 2 for 1 stock split a holder of 100 shares IJK Corporation common stock receives an additional 100 shares usually in book entry form although investors can request a stock certificate If the price of IJK was 144 just before the split it is 72 right after it The nominal value of the stock comes down by half in the above example after the split 2 1 12 7 Mergers and spin offs Mergers combine two or more companies to form a larger company Frequently the acquiring company pays shareholders of the acquired company in shares For example company A may purchase all of company B s shares on the basis of a pre determined ratio of shares say two shares of company A stock for every share of Company B stock outstanding If an investor own 100 shares of Company B stock after the acquisition is complete and company B no longer exists as a separate entity the investor will own 200 shares of Company A stock Spin offs are like mergers in reverse Company C decides to split off part of its operations into a separate organization Let us say the new organization
111. function Id STDCIF which represents the Customer Information Maintenance screen e The user defined fields KEST A and KEST B are associated with the function Id SEDMKRAT which represents the Security Price Definition Maintenance screen 7 2 1 2 Calculation of KEST for Customer Sell Type of Transactions For a particular customer if you have chosen the KEST type as KEST A or KEST B the system will pick up an appropriate rate and the customer s settlement account will be debited with the KEST amount incase of customer sell type of transactions e For normal securities the rate will be a pre maintained fixed percentage This is discussed in the subsequent sections of this document e In case of mutual funds the rates are announced on a day to day basis Therefore the percentage will be provided by an external application Data Provider to Oracle FLEXCUBE through an interface 7 2 1 3 Calculation of KEST for Customer Buy Type of Transactions If you have opted for KEST A or KEST B type of KEST for a customer the system will obtain an appropriate rate and credit the customer s settlement account for customer buy type of transactions e For normal securities the rate will be a pre maintained percentage e n case of mutual funds the rates are announced on a day to day basis Therefore the percentage will be provided by an external application Data Provider to Oracle FLEXCUBE through an interface a
112. in the above Securities Statement of Transactions In the absence of any queries from your side we shall assume that the above information shown is correct and is a true representation of transactions processed for the safekeeping account Please quote Our Reference in all further correspondence in relation to above Securities Statement of Transactions Thanking you For Credit Commercial de France Paris France 27 2 19 Securities Statement of Pending Transactions PB 209870 08 APR 1998 Prudential Bache Securities International Singapore 280 Symphony Towers Sunrise Avenue New York USA ZIP 4650 248 07 Subject Securities Statement of Pending Transactions Kind Attention Mr Jonathan Smith Senior Treasury Officer Portfolio Management Services Dear Sir Madam aie ORACLE In response to your request please find attached herewith the Securities Statement of Pending Transactions of your Safekeeping Account with us Our Reference 000SEBN980980 018 Safekeeping Account 35746 978 Statement as of Date 31 MAR 1998 Statement Preparation 08 APR 1998 Date Identification Reason Your Counte Quantity Settleme Settlement of Securities for Refere rparty of nt Date Amount Pending nce Securitie Status s Our Refere nce ISIN Settleme 74365 Merill 5 000 15 MAY 64 123 50 SGD SG000076866 nt Date is OOOSE Lynch 1998 1 in the 05980 Internati Poinsetta Future 75000
113. is called Company D How are shareholders in Company C compensated for this splitting off of part of their ownership interest into a new enterprise Usually through issuance of stock at sum pre set ratio Let us say an investor own 100 shares of Company C After the spin off of Company D the investor still own 100 shares of C but you also own say 50 shares of Company D ou ORACLE 3 Securities an Overview 3 1 Introduction The Securities module of Oracle FLEXCUBE is a comprehensive automated and flexible back office deal processing and security lifecycle processing system With this module you can capture details of the security deals entered at your front office process deals and track the life cycle events of holdings in your own or your customer s portfolios The module is comprehensive in its ability to process different types of securities fixed and flexible interest bonds bonds with staggered and bullet redemptions series type bonds equities warrants rights and discounted instruments and portfolios bank type customer type and issuer type It is comprehensive in its ability to capture a host of relevant information for a variety of deal types buy sell spot forward block lodge withdraw repo reverse repo safe keeping location transfers etc The Securities module automates the entire processing cycle of holdings in a portfolio asset liability profit and loss bookings accrual processing and revaluat
114. leap date for calculating the interest e Leap Year Y Indicates that the system will compute the interest based on the number of calendar days in the year men ORACLE e Leap Date D Indicates that the system will use the ACT ACT FRF Interest Method to compute the interest This field is enabled only if the Denominator Basis value is Per Annum and the Denominator Method is ACTUAL ACT ACT FRF Interest Method In ACT ACT FFF Interest Method the Numerator will be the actual number of days between two coupon dates and the denominator will be 366 under the following cases e If 29th February falls between the duration of two coupon dates i e previous coupon date and next coupon date e If the previous coupon date and the next coupon date fall in different years annual frequency next coupon dates in immediate subsequent year of previous coupon date e If the coupon schedule is not periodic and spreads across multiple years The system will apply 366 as the denominator for all the years for computing the day count even if one instance of 29 February falls in between the coupon dates Let us understand the formula applied for calculating the interest in ACT ACT FRF method with an example A security purchased for 10 million at a rate of 5 p a with the coupon date of 15 January Case 1 Assume the following parameters are maintained for a yearly coupon e Nominal 10 000 000 Interest Rate 5 per Annu
115. maintain a portfolio for the securities it issues This is an Issuer Portfolio Under each product type you can create any number of products 16 1 1 Exchange Rate Variance For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all portfolios associated with the portfolio product Override Limit If the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit you can save the transaction involving the portfolio by providing an override Stop Limit If the variance between the default rate and the rate input varies by a percentage greater than or equal to the Rate Stop Limit you cannot save the transaction involving the portfolio 16 2 Indicating Preferences for a Product Preferences are the options that are available to you for defining the attributes of a product The following are examples of portfolio preferences e The Preferred Costing Method Weighted Average Deal Matching FIFO FILO e The Revaluation details Basis LOCOM Basis Method Frequency and Start Date e The Forward Profit and Loss Accrual details e The Premium Discount Accr
116. narrative for the rights warrants event or leaving this screen blank If you choose to define a narrative it will be associated with the security of rights warrants type for which you have defined the event You can also choose to leave this field blank ei ORACLE 20 2 3 Saving Rights Warrants Record After you have defined the mandatory attributes for a right warrant click save in the toolbar or choose Save from the Actions menu to save the record A message prompting you to confirm the saving of the record is displayed The Event date is defaulted with the Issue Tearoff Date as maintained at the Instrument Definition of the respective Right Warrant Security when you save the record Click Exit button to exit the Rights Warrants Definition screen You will be returned to the Application Browser Entry to certain fields in the Rights Warrants definition screen is mandatory If you try to save the record without inputs to all mandatory fields the record will not be saved You will be prompted to give all the mandatory inputs before attempting to save it again 20 3 Processing Rights And Warrants Remember that only those securities marked with auto initiation will be picked up for processing Both with Rights as well as with Warrants the initiation collection and liquidation happen together The quantity of rights warrants due for a portfolio is determined by the opening position holdings as of the record date The rights warran
117. number of decimal places that you specify in this screen You can indicate the deal combination product code which should be picked up in case of declaration of one of the following e Rights gt Tear off gt Exercise gt Expiry e Bonus e Warrants gt Tear off gt Exercise gt Expiry e Redemption Deal combination product codes are maintained in the Deal Combination Product definition screen All the product codes defined in that screen will be reflected in the picklist available The attributes defined for a particular deal combination product will be inherited by the auto deal to which it is linked The parameters maintained in this screen are applicable across the bank 4 2 1 Maintaining Deal Products Specifying Banker s Acceptance for a Placement Loan Product If you wish to process Banker s Acceptances in your bank then you must indicate the Loan MM product under which loan contracts or money market placements are to be created whenever you process a Banker s Acceptance deal In a Banker s Acceptance deal you fund the issuer of a security by creating a loan or a money market placement Select from the list of values containing all open and authorized Loan MM products which satisfy the following conditions e Incase of an LD product the product type should be Loans e Incase of an MM product the type should be Placement e The rate type should be Special ae ORACLE e The payment
118. of CDs varies depending on the amount of deposit and maturity Included in the category of certificates of deposit are small issues that are not transferable and therefore nonnegotiable This form of CD usually 10 000 in value and sometimes with a life of two years or more is advertised by many banks to attract the retail investors However because these are not tradable they are not part of the negotiable CD market a ORACLE 2 1 8 6 Commercial paper Corporations raise long term capital by issuing stocks and bonds They raise short term money by taking out loans from commercial banks and by issuing commercial paper to the investing public Commercial paper is a debt instrument that is offered sometimes as discount instrument and sometimes as principal plus interest For a plus interest instrument the client pays the full face value to buy the paper and receives the face value plus the interest accrued at maturity Neither type of instrument has a fixed interest rate Instead the rate is negotiated at the time of purchase and the interest is calculated from face and full value To receive the interest the buyer must for all practical purposes hold the instrument until maturity If the paper is sold during its life its price is subject to market fluctuations In the case of commercial paper the secondary market is thin almost non existent 2 1 8 7 Banker s acceptances BAS Banker s acceptances BAs are bills of
119. of a USD 100 bond on 1 January To the bond are attached warrants to purchase equity in the ratio of 1 1 with a face value of USD 10 The exercise date is 15 June Each warrant can be exercised at USD 20 The market value of the resulting equity stands at USD 30 Intrinsic value USD 1000 USD 30 USD 20 100 The intrinsic value of the 100 units of equity that the warrants entail is USD 1000 Include intrinsic value In this case on the warrant tear off date you will debit your Warrant Asset account for USD 1000 and credit your Bond asset account for USD 1000 Dr Warrant asset USD 1000 Cr Bond asset account USD 1000 Do not include intrinsic value If you indicate that the intrinsic value of the bond should not be included then the above entries will not be booked and consequently there will be no change in the holding cost of the bond or warrant asset 21 3 1 2 Specifying Processing Details Auto Liquidate for Corporate Actions The corporate actions that are applicable for securities in the portfolio can be automatically liquidated on the Event date the date on which the corporate action is due Check against this option to indicate the corporate actions applicable to securities in the portfolio should be automatically liquidated on the due date Leave it unchecked to indicate that it should be manually liquidated ae ORACLE If you select the automatic option the corporate action will be automatically liquidated on the liquida
120. of a security from Immobilized to Dematerialized you can initiate a securities transfer The transfer of securities can either be across SK locations it can be from one account to another in the same SK location or it can be from one form to another 24 2 Moving on to the Other Screens In the Transfer across SK locations screen are displayed a vertical array of seven icons By invoking these icons you will be able to define the other attributes of the Securities transfer you are initiating To select a screen click on an icon from the group of icons displayed For instance if you want to define leg events accounting entries and overrides click Events button The corresponding screen will be displayed The icons together with a brief description of the functions they perform are detailed below ave ORACLE Settlement Click on this button to enter the settlement message details You can specify details such as The accounts to be debited for charges The method in which the transfer is to be settled whether it is an instrument as in a check or a demand draft or a message as in SWIFT or mail message Details about the parties involved in the transfer MIS Click on this button to enter the transaction MIS details Advices Click on this button to enter the leg advices You can view suppress and prioritise the advices that are to be generated for each leg of the deal ICCF Click on this button t
121. of security by clicking on the unlock icon in the toolbar or by choosing Unlock from the Actions Menu Please remember that you can change the details of an existing rights warrants type of security only if it is not yet authorized Once a record is authorized and confirmed it will be processed as of the event date 20 5 1 Specifying End of Trading Date The event date or the date on which holdings in the security would expire is picked up from the Security Definition screen You are only allowed to indicate the date on which the trading in the rights warrants security is to be suspended You can indicate that trading is to be suspended on the security on either the event date or a few days before the event date For instance if the Event date is 31 March 2000 you can specify the same end of trading date or specify 28 March 2000 as the date on which trading in the security is to be suspended 20 5 2 Event Narrative To define an event narrative to be used while generating SWIFT messages click Narrative button The event narrative screen is displayed To exit from the screen without saving the text click Exit button coe ORACLE 20 5 3 Processing a Rights Expiry Event For the rights expiry event holdings in the rights security are depleted for the relevant portfolios as of the event date The event is triggered automatically if specified to do so Otherwise it will have to be trigger a manually Only those eve
122. or subscription right is a privilege granted by a corporation to its stockholders to purchase new securities in proportion to the number of shares they own Usually right holders are entitled to a purchase or subscription price that is lower than the stock s current market price Shareholders who choose not to subscribe may sell their rights ea ORACLE 2 1 9 2 Warrants A warrant attached to another security entitles the holder to convert the security into common stock or some other instrument at a set price during a specified period of time The price set in the warrant is usually lower than the current market value of the common stock Warrants are longer term issues than rights They generally come to the marketplace as part of a unit which is comprised of two or more issues For example a corporation may issue a combination of bonds and warrants The bonds are in regular form and the warrants are used to make the offering more attractive The Certificate In the case of either a right or warrant the certificate itself is referred to as a right or as awarrant Actually a right certificate could represent 100 rights and a warrant certificate could represent 100 warrants The term causes confusion and is a source of errors in the brokerage community Operations personnel should always make certain whether the term means the right or warrant certificate or the quantity of rights or warrants represented thereon 2 1 1
123. otherwise If you indicate that a corporate action notice should be generated you can indicate preferences for its generation Notice Days You can indicate the number of days before a corporate action is due on which the corporate action notice should be generated a ORACLE Notice Days Type You can further indicate whether the number of days that you specified was expressed in calendar or working days Example You have specified that a Corporate Action Notice should be generated ten days before a corporate action is due for securities in a portfolio Today s date is 15 December a corporate action is due for a security that is part of this portfolio on 30 December Your bank closes for a Christmas vacation on 25 and 26 December For calendar days A Corporate Action Notice will be generated on 20 December Ten calendar days before the corporate action is due For working days Going by the calendar of the bank the Corporate Action Notice will be generated on 18 December ten working days before the corporate action is due 11 2 10 Treasury Bills Accrual Accrue Discount for Treasury Bills The discount on Zero Coupon Bonds or T Bills can be accrued over its tenure If you indicate that accrual of discount is applicable to a portfolio preference class you can indicate accrual preferences Example You have purchased a 90 day T Bill having a face value of USD 100 000 for USD 98 000 The difference between the purchase
124. preferences that you specified here If the generation date falls on a holiday If the statement generation date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen Statement Start Month You can also indicate the start month for the generation of the statement 11 2 14 Contra Holding A contra short for Customer and Bank long for Issuer holding is when you sell more than your holdings in a security buy back more than the issued quantity in case of issuer portfolios As a preference you can indicate whether while trading in securities of a portfolio you can have a contra holding negative projected holdings for bank portfolios and positive projected holdings for issuer portfolios Contra holding allowed While saving a securities deal the system checks the holdings on the basis of the Settlement date You can choose to allow the holdings in a portfolio to go negative based on the projected holdings as per the Settlement Date by enabling the Contra Holdings Allowed option Validate When You need to indicate whether the projected holding can go negative for the portfolio Select the Online option if you don t want the position to go negative at any point in time If you have selected the EOTI option you will not be allowed to mark the EOTI stage if the projected holding in the portfolio is negative on any given settlement date ERG ORACLE In case of Buy Deals viz
125. price and the face value USD 2000 can be accrued over the 90 day tenor of the T Bill or can be realised on its maturity Check against the Accrue discount for Treasury bills option to indicate that the discount on zero coupon bonds and T Bills that form part of the portfolio should be accrued In this case you can indicate accrual preferences like the e Accrual frequency e Accrual start day e Accrual start month The accrual preferences that you specify will be made applicable to all portfolio products to which the class is associated ERN ORACLE Accrual Frequency The discount on T Bills can be accrued over the tenor of the T Bill The frequency at which the discount has to be accrued is specified as a portfolio preference Thus the discount components of all T Bill in a portfolio will be accrued at the same frequency The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Accrual Start Day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency 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 t
126. price codes as the revaluation code Let s assume you choose SERLO3 This code will be picked up exclusively for the purpose of revaluation Each security code is associated with a market code At the time of entering a deal specify the security code and the price code linked to the market will be picked up and defaulted 5 1 1 Price Quotation Method You can specify the price quotation method to be used for the security for which you are defining the price The details that you maintain here are specific to the price quotation method used for the particular security You can choose any of the following methods for calculating the price Absolute price Here the market value of the security is quoted as the actual price of the security Price Here the security price is quoted as Price Market price Face value x 100 Example The Face value of security A is USD1000 The market value of the same security is USD900 If the price quotation method specified is Absolute Price then the price of the security will be quoted as USD900 a ORACLE For the same security if you choose to apply the Price method then the price of the security will be 900 1000 x 100 90 You will quote the price of the security as 90 Premium Discount is the differential between the face value of the bond and the price at which it is sold If you were to specify the Discount Premium method then the security would be quoted
127. process will be zero based i e at deal level the accrual process will do the following 1 2 Identify all the BUY deals Determine the current quantity buy quantity the sold quantity Find the amount to be accrued from the Previous Coupon Date PCD to the accrual date i e if the PCD is 1st Jan and the accrual date is 10th Jan it will calculate interest to be accrued for the period 1st Jan to 10th Jan This amount is say A1 Find the amount already accrued for the deal i e interest accrued for the period 1st Jan to 9th Jan i e before the actual accrual date 10th Jan The interest accrued is say A2 Pass the accrual entry for A1 A2 For a deal level interest accrual the accrual of the Withholding Tax will also happen at the deal level However interest accrual will not happen for unsettled deals For deal level interest accrual the IACR Interest Accrual event and the associated accounting entries will continue to be maintained at the portfolio product level You have to maintain the accounting entries as shown below For the Events SPLP amp SPSP Accounting Roles Amount Tags Debit Credit Indicator iccfcomp01_RCPY iccfcomp01_PUCM Dr SEC BRIDGE GL iccfcomp01_PUCM Cr SEC BRIDGE GL iccfcomp01_PUEX Dr iccfcomp01_RCPY iccfcomp01_PUEX Cr 4 10 ORACLE For the Events SSLP amp SSSP Accounting Roles Amount Tags Debit Credit
128. rate between the security currency and the issuer payment currency and the date on which the exchange rate will be announced You can invoke the Coupon Maintenance screen by typing SEDCPNDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Coupon Maintenance Internal Action Id External Action Id Internal Security Id Record Date E Exchange Rate Fixing Date E Event Date i m Confirmed Date Issuer Reference OO Issuer Payment Currency Exchange Rate C Confirmed Narrative Exchange Rate Input By Authorized By Modification Authorized exi Number Date Time Date Time Open If you are calling a coupon maintenance record that has already been created click on Summary view The details of existing records will be displayed in a tabular form From the Summary highlight the record you wish to view details of and double click to open it i To amend the details of an existing coupon click on icon in the toolbar or choose Unlock from the Actions Menu Note that you are only allowed to amend the details of future dated records that are not yet confirmed Once a record is authorised and confirmed it will be processed as of the event date You will not be allowed to make any changes to a confirmed record ee ORACLE Exchange Rate a
129. rates that are to be used when a deal involving a foreign currency is processed This is done by specifying the Rate Type to be used in a deal When a deal involves a currency conversion the Rate Type that you defined will be picked up by default and applied This defaulted rate type can be changed at the time of processing a deal You can define an exchange rate variance the upper and lower limit within which the exchange rate can differ from the rate type that is defaulted 12 2 3 Brokerage Allowed You can choose to allow or disallow brokers for a deal that you enter Brokerage is applicable only for bank buy or sell type of deals As a preference you can indicate whether brokerage is applicable to the class you are defining If you allow brokerage you can enter deals that may or may not involve brokers If you disallow brokerage for the product then the product cannot be associated with deals that are struck through a broker To allow brokers check against this option To disallow brokers leave it unchecked When a deal involving a broker is processed the brokerage applicable to the broker will be picked up and applied from the Brokerage maintenance ee ORACLE 12 2 4 Automatic Money Settlement Money settlement for security deals can be liquidated automatically or manually While setting up a deal preference class you can indicate the mode of money settlement It could be one of the following e Manual e Automatic C
130. short positions report 34 13 2 Contents of Report The contents of the report are discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the report The report contains information on Portfolio ID This is the Internal Security Id for which Security Portfolio has been maintained 34 24 ORACLE Portfolio Name This is the name of the portfolio Security ID This is the identification of the security Security Name This is the name of the security Security Currency This is the currency of the security Deal Reference This is the reference number of the deal SK Location Indicates the SK location in which the deal settlement has taken place Deal Type This indicates the type of the deal Trade Date This is the date on which the deal is transacted Settlement Date This indicates the date on which the money was settled Nominal Nominal refers to the net consideration of the deal 34 25 ORACLE 34 14 Portfolio To Portfolio Deals Report You can generate the portfolio to portfolio deals report by using the Portfolio To Portfolio Deals Report screen To invoke this screen type SERTPDL in the field at the top right corner of the Application tool bar and click on the adjoining arrow button
131. specified for the buy and sell products defined for the product combination will be made applicable to the respective legs of the deal For each leg of the deal you have been provided a toolbar using which you can capture details specific to the deal leg Advices Brokerage Charges Deal Match Cs cl WalkIn Limits MIS Details Netcons Patties Settlements Tax pes ORACLE These icons together with the functions they invoke have been dealt with in the subsequent paragraphs Identifying each leg of a deal Oracle FLEXCUBE assigns a unique reference number to identify both the buy and sell legs of a deal Besides helping to identify the leg of the deal this number tag is used in all the accounting entries and transactions related to the leg that it represents The deal leg reference number is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD 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 User Reference You can enter a unique reference number for the sell and the buy legs of a deal The leg will be identified by this number in addition to the Leg Reference generated by the system By default the Leg Reference generated by the system will be taken as the User Reference Indicating the b
132. 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 31 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 and yearly accrual frequency Accrual Start Month 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 on which the accruals should be done Example You have selected the half yearly option and specified the start date as 31 and the start month as June The system will do the first accrual on 30 June for the period from January 1 to June 30 and the second one on 31 December for the period from 1 July to 31 December If the accrual date falls on a holiday If the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen Tias ORACLE 11 3 4 Redemption Premium Accrual Accrual Redemption Premium For instruments like bonds which bear a redemption premium you can choose to accrue the redemption premium due to the security over its tenor Check against the Accrue redemption premium
133. system liquidates only those events which are yet to be disbursed with the disbursement date being less than or equal to today Positions are updated once the disbursement event is complete 20 4 3 Warrants Tear Off On the initiation processing date a holding in the warrants security is created for the portfolio This process is automatic for all equities marked for auto initiation of corporate actions In case of equities marked for manual corporate action the initiation event has to be invoked manually for the holdings to be created ve ORACLE 20 4 4 Warrants Exercise A security of warrants type is associated with an exercise type of product then at the time of deal input the exercise event is carried out for the security involving the product You have to indicate the quantity of warrants to be exercised along with the SK location and the SK account where the warrants are held The details of the quantity of the resultant security can be viewed along with other details such as the exercise price In case there are charges the charge details will also be displayed Depending on the quantity of warrants exercised the holdings in the warrants security will go down and the holdings in the resultant security will go up The Warrants Exercise Collection for long position WELC will pick up those events for which the collection is not yet done This is however done only for events with collection date less than or equal to today s
134. tddesietbdeess abesnoeteeests 29 3 29 2 1 Specifying Securities Repo Product Definition Details ccccessccssecsesscsseeeceseeseeeeeeeecneeeecnseeeeeees 29 3 29 22 Setting Product Preferences sis opssassscsisessccsietugisitedagisasesed tis iy dh be sabetagd shdetabiaaaiand ied deck E EEEa 29 4 29 2 3 Specifying Interest Details for PrOduct cc ccccsccescesecesecseenseesseeseeseceseeeseeeseceeeeseeseecesecesecnaesaeesaeees 29 5 29 2 4 Associating Discount Accrual Components to PrOdUucts ssscssccsesssesessseeecuseenenseeseesecteeecnseeneeenaes 29 6 29 3 CAPTURING DETAILS OF REPO CONTRACT icescssessecsssescteesssececsosssceetsesebeesssessestsssobesssseabessssseveetsctdbesiostenests 29 7 293 1 Specifying Interest Details icc vc sccvcscesveseonsetesestseevaedaswienevoncouteucbveleessatsedaveaysebsvesnenietsyusducvvesevennseseuecey 29 9 29 4 UPLOADING DEALS FOR AMENDMENT ccsscssccsssesseesseesseeeseessensseestsesseestsnsseestsneseessseeseestseeseesteneseestenss 29 10 29 4 1 Specifying Interest Details ccc cvsscscvsscssscssavedesteciesvivsshevesesuneveavstievesn dd stasesdesnesieaussebuediene dies vansebevens 29 12 29 5 MAINTAINING ASSET LIABILITY LINKAGE ccccscccesseseseesssseeecsseaeeessssasecsesaseecsesasessasaseessssaseesnseaseneats 29 13 30 PRINTING SUBSIDIARY GENERAL LEDGER FORM REPO AND REVERSE REPO DEALS 30 13 30 1 TIN TRRODUCTION 23iss5s3cs5 oocd3escenssecebsadessssessoass oastesssbassousecaecee sabebsuads
135. than or equal to today and for which initiation has not been done will be picked up The BOST Bonus Initiation for short position or BOLT Bonus initiation for long position depending on whether the position in short or long After the initiation event is complete the Events table is updated Positions and holdings are also updated For disbursing the events due only those events with the disbursement date less than or equal to today s date will be picked up The Bonus disbursement for short positions BOSL or Bonus Disbursement for long positions BOLL will be triggered depending on whether the position in short or long After liquidation the events table is updated to indicate that liquidation is complete for the event Please remember that automatic liquidation is carried out only if you have specified so at portfolio definition level Otherwise events due will have to be liquidated manually 20 31 ORACLE 20 17 Manually Processing Corporate Action Events You can manually process these events marked for manual processing through the Corporate Actions Manual Processing screen The details of all these events which are to be manually initiated collected and liquidated are displayed in this screen In addition the details of those events which have already been processed either automatically or manually will also be displayed You can change the date on which a particular event is to be processed You are also allow
136. that you have maintained in the Markets Maintenance screen can be specified All securities maintained under a product by default will also be associated with the market specified for the product When maintaining a security however you can identify a unique market for the security An issuer of securities should have a valid CIF record in the Core module of Oracle FLEXCUBE When maintaining a security you should identify the issuer Your CIF specifications for the issuer such as Limits will automatically be picked up for the security 19 2 4 Specifying the material of a security When maintaining a security identify the manner in which it can be held and the material of the security The holder of a security can be one of the following e Registered e Bearer Securities can be in different formats Option Description Scrip based Issued in a paper format Dematerialized In an electronic format Immobilized Securities in lieu of which proxies are traded Combination Issued in one or more of the above formats rest ORACLE 19 2 5 Specifying Redemption Quotation Method The Redemption Quotation Method can be specified in the following ways e Percentage In this case the quantity to be redeemed is expressed in percentage e Factor In this case the quantity to be redeemed is expressed in fraction e Cashflow Here the quantity to be redeemed is expressed as an actual cash flo
137. the Association section of the Transaction tax screen click against the waive option positioned next to the component In this case the tax component is attached to the deal leg but is not calculated Indicating the tax components to be applied to a deal leg In the application section of the screen you can indicate the tax components that should be applied to the deal leg The list of components that is displayed depends on the tax components that you have associated to the deal leg The following details of the component are also displayed e The basis component on which the tax is levied e The currency of the basis amount e The basis amount e The tax amount and the e The currency in which the tax amount is defined You can change the tax amount that is calculated using the class applicable to the component Waiving tax on a deal leg You also have the option to waive the component for the deal leg that you are processing If for some reason you want to waive tax on the deal you are processing you can do so by checking against the waiver option in the application section of the screen The tax will be calculated but not applied You can waive tax only if it is yet to be liquidated Tax liquidation When a tax component that is applied to a deal is liquidated the relevant accounting entries are passed The contract tax screen displays e The tax components that have already been liquidated e The amount that was liqui
138. the Block Product field When you associate a deal with a repo product the Block Security Deal product will be picked up This product will be used to block the underlying securities in the repo deal 29 4 ORACLE EIM features are also supported in Repo and Reverse Repo products For a detailed discussion of products please refer the Money Market user manual 29 2 3 Specifying Interest Details for Product You can link an interest rule to a product in the ICCF Details screen When a contract involving the product is processed the interest attributes defined for the product will be applied on the contract Some of these attributes can be changed during contract processing To invoke the ICCF Details screen click Interest button in the Securities Repo Product Definition screen ICCF Details Product Code Product Description Basis Amount Type Category Pre Payment Method Settlement Currency Stop Application Level No Propagation Required Main Component Accrual Required Bulk Amount Allow Amendment Link Contract As Ratecode Consider as Discount Units Collection Type Advance Grace Period Arrear Interest Rate Type Code Usage Rate Code Reset Tenor Borrow Lend Ind Margin Basis Rate Cycle Type Margin Application Event Event Description Rule Rule Description Component Description tot HE 1of1 v lt gt TE Specify the following details Interest Basis The method in w
139. the price at which they can be redeemed Ie ORACLE Redemption Quotation The system displays the redemption quotation selected in the Securities Instrument Definition screen You will not be able to change it Redemption Quantity If the redemption quotation is Factor specify the redemption factor If the redemption quotation is Cashflow specify the actual cashflow Whenever you modify this value the system calculates the redemption price upon saving In case of factor quotation whenever redemption factor is modified for the existing redemption schedules the redemption price is recalculated on saving The redemption factor and the price for the future schedules are also adjusted However the factor for the last redemption is not adjusted It remains 0 Similarly whenever a call redemption schedule is maintained with redemption quotation as Factor or Cashflow the system calculates the redemption price upon saving For factor based redemption schedules the factor and redemption price are adjusted for future redemption schedules The factor for the last redemption is not adjusted 20 7 Processing for Security Redemptions Only those events that have not yet been initiated will be selected However this is done only for events with initiation date less than or equal to today The Events table is updated to indicate that initiation is complete Specification of redemption collection to be automatic or man
140. the security with floating interest and an asynchronous rate revision is 01 January 2000 and the Maturity Date is 31 December 2000 You have specified that the interest rate revision frequency is quarterly If you choose the Adhere to Month End option The rate revisions for this security would be due on the following dates e 31 March 2000 e 30 June 2000 e 30 September 2000 e 31 December 2000 If you do not choose the Adhere to Month End option The rate revisions for this security would be due on the following dates e 31 March 2000 e 30 June 2000 e 30 September 2000 e 30 December 2000 If the interest rates for a security should be revised on a non periodic basis you should leave the Periodic Revision option blank You can capture the actual revision details for a security with non periodic rate revision in the Security Definition Revision Schedules screen You can invoke this screen by clicking the Revision button Revision Schedule kal Revision Start Date Discrete Continuous Week Day _ adhere Tq o A PE ORACLE In this screen specify the first revision due date Base Start Date and the last revision due date Base End Date If you choose the Continuous option the system calculates all intermediate revision due dates based on the frequency specified If you specify a weekly frequency you must also specify the Week Day You can also choose to adhere to month ends To introduce
141. to classify the portfolios that you maintain in your bank and to reflect either the security level or the investment philosophy of your operations A portfolio product can also represent a specific service that you offer You can define a customer portfolio maintenance service Clean Safe and Fast Buck for example as a product Similarly you can define a category of securities Such as the t bills issued by your government as a product and a category of security deals as a product When building a product you assign it a set of attributes You can define these attributes by associating the appropriate classes to the product The securities portfolios and security deals that you maintain under a product respectively acquire the attributes defined for the corresponding product The Advantage of Defining a Portfolio Product The advantage of defining products is illustrated by the following example Assume this scenario Mr Silas Marner your customer would like you to maintain his portfolio worth USD 100 000 under the customer portfolio maintenance scheme Clean Safe and Fast Buck The highlights of this scheme are e You would not deal in long term Zero Coupon Bonds e You would not deal in securities issued by alcoholic beverage companies e You would not deal in securities issued by industries blacklisted by Greenpeace Let us consider the different operations that you would perform in setting up this portfol
142. to determine the common working days Example The branch currency is GBP and the security issuer currency is USD You have maintained both GBP and USD in the holiday calendar currency list Oracle FLEXCUBE will use the USD holiday calendar and the holiday calendar of the branch for determining the common working day Specifying the Interest Rate Revision Frequency You can revise the interest rates for bonds with floating interest This revision frequency can be different from the coupon frequency This is referred to as Asynchronous interest rate Revision Asynchronous revision can be e Periodic e Non periodic As part of interest specifications you can indicate Interest Rate Revision details By default interest rates will be revised according to the coupon frequency defined for a bond To revise interest rates at a different frequency choose the Allow Asynchronous Revision option If the asynchronous revision of rates is periodic click on the Periodic Revision option and specify the Revision Frequency For a frequency that is weekly you should indicate the day on which the revision is due For instance you could indicate that the interest rates for securities should be revised every Monday If the revision frequency is in terms of a month you can indicate that the revision days should adhere to Month Ends The implication of this option is explained in the following example a ORACLE Example Assume the Issue Date of
143. to populate Coupon for branches 001 SE CPOP Failed to populate Coupon 002 SE CPOP SK Account Currency different from Issuer payment 003 Currency SE CPOP Failed in processing tax due 004 31 76 ORACLE Error Code Message SE CPOP Failed in charge processing 005 SE CPOP Failed in processing transaction level tax 006 SE CPOP Failed in processing Settlements 007 SE CPOP Failed in inserting coupon due record 008 SE CPOP Failed in logging exception when populating coupon 009 SE CPOP Failed in populating coupon for branches 010 SE CPOP Next working date cannot be null 021 SE CPOP not confirmed 022 SE CPOP Incorrect number of records returned during coupon 023 population SE CPOP Receive Account could not be got 024 SE CPOP Pay Account could not be got 025 SE CPOP Account currency is not the same as Issuer payment 026 currency SE CPOP Portfolio Account details could not be got 027 SE CPOP 028 SE CPRC Could not process coupon for branches 001 SE CPRC Could not process Coupon event 002 SE CPRC Could not get sub system flags during coupon processing 003 SE CPRC Error while processing coupon 31 77 ORACLE Error Code Message 004 SE CPRC Failed while processing Tax 005 SE CPRC Failed while processing charge 006 SE CPRC Faile
144. type by choosing the appropriate option under this field Exempting Specific Portfolios from a List You can exempt specific portfolios from the restriction specified for the product with which it is associated Click add icon and select a portfolio code from the picklist You can choose to Allow or Disallow the portfolio that you have selected by choosing the appropriate option under Restriction Type Click delete icon to remove a portfolio from the list Example You have maintained a Portfolio Product to cater to Bank Portfolios You assigned the product a code PFO1 You have entered five bank portfolios under this product with the following Portfolio IDs P001 P002 P003 P004 and P005 You are maintaining Portfolio Restrictions for the product and include PF01 in the Allowed list By default all portfolios entered against this product will be allowed Requirement However you would like to disallow a specific portfolio P005 Click add icon and select the ID of the Portfolio P005 from the picklist In the Restriction Type column corresponding to P005 choose the Disallowed option Result When you associate the restriction class with a product you can deal in all portfolios involving PF01 except the portfolio POO5 Portfolio Access ae ORACLE 14 2 1 Portfolio Access Portfolio Identification It is the Internal Security Id for which Security Portfolio has been maintained under Securities Security Portfolio Definitio
145. unique identifier and a brief description The identifier is referred to as the Security ID A security will be identified by this number in addition to the Security Reference No generated by the system ae ORACLE Description The description that you specify is for information purposes only and will not be printed on any customer correspondence ISIN International Security Identification Number Identifier You can enter the ISIN reference allotted to the security that you are maintaining In the SWIFT messages that you generate this number will identify a security Security Type The securities that you deal in can be broadly classified into the following types e Bonds e Zero Coupon Bonds e Equities e Rights e Warrants You can maintain a security of a particular type only under products defined for the type For instance you can only maintain bonds under a product defined for Bonds The attributes that can be defined for a security depend on the Security Type For example if the security type is indicated as Bond you can also define details relating to interest Trading Status This field is generated by the system that states whether the trade is Active or Closed Suspended Security Status This field is generated by the system that states whether the security is of Primary type new issue or Secondary type Interest Type This is a auto populated field This is populated by the system based on th
146. update the existing prices as of different Value dates click on the amp button Enter the value date and the new price in the respective fields and save the record If you are calling a market price maintenance record that has already been defined choose the Summary option under Market Price From the Summary screen double click on a record to open it m ORACLE Price Code The price code indicates the price of a market place Each price code you define is unique If the security is quoted in different markets its value would be different in each market You can capture these prices using different price codes The price code assigned to each security is used to identify the particular market price of the security for the purpose of revaluation All the price codes defined in this screen are picked up and displayed in the picklist available for Revaluation Price Code field of the Security Definition screen You can specify the revaluation price code for each security while defining it Example The following security has been quoted in four different markets at varying prices Security ID Market Place Price Price Codes Reliance NSE Delhi 3000 Rs SERLO1 Reliance BSE Bombay 3020 Rs SERLO2 Reliance OTC Bombay 3010 Rs SERLO3 Reliance CSE Calcutta 3025 Rs SERLO4 If you are defining the revaluation price for the security you can choose any one of the
147. when you sell the bond Dr Customer USD 20 Cr Asset USD 10 Cr Premium USD 5 Cr Profit and Loss USD 5 Accrual basis If you select this accrual basis for asset accounting then on 1 January you would Dr Premium to be accrued USD 5 Dr Asset USD 10 Cr Customer USD 15 On 30 January the amount to be accrued is USD 1 The following entries will need to be passed Cr PTBA USD 1 Dr Expense USD 1 tet ORACLE When you sell the unit at USD 20 Dr Customer USD 20 Cr Asset USD 10 Cr PTBA USD 4 Cr ProfitandLoss USD6 11 2 6 Book Intrinsic Value A warrant or right attached to a security entitles the holder to convert it into common stock at a set price during a specified period Thus rights and warrants attached to a security have a hidden or intrinsic value To recall you have already defined the intrinsic value of a right or warrant in the Securities Warrants Definition screen As a portfolio preference you can choose to book or ignore the intrinsic value of rights and warrants for asset accounting purposes Example You have purchased a hundred units of a USD 100 bond for USD 120 on 1 January To the bond is attached 100 warrants that can be exercised on 15 June to purchase 100 units of equity You have indicated that the intrinsic value of the 100 units of equity that the warrants entail is USD 1000 Include intrinsic value In this case on the warrant tear off date you would debit your Warrant Asset account for USD 1000
148. with the deal product Rate Override Limit If the variance percentage between the default rate and the rate input is between the Rate Override Limit and the Rate Stop Limit you can save the deal by providing an override Rate Stop Limit If the variance between the defaulted rate and the rate that is entered varies by a percentage greater than or equal to the Rate Stop Limit you cannot save the deal ies ORACLE 17 2Specifying Preferences for a Product Defining Preferences for a Product Preferences are the options available for defining the attributes of a product The preferences that you define for a product will be inherited by all security deals associated with the product Click Preferences button to invoke the Deal Product Preferences screen Through this screen you can define preferences for the product you are creating Preferences Product Code Product Description Class Code Class Description Preferences Forward Deals Allowed Spot Deals Allowed Rate Type Cancel Allowed Extension Allowed Brokerage Allowed Automatic Money Automatic Delivery Partial Release Allowed Settlement Settlement Consider Brokerage For Bankers Acceptance Issue Discount Accrual Rekey Fields Deal Price Security Id Nominal Units Trade Date Settlement Date Money Settlement Date Portfolio Id Default Fields Portfolio Id Market Code Clean Risks Limit Tracking Pre Settlement Risks Limit Free Pa Tracking Spot
149. x 77 365 10 000 000 x 5 100 x 15 366 For coupon on 15 04 2000 the formula applied is 10 000 000 x 5 100 x 91 366 For coupon on 15 07 2000 the formula applied is 10 000 000 x 5 100 x 91 366 For coupon on 15 10 2000 the formula applied is 10 000 000 x 5 100 x 92 366 In case 366 basis is Leap Date For coupon on 15 01 2000 the formula used in ACT ACT FRF method is 10 000 000 x 5 100 x 92 365 This period does not include 29 February For coupon on 15 04 2000 the formula used in this method is 10 000 000 x 5 100 x 91 365 29 February falls in this period For coupon on 15 07 2000 the formula used in this method is 10 000 000 x 5 100 x 91 365 This period does not include 29 February For coupon on 15 10 2000 the formula used in this method is 10 000 000 x 5 100 x 92 365 This period does not include 29 February T ORACLE 19 4 Uploading Security Instruments for Amendment From an external system you can upload Securities that require amendment in Oracle FLEXCUBE The system will distinguish between the new and the ones that require amendment based on the action code of the uploaded record For an instrument requiring amendment the action code will be AMND If the action code is AMND Oracle FLEXCUBE will first check whether the instrument exists in the system or not If it does not exist in the system an error message will be displayed to notify that the instrument cannot be amended The Security ID pr
150. you can indicate accrual preferences Example You have purchased a USD1000 bond for USD 1200 and hold it for 5 years to maturity You have paid a premium of USD 200 for the security You can choose to accrue the premium of USD 200 over the tenure of the bond or book it as a loss when the bond matures Accrue Premium Check against this option to indicate that premium should be accrued Accrue Discount Check against this option to indicate that discount should be accrued You will also have to specify the method to be used to accrue the premium and discount The options available are e Constant Yield Basis e Exponential e Straight Line Basis However if the Costing Method is WAC Weighted Average Cost the accrual will be based on any one of the following methods e Constant Yield Basis e Straight Line Basis In addition you should also ensure that accrual of both discount and premium is based on the same method i e either Straight Line or Constant Yield method Yield for deals involving WAC portfolios with Constant Yield method of premium discount accrual will not be calculated at deal input Instead it will be calculated on deal settlement as a part of the EOD batch process This yield will be updated for all the deals in the particular holding Yield for the holding will be calculated on settlement of Bank Buy deals for all WAC portfolios other than Issuer portfolios where in the yield will be calculated on settleme
151. you have selected earlier The values are e Bank B e Customer C eu ORACLE e Issuer I Portfolio Description Enter a brief description of the portfolio you are defining This description will be associated with the portfolio for information retrieval purposes You can change or modify the description of a class All subsequent retrieval of information on the portfolio will contain the modified description Branch In this field when the new button is clicked the current branch is displayed Branch Name This field is automatically generated This gives a brief description of the branch Currency and Currency Name Here you can choose the currency applicable for the portfolio from the available pick list The currency name will default based on this selection and it is as per the description given in the Core Module Asset Accounting Basis This indicates how the assets of the portfolio should be accounted for and is applicable only for Bank Portfolios This field is defaulted based on the portfolio product selected and cannot be changed during portfolio definition Accrual basis If you select the accrual basis for asset accounting then on 1 January you would Dr Premium to be accrued USD 5 Dr Asset USD 10 Cr Customer USD 15 On 30 January the amount to be accrued is USD 1 The following entries will need to be passed Cr Premium to be accrued USD 1 Dr Expense USD 1 When you sell the bond at 20 D
152. you should indicate the currency in which payment is made All the components of the deal like the deal amount the charges and tax that is levied will be settled in this currency By default the security currency is taken to be the payment currency If you indicate the settlement currency to be different from the security currency you should also indicate the exchange rate to be used for the conversion SCY You can indicate the format of the securities that are traded It could be Option Description Scrip based Issued in a paper format Dematerialized In an electronic format Immobilized Securities in lieu of which proxies are traded Combination Issued in one or more of the above formats Rate This is the exchange rate applicable incase the Payment Currency and Security Currency are different This rate is defaulted from the deal product type Settlement SKL Indicate the SK location in which the deal settlement takes place Format You can select whether the security format is e Scrip Based e Dematerialized e Immobilized e Combination Deal Type You can select the Deal type from the drop down list The Deal Type can be e Primary e Secondary aa ORACLE Priority Indicate the priority of the deal you are processing You can select a value from the drop down list e High e Normal e Low Conforms to ISMA This is an indicator to denote whether the deal has been made as per ISMA Inte
153. your branches trade in These controls can be achieved by specifying restrictions In Oracle FLEXCUBE you can define security restrictions of the following types e Securities restrictions specific to the portfolios that you maintain e Security restrictions specific to the deals that you enter into You can maintain several sets or classes of each type of security restriction Thus you can maintain several classes of security restrictions for portfolios and several classes for deals You can associate these classes of security restrictions to the respective portfolio products and the deal products that you maintain In other words you indicate that e A portfolio product cannot be used to trade in specific securities e A deal product cannot be used to trade in specific securities The Advantage of Defining Security Restrictions as Classes The advantage of defining restriction classes is that at the time of creating portfolio and deal products you do not have to repeatedly define security restrictions for each product You only need to associate a product with a restrictions class that you have maintained The product acquires all the attributes defined for the Security Restrictions Class that you associate it with 2 ORACLE By maintaining classes you also give yourself the flexibility of applying the same restrictions class to several products 13 2 Specifying the Security Restrictions You can maintain security restrictions
154. 0 Trading in Equities Selling stock to the public When corporations issue stock or other securities they are referred to as Issuers Stock can be issued for sale to the public or for private placement When issuers prepare to sell securities to the public they usually call upon investment bankers to act as underwriters Most corporations come out with the new issue of shares through Initial Public Offerings IPO which is called as the primary market offering The equity shares then get listed on the stock exchange Stock exchange is the market place for buying and selling of equity shares Stock exchange offers the common trading floor for trading on stocks They offer liquidity to the investors Every stock exchange has its own rules and regulations under which the securities get traded Investors can offer to buy or offer to sell stocks of certain corporations through financial intermediaries on the stock exchange The stock exchange publishes the various price quotes for stocks listed on their stock exchange on the daily basis Stock exchanges also allow for settlement for trades Typical settlement periods that stock exchanges follow are e Fixed Settlement Stocks traded during a specific period would get settled on a specific date All securities traded between Monday and Friday of every week would get settled on the Tuesday of the next week If Tuesday happens to be a holiday then the same would be either settled on Monday or on W
155. 00101 31 21 ORACLE Error Message Code SE Coupon Weekday is Mandatory 00102 SE Revision Frequency is Mandatory 00103 SE Revision Weekday is Mandatory 00104 SE Rounding Basis is Mandatory 00105 SE Rate Basis is Mandatory O00106 SE Accrual Numerator Method is Mandatory S00107 SE Accrual Denominator Method is Mandatory S00108 SE Accrual Denominator Basis is Mandatory 00109 SE Liquidation Numerator Method is Mandatory 00110 SE Liquidation Denominator Method is Mandatory 00111 SE Liquidation Denominator Basis is Mandatory 00112 SE Accrual Denominator Basis and Liquidation Denominator Basis 00113 must be identical SE Accrual Include To Day and Liquidation Include To Day must be 00114 identical SE If Rate Basis and Accrual Liquidation Denominator Basis are not 00115 identical then it must be Periodic Coupon SE If Rate Basis and Accrual Liquidation Denominator Basis are not 00116 identical then it must not be Weekly Coupon SE Collateral Type is Mandatory 00131 SE Dividend Basis is Mandatory 00132 31 22 ORACLE Error Message Code SE Warrant Basis is Mandatory 00133 SE Rights Basis is Mandatory 00134 SE Coupon Schedules have not been maintained Proceed 00151 SE Series must be Unique S00181 SE Redemption of this
156. 031 SD LM The Collateral Review Date cannot be later than the Collateral Expiry 00032 Date SD LM The Collateral Review Date cannot be earlier than Collateral Start Date 00033 SD LM The Expiry Date cannot be earlier than Start Date 00034 SD LM The Security Code is not entered 00035 SD LM The Security Type is not entered 00036 SD LM The Currency is not entered 00037 SD LM The Market Price Details are incomplete Complete Delete the Market 00038 Price Details SD LM The Line Code is not entered 00039 SD LM The computed exposure is not between 1 and 100 00040 SD LM There are Active Sub Lines reporting to this Main Line Main Line 00041 cannot be closed SD LM The Last Price Change Date cannot be greater than Branch Date 00042 SD LM The Security Code is not entered for the MVBC 00043 SD LM The Price Code is not entered for the MVBC 00044 SD LM The Number Of Units is not entered for the MVBC 00045 SD LM The Collateral Ccy is not entered for the Collateral 00046 31 64 ORACLE Error Message Code SD LM Security Code has not been entered 00047 SD LM The Issuer Exposure Details are incomplete Complete Delete the 00048 Issuer Exposure Details SD LM The Start Date cannot be greater than the Branch Date 00049 SD LM The Last Price Change Date cannot be earlier than Start Date 00050
157. 058 SE Interest Quotation is Mandatory SO0059 SE Unit Decimals is Mandatory SO0060 SE Lot Size is not populated Proceed S00061 SE Redemption Type is Mandatory S00062 SE Security Currency is Mandatory S00063 SE Payment Currency is Mandatory SO0064 SE Issue Tearoff Date is Mandatory SO0065 31 20 ORACLE Error Message Code SE Start of Interest Date is Mandatory SO0066 SE Start of Trading Date is Mandatory SO0067 SE Redemption Expiry Date is Mandatory SO0068 SE Start of Interest Date is earlier than Issue Tearoff Date Proceed SO0069 SE Start of Trading Date must be later than Issue Tearoff Date 00070 SE Start of Trading Date must be later than Start of Interest Date 00071 SE Redemption Expiry Date must be later than Issue Tearoff Date 00072 SE Redemption Expiry Date must be later than Start of Interest Date 00073 SE Redemption Expiry Date must be later than Start of Trading Date SO0074 SE Initial Face Value is Mandatory S00075 SE Issue Price is Mandatory S000076 SE Redemption Price is Mandatory S000077 SE Issue Price must be lesser than Initial Face Value S000078 SE Redemption Price must be greater than or equal to Initial Face S000079 Value SE Quantity Quotation must be UNITS S000080 SE Lot Size must be a multiple of Initial Face Value S00081 SE Coupon Frequency is Mandatory S
158. 1 SE Unable to select from setb_unrel_unmatch for 1 BA0222 SE Unhandled exception in fn_rights_settlements BA0223 SE Unhandled exception in fn_warrants_settlements BA0224 SE Unhandled exception in fn_bonus_settlements BA0225 SE Unable to get current holding for position 1 BA0226 SE Unable to select from setb_matched_deal for sell leg 1 BA0227 SE Unable to update setb_event_log BA0228 SE Failed in function fn_find_cum_ex BA0229 SE Unable to break the match for 1 31 43 ORACLE Error Message Code BA0230 SE Unable to get Buy deal for position 1 BA0231 SE Unable to insert into setb_matched_deal for sell leg 1 BA0232 SE Unable to update setb_unrel_unmatch BA0233 SE Unhandled exception in fn_drive_alpl BA0234 SE Unhandled exception in fn_drive_dprp_accr BA0235 SE Unhandled exception in fn_drive_fpl_accr BA0236 SE Unhandled exception in fn_drive_fpl_memo_accr BA0237 SE Unhandled exception in fn_drive_dprp_memo_accr BA0238 SE Unable to update setb_dstl_master for 1 and dstl date 2 BA0239 SE Unhandled exception in fn_reverse_alpl BA0240 SE Unhandled exception in fn_mark_dstl_master BA0241 SE Unable to get the Rights intrinsic value BA0242 SE Unable to select from setb_position_ref BA0243 SE Failed in function fn_build_event_advice BA0244 SE Unable to get the deal details for 1 BA0245 SE
159. 1 and the start month as June The system will do the first accrual on 30 June for the period from January 1 to June 30 and the second one on 31 December for the period from 1 July to 31 December If the accrual date falls on a holiday If the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen oe ORACLE 11 3 5 Revaluation of Positions Market based securities are driven by market forces of demand and supply the price of such securities tends to rise or fall in value These fluctuations have a direct effect on the value of the portfolios to which a security belongs Oracle FLEXCUBE provides a feature to revalue a portfolio based on settled Holdings or unsettled positions Positions You can specify the revaluation method and the frequency at which the settled and unsettled positions of the portfolio should be revalued Further for settled positions you can indicate whether realized revaluation should take place It is important to note that revaluation entries will be passed only for portfolios belonging to the bank For customer portfolios however revaluation is done solely for reporting the performance of the portfolio Indicating the Basis for Revaluation In Oracle FLEXCUBE portfolio revaluation can be done based on the settled unsettled position or both However while specifying revaluation preferences you can choose to revalue only the set
160. 10 80 1 19729 0 219178 1 040255 39 51 01 Jun 03 42 47 111 1 19729 0 304110 1 056286 40 20 01 Jul 03 41 10 141 1 19729 0 386301 1 072036 38 33 01 Jul 03 10500 141 1 19729 0 386301 1 072036 9794 45 9991 92 The accrued interest as of the revaluation date is excluded from the NPV computed and the Flat NPV as of revaluation date is derived Flat NPV NPV Al 9991 92 12 33 9979 59 Revaluation profit or loss is computed by marking the flat NPV obtained against the flat market price using the formula mentioned above Revaluation Profit Loss 102 100 9979 59 224 41 Revaluation Profit USD 220 41 26 17 ORACLE 26 2 2 6 Settled EX Deal Revaluation date and settlement date in the same period Deal Settlement Date 27 Jan 2003 Record Date 25 Jan 2003 Revaluation Date 29 Jan 2003 Deal Quantity 100 Deal Price USD 99 30 Annual YTM 19 72949 Periodic YTM 19 72949 Pending Interest Received in Advance as of USD 4 11 Revaluation Date 29 Jan 2003 to 01 Feb 2003 Market Price as of Revaluation Date USD 102 During revaluation of settled ex deals revaluation date and settlement date are in the same coupon periods all the coupons between the revaluation date and the redemption date are discounted to the revaluation date excluding the first coupon cash flow from the settlement date Therefore the effective coupon cash flow that consider
161. 182 60 544 6623 03 17 Apr 98 910 68 1 1 259 181 60 544 6623 03 18 Apr 98 366 01 1 0 258 258 00 381 2636 03 19 Apr 97 984 75 1 0 257 257 00 381 2636 03 20 Apr 97 603 49 1 0 256 256 00 381 2636 03 21 Apr 97 222 22 1 0 255 255 00 381 2636 03 22 Apr 96 840 96 1 0 254 254 00 381 2636 03 23 Apr 96 459 69 1 0 253 253 00 381 2636 03 21 17 ORACLE Accrual by the exponential method In the exponential method of DPRP accrual the amount accrued is not the same each day but rises exponentially with each passing day of the accrual period The amount accrued at the end of each day is given by the following formula Wp PP FV PP Where W Value of the Bond on accrual date PP Purchase Price of the Bond FV Face Value of the Bond ni Number of days from purchase till the date of accrual n2 Number of days from purchase till maturity Example A Bond has the following basic details n2 10 Purchase Price PP 80 USD Face Value Nominal FV 100 USD The value of the bond and the amount accrued each day till maturity is given in the table below For comparison the accrued amount each day as obtained by the straight line method of accrual is given in the last column All figures are in USD n1 Value of Value of Bond in Discount Accrual by Discount Bond excess of exponential method Accrual by Purchase Price straight line method 1 81 805 1 80
162. 2 1 121 INTRODUCTION sorrire aon nae ESen ANENE EE ENET OASES EEES EEEE ES EEE EEES aaa EEE NES 12 1 12 1 1 Specifying the Deal Preferences Class ccccccsccesscesscesecesecnsecuseeaseasecacecaceeseenseeeneeeeeeeeeeaeceasenasenaeents 12 1 12 2 FEATURES OF THE SCREEN wessvcccciidscevsvsevetietsevecbevsayeWienieucetevesy cuore tuentcvaystusbusnescewaeye VESEN 12 2 12 2 1 Identifying a Deal Preference CLASS sviri n E N 12 2 122 2 EXCHANGE Rate TY Pec sce sescuntssesascetinsteaneses seavetcetuatsbn scene tearsh snes vsiicanetesuts EE Aa RE a EKA a EEEE 12 3 122 3 Brokerage AUOWED rires a e E E E TE E EE A E E E E E E NA 12 3 1224 Automatic MONEY Settlement tesenn eei e E E E EE EE E E E R 12 4 122 Eens on AUOW EM rerni e EE E E E e E E E E E E 12 4 12 26 Rekey REQUITCMICNIS isesi E E E EE E A EE E E T E 12 4 1227 Specifying Other Preferences scnis inii A EE E E Ei 12 6 13 SECURITY RESTRICTION CLASSES eseeessessroesesescecssoroeseseeceeerosoeseeeeoeeosoeseseseecssososeecesososseseeeseesosoesee 13 6 13 1 INTRODUCTION sieer e vzcoescssestassubcceseel seus OaE aE EE AAE Sa Soracadensececadisusundebavaneedeseactsesseseee 13 6 13 2 SPECIFYING THE SECURITY RESTRICTIONS cccccsccsssssssssssssesssssecsevsssssssscnsecesssecsesssseseessensesssessaseessaseess 13 2 13 2 1 Identifying a Security Restrictions Class cccccscsscsssssesecsseessesesseeseeseesecssesecasessesecaseeesaeeaeeseeaeeeenaeees 13 3 13 22 SCCUPIEY RESIICH ON si aks cas
163. 20 for SK location 1 and 40 for SK location 2 SK Location 1 Debit Interest Payable 8 333 20 60 25 Credit Purchase Interest 8 333 Debit Interest Payable 11 66 20 8 33 Credit Interest Receivable 11 66 Debit Income Memo 11 66 Credit Income Memo 11 66 SK Location 2 Debit Interest Payable 16 66 40 60 25 Credit Purchase Interest 16 66 Debit Interest Payable 23 33 40 16 66 Credit Interest Receivable 23 33 Debit Income Memo 23 33 Credit Income Memo 23 33 You have to maintain the accounting entries for the CPLQ and SSLP events keeping in mind whether you have set the Wipe Deal Purchase Event as Sale and Coupon or Sale For Capitalized Bonds purchase interest is wiped off at the time of coupon liquidation as part of the SPLP Security Purchase event You will need to maintain accounting entries for the same 11 14 ORACLE 11 2 12 Holdings Statement Statement of Holdings required You can indicate whether a statement of holding should be generated for portfolios associated to the portfolio preference class Check against this option to indicate that it is applicable to the class Leave it unchecked to indicate otherwise If it is applicable to the class you can indicate preferences for its generation Statement Frequency You can indicate the frequency with which a statement of holdings should be generated The frequency th
164. 2275 9 1 175 02 31 Mar Reval 9 25 250 2250 9 200 02 uatio n 4 Apr Buy 50 7 350 300 2600 8 666667 200 02 5 Apr Sell 300 9 2 700 0 0 0 0 02 Once the holdings are made to zero the history of Revaluation Loss is re set and the subsequent buy treated as ais a first buy Realized revaluation using the LOCOM method with the basis as Acquisition Cost is done only for settled deals 11 33 ORACLE Revaluation Frequency The frequency with which a portfolio should be revalued is specified as a portfolio preference Once you have indicated the basis and method for revaluation you can specify the frequency with which a portfolio should be revalued The revaluation frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Revaluation Start Day In the case of monthly quarterly half yearly or yearly revaluation you should specify the date on which the revaluation should be done during the month For example if you specify the date as 30 revaluation will be carried out on that day of the month depending on the frequency If you want to fix the revaluation date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the revaluation will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may b
165. 24 USD Discount to be accrued today 178 57 95 24 83 33 USD TAR ORACLE Now when the accrual process runs on the 30 of April only the unaccrued discount will be spread over the new period from 15 April 2003 to 30 November 2003 For the above deal Total discount to be accrued 1000 178 57 Discount already accrued 821 43 USD Number of days for which discount has to be accrued 30 apr 2003 14 apr 2003 1 17 days Total number of days for discount accrual 30 nov 2003 14 apr 2003 230 Discount to be accrued till date 821 43 17 230 60 72 USD Discount already accrued 0 Discount to be accrued today 60 72 USD Accrual of Redemption premium discount will be done based on the same procedure 19 2 13 Specifying Price Details You must specify the following price details for a security e The Initial Face Value e The Issue Price e The Redemption Price Initial Face Value This is the actual unit face value of the security you are maintaining as of the Issue Date This price is also referred to as the par value of the security Issue Price An issuer can offer a security at a premium or at a discount with respect to the par value on the Issue Date You can capture the offer price the purchase price or the Issue Price for a security that you are maintaining Note the Following e You must capture the Issue Price of Zero Coupon Bonds e The issue price of Zero Coupon Bonds must be lower than
166. 3 by User 02 4 SEREAS New user ID cannot be NULL 03 SEREAS Product code cannot be NULL 04 SEREAS Contract reference number cannot be NULL 05 SEREAS No Unauthorized Contracts exist for Reassignment for Product 1 06 SEREAS The Deal Reference Number is not valid for the Product Code selected 07 SEREAS FAILED in reassigning the deal to the new user 08 SE MA0220 Changing the Leg type will redefault the Preferences OK to Proceed ian ORACLE Error Code Message SE MA0221 Partial Release is not allowed for Bank Buy or Sell SE MA0222 Partial Release and Brokerage are not allowed for Customer Buy or Sell SE MA0223 Partial Release Brokerage and Forward Deals are not allowed for Withdrawal or Lodgement SE MA0224 Partial Release Brokerage Forward Deals Automatic Money Settlement and Rekey of Money Settlement Date are not allowed for SK to SK Transfer SE MA0225 Brokerage Forward Deals Automatic Money Settlement and Rekey of Money Settlement Date are not allowed for Block Securities SE MA0226 Input to Exchange Rate type field is Mandatory SE MA0227 Block deals not defined SE MA0228 Function Securities Repo Specific Returns False SE MA0229 No Positions maintained for this record SE MA0230 Bombed in Positions Check Function for Repo Block Deals SE MA0231 Failed to validate the Repo Exp
167. 3 5 Specifying Interest Accrual level You can opt to accrue interest at a position level or at a deal level e Position At the position level accrual happens for a combination of security and portfolio e Deal Matching Deal level interest accrual is done for every individual buy deal for the same combination of security and portfolio interest accrual at deal level is for Bank Portfolios only Deal Level Interest Accrual The interest accrual process pickups all the settled buy deals and pass accrual entries for each of them The deal level interest accrual will be done only for portfolios with the following costing methods e Deal Matching DM e First in First Out FIFO e Last in First Out LIFO Deal level interest accrual cannot be done for portfolios with Weighted Average Costing WAC method since it would not be possible to determine the deals for which interest accrual should be stopped Example P following buy deals for 1year EURODOLLAR Bonds S1 have been struck for the Trading Portfolio Leg Ref No Purchase date Deal No of units Deal 1 D1 1 January Buy 10 Deal 2 D2 2 January Buy 15 Deal 3 D3 5 January Sell 12 If P1 were maintained as a WAC portfolio it would not be known from which deal the 12 units of 10 Year RBI Bond are being sold It could be 6 units each from D1 and D2 or 12 units entirely from D2 Therefore for WAC portfolios interest accrual will be done
168. 34 27 ORACLE 34 15 Report on Customer Holdings of Share certificates This report provides details of customer holdings of share certificates You can generate this screen by using Securities Certificate screen To invoke the screen type SERPCERT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Securities Certificates Report For Report W Customer List ol d O All Customers O Selected Customers 34 15 1 Contents of Report The contents of this report have been discussed under the following heads Header The Header carries branch branch date user ID module from which the report has been generated date and time at which the report has been generated Body The following details are displayed Customer ID _ This gives the details regarding the customer ID Security This displays the security code Code roa This displays the certificate number o 34 28 ORACLE 34 16 Matched Unmatched Confirmation Message Report You can generate this report using the Matched Unmatched Confirmation Messages screen You can invoke this report screen by typing SERPMTCH in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The conten
169. 37 SE Contract put on hold successfully POQ0038 SE Enter Template ID POQ0039 SE Contract saved as a Template cannot be modified POQ0040 SE For Bank Portfolio and WAC costing method Accrue Premium flag PO0041 should have the same value as that of Accrue Discount flag SE Mandatory Field 1 is null PO0050 SE Location ID cannot be deleted as it is in use PO0051 SE For WAC Costing Method Redemption Premium is not allowed PO0052 SE For Non Accrual or Cash Asset Accounting Basis Premium Accrual PO0053 and Discount Accrual is not allowed SE For Accrual Asset Accounting Basis Premium Accrual or Discount PO0054 Accrual must be chosen SE Safe Keeping Locations are not defined Proceed PO0055 SE Security Restrictions screen is not visited Proceed PO0056 SE Role to Head mapping is not defined Proceed PO0057 SE Portfolio ID is not unique PO0058 SE Revaluation of unsettled positions is not allowed without the PO0059 revaluation of settled positions SE Withholding Tax Accrual is not without Interest Accrual PO0060 SE Record successfully Closed 31 74 ORACLE Error Message Code PO0061 SE Record successfully Reopened PO0062 SE Mandatory Fields Security Product Role To Head Class are null PO0063 SE Mandatory Fields Security ID Role To Head Class are null PO0064 SE Mandatory Fields SK Location SK Location
170. 5 1 805 2 000 2 83 651 3 651 1 846 2 000 3 85 539 5 539 1 888 2 000 ni Value of Bond Value of Bond in Discount Accrual by Discount excess of Purchase exponential method Accrual by Price straight line method 4 87 469 7 469 1 930 2 000 21 18 ORACLE ni Value of Value of Bond in Discount Accrual by Discount Bond excess of exponential method Accrual by Purchase Price straight line method 5 89 443 9 443 1 974 2 000 6 91 461 11 461 2 018 2 000 7 93 525 13 525 2 064 2 000 8 95 635 15 635 2 110 2 000 9 97 793 17 793 2 158 2 000 10 100 000 20 000 2 207 2 000 20 000 20 000 In case the redemption date is extended the system recomputes the DPRP amounts irrespective of the accrual method maintained for DPRP Discount Premium accrual will be completed till the extension date using the old redemption date However all the unaccrued Discount Premium will be accrued from the transaction date of the redemption date extension Subsequently YTM for all the deals will also be recomputed 21 19 ORACLE 21 5Specifying the Advices to be Generated The advices that can be generated for the events that occur during the life cycle of securities in a portfolio are defined for the product to which the portfolio is associated From the Portfolio definition screen click Advices button The advices screen is displayed Leg Advices Portfolio Id Description Event Details
171. 50 SE Unhandled exception in fn_rights_expiry BOD051 SE Are you sure you want start Corp Action Batch processing BOD052 SE Unhandled exception encountered while running Batch program BOD053 SE When Others of fn_populate_coupon_eod BOD074 SE When Others of fn_populate_cash_dvnd_eod BOD075 31 4 Error Codes and Messages for Deal Input 31 48 ORACLE Error Message Code SE For Securities Deal On line error code format is SE DONNNN where DO0000 NNNN is a running four digit number with left padded zeros Please insert the Error Codes you want and reserve it The Error Message cannot be greater than 255 characters Please do not use SE DO0000 as a Error Code SE Product code should be entered DOO001 SE Unable to generate reference number DOO0002 SE Trade date cannot be after today DO0003 SE Trade date cannot be after interest date DO0004 SE Interest date cannot be after delivery settlement date DOO0005 SE Delivery settlement date cannot be before trade date DOO0006 SE Security code should be entered DO0007 SE Market code should be entered DO0008 SE Deal quantity should be entered DOO009 SE Input price should be entered DO0010 SE Trade date should be entered DOO011 SE Delivery settlement date should be entered DO0012 SE Interest date should be entered DO0013 SE Trade date should be entered DOO0014 SE Broker co
172. 600 However since the outstanding Revaluation Loss remains at 200 profit to the extent of 200 is realized Therefore after this entry Revised Book Value 2 600 200 2 800 Break even Price 2 800 300 9 33333 The Outstanding Revaluation Loss after this entry is zero Accounting entries posted on 30 April 2002 Debit Credit Accounting Role Amount Indicator Dr LOCOM_REVAL_ASS 200 LOCOM_REVAL_INC Cr LOCOM_REVAL_INC 200 The Revaluation Profit has been recognized to the extent of accumulated Revaluation Loss Impact of Sell If all of the holdings are sold on any given date the trading profit and loss is computed on the existing break even price and the outstanding Revaluation Loss is made to zero In our example above if all of the holdings are sold on 5h April 2002 for 2 700 i e 300 units 9 a trading loss of 100 is sustained In case of a partial sale the Outstanding Revaluation Loss is reduced proportionately to the extent of the sale EES ORACLE Date Even Units Pri Net Holdings Book Break Out t ce considerati Value even stan on Price din Revaluation g Profit Rev Loss alua tion Los s 1 Jan Buy 100 10 1000 100 1000 10 0 02 31 Jan Reval 8 200 100 800 8 200 02 uatio n 2 Feb Buy 50 9 450 150 1250 8 333333 200 02 28 Feb Reval 8 5 25 150 1275 8 5 175 02 uatio n 3 Mar Buy 100 10 1000 250
173. ACCT Failed to delete for an event 007 SE ACCT Failed to authorize for the event 008 SE ACCT Failed to reverse all the leg entries 31 87 ORACLE Error Code Message 009 SE ACCT Failed to reverse all the position entries 010 SE ACCT Failed to reverse entry for an event 011 SE ACCT Class is not open 051 SE ACCT Class is not authorized 052 SE ACCT GL record status is not open 053 SE ACCT GL is not authorized 054 SE ACCT Class is not open 055 SE ACCT Class is not authorized 056 SE ACCT GL record status is not open 057 SE ACCT GL is not authorized 058 SE ACCT Class is not open 059 SE ACCT Class is not authorized 060 SE ACCT GL record status is not open 061 SE ACCT GL is not authorized 062 SE ACCT GL is not open 063 SE ACCT GL is not authorized 064 SE ACCT Failed to get accounting head 065 31 88 ORACLE H ORACLE 32 Annexure A Accounting Entries and Advices 32 1 Accounting Entries for Securities Module This section contains details of the suggested accounting entries that can be set up for the Securities module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise 32 2 Securities Events The following is an exhaustive list of events for portfolio type and customer buy sell type of securities products 32 2 1 Portfolio Type of Products
174. AND WARRANTS ccccccccccecececececececececececececececececececececececececececececececececesecececececececesecs 20 7 20 4 PROCESSING RIGHTS a a a a a a aE O a ORE 20 7 2041 Rights Tear Off surrcuninenineni a a E R E E aa 20 8 2042 Rights Exercise penino a E E T E S 20 8 2043 Warrants Tear Offerenn a E E E ES 20 8 20 4 4 ET ALONE DE AA 62 KY ET E EE EEEE E T EE EE EE E EE E E ETET 20 9 20 5 MAINTAINING RIGHTS AND WARRANTS EXPIRY DETAILS ccccccccecececececececececececececececececececececeeececeeeeesess 20 9 20 5 1 Specifying End of Trading Date ccsccccsccssesscessessesecssesecssesecnseeseeaecasesecaeesecsaeaceecaseeeeaeeneesesaaeaees 20 10 203 2 SEVOAENGLTALIV Gv e Pizacectbeswnuiabcdwcsedetedus Fobuswcawaus eds iuecedansede sabes ea e eE a E a a aaa a eas ESS 20 10 20 53 Processing Rights Expy Event ci vvcsecossesducveresvses shssveeconedudesones censsvders ob ei iara a EAK EEEE REE 20 11 20 54 Processing a Warrants Expiry Event ccccccccceceesseeceesceeecesecusecsecaeeeaeeeaeeeaeeeaeeeeeeseseeeeseensesnaeeaas 20 11 20 6 MAINTAINING SECURITY REDEMPTION DETAILS ccccccccecececececececececececececececececececececeeeeeeeeeeeeececeeeeeess 20 12 20 7 PROCESSING FOR SECURITY REDEMPTIONS ccccccececececececececececececececeeececececececececececececeeeeeceeecececececececsss 20 15 20 7 1 Redemption Processing based on Quotation TyPe scscsccsccsccssesscesecssesecseeescsseeseeseeseesesueeeeenaeeeeeeees 20 16 20 7 2 End of T
175. ASS sccccesesssesssseesseseeesessesesssesssesssneseseneesess 8 5 8 3 1 The Customer Category Restrictions Class SCreen neneseseeseeeseeeessereereerrriesrsrreesresrereeresrensererresesee 8 6 9 THE ACCOUNTING ROLE TO HEAD MAPPING CLASS eesesesesseessoesesesoecesosoeseseeecoeroroesesecoecesosoeseseeeee 9 7 9 1 INTRODUCTION cioen teraria a EE E a I E E E NE E E EE 9 7 92 GENERAL LEDGER TYPES croesir reene sates EEEa EE nE S EETA E EE EE EE N EE 9 2 9 3 THE ACCOUNTING ROLES AND HEADS CLASS cccscsssssssessssecsesecseeesesenesassesesessseessessesesssensessssssesenssesensees 9 2 9 3 1 The advantage of building Accounting Roles and Heads classes n os 9 2 9 3 2 Maintaining an Accounting Roles and Heads C1ASS sccsccssesscssssseescesecnsesecuseesesaeeseesesaceescnseenenaeenes 9 3 9 3 3 Mapping Roles to Head sic ccccisiceaseideliitescecage piidasekaesig vate dau bes iogspioianasacastetenes dus dapeecevteaacdinnenenueetecss 9 4 OiA THE EVENT CLAS S ieor esae E EEE ty osasunasvevsecsssues va sive od E snipe as enenserseniy sues Vacs eeetenes 9 5 9 4 1 Maintaining an Event Accounting Entries and Advices C1ASS c ccccsccesceseceteceseeneereeeseeeeeesseeneensees 9 5 9 4 2 Specifying the Advices to be Generated s ccesccscssscssessesecssesecnseeseesecseesecaeesecsseesesaeeseesecaeesesaeeeeneenaeaes 9 8 10 DEFINING SECURITY PREFERENCE CLASSES eseseeseseseccesosoeoesececcesosoesesecesoesoroeseseseesesoeoeeeoesosoesee 10 8 10 1 INTR
176. Accrued Credit Int_OFF 0 Debit Int_OFF 10 Bought interest Credit Int_BOT 10 Debit Bridge Sell 15 Accrued int till 15 Feb Credit Int_RCPY 15 Debit Int_Memo 15 Credit Int_Income 15 Thus the balance in both the Interest Bought and Interest Offset is zero Had you sold the security on 15 Jan 2003 in the first coupon itself Sold Interest 15 During SSLP Debit Bridge Sell 10 the difference between Sold interest and interest Accrued Credit Int_OFF 10 Debit Int_OFF 10 Purchase Interest Credit Int_BOT 10 Debit Bridge Sell 5 Accrued interest till 15 Jan Credit Int_RCPY 5 Debit Int_Memo 5 Credit Int_Income 5 The option of adjusting purchase interest at Sale is applicable only for purchase interest in the CUM period You must handle adjustments for interest exchanged in the EX period operationally Coupon liquidation takes place for a Portfolio Security SK Location combination Therefore for adjusting deal level purchase interest at the event CPLQ the purchase interest of all deals contributing to the position are considered proportionately ale ORACLE Example You have entered two deals Buy deal 1 Purchase Interest 10 SK Location 1 Buy Deal 2 Purchase Interest 15 SK Location 2 At CPLQ the total coupon amount of 60 is apportioned as
177. BRIDGE GL WARR_INTR_VALUE Debit Advices No advices allowed for this event WELL Warrants Security Exercise Processing Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Credit SEC DISC TBACRD DEAL_DISCNT_AMT Debit SEC BRIDGE GL DEAL_NOMINALAMT Debit WARRS ASSET GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_PREMIUMAMT Debit SEC PREM TBACRD DEAL_PREMIUMAMT Credit RES SEC ASSET WARR_INTR_VALUE Debit WARRS ASSET GL WARR_INTR_VALUE Credit Advices No advices allowed for this event 32 31 ORACLE 32 4 3 20 32 4 3 21 32 4 3 22 Accounting Entries WENL Exercise of Warrants for New Equity Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Debit SEC DISC TBACRD DEAL_DISCNT_AMT Credit RES SEC ASSET DEAL_NOMINALAMT Debit SEC BRIDGE GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_PREMIUMAMT Credit SEC PREM TBACRD DEAL_PREMIUMAMT Debit Advices No advices allowed for this event Accounting Entries WXLL Expiry of Un Exercised Warrants Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Credit SEC DISC TBACRD DEAL_DISCNT_AMT Debit SEC BRIDGE GL DEAL_NOMINALAMT Debit WARRS ASSET GL DEAL_NOMINALAMT Credit SEC BRIDGE GL D
178. Bridge GL 200 a Interest accrued on EOD of 26 Jan for the period from 11 Jan to 26 Jan 320 USD 16 days 20 units 1 USD The following entries will be passed for this amount as part of event IACR amount tag IntComp_IlA Dr IntComp_Rcpy Interest Receivable 320 Cr IntComp_IA Accrued Interest 320 a On 27 Jan you decide to sell 15 units at SOEX amount of 60 This is the sold interest after the Ex Date Record Date i e the interest on 15 units for the period from 27 Jan to 30 Jan The following entries will be passed for this amount as part of event SSLP amount tag IntComp_SOEX Dr IntComp_Rcpy Interest Receivable 60 Cr Sec Bridge GL Intcomp_SOEX 60 a Interest accrued on the remaining 5 units for the same period i e from 27 Jan to 30 Jan 20 USD 5 units 1 USD 4 days Therefore Interest accrued on EOD of 30 Jan 320 20 340 USD The following entries are passed for the 5 units at a daily frequency for 4 days Dr IntComp_Rcpy Interest Receivable 5 Cr IntComp_Repy 5 a The total interest receivable 200 320 60 20 600 USD The Coupon Liquidation event will pass an entry of 600 USD 20 units 1 USD 30 days Dr Payable 600 C IntComp_Rcpy 600 Therefore at the end of the Coupon Liquidation the net balance in the IntComp
179. C COUPON RECV Securities Coupon Receivable GL SEC COUPON PAY Securities Coupon Payable GL SEC BRIDGE S Securities Bridge Sale SEC BRIDGE PUR Securities Bridge Purchase DEAL_PREMIUM Deal Premium DEAL_DISCOUNT Deal Discount DEAL INTEREST BOUGHT Deal interest bought ACCRUAL OF PREM EXP MEMO Accrual of Premium Expense Memo ACCRUAL OF DISCT INC MEMO Accrual of Premium Income Memo ACCRUAL OF INT INC MEMO Accrual of Interest Income Memo INTCOMP_OFF Purchase Interest Offset GL created for each interest component to indicate routing of purchase interest INTCOMP_PUADJ Difference between Sold Interest and the Interest Accrued In the first coupon after purchase this tag will be equal to Purchase Interest In subsequent 32 9 ORACLE Accounting Role Description coupons this tag will have a value of 0 as the Sold Interest would be equal to Interest Accrued LOCOM_REVAL_INC Profit on LOCOM revaluation if LOCOM basis is Acquisition Cost LOCOM_REVAL_ASS Corresponding asset for LOCOM revaluation on Acquisition Cost basis SEC PREM EARNED Premium Earned SEC PREM TBACRD Premium to be Accrued SEC INT ADJ EIM Adjustment Receivable for Par deals SEC BRIDGE GL EIM Adjustment Income for Par deals SEC DISC TBACRD Discount to be Accrued SEC DISC EARNED
180. CLE 34 10 Confirmed Unconfirmed Report You can generate confirmed unconfirmed report by using the Securities Confirmed Unconfirmed Deals Report screen To invoke the screen type SERCUCDL in the field at the top right corner of the Application tool bar and click the adjoining arrow button Customer O Portfolio Counterparty Portfolio Specify the following details Customer Portfolio Indicate whether the reports should be generated for a single customer or for all customers in a portfolio Counterparty Specify the details of the counterparty From Specify the counterparty from which the transactions are initiated To Specify the counterparty to which the transactions are targeted Portfolio Specify the details for the portfolio From Specify the portfolio from which the transactions are initiated 34 17 ORACLE To Specify the portfolio to which the transactions are targeted 34 18 ORACLE 34 10 1 Contents of Report The contents of this report have been discussed under the following heads Header The Header carries the title of the report information on the branch code branch date the ID of the user who generated the report the date and time at which it was generated the modules covered in the report the customer of transactions covered in the report and portfolio of transactions covered in the report Body The following details are displa
181. CR Total Debit Premium To Be Accrued GL Premium Accrued on Sold Units DEAL_PREMIUM Deal Premium SEC_PREM_TOTACCR Total Credit GL Premium Accrued on Sold Units SEC PREM PAID Sec Premium SEC_PREM_TOTACCR Total Debit Paid Expense GL Premium Accrued on Sold Units ACCR_PRM_XP_MEM Accrual of SEC_PREM_TOTACCR Total Credit Premium Expense Memo GL Premium Accrued on Sold Units If Interest discount premium has been accrued during the previous year the entries will have the amount tags with suffix _PY to indicate that they are passed against the Previous Year Adjustment GL During accounting for the amount tags with suffix _ PY accounting entries are passed against the Previous Year Adjustment GL maintained in the Chart of Accounts Accounting Role Amount Tag Debit Credit Indicator For Interest SEC BRIDGE SEL INTCOMP_PUAD4J This tag should be Debit Security Bridge GL assigned the difference between Sold SALE Interest and Interest Accrued INTCOMP_OFF INTCOMP_PUAD4J This tag should be Credit Purchase Interest assigned the difference between Sold Offset GL Interest and Interest Accrued INTCOMP_OFF INTCOMP_PUCMA Purchase Interest Debit Purchase Interest Offset GL INTCOMP_BOT Deal INTCOMP_PUCMA Purchase Interest Credit Purchase Interest SEC BRIDGE SEL INTCOMP_TIAC Interest Accrued Debit Security Bridge GL SALE INTCOMP_
182. Cannot create a new component as all the authorized class codes have PR0013 already been used 31 69 ORACLE Error Message Code CS All the other authorized class codes have already been used PR0014 CS Mandatory field Scheme is null PR0015 CS Mandatory field Component is null PR0016 CS There are no authorized tax schemes PR0017 CS Product Preferences will have to be redefined Proceed PR0018 CS Mandatory field Rate Type is null PR0019 CS Format is not correct The correct format is PR0020 CS Customer ID must be specified PR0021 CS Security ID must be specified PR0022 CS Portfolio ID must be specified PR0023 CS The Scheme has been authorized Only redefault is allowed PR0024 CS Mandatory Field Default Rate Code is null PR0025 CS Mandatory Field Default Rule is null PR0026 CS Mandatory Fields Rule Settlement Ccy are null PR0027 CS The Amount Tag 1 does not have corresponding components defined PR0028 CS There are no details to be maintained for Customer Portfolio PR0029 CS Mandatory Field 1 is null PR0030 31 70 ORACLE Error Message Code CS Mandatory Field Product Code is null PR0031 CF Default Rate should be within the Maximum and Minimum Rate CL0010 specified CF Floating rate type cannot be null when rate typ
183. Code Every security that you deal in must be associated with a Price Code A Price Code identifies the price of a security in a specific market To ascertain the value of a security in a market with reference to the prevailing rates you need to constantly revalue the security When defining a security specify the Price Code that you would like to use to revalue the security The value of a security in a market will be determined with respect to the current rates for the corresponding price code 19 2 17 Indicating the Collateral Type A customer can offer you securities as collateral against a liability In the Central Liability module of Oracle FLEXCUBE you can categorize different types of securities into Collateral Types For example Government Bonds can be defined as one type of collateral and Corporate Bonds as another type When maintaining a security specify its Collateral Type ca ORACLE 19 2 18 Specifying the Market for Revaluation You must indicate the market which will determine the number of spot days to be used for arriving at the revaluation date while revaluing the security using the effective interest method 19 2 19 Specifying the Yield Calculation Parameters for a Security For each Security the Yield Calculation Parameters are defaulted from the market of issue depending on whether it is a Bond or a T Bill You will be allowed to modify these details for a specific Security Click Yield button in the Se
184. Customer Sell or Bank Sell Customer Buy type of deals the system will calculate the KEST for the relevant Customer leg This is displayed as part of Net Consideration If the deal has customer buy and sell legs then both the customers involved in the deal should necessarily have the same KEST type If the KEST types are different you cannot save the deal This restriction is to have same net consideration amount for both the legs 22 3 1 2 Viewing the forward profit or Loss in a Deal If you are processing a forward deal you can view the forward profit that you have made or the loss that you have incurred in the deal The following forward profit or loss details are displayed e The deal price e The spot price aa ORACLE The deal spot date The Forward profit or loss amount and the frequency in which it is accrued is determined by the forward profit or loss preferences specified for the portfolio for which the deal is done Click Exit button to exit the screen you will be returned to the Securities Deal Input screen 22 4 Specifying Details of the Parties Involved in a Deal The Parties screen can be used to record details related to all the parties involved in the deal The advices and messages that are generated for a deal will be sent to the concerned parties based on the details you specify in this screen Click Parties button from the Securities Deal Input screen to indicate the parties involved in the dea
185. Definition Click add icon to display the list of Security Product Code through its option list which has been maintained under Securities Security Product Definition You have to select one which you want to move to Allowed Disallowed list Description It is the Description of Security Product Code that you choose to Allowed Disallowed list Exempting specific securities from a list You can exempt specific securities involving a securities product that you have listed in the Allowed Disallowed restrictions list an ORACLE 13 2 3 Security Access Security Identification It is the Internal Security Id for which Security Product has been maintained under Securities Security Product Definition Product It is the Security Product Code that has been maintained under Securities Security Product Definition Security Description It is the description of Security Identification Click add icon to display the list of Security Ids through its option list which has been maintained under Securities Security Product Definition You can choose to move them to the Allowed Disallowed List Example You have maintained a Securities Product for Short Term Zero Coupon Bonds You assigned the product a code SZC1 You have entered five zero coupon bonds under this product with the following Security IDs SEC01 SECO2 SEC03 SEC04 and SECO5 You are maintaining a Securities Restrictions Class SE_CUS_PR1 You include SZC1 in the Allowed li
186. Discount in this case the price is quoted on the basis of the discount percentage at which the security is bought or sold Premium in this case the price is quoted on the basis of the premium percentage at which the security is bought or sold Premium the price in this method is quoted on the basis of the premium at which the security is bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold Discount the price is quoted on the basis of the discount at which the security is bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold YTM the price is quoted on the basis of its yield to maturity In Oracle FLEXCUBE this price quotation method applies only on Zero Coupon Bonds The yield on a discounted instrument is measured by its yield to maturity YTM YTM is the yield on a security calculated from the purchase date to its maturity The YTM changes with the market price In case the market price increases above the straight discounted price YTM would decrease and vice versa Using this quotation method the price is calculated as follows Face Value Purchase price Days in a Year YTM Price Days to maturity The deal amount is determined based on the deal quantity and the price quotation method Irrespective of the price quotation method used the net result is always the sa
187. EAL_PREMIUMAMT Debit SEC PREM TBACRD DEAL_PREMIUMAMT Credit SEC RLZD LOSS WARR_INTR_VALUE Debit WARRS ASSET GL WARRS ASSET GL Credit Advices No advices allowed for this event Accounting Entries IACR Securities Coupon Interest Accrual Accounting Role Amount Tag Dr Cr Indicator 32 32 ORACLE Accounting Role Amount Tag Dr Cr Indicator SE_FL_INT_IC SE_FL_INT_IAC Credit SE_FL_INT_RCPY SE_FL_INT_IAC Debit SE_FL_INT_IX SE_FL_INT_IAX Credit SE_FL_INT_RAPA SE_FL_INT_IAX Debit SE_FL_INT_Aul SE_FL_INT_JIA Credit SE_FL_INT_RCPY SE_FL_INT_JIA Debit SE_FX_INT_IC SE_FX_INT_IAC Credit SE_FX_INT_RCPY SE_FX_INT_IAC Debit SE_FX_INT_IX SE_FX_INT_IAX Credit SE_FX_INT_RAPA SE_FX_INT_IAX Debit SE_FX_INT_Aul SE_FX_INT_JIA Credit SE_FX_INT_RCPY SE_FX_INT_JIA Debit Given below is the sample accounting entries that will be posted if you use the alternative accounting roles for this event Accounting Roles Standard Amount Standard Dr Cr Alternative Tags Alternative Indicat or Accrual of Int Rec RCPY Standard Standard Debit Intcomp_RCPY can be INTCOM used PIA Accrual of Int Inc Memo Alternative Standard Credit INTCOM P_IA Advices No advices allowed for this event 32 4 3 23 CPIN Coupon Init Accounting Entries Accounting Rol
188. Every SGL advice triggered by the system is tracked by a unique form number serial number You can maintain the form numbers in the SGL Maintenance screen You can invoke the SGL Maintenance screen by typing SEDSGLMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button SGL Maintenance SGL Maintenance Form Number Status Deal Reference Trade Date Transaction Date Security ld Input By Authorized By Modification Authorized exi Date Time Date Time Number Open In this screen you can specify the form numbers either as a range or choose to enter the numbers manually Click on i in the tool bar to specify a new form number At any point of time the status of a form number will either be e U Used oe ORACLE e N Not Used e Cancelled C Note the Following e By default the status of a form number is N Not Used e The form numbers will be available for use only after you save and authorize the record Assigning a form number to an SGL advice Whenever a deal involving a security with form type SGL is being processed the system automatically assigns the next available unused form number to the deal After a number is assigned to a deal the system displays the following information corresponding to the form number in the SGL Maintenance screen Status The status will be updated to U Used Deal Reference
189. Forward Safe Keeping Location Safe Keeping Account From Leg Safe Keeping Defaults To Leg Safe Keeping Defaults Safe Keeping Location Safe Keeping Location Safe Keeping Account Safe Keeping Account When defining a product you can specify preferences for the product by either of the following methods e Associating the product with a Deal Preference Class e Defining these preferences specifically for the product To associate a deal preference class to a product click Default From Class button the Deal Product Preferences screen A list of the deal preference classes that you have defined specifically for Securities module of Oracle FLEXCUBE will be displayed Choose the deal preference class to be associated with the product from the option list All the details defined at the class get defaulted here In addition you can specify certain attributes for the deal Consider Brokerage for Disc Accrual Check this option to indicate whether the brokerage component is to be considered for discount accrual on a constant yield basis Gris option is enabled only if you have allowed brokers for the deal ne ORACLE Default fields From and To leg Safe Keeping details For detailed information on the other attributes please refer to the chapter called Defining a Deal Preference Class 17 2 1 Specifying User Defined Fields In the SD Product Definition screen click Fields button to invoke the Fi
190. GL DEAL_DISCNT_AMT Debit SEC DISC TBACRD DEAL_DISCNT_AMT Credit RES SEC ASSET DEAL_NOMINALAMT Debit SEC BRIDGE GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_PREMIUMAMT Credit SEC PREM TBACRD DEAL_PREMIUMAMT Debit Advices No advices allowed for this event Accounting Entries RXLL Expiry of Un Exercised Rights Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Credit SEC DISC TBACRD DEAL_DISCNT_AMT Debit RIGHTS ASSET GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_NOMINALAMT Debit SEC BRIDGE GL DEAL_PREMIUMAMT Debit SEC PREM TBACRD DEAL_PREMIUMAMT Credit RIGHTS ASSET GL RGHT_INTR_VALUE Credit SEC RLZD LOSS RGHT_INTR_VALUE Debit Advices No advices allowed for this event Accounting Entries WRLL Warrants Security Tear Off Processing Accounting Role Amount Tag Dr Cr Indicator 32 30 ORACLE 32 4 3 18 32 4 3 19 Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL WARR_INTR_VALUE Credit WARRS ASSET GL WARR_INTR_VALUE Debit Advices No advices allowed for this event Accounting Entries WROL Warrant Detachment from Parent Security Accounting Role Amount Tag Dr Cr Indicator SEC ASSET GL WARR_INTR_VALUE Credit SEC
191. H THE MODULE cccccsssscsssssesesensecsseseseeessavssssessssssesesesessevanssasossusesessnessesseasesanss 3 5 3 4 1 Building Classes ingnean eiie Shak E E EE NE EE ET a 3 5 3 4 2 Defining P roductsSsicsiminineie ne Soak bate Son A E EE NE E T E E ate tee 3 6 3 4 3 Handling Interest Charge and Tax components osessseseseseeseeesseresrssrreresrsrrerrsresrererereresresereresesee 3 7 3 4 4 Building a Transaction Tax SChEmMe w cccccsccsssssssscsseescsseeseusenseseeeseeseesecasesecseeesceseeeesaesaeesesaeeeeseaseeeeaees 3 8 3 4 5 Building an Issuer Tax Scheme isiin E vate Hagin tyes E N ue dyad vane deeveisn 3 9 3 4 6 Handling brokera tenanan estes tak hs Seater a eho eas toned ad Sees Goa ntiahbae E dane 3 9 3 4 7 Tracking TAMAS iio anann Bal Pace bac E sb bicedgeS tee Hel A 3 9 3 4 8 WOTLIMG DCAIS sien e cecntdesesunptas E E AE E E E E E E R o a 3 10 3 4 9 Querying the system for Cetails cescsscescesecssessesseesesssecsesecacesecseeasesecaeecesasenesaeeasesesacessesesenesasenseas 3 10 4 GENERAL MAINTENANCE wu essscssssccsesesescnsscccncscescscsnssssensssnsneesesssssnsssssnessssnessossscsossssssessnsncesossossosees 4 1 4 1 INTRODUCTION iirinn gs ccastsccccvevbesscestoces cesta E EEEE a E EEEE E EE 4 1 4 2 MAINTAINING BANK PARAMETERS lt scccicsaceccossscecesesncoccosescessedaeescuscecesascnssessteveescsdeouesescbacercoveoaes ievenevcests 4 2 4 2 1 Maintaining Deal Products siiani ER E E S 4 3 4 2 2 Maintaining Nominal Based Yield Compu
192. Heldring en Pierson Address 45 28 Hanover House Coopers Avenue Amsterdam Holland Safekeeping Account 90568 32 Cash Account 386098 24 27 11 ORACLE Our Reference 000SSPT980070021 Receiver s Custodian Name Dresdner Bank AG Frankfurt Address DRESDEFF Deliverer s Custodian Name Deutsche Bank AB Frankfurt Address DEUTDEFF Other Information Please acknowledge the receipt of this Trade Confirmation Message and affirm the above trade confirmation In case of any discrepancies please revert back to us immediately Please always quote Our Reference in all further correspondence with respect to above securities market side trade confirmation Thanking you For Goldman Sachs amp Company New York USA 27 2 3 Securities Receive Free Instruction ANZ 70562 07 Jan 1998 ANZ Banking Group Lid New York USA 882 Meikel Towers 9 Avenue Park Street Melbourne Australia Sub Our Instruction to Receive Securities Free of Payment Bie ORACLE Kind Attention Mr Gerry Smith Custodial Officer Securities Department Dear Sir Madam Please arrange to receive the securities free of payment as per our instructions shown below Our Reference 000SSPT980070021 Securities Identification ISIN AUDBONDWAG02 Western Australia Gold Mining Bonds Trade Date 02 JAN 1998 Place of Trade
193. ING COUPON INTEREST c ccscesceseccsesesssesscseeescsseeeseseseuesesseseeseeeangs 19 27 19 4 UPLOADING SECURITY INSTRUMENTS FOR AMENDMENT cccssccscssesssesecssescsesescsseeesesecsuesessesseeneeseangs 19 32 19 5 BULK UPLOAD SECURITY INSTRUMENTS amp MARKET SECURITY PRICE c ccccscssesssesesssesecseseseneeeesees 19 33 19 5 1 Specifying Contract Interest Details cceccccceeccesecesecesecnsecsseeseeeseesseeseeeseecaeeseeeeeeeeessaesnaesnaeeaeens 19 33 ORACLE 20 MAINTAINING AND PROCESSING CORPORATE ACTIONS csssssssssessessssessessesessessesesserees 20 35 20 1 INTRODUCTION 33 3355 csoecestsesbsaseovedtespseesbadsosesesspenbenseeststonsssubvanss esters epsnbsencgeee sebessebvaisacsessesnsebeoaebeversoasbebs 20 35 20 1 1 Stages in the Processing of a Corporate Action Event ccccccscceccescesscesecesecnseceeeseeessesseesseeseeeaees 20 35 20 2 DEFINING RIGHTS AND WARRANTS cccccececececececececececececececececececececececececececececececececececececececececesececeeeeeeess 20 2 20 2 1 Indicating Rights Ratio and Rounding Fractions 1 sccccccsceesseesseeseeeeeeeeceeecesecusecusecsecseceeeaeeeneees 20 5 20 2 2 Specifying Event Narrative 0 cccccsccesscesscesecesecesecnsecnaecaaeeaaeeasecscesseeseeeseeesesesesaesaesnaecnaeenasensenaeens 20 6 20 2 3 Saving Rights Warrants RECOrd scsccssesssssesscesecssesecnsesncsseeseesecseeseesecseesecaaeeeesaeesesaecseeseeaeeeeeaeeneeees 20 7 20 3 PROCESSING RIGHTS
194. In case of quantity redemption the nominal value held in a security is redeemed by a specific percentage on a date different from the maturity date The face value of the security is reduced by the percentage you specify The total number of units held in the security remains unchanged Example If you are holding 10 units of a security of face value 1000 USD then after a quantity redemption of 30 your holdings will become 10 units at a face value of 700 USD each When you insert a redemption schedule the redemption price of the last schedule is adjusted Example You have initially set up a security for 100 redemption on maturity at a price of 1 200 USD The face value of the security is 1 000 USD Now you specify a 30 redemption schedule at 360 USD The system changes the redemption schedule FROM the original 100 at 1 200 USD TO 30 at 360 USD and 70 at 700 USD You will have to unlock the Securities Corporate Action Maintenance Redemption screen and amend the redemption price for the last schedule in this case to 840 USD if you wish to maintain the same total redemption premium You can however change the redemption price of the last schedule to any value that you desire When a new redemption schedule is maintained discount premium accruals are completed up to the event date using the old yield The YTM re computation is done as of the event date 20 6 1 2 Specifying Back dated Redemption Schedules You can ins
195. Indicator SEC BRIDGE GL iccfeomp01_SOCM Dr iccfecomp01_RCPY iccfcomp01_SOCM Cr iccfecomp01_RCPY iccfcomp01_SOEX Dr SEC BRIDGE GL iccfcomp01_SOEX Cr For the Event IACR Accounting Roles Amount Tags Debit Credit Indicator iccfcomp01_RCPY iccfcomp01_IA Dr Iccfcomp01_ iccfcomp01_IA Cr For the Event CPLQ Accounting Roles Amount Tags Debit Credit Indicator PAYABLE iccfcomp01_ILIQ Dr iccfcomp01_RCPY iccfcomp01_ILIQ Cr At the end of the coupon liquidation event CPLQ the balance in the interest receivable head iccfeomp01_RCPY would be zero The following example will illustrate this Example The following deal details are available e Coupon Period 1 January 2003 to 30 Jan 2003 e Previous Coupon Date PCD 1 January 2003 e Next Coupon Date NCD 30 January 2003 e Ex Date 26 January 2000 the issuer will pay interest to the holders of the securities as on the Ex Date or the Record Date e Interest amount 1 per day per unit e Accrual Frequency Daily Now on 10 Jan you buy 20 units of a bond S1 at PUCM amt of 200 i e the interest accrued for the period 1 Jan PCD to 10 Jan will be tracked as a receivable from the issuer of the units 200 20 1 10 ORACLE The following entries would be passed as part of event SPLP amount tag IntComp_PUCM Dr IntComp_Repy Interest Receivable 200 Cr Sec
196. LEXCUBE each product created is identified by a unique four character code called a product code You can follow your own convention for devising this code however one of the characters of the code should necessarily be a letter of the English alphabet The product codes maintained in the Deal Product Definition screen are picked up and displayed in the picklist available Deal Reference This is a system generated deal reference number This number is generated using the Branch Code Product Code Julian date and running serial number combination The number cannot be changed ke ORACLE User Reference You can enter a reference number for the securities transfer The securities transfer will be identified by this number in addition to the Deal Reference No generated by the system This number should be unique By default the Deal Reference Number generated by the system will be taken as the User Reference Number Security Code You can indicate the code of the security involving the product for which SK location change details are being defined If it is security of bond type with series you are required to indicate the series for which the transfer is being initiated Once you specify the security code the description of the code will be picked up and displayed in the adjacent field Security Series If it is security of bond type with series you are required to indicate the series for which the transfer is being initiated
197. LIFO In this method of cost accounting the securities that have been bought last by a portfolio would be sold first In this case the cost of the securities that have been sold would be 96 Total cost price of the securities sold 96 arrived at thus 9650 for 100 units and 4800 for 50 units Total sale proceeds 14550 for 150 units Realized profit 100 The remaining securities would be held at gt 50 remaining out of deal B 96 gt 100 remaining out of deal A 95 Pa ORACLE First in first out In this case the securities that have been bought first by a portfolio would be sold first In this case the computation of accrued interest would remain the same but the cost of the securities that have been sold would be 96 Total cost of the securities sold 96 arrived at thus 9500 for 100 units 4800 for 50 units Total sale proceeds 14550 for 150 units Realised profit 205 The remaining securities would be held at gt 50 remaining out of deal B 96 gt 100 remaining out of deal C 96 5 Deal matching In the case of deal matching you can indicate against which of the earlier buy deals the sell deal is to be matched Thus the realised profit would change depending on the deals selected as the matched deals We will consider one possibility but in reality the number of combinations is infinite Match 150 sold as 50 to each of the buys
198. L_PROFIT Securities Forward Profit SEC_ADJDEAL_AMT Securities Adjusted Deal Amount SEC_DEAL_AMOUNT Securities Deal Amount TBD_WHT_SELL T Bill Discount Tax Sell ACCRUED_RDPREM Accrued Redemption Premium Amount CSH_DVDEND Cash Dividend Amount CSH_DVDEND_EDIS Cash Dividend Expense for DIBR CSH_DVDEND_EINI Cash Dividend Expense for INIT CSH_DVDEND_ELIQ Cash Dividend Expense for LIQD CSH_DVDEND_ICOL Cash Dividend Income for COLL CSH_DVDEND_IINI Cash Dividend Income for INIT CSH_DVDEND_ILIQ Cash Dividend Income for LIQD DEAL_DISCNT_AMT Securities Deal Discount Amount DEAL_NOMINALAMT Securities Deal Nominal Amount 32 3 ORACLE Amount Tag Description DEAL_PREMIUMAMT Securities Deal Premium Amount FWD_DEALEXP_ACR Sec Forward Deal Expense Accr Amt FWD_DEALINC_ACR Sec Forward Deal Income Accr Amt FWD_DEAL_LOSS Securities Forward Deal Loss Amount FWD_DEAL_PROFIT Securities Forward Deal Profit Amt HLDG_LO_MTM_EXP Sec Long Holdings MTM Reval Expens HLDG_LO_MTM_INC Sec Long Holdings MTM Reval Income HLDG_MTM_EXP Sec Net Holdings MTM Reval Expense HLDG_MTM_INC Sec Net Holdings MTM Reval Income HLDG_RL_MTM_EXP Sec Long Holdings MTM Realized Reval Expense HLDG_RL_MTM_INC Sec Long Holdings MTM Realized Reval Income HLDG_RS_MTM_EXP Se
199. Levying Transaction Charges on a Deal For each leg of the deal you can specify the charges that you levy Charges are applicable only for customer legs of a deal customer buys customer sells lodge withdraw and block securities The characteristic feature of a charge is that it is always booked in advance and is not accrued as a charge is collected only when it is due To recall you have defined the attributes of a charge by defining a Rule A rule identifies the basic nature of the charge You have further defined a Charge class where you have enriched the attributes of a rule We shall refer to these classes as components Each charge component in turn is linked to a deal product All the charge components linked to a product are defaulted to the deals associated with it Thus each time you enter a deal you need not specify when and how charges should be collected However while capturing the details of a deal you can choose to associate a component to the deal Further you can modify some of the attributes defined for the applicable component aes ORACLE From the Securities Deal Input screen click Charges button The Contract Charge Details screen is displayed 4 Charge Detail Web Page Dialog p x Contract Reference Number CHOCBCS001850009 Association Application Liquidation Association O Creation Event Sequence Number Component Component Description Rule Consider as Discount Waiver Acc
200. Location to Account mapping already exists PO0012 SE Failed to copy the contract PO0014 SE Security Allowed flag can t be changed if Security ID is null PO0016 SE Contract was input by 1 Cannot be deleted PO0017 SE Cannot delete a once authorised record PO0018 SE Record successfully deleted 31 72 ORACLE Error Message Code PO0019 SE Are you sure you want to close the contract PO0020 SE User Reference No already exists PO0021 SE Contract Reference number not generated Nothing to be saved as a PO0022 Template SE Input Counterparty PO0023 SE Input Currency PO0024 SE Enter the Product Code PO0025 SE Safe Keeping Location to Account mapping not maintained for this PO0026 portfolio SE Contract Reference Number does not exist for this portfolio PO0027 SE Contract is already saved as a template PO0028 SE Contract shall be put on HOLD status PO0029 SE Enter Template Description PO0030 SE Duplicate Template ID encountered PO0031 SE Pickup failed PO0032 SE Unauthorized record cannot be unlocked PO0033 SE Unauthorized record cannot be closed PO0034 SE Failed to copy the portfolio security restrictions PO0035 SE Referral Failed 31 73 ORACLE Error Message Code POQ0036 SE Unauthorized record cannot be reopened POQ00
201. Main Preferences screen Security Portfolio Definition Product Code Description F Contract Main Main Preferences Detail Preferences Premium Discount Revaluation of Positions Revaluation of Settled Positions Revaluation of Unsettled Positions Accrue Premium Accrue Premium v Accrue Discount Accrue Discount Revaluation Level Accrual Method Revaluation Method Accrual Frequency Revaluation Frequency Accrual Start Day Revaluation Start Day Accrual Start Month Revaluation Start Month Redemption Premium C Realized Revaluation C Accrue Redemption Premium Revaluation Method Accrual Method LOCOM Basis Accrual Frequency Revaluation Frequency Accrual Start Day Revaluation Start Day Role To Head SK Location Security Restrictions Advices input By Date Time Date Time Contract Status DOC1 Authorized By The Portfolio Detail preferences screen Preferences that involve accounting entries defined for the product cannot be changed Portfolio Id Portfolio Reference _ Fund Identity Portfolio Identification Portfolio Reference Fund Identity Limits Tracking Bonds Market Value Equities Market Value Rights ma i Warrants Market Value Treasury Bills Market Value M Forward P L Accrual Forward P L Accrual Accrual Method Accrual Frequency Accrual Start
202. No The reference number of the deal to which the form number is linked Trade Date The Value Date of the deal Transaction Date The actual date when the deal was captured in the system Security Id The security the Security Code specified at the time of capturing a deal involved in the deal sro You are not allowed to close or delete a record with status Used or Cancelled However you can to delete an unused form number before authorization If you reverse a deal for which an SGL advice has been generated the system displays an over ride saying that the SGL advice for the deal has already been generated If you say Yes to the over ride the system updates the status of the form number to C Cancelled in the SGL Maintenance screen After a form number is assigned to a deal you cannot reuse the number even on reversal of the deal associated with it i ORACLE 31 Error Codes and Messages for Securities 31 1 Error Codes and Messages Error Code Message SE MAO0001 New user and current user must be different SE MA0002 Contract reassigned SE MA0003 New user id cannot be null SE MA0004 Product code cannot be null SE MA0005 Contract reference number cannot be null SE MAO0006 The Portfolio Contract Reference Number is not valid for the Product Code selected SE MA0007 oa 1 has been reassigned from User 2 to User 3
203. O003 not be input CF For Floating interest rate Spread is mandatory and Default Rate should CLO004 be null CF Default Rate Code and Default Tenor mandatory if Rate type is Floating CLOO005 rate CF Component is of floating rate type Tenor code must be entered Co0001 CF Interest Calculation method must be entered CO0002 CF Effective Rate cannot be null COQ0003 31 68 ORACLE Error Message Code CF Changing the Rate type will delete all the rate maintenance Do you CL0006 want to go ahead CF There must be at least one component or relevant type CLO007 CF The component is linked to a product Cannot modify or close the CLO008 record CF This component has been authorized Only redefault is allowed CLO009 CS There are no authorized class codes PR0001 CS There are no more accounting roles PR0002 CS Mandatory field Class Code is null PR0003 CS Mandatory fields Accounting Role Account head are null PR0004 CS There are no more events PR0005 CS Mandatory fields Accounting Role Amount Tag Txn code are null PR0006 CS Mandatory field Advice Name is null PR0007 CS There are no more advices PR0008 CS This is not the right button for moving the selected records PR0009 CS Cannot move out of the block as some records are selected PR0010 CS Already in the last record PR0011 CS Already in the first record PR0012 CS
204. ODUCTION bisescinsescoccssscsvcsccuscescosasntdecevedsecasvsnts sesnesscoveusedbsesntovesacuseuscestencuscensouscainescssceveedscasesatecvercensss 10 8 10 2 SPECIFYING SECURITY PRODUCT PREFERENCE CLASSES cccccsscsssescsseescesecssesceessesseeesesessussesseseseseeeese 10 3 10 2 1 The Market of Issue eccccecccessccessceessecesnceesseceenceesseceeneeesaecseceeesaecseneeeaaeceeeeeesaeceeeeeenaecseeeeenaeseaeeenaeeeees 10 3 10 2 2 Defining Interest Details for a Bond oneseeseseeseneeseeeseeesenesrsrsesrsressssereresrsressrsrenrsserrsreeresereresesee 10 4 10 2 3 Capturing Information Specific to a Security Type sssseesessesesessereesesereresrsreesrsresrssersreserrresesrenesse 10 7 10 24 Indicating Banker s Acceptance ssrsrsrspisseini riain p aii i 10 8 10 2 5 Capturing Trade Related InfOrmation cceccccceecssscssesecnseescuseeseesecseesecsceeeeuseeseseeseesecaeesecsaeeesaseneeas 10 8 1026 lt Adentifyinig the OIG zis riedia e ee cats e N E A testes 10 10 10 2 7 Specifying the Material of a Security nesesesesenseeesesesrsreesreresrssereresesrresesrensssersrsserrresesenserrreseset 10 10 ORACLE LOZ Indicating the Collateral Type isiec iccsscctiivevseevnesdecseeds scene E EE EEE A E 10 10 10 2 9 Opting for Automatic Initiation of Corporate ACTIONS 0 1 cccecceec este eseee ee eeceeecesecusecusecaecaaeeaeeensens 10 10 10 2 10 Indicating the Price Code for Revaluation ccccesesssesesesssesecseeecceeecseeceaeeseesecasesecua
205. ORACLE Error Message Code SE MSTL possible for only Customer Buy Sell legs ONL142 SE Failed in Cash flow processing ONL143 SE Failed to populate the amount due records in cash flow ONL144 SE Failed in creating cash flow ONL145 SE ONL146 SD LM The Issuer Limits details are incomplete Complete Delete the Issuer 00001 Limits details SD LM The Line Code is not a Limits Template 00002 SD LM The Line Code is not entered 00003 SD LM The Liability is not entered 00004 SD LM The Line Start Date cannot be later than the Line Expiry Date 00005 SD LM The Last Available Date cannot be later than the Line Expiry Date 00006 SD LM The Line Currency is not entered 00007 SD LM This Tenor has been maintained for the Limit 00008 SD LM The Tenor details are incomplete Complete Delete the Tenor details 00009 SD LM The Products Allowed details are incomplete Complete Delete the 00010 Products Allowed details SD LM The Branches Allowed details are incomplete Complete Delete the 00011 Branches Allowed details SD LM The Last Available Date cannot be less than the Line Start Date 00012 31 62 ORACLE Error Message Code SD LM The Customers Allowed details are incomplete Complete Delete the 00013 Customers Allowed details SD LM The Tenor Limit Amount
206. One of the characters of the code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code Description You can specify a short description that will enable you to identify the portfolio preference class quickly The short description that you specify is for information purposes only and will not be printed on any customer correspondence ORACLE 11 2 2 Portfolio Type An important detail in defining a portfolio class is to specify the type of portfolio for which you are defining preferences The portfolio type identifies the basic nature of a portfolio In Oracle FLEXCUBE you can set up the following type of portfolios e A bank portfolio e A customer portfolio and e An issuer portfolio This is the basic feature of a portfolio and will determine the subsequent entries that you make This preference will be defaulted to a portfolio product and subsequently to the securities portfolios to which the product is associated 11 2 3 Costing Method A costing method is used to determine your holding cost in a portfolio While trading in the securities that constitute a portfolio you can arrive at the profitable price at which you can trade using one of the costing methods You can indicate a costing method only if you are setting preferences for a bank type of portfolio This is because you maintain the books of accounts only for a bank portfolio Based on the preference of yo
207. Our Income collection charges as indicated above Please quote Our Reference in all further correspondence relating to above coupon payment Thanking You For Chemical Bank New York USA 27 2 14 Securities Advice of Income in the Form of Securities Credit Commercial de France 15 APR 1998 24 Kiosk Arcade London Charles de Gualle Avenue Paris FRANCE ZIP 5690 456 Sub Advice of Income in the Form of Securities Bonus Issued Tak ORACLE Kind Attention Mr Richard Gere Chief Dealer Securities Department Dear Sir Madam Please be advised about the Income in the form of Securities due to Bonus Securities issued with details as shown below Our Reference 000SE01981050024 Identification of Bonus Securities Governor and Company Ordinary Shares Securities Safekeeping Account deposited 1792471 Quantity of Securities eligible for Bonus 4 000 Shares Terms of Bonus 1 New Share for Every 2 Shares held Bonus Record Date 12 APR 1998 Quantity of Bonus Securities Deposited 2000 Shares Other Information Bonus Securities have been deposited in the Safekeeping account as indicated above Please quote Our Reference in all future correspondence related to above Bonus Issue Thanking you For Royal Bank of Scotland London UK 27 2 15 Securities Advice of Redemption Banque Paribas 02 APR 1998 18 Band Strand London Pisa Avenue Paris Bee ORACLE France
208. Payment 643 982 Securities Deal Price 104 PCT 104 Percent of Face Value Securities Deal Amount 5 200 000 00 CAD Accrued Interest Amount 250 000 00 CAD 27 15 ORACLE Our Reference 000SE01980380054 Accrued Interest Days 51 Days Taxes Added 85 000 00 CAD Taxes Description Stock Exchange Tax on Bonds Purchased Broker s Commission 12 500 00 CAD Other Charges Fees 2 500 00 CAD Securities Deal 5 550 000 00 CAD Settlement Amount Other Information Please confirm the receipt and registration of above securities to us by mail at the earliest and revert to us if the Securities are not received in 2 weeks time after the scheduled delivery date Please intimate us about your transaction charges if any for the above instruction Please always quote Our Reference in all further correspondence regarding the above instruction Thanking you For Goldman Sachs New York USA 27 2 5 Securities Deliver Free Instruction BNZ 15342 04 JAN 1998 Bank of New Zealand New York USA 92 Lotus Towers Pacific Avenue Wellington New Zealand Sub Our Instruction to Deliver Securities Free of Payment Kind Attention Mr Micheal Burgess all ORACLE Custody Services Officer Securities Department Dear Sir Madam Please arrange to deliver the securities free of payment as per our instructions shown below Our Reference 000
209. Periodic Deal YTM is computed from the annual deal YTM based on the annualizing method specified in the security definition screen If the annualizing method selected is Simple the formula used for computing the periodic YTM for the deal Y ak is a If you select Compound as the annualizing method the formula used for computing the annual YTM for the deal will be ye lary Where 26 9 ORACLE Yo Periodic Deal YTM Yo Annual Deal YTM P Reinvestment Period A Day count Denominator Method specified at the security definition The computed NPV is marked against the market price and the revaluation profit revaluation loss is also booked The revaluation profit loss is computed using the formula mentioned below Settled Deals If Quantity Quotation Method is Units the formula used for computing the Revaluation profit loss is R MP N NPV If Quantity Quotation Method is Nominal the formula used to compute the Revaluation profit loss is N R MP NPY Where Ra Revaluation Profit or Loss on the revaluation date MP Market Price Clean on the revaluation date N Deal Quantity NPV Net Present Value of the deal on the revaluation date FV Face Value of the security The following examples illustrates the computation of revaluation profit loss using the formula mentioned above pene ORACLE Example
210. RACLE Your Reference 432765 Wellington Railway 1 Jan 1993 Bonds Trade Date 02 JAN 1998 Place of Trade Wellington Bonds Market Delivery Date 10 JAN 1998 Next Coupon Number 021 Next Coupon Due 01 APR 1998 Date Securities Book Value 1 000 000 00 NZD Instructing Party Charles S Taylor Quantity of Securities 1 000 000 00 Face Amount Safekeeping Account Delivered from 94763 88 Securities Certificate Numbers NW 25401 to NW 25410 10 x 100 000 NZD worth Bond Certificates Receiver of Securities Wesipac Banking Corporation Wellington Beneficiary of Securities Magnus P Taylor Beneficiary s Safekeeping Account with Receiver of Securities 284564 Securities Registration Details Securities Delivered have been registered in favour of Magnus P Taylor Securities Receipt Declaration Details Bond Certificates with numbers as per your instruction have been delivered physically to the Receiver of Securities Other Information Please always quote Our Reference in all further correspondence regarding the above instruction 27 26 ORACLE Thanking you For Bank of New Zealand Wellington NEW ZEALAND 27 2 10 Securities Delivery Against Payment Confirmation ML 450822 28 MAR 1998 Merrill Lynch Hong Kong 842 32 Barton Towers Wall Street New York U S A Sub Confirmation of Secur
211. RCPY INTCOMP_TIAC Credit Interest Receivable Payable INTCOMP_IMEM INTCOMP_TIAC_PY Interest Accrued Debit Interest Income Previous Year s contribution 32 21 ORACLE Accounting Role Amount Tag Debit Credit Indicator Memo GL INTCOMP_ Interest INTCOMP_TIAC_PY Credit Income INTCOMP_IMEM INTCOMP_TIAC_CY Interest Accrued Debit Interest Income Current Year s contribution Memo GL INTCOMP_ Interest INTCOMP_TIAC_CY Credit Income For Discount DEAL DISCOUNT UNACCRD_DISCNT Unaccrued Discount Debit Deal Discount GL Amount SEC BRIDGE GL UNACCRD_DISCNT Unaccrued Discount Credit Securities Bridge GL Amount Settlement DEAL_DISCOUNT SEC_DISC_TOTACCR Total Discount Debit Deal Discount GL Accrued on Sold Units SEC DISC TBACRD SEC_DISC_TOTACCR Credit Sec Deal Discount To Be Accrued GL ACCR_DIS_IN_MEM SEC_DISC_TOTACCR_PY Total Discount Debit Accrual of Discount Accrued on Sold Units Previous Year s Income Memo GL Contribution SEC DISC EARNED SEC_DISC_TOTACCR_PY Total Discount Credit Sec Discount Earned Accrued on Sold Units Income GL ACCR_DIS_IN_MEM SEC_DISC_TOTACCR_CY Total Discount Debit Accrual of Discount Accrued on Sold Units Current Year s Income Memo GL Contribution SEC DISC EARNED SEC_DISC_TOTACCR_CY Total Discount Credit Sec Discount Earned Accrued on Sold Units Cur
212. Receipt Declaration Details Share Certificates with numbers as shown above are to be delivered physically to the Receiver of Securities Account for Payment 9056 3428 Securities Deal Price 12 HKD Securities Deal Amount 600 000 00 HKD Other Charges Fees 650 HKD Securities Settlement Amount 599 350 00 HKD 27 19 ORACLE Other Information Please confirm the delivery and receipt of payment for above securities to us by mail at the earliest and revert to us if the Securities have not been delivered in 1 weeks time after the scheduled delivery date Please intimate us about your transaction charges if any for the above instruction Please always quote Our Reference in all further correspondence regarding the above instruction Thanking you For Merrill Lynch New York USA Arey ORACLE 27 2 7 Securities Receipt Free Confirmation SABR 4598 25 JAN 1998 Salomon Brothers Inc Melbourne 45 2 Grand Strand Australia Wall Street New York USA Sub Confirmation of Securities Receipt Free of Payment Kind Attention Mr Paul Adams Settlements Officer Securities Department Dear Sir Madam We hereby confirm that as per your instructions we have received the following securities free of payment as per the details shown below Our Reference T7658 Your Reference 0O0OSSPT980070021 Securities ISIN AUDBONDWAG0O2 Identification Western Austr
213. Redemption Event SE MA0160 Close option disallowed for system generated Redemption Event SE MA0161 Reopen option disallowed for system generated Redemption Event SE MA0162 Series has to be defined for Redemption Type equal to Series SE MA0163 Record has to be authorized atleast once for unlocking SE MA0164 Units Nominal Current cannot be more than Current Holdings SE MA0165 Reinvested Bonus cannot be more than Initial Bonus Due SE MA0166 Reinvested Dividend cannot be more than Initial Dividend Amount Due 31 6 ORACLE Error Code Message SE MA0167 Block product Cannot be NULL for a Repo Product SE MA0169 Cannot Unlock The record has already been processed SE MAO0170 End of Exercise Date Cannot be less than Start of Exercise Date SE MA0171 Record date should be later than today SE MA0172 From Date Cannot be later than To Date SE MA0188 Duplicate values encountered during accounting role insertion SE MA0189 Record is successfully saved SE MA0190 Record has been successfully deleted SE MA0191 Record has been successfully reopened SE MA0192 Record has been successfully closed SE MA0193 Accounting Role and Account head are not of the same type Still wish to continue SE MA0194 This safe keeping location Id already exists SE MA0195 Scheme cannot be closed Its already been attached to a product products
214. SEB7980040002 Securities Identification ISIN NZDBONDWRP04 Wellington Railway 1 Jan 1993 Bonds Trade Date 02 JAN 1998 Place of Trade Wellington Bonds Market Delivery Date 08 JAN 1998 Next Coupon Number 021 Next Coupon Due Date 01 APR 1998 Securities Book Value 1 000 000 00 NZD Instructing Party Charles S Taylor Quantity of Securities 1 000 000 00 Face Amount Safekeeping Account Delivered from 94763 88 Securities Certificate Numbers NW 25401 to NW 25410 10 x 100 000 NZD worth Bond Certificates Receiver of Securities Westpac Banking Corporation Wellington Beneficiary of Securities Magnus P Taylor Beneficiary s Safekeeping Account with Receiver of Securities 284564 Securities Registration Details Securities Delivered are to be registered in favour of Magnus P Taylor 27 17 ORACLE Our Reference 000SEB7980040002 Securities Receipt Bond Certificates with numbers as shown above are to be Declaration Details delivered physically to the Receiver of Securities Other Information Please confirm the delivery and registration of above securities to us by mail at the earliest and revert to us if the Securities have not been delivered in 1 weeks time after the scheduled delivery date Please intimate us about your transaction charges if any for the above instruction Please a
215. SE_FX_INT_PUCMA Debit SE_FX_INT_BOT SE_FX_INT_PUCMA Credit You will need to maintain the following accounting entry set up when a securities contract is liquidated with previous year adjustment option Debit Accounting Role Amount Tag Credit Indicator Debit SEC COUPON PAY Securities INTCOMP_PUCMA Coupon Payable GL Purchase Interest Credit INTCOMP_BOT Deal Purchase INTCOMP_PUCMA Interest Purchase Interest Debit SEC COUPON PAY Securities INTCOMP_TIAC Interest Coupon Payable GL Accrued Credit INTCOMP_RCPY Interest INTCOMP_TIAC Interest Receivable Payable Accrued Debit INTCOMP_IMEM Interest Income INTCOMP_TIAC Interest Memo Accrued Credit INTCOMP_ Interest Income INTCOMP_TIAC Interest Accrued If Interest discount premium has been accrued during the previous year the entries will have the amount tags with suffix _PY to indicate that they are passed against the Previous Year Adjustment GL During accounting for the amount tags with suffix _PY accounting entries are passed against the Previous Year Adjustment GL maintained in the Chart of Accounts Accounting Role Amount Tag Debit Credit Indicator SEC COUPON PAY Securities INTCOMP_PUCMA Coupon Debit Coupon Payable GL Amount Interest Accrued INTCOMP_OFF Purchase Interest INTCOMP_PUCMA Coupon Credit Offset GL Amount Interest Accrued
216. SO0607 SE Unhandled Exception in Security Definition Function SO0608 SE Unhandled Exception in Security Definition Function SO0609 SE Unhandled Exception in Security Definition Function 00610 SE Unhandled Exception in Security Definition Function 0061 1 SE Unhandled Exception in Security Definition Function 00612 SE Unhandled Exception in Security Definition Function 00613 SE Unhandled Exception in Security Definition Function 00614 SE Unhandled Exception in Security Definition Function 00615 SE Unhandled Exception in Security Definition Function S00616 SE Unhandled Exception in Security Definition Function S00617 SE Unhandled Exception in Security Definition Function 00618 SE Unhandled Exception in Security Definition Function 00619 SE Unhandled Exception in Security Definition Function S00620 31 28 ORACLE Error Message Code SE Unhandled Exception in Security Definition Function S00621 SE Unhandled Exception in Security Definition Function S000622 SE Unhandled Exception in Security Definition Function S000623 SE Unhandled Exception in Security Definition Function S000624 SE Unhandled Exception in Security Definition Function S000625 SE Unhandled Exception in Security Definition Function S000626 SE Unhandled Exception in Security Definition Function S000627 SE Coupon Schedule Definition resulted in conve
217. Securities Oracle FLEXCUBE Universal Banking Release 11 3 83 02 0 April 2014 Oracle Part Number E53607 01 ORACLE FINANCIAL SERVICES ORACLE Securities Table of Contents 1 ABOUT THIS MANUAL ju cceccescscscesesenssccnsscesesssnsesssnessssncssesscssosssssnssessnessesncssesssssessossnesessnessosscssosenses 1 1 1 1 INTRODUCTION MEA sucociescaecsovebievedtetasesareenevedecszavnusesecnedurtnevbaybasonedse sdiesosevesnbeduestavaapasbevedecoavsesnnssnteseostsseveeoes 1 1 BD PMUDIENCE E E chevesseessoadertosysenestescSucezevossestcnedesshavoayeieosedsgshtpnaovasnsedsetssebondavestesdesasenssatedessssscnnitess 1 1 1 3 ORGANIZATION seseris srate ieo badecsusssuiecdevedssenssoesessosctuednesvasteoseday sdeaeasvatntedsenttonesesbeseWeevdssnebnesstensssassenyetoss 1 1 1 4 RELATED DOCUMENTS 600 cs c0sisedsonbecsissusacbesesveszesonpessoveiecsneoseybisesesseshiposevatnsedeentanbuonsbveedecsdebnsbnssaretesssbisnveesds 1 4 1 5 GLOSSARY OF ICONS o ses ccsicidssnbsctsassuhasaeseesszevonsesceveusesntobaysieuseSaesacensvasnseseosdapsopnsbseetesodevtennssspotiva sobssnvevods 1 4 2 SECURITIES DOMAIN csssssssccsssssescssesesssenessccssssescsssnssssenessesneesesssssnsssssnsssssncesossssossssssessssssssessessenses 2 1 2 1 OVERVIEW OF SECURITIES DOMAIN cccscsssssssscssesesssssessssssesssesscsevesssanessssssesessssesssssevessseusessesessesssasenaees 2 1 2 1 1 Financial MAPK CIS eiennenn NE E sean cde Coane alana toa licees E A E eeu G
218. Series has already been defined 00182 SE Series is Mandatory 00183 SE Base Start Date must be Unique 00201 SE Base Start Date must later than Start of Interest Date 00202 SE Base Start Date must be earlier than Redemption Expiry Date 00203 SE Base End Date must be later than Start of Interest Date 00204 SE Base End Date must be earlier than or equal to 00205 Redemption Expiry Date SE Base Start Date is Mandatory 00206 SE Base End Date must be later than Base Start Date 00207 SE Base Frequency is Mandatory 00208 SE Week Day is Mandatory 00209 SE Base Start Date must be on specified the Weekday 00210 SE First Previous Virtual Coupon Date must be earlier than Previous 00231 Coupon Date 31 23 ORACLE Error Message Code SE First Previous Virtual Coupon Date must be later than Previous 00232 Coupon Date SE Second Previous Virtual Coupon Date must be earlier than 00233 Previous Coupon Date SE First Next Virtual Coupon Date must be later than Next Coupon 00234 Date SE First Next Virtual Coupon Date must be earlier than Next Coupon 00235 Date SE Second Next Virtual Coupon Date must be later than Next Coupon 00236 Date SE First Previous Virtual Coupon Date is Mandatory S00237 SE Second Previous Virtual Coupon Date is Mandatory 00238 SE First Next Virtual Coupon Date is Mandatory 00239 SE Second Next V
219. T FRF Interest Method ACT ACT ISMA Interest Method The ACT ACT FRFF Interest Method is applied for periodic coupons using the following coupon ba ORACLE Coupon Interest Nominal x Coupon Rate Number of Coupons x Number of elapsed Days Number of days in coupon period For ACT ACT ISMA you need to maintain the following parameters e Numerator Method Any of the option in the list e Denominator Method Actual e Denominator Basis Per Annum e Rate Denomination Basis Per Coupon Period Let us understand the above with the following example Consider the following facts A security purchased for 10 million at a rate of 5 p a with the coupon date of 15 Jan In case the frequency of the coupon is Yearly The ACT ACT ISMA method for a non leap year is Amount x 5 100 x 365 365 x 1 And for a leap year the ACT ACT ISMA method is Amount x 5 100 x 366 366 x 1 In case the frequency of the coupon is Half yearly Then for coupon on 15 01 the formula used in ACT ACT ISMA method is Amount x 5 100 x 184 184 x 2 And for coupon on 15 07 the formula used in this method is For anon leap year Amount x 5 100 x 181 181 x 2 For a leap year the formula is Amount x 5 100 x 182 182 x 2 In case the frequency of the coupon is Quarterly Then for coupon on 15 01 the formula used in ACT ACT ISMA method is Amount x 5 100 x 92 92 x 4 For coupon on 15 07 the formula used in this method is For anon leap year Amount
220. TI 5001 15 Feb 1998 Citibank N A New York USA 58 Ivory Towers Victoria Avenue Toronto Canada ZIP 6789 908 Sub Our Instruction to Receive Securities Against Payment Kind Attention Mr Richard Stevens Custodial Officer Securities Department Dear Sir Madam ae ORACLE Please arrange to receive securities against payment as per our instructions shown below Our Reference 000SE01980380054 Securities Identification ISIN CADBONDNWC01 North Woods Canadian Minerals Ltd Bonds Trade Date 07 FEB 1998 Place of Trade Toronto Stock Exchange Delivery Date 20 FEB 1998 Next Coupon Due Date 30 JUN 1998 Securities Book Value 5 000 000 00 CAD Quantity of Securities 5 000 000 Face Amount Safekeeping Account to be Deposited CAGS BZ6782 Securities Certificate Numbers NWB 52011 to NWB 52060 50 x 100 000 CAD worth Bond Certificates Deliverer of Securities Rosedale Brokers Group Toronto Securities Deliverer s Reference 56243 Beneficiary of Securities Zerus Dynamic Fund Corporation Securities Registration Details Securities received have to be registered in the name of the Zerus Dynamic Fund Corporation Securities Receipt Declaration Details Certificate Numbers of Bonds delivered should match with the numbers as shown above and the Certificates should be in a good condition Account for
221. Tag Dr Cr Indicator SE_FX_INT_RAPA SE_FX_INT_PUEX Credit SEC PREM TBACRD BROK_PREM Debit SEC BRIDGE GL BROK_PREM Credit SEC BRIDGE GL DR_CHG_DISC Debit SEC DISC TBACRD DR_CHG_DISC Credit SEC PREM TBACRD CR_CHG_PREM Debit SEC BRIDGE GL CR_CHG_PREM Credit Given below are the sample accounting entries that will be posted if you use the alternative accounting roles for this event Accounting Standar Amount Tags Standard Alter Debit Credit Role d Altern native Indictor ative Sec Asset Standar DEAL_NOMINA Standard Debit GL d LAMT Sec Bridge Alternati DEAL_NOMINA Standard Credit Pur ve LAMT Deal Alternati DEAL PREMIU Standard Debit Premium ve MAMT Sec Bridge Alternati DEAL_PREMIU Standard Credit Pur ve MAMT Sec Bridge Alternati DEAL_DISCNT_ Standard Debit Pur ve AMT Deal Alternati DEAL_DISCNT_ Standard Credit Discount ve AMT Deal Alternati INTCOMP_PUC Standard Debit Interest ve M Bought Sec Bridge Alternati INTCOMP_PUC Standard Credit Pur ve M Advices No advices allowed for this event 32 15 ORACLE Accounting Entries 32 4 3 2 SSLP Security Sale from Long Position Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL ACCRUED_RDPREM Debit SEC RDPREM RECV ACCRUED_RDPREM Credit SEC ASSET GL DEAL _NOMINALAMT Credit
222. The following set of parameters will be considered in the examples given below Security Code XXXX BOND 01 Face Value USD 100 Quantity Quotation Method Unit Redemption Date 01 July 2003 Redemption Price USD 105 Numerator Day count method Actual Denominator Day count method 365 Days Annualizing Method Simple Coupon Rate 5 Coupon frequency Monthly Reinvestment period 183 Days The coupon cash flows for a single bond are 26 2 2 1 Coupon Event Date Coupon 01 Jan 2003 USD 0 42 01 Feb 2003 USD 0 42 01 Mar 2003 USD 0 38 01 Apr 2003 USD 0 42 01 May 2003 USD 0 41 01 Jun 2003 USD 0 42 01 Jul 2003 USD 0 41 Unsettled EX Buy Deal Revaluation date prior to Deal settlement Date Deal Settlement Date 27 Feb 2003 Record Date 25 Feb 2003 Revaluation Date 15 Jan 2003 Deal Quantity 100 26 11 ORACLE Deal Settlement Date 27 Feb 2003 Deal Price USD 99 95 Annual YTM 21 351 Periodic YTM 21 351 Accrued Interest as of Revaluation date from previous USD 19 18 coupon date 01 Jan 2003 to 15 Jan 2003 Market Price as of Revaluation Date USD 102 During revaluation of unsettled forward deals all the coupons between the revaluation date and the deal settlement date are discounted to the revaluation date So the effective coupon cash flow that are considered during revaluation for the deal will be
223. The issuer of an equity can grant a holder voting rights You can capture this information when defining a Security Preference Class with the Security Type Equity The holders of all equities maintained under a product by default will have voting rights You can change these default attributes when maintaining the product IU ORACLE If the Security Type is Right or Warrant Rights and Warrants can be renounced To capture this information at the Security Preference class level you can choose the Renouncable option 10 2 4 Indicating Banker s Acceptance You can indicate whether or not the security that is defined under the product which is based on this class can be used for a Banker s Acceptance deal This implies that you can fund the issuer of the security through a loan contract or a money market placement deal You can also trade in the security on your own behalf You will be allowed to select this option only if the Security Type is Zero Coupon Bond Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances 10 2 5 Capturing Trade Related Information The minimum trade quantity You can define the minimum quantity in which a security should be traded when building a Security Preference class In the Lot Size field you can enter your specifications Your specification will apply by default to all products with which you associate the class and in turn to all securities maint
224. The system will distinguish between the new and the deals that require amendment based on the action code of the uploaded record For a contract requiring amendment the action code will be AMND If the action code is AMND Oracle FLEXCUBE will first check whether the deal exists in the system or not If it does not exist in the system an error message will be displayed to notify that the deal cannot be amended The Reference Number provided by the external system has to same if it is a new deal or if it is an amendment to an existing deal When you upload a new deal the Reference Number will be displayed in the User Reference Number field for that deal The User Reference Number will be the basis for checking whether the deal exists or not The upload for contract amendment will trigger the AMND event The same event is triggered even when the amendment is done in the Contract Online screen The fields that can be amended for a Securities Repo Deal are as follows e Verify Funds For Principal e Verify Funds For Interest e Verify Funds For Penalty Amount e Verify Funds e Holiday Currency e Holiday Months e Move Forward e Move Payment Schedules e Move Revision Schedules e Move Disbursement Schedules e Receivable tracking Parameters 29 10 ORACLE Liquidation Auto Manual Status Control Auto Manual Exposure Category Risk Free Exposure Amount Internal Remarks Demand Basis Schedule Details Settleme
225. Time Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details tax details etc by clicking on the appropriate icon in the horizontal array of icons in this screen For a Portfolio product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to a Portfolio product in the SP Product Definition Main screen and the SP Product Preferences screen In these screens you can specify the product type and set the product preferences respectively ORACLE For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Interest e User Defined Fields e Settlements 15 1 1 Product Type The product type identifies the basic nature of a product A securities product that you create can belong to any one of the following types e Bonds e Zero Coupon Bonds e Equities e Rights e Warrants 15 1 2 Exchange Rate Variance You can define the market price variance that you would like to allow for a security product This variance is expressed in terms of a percentage For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the
226. Total number of Coupon cash flows between the deal settlement date and the revaluation date If the deal is an EX deal then the first coupon cash flow from the settlement will not be included i e C 0 Ci i coupon Yo Periodic Deal YTM Vd Coupon Date Revaluation Date P Reinvestment Period Po Forward Flat Purchase Price ao ORACLE NPV Net Present Value of the deal Vd Deal Settlement Date Revaluation Date Al Accrued Interest as of the revaluation date The Periodic Deal YTM is computed from the annual deal YTM based on the annualizing method specified at the security definition While capturing the details of the security if you have selected Simple as the annualizing method the following formula will be used to compute the periodic YTM for the deal P F If you select Compound as the annualizing method the annual YTM for the deal is computed using the following formula yahi Where Yo Periodic Deal YTM Yo Annual Deal YTM P Reinvestment Period A Day count Denominator Method as specified in the Security Definition screen The computed NPV is marked against the market price and revaluation profit revaluation loss is booked The revaluation profit loss is computed using the following formula Unsettled Buys If you have selected Units as the Quantity Quotation Method the formula used to compute the Reva
227. Value Date Rounding Required Interest Period Basis Original Start Date Rounding Rule Tax Scheme User Input Mat Date Decimals Derived Status Maturity Date Units Remarks Notice Days Payment Method Intra Day Schedule Type Liquidation Auto Rollover Maturity Type Fixed Manual Notice Call ronda Currency evens eroxerage enecive terest Rae Accrual Unked Enanos cange Loa Revision Det Repo Reverse Repo Setement Spt uesseges meres charoes Tax ms reds J Aas pocoos Authorized By Contract C Authorized Date Time Date Time Status In this screen you should specify the following details e The Portfolio ID in which you would like to block securities this specification is not mandatory for a reverse repo deal that involves a walk in customer 29 7 ORACLE e The Security ID s that you would like to block e The SK Location and the SK Account where the security to be blocked is held e The format of each security scrip based dematerialized immobilized etc e The Number of Units of each security that you are blocking e If the underlying security is defined with a series redemption the series e Settlement details like the credit debit branch booking date value date original start date user input maturity date and liquidation mode In an outgoing MT518 message this maturity date is captured in field 98a Field 98a is sequence B is generated with only option A Source You have to indicate the so
228. YDDD 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 oe ORACLE Example January 31 1998 translates into the Julian date 98031 Similarly February 5 1998 becomes 98136 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those elapsed in February 31 5 36 22 2 2 Using a Template to Enter A Deal A template can be described as a sample deal that has attributes most commonly applicable to deals in a category Once a template is defined and stored it can be used as a base to enter deals While in the Securities Deal Input screen click T button positioned before the field Template A list of all the templates that have already been created is displayed Choose the code of the template that you want to use to enter the details of the deal The details that have been stored for the selected template will be defaulted to the new deal You can modify all the details except the Product Code that are defaulted from the template to suit the deal you are processing After you have changed the values that need to be changed store the new deal by choosing Save from the Actions menu The procedure for saving a deal as a template is discussed later in this chapter under the head About Templates External Reference If the transaction is being uploaded from an external source you can specify the identifi
229. _GS_PUCM Debit nee ORACLE 32 4 4 10 32 4 4 11 32 4 4 12 Accounting Role Amount Tag Dr Cr Indicator SEC SETTLEMENT INT_GS_PUEX Credit SEC BRIDGE GL INT_GS_PUEX Debit SEC BRIDGE GL INT_IC_PUCM Debit SEC SETTLEMENT INT_IC_PUCM Credit SEC SETTLEMENT INT_IC_PUEX Debit SEC BRIDGE GL INT_IC_PUEX Credit SEC SETTLEMENT ISSUR_TAX_PUCM Debit SEC BRIDGE GL ISSUR_TAX_PUCM Credit SEC SETTLEMENT ISSUR_TAX_PUEX Credit SEC BRIDGE GL ISSUR_TAX_PUEX Debit Advices Nil Accounting Entries RACE Receive Versus Payment Confirmation No accounting entries are allowed for this event Advices Nil Accounting Entries Nil Advices No advices allowed for this event Accounting Entries No accounting entries allowed for this event RBLK Release Block of Security Positions REAS Reassignment of Securities Deal 32 42 ORACLE Advices No advices allowed for this event 32 4 4 13 REVR Reversal of Securities Deal Accounting Entries No accounting entries allowed for this event Advices Nil 32 4 4 14 RFCF Receive Free Confirmation Accounting Entries No accounting entries allowed for this event Advices Nil 32 43 ORACLE 33 Glossary 33 1 Securities Terms The following terms have been used in this manual Corpus It is the principal amount of a debt instrument or the underlying assets in a trust Coupon It is the interest rate on a fixed inc
230. _Rcpy head will become zero ba ORACLE 4 4 Defining Floating Rate Codes You can define rate codes using the Rate Code Maintenance screen You can invoke this screen by typing CFDRTCD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Rate Code Maintenance Rate Code Description Holiday Currency laz Propagate Across Branches Tenor Code Details H Tenor Code Tenor Code Description o Input By Authorized By Modification Authorized Exe Date Time Date Time Number Open You can enter the following details Rate Code Enter a code to identify the rate you are defining You can associate several currencies to the rate code and specify rates for each currency While processing a contract you need to indicate this code to make the rate applicable to the contract The code cannot exceed 10 characters Description Enter a brief description to identify the rate code being defined Holiday Currency Specify the holiday currency for this rate code You can choose the appropriate one from the adjoining option list that displays all valid currency codes maintained in the system Propagate Across Branches Check this option to indicate that the rate code should be available across all branches ala ORACLE 4 4 1 1 Indicating Tenor Code Details Here you need to indicate the following Te
231. a footer containing fields that are specific to the portfolio you are defining and three tabs Contract main Main preferences and the Detail preference Also displayed is a vertical array of six icons along the lines of which you can enter details of a portfolio Portfolio details are grouped into screens according to the similarities they share 21 3 Entering the Details of a Portfolio Product Code You should use a product that has already been created to enter the details of a portfolio Depending on the type of portfolio you are creating you can select an appropriate product code from the picklist available A portfolio will inherit all the attributes defined for the product associated with it You can also add details that are specific to the portfolio like the deal amount and details of the buyer and the seller Some of the defaulted attributes if necessary can be changed This feature simplified the procedure of setting up of a portfolio ane ORACLE 21 3 1 Identifying a Portfolio Portfolio Reference Number In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system This number tag is used to identify the portfolio being defined The system generates a unique number for each portfolio The portfolio reference number is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following f
232. a security varies beyond the Override Limits positive and negative you can save the deal by providing an override All overrides provided at deal time will be included in the reports that you generate for the deal With respect to the market price if the deal price of a security varies beyond the Exception Limits you cannot save the deal re ORACLE 11 Maintaining Portfolio Preference Class 11 1 Introduction Preferences are the options that are available to you for defining the attributes of a portfolio Based on the type of portfolio bank customer and issuer you are defining the following are some of the preferences that you can define e The costing method to be used e The accounting basis e Accrual frequencies for components like premium discount forward profit or loss e Revaluation preferences e Limit tracking preferences A set of such preferences can be grouped together into what we call in Oracle FLEXCUBE a Preference Class You can maintain several portfolio preference classes The preferences that you define will shape a portfolio and give it a distinctness that is unique to the type it represents The Advantage of Defining a Portfolio Preference Class While creating a portfolio product instead of specifying preferences for each product you need to just associate the appropriate portfolio preference class to the product All the attributes defined for the class will be made applicable to the portfoli
233. accrued up to this date Date Deal Price The deal price of the security Fpl Accrued Forward Profit or loss accrued is the difference between deal price and the spot price It is calculated from the spot date of the deal to its settlement date Fpl Accrued Forward profit or loss till the system date Tilldate Spot Price The spot price involved in the deal 34 33 ORACLE 34 18 Securities Maturity Report You can generate securities maturity report by using the Securities Maturity Report screen To invoke the screen type SERMATRP in the field at the top right corner of the Application tool bar and click the adjoining arrow button Security Maturity Report Redemption Expiry Date 34 18 1 Selection Options You can specify the Redemption Expiry Date before you generate the report 34 18 2 Contents of Report The contents of this report are discussed under the following heads Header The Header carries the title of the report information on the branch code branch date the ID of the user who generated the report the date and time at which it was generated the page number of the report and the module for which the report is generated Body of the Report The following details are displayed Security ID The Security ID Security Description Brief description of the security involved Issue or Tearoff date The issue date Redemption Or Expiry The expiry date of the security Date 34
234. aevent_tear_log BA0173 SE Insert to setbs_caevent_expiry_log failed BA0174 SE Securities with only Quantity type of redemption can be processed for BA0175 rebuild SE Insert to setbs_securty_face_value failed BA0176 SE Redeemed Value of Security cannot be less than Zero BA0177 SE Select from setms_redemption failed BA0178 SE Failed to round the redemption value 31 40 ORACLE Error Message Code BA0179 SE Unhandled exception in BA0180 sepkss_security_rebuild fn_rebuild_for_a_security SE Position goes negative for 1 BAO181 SE Position goes positive for 1 BA0182 SE Amount round failed for 1 BA0183 SE Unhandled exception in 1 BA0184 SE Failed to read deal for 1 BA0185 SE Failed to insert into cstb_contract_exception BA0186 SE Unhandled exception in fn_rebuild_slabs BA0187 SE Unable to select from setms_portfolio_master BA0188 SE Unable to select from setb_dprp_accr_calc BA0189 SE Unable to lock position 1 BA0190 SE Unable to select from setm_redemption BA0191 SE Unable to select from setm_security_master BA0192 SE Unable to update setb_bep BA0193 SE Unable to insert update setb_dprp_accr_calc BA0194 SE Unhandled exception in fn_process_calc_table BA0195 SE Unable to calculate the tenor 31 41 ORACLE Error Message Code
235. against payment e Deliver free The deliver against payment option has no risk involved as securities will be handed to the buyer only on payment Choose the deliver free option to indicate that the delivery of securities is to be independent of payment As there is a risk involved in choosing the deliver free option while specifying limit details for the deal you can also indicate the undelivered credit line under which your liability to the deal should be tracked Receive The receive instructions that you can specify to the SKL are e Receive against payment e Receive free Int Date If you are entering the details of a buy or sell deal you can indicate the date from which purchased or sold interest for interest bearing bonds should be calculated For securities whose issue market has trade based accounting Interest value date Trade date For securities whose issue market has settlement date based accounting the settlement date is defaulted to the settlement date You have the option to change the defaulted date However the interest value date that you enter in this case should be in the same coupon period as the settlement date eee ORACLE Interest computations will be performed on line from the last coupon date including to interest value date excluding in the case of deals where settlement date is before ex date In case the settlement date is past the ex date the computation will be from interest value date incl
236. ails that you specify for a Block Deal will need to be uploaded The Upload process will automatically create individual sub deals for each of the portfolios involved in the multiple leg of the deal You can specify details like the certificate numbers details of the brokerage tax charge etc applicable to the sub deals in the Securities Deal Online screen You will not be allowed to perform any operation on a sub deal directly It will have to be done only through the Block deal Should you need to amend the main details of a sub deal details that affect accounting entries you will have to delete the block deal which eventually deletes all the sub deals To amend other details of a sub deal like the certificate numbers you should gt Unlock the block deal gt Go to the relevant sub deal gt Unlock the sub deal gt Make the required changes gt Save both the sub deal and the block deal Invoking the Block Securities Deal screen You can invoke the Block Securities Deal Input screen from the Application Browser To enter the details of a new deal click new icon from the tool bar apa ORACLE If you are calling a block deal that has already been created choose the Block Deal Summary option The details of all the block deals that you entered earlier will be displayed in a tabular form From the summary screen you can open an existing deal by double clicking it You can invoke the Securities Block Deal screen by typin
237. ained under the product However this default attribute can be changed when defining the preferences for a security product Quantity Quotation Securities can be quoted in the following terms e Units Example 500 units of a security e Nominal Example securities worth USD 5000 of face value When building a preference class you can enter the preferred quotation method This method will default to all products with which you associate the class The default value can be changed A security maintained under a product acquires the quotation method specified for the product If you choose the Units Quotation option you can also indicate if the securities can be traded in fractional units You can specify the fractional units in the Decimals field Deals entered in fractional units of securities will be validated against the decimal value that you enter here Price Quotation The method in which price is quoted is a feature of the market where a security is traded Each market may use a particular price quotation method The price of a security can be quoted in the following ways Price in this method the total price of the security is quoted The total price can be expressed as 108 ORACLE Face Value Premium or Discount Accrued Interest if the interest quotation method is Flat Price the price is quoted as a percentage The same is expressed as follows Price Market price Face value x 100
238. al will take place Intermediary The Intermediary in a deal refers to the financial institution between the Receiver and the Account With Institution through which the deal component must pass The Intermediary may be a branch or affiliate of the Receiver or the account with Institution or an entirely different financial institution This field corresponds to field 56a of S W I F T Here you can enter either the e ISO Bank Identifier Code of the bank or the e Name and address of the Bank aes ORACLE Receiver s Correspondent The Receiver s Correspondent is the branch of the Receiver or another financial institution at which the funds will be made available to the Receiver This field corresponds to field 54a of S W I F T You can enter one of the following e ISO Bank Identifier Code of the bank e The branch of the Receiver s Correspondent e Name and address of the Receiver s Correspondent Account With Institution An Account With Institution refers to the financial institution at which the ordering party requests the Beneficiary to be paid The Account With Institution may be a branch or affiliate of the Receiver or of the Intermediary or of the Beneficiary Institution or an entirely different financial institution This field corresponds to field 57a of S W I F T You can enter one of the following e ISO Bank Identifier Code of the bank e The branch of the Receiver s Correspo
239. al Product 17 1 Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Securities SP Deal product You can create a securities deal product in the SP Product Definition screen invoked from the Application Browser You can invoke the SD Product Definition screen by typing SEDDLPRD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button In this screen you can enter basic information relating to a SP product such as the Product Code the Description etc Hea ORACLE Product Definition Product Code Exchange Rate Variance in Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Rate Type Product Group Description Start Date End Date Remarks accountng Roles Events branch Currency customer nstrument Portoho Reston preferences Chares Tax mns Feas Maker Date Time Mod No Checker Date Time Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details tax details etc by clicking on the appropriate icon in the horizontal array of icons in this screen For a Portfolio product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapte
240. al Product Types The following deal types are supported Buy and sell deals of type bank to customer bank to bank and customer to customer Rights and warrants exercise type deals for bank and customer portfolios Lodge and withdraw type deals for customer portfolios Block and Release Block type deals for bank and customer portfolios Transfer from one SK location to another Activities Supported through Deal Online Purchase and sale of securities between bank and customer portfolios bank and standalone customers bank and bank and customer and customer Spot and forward deals can be processed using user specified market details rates trade and settlement dates bought or sold interest and deal currency Most likely values available as defaults for aiding faster inputs Money settlement on auto or manual basis according to pre defined settlement instructions Deal level messaging based on the parties specified Customer portfolio deals with accompany withdraw lodge options to capture deals by customer portfolio outside bank s custodial interest Standalone Withdraw Lodge for customer to handle customer deals struck independently from holdings managed by the bank Repo by bank portfolio Reverse Repo by bank to customer with portfolio auto blocking in portfolio of securities and with tracking of the market value of the blocked securities vis a vis the contract amount outstanding Block Release Block Transfer acr
241. al for the current working day P2 y GRP 7 eii Ady P A y Atoy P If the Annualizing method is Compound the deal YTM is computed as follows Yo E ay 1 If the Annualizing method is Simple the deal YTM is computed as follows bE If case of EX Deal first coupon amount will be 0 C1 0 Where e Pis the Price of the Bond e Nisthe Total number of coupons e Ciis the Coupon payment for coupon i e yis the Deal YTM Periodic e Yois the Deal YTM eni ORACLE e Ais the Day Count Method Denominator e nis the Coupons in a Year e P isthe Period of Reinvestment If Null defaulted to A n e R P is the Redemption Price e Alis the Accrued Interest e Adj is the Coupon Date Application Date e Adyis the Redemption Date Application Date The price obtained for the current working day is then compared with the price obtained during the previous day s EOD processing P1 The difference between the price of the deal on the current working day and the previous day P2 P1 is the amount for which accrual entries will be passed on the current working day In case of T Bills from the formula mentioned below the YTM computed and stored at the time of saving the deal is used to arrive at the price of the deal for the current working day P2 RP P wy 24 Ca i Gre Where e P isthe Price of the T Bill e R P is the Redemption Price e Yois the Deal YTM e Adis the Redemptio
242. alia Gold Mining Bonds Trade Date 02 JAN 1998 Place of Trade Sydney Stock Exchange Delivery Date 15 JAN 1998 Next Coupon Due 31 JAN 1998 Date Securities Book 1 500 000 00 AUD Value eres ORACLE Our Reference T7658 Quantity of 1 500 000 Face Amount Securities Safekeeping USSB7434 540 Account Deposited Securities AE 10001 to AE 10015 Certificate Numbers 15 x 100 000 AUD worth Bond Certificates Deliverer of Elders Finance Group Sydney Securities Securities RYZ843 Deliverer s Reference Beneficiary of Fidelity Trust Limited New York Securities Securities Securities received have been registered in the name of the Registration Details Fidelity Trust Limited New York Securities Receipt Certificate Numbers of Bonds have been delivered and match Declaration Details with the numbers mentioned in your instruction and the Certificates are in a good condition Other Information Please always quote Our Reference in all further correspondence regarding the above confirmation Thanking you For ANZ Banking Corporation Ltd Australia 27 2 8 Securities Receipt Against Payment Confirmation GS 12684 22 FEB 1998 Goldman Sachs Toronto CANADA 602 South End Towers JFK Avenue E ORACLE New York U S A ZIP 897 643 260 Sub Confirmation of Receipt of Securities Against Payment Kind Attention Ms Andy Ryan Tre
243. an be run only as part of End of Day or Beginning of Day BAO151 processing SE Select from setms_security_master failed BA0152 SE Select from setms_price_detail failed BA0153 SE Select from Idtbs_contract_master failed BA0154 SE Select from Idtbs_contract_iccf_details failed BA0155 SE Select from Idtbs_contract_balance failed BA0156 SE Unhandled exception in fn_calculate_mm_amount BA0157 SE Unhandled exception in Sepkss_repo fn_reverse_block_deals BA0158 SE Unhandled exception in Sepkss_repo fn_roll_block_deals BA0159 SE Select from setms_security_master failed BA0160 SE Security expires before Contract Maturity BA0161 SE Select from setms_portfolio_master failed 31 39 ORACLE Error Message Code BA0162 SE Select from Idtms_product_master failed BA0163 SE Unhandled exception in fn_roll_each_block_deal BA0164 SE Failed to update cstbs_contract_event_log BA0165 SE Block Product not maintained for this product BA0166 SE Unhandled exception in fn_reverese_each_block_deal BA0167 SE Failed to delete from setbs_caevent_tearoff_log BA0168 SE Confirmed Date should not be more than Today BA0169 SE Improper Internal Action ID BA0170 SE Insert to setbs_caevent_tearoff_log failed BAO171 SE Unhandled exception in sepks_utils fn_populate_caevent_tear_log BA0172 SE Unhandled exception in sepks_utils fn_delete_c
244. an create a product in the Securities Repo Product Definition screen invoked from the Application Browser You can invoke the Securities Repo Product Definition screen by typing SRDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Main Screen Product Details Product Code Product Description Product Type Description Slogan Product Group Product Group Description Start Date End Date Remarks aecouning Rows events ranch Currency customer Accrual Fee Detare Discount Proterences inerest Charges To ms reas sats Maker Date Time Mod No Checker Date Time Record Status Authorization Status In the Product Definition screen enter the basic information about a product like the Product Code the Description etc Information relating to specific attributes of a product can be defined in subsequent screens For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Tax Product Type A product that you are defining can belong to either of the following types e Repo e Reverse Repo 29 3 ORACLE 29 2 2 Setting Product Preferences Preferences are the options available for setting the attributes of a product The options you choose ultimately shape the product For example you have the option of applying tax on a product If you spe
245. ance SEDDLONL Securities Deal Input SEDDLPRD Securities Deal Product Definition 35 1 ORACLE Function ID Function Description SEDDPFCL Securities Deal Product Preference Class Maintenance SEDDPRCL Securities Deal Portfolio Restrictions Class Maintenance SEDEXPDF Rights Warrants Expiry Event SEDMKPCD Securities Market Price Codes SEDMKRAT Securities Price Definition Maintenance SEDMKTCD Market Definition SEDPFONL Security Portfolio Definition SEDPFPCL Securities Portfolio Product Preference Class Maintenance SEDPFPRD Securities Portfolio Product Definition SEDPSRCL Securities Restrictions Class Maintenance SEDREDDF Securities Corporate Action Maintenance Redemption SEDRVNDF Interest Revision SEDRWDEF Securities Rights Warrants Definition SEDSDVDF Securities Stock Dividend Definition SEDSEONL Securities Instrument Definition SEDSEPCL Security Product Preference Class Definition SEDSEPRD Securities Security Product Definition SEDSGLMT SGL Maintenance SEDSKLOC Securities Safe Keeping Location Maintenance SEDSKONL Transfer Across Safe Keeping Locations Forms SERCADUE Corporate Action Tracking Ex Date Report SERCAPEN Corporate Action Pending SERCAPRO Corporate Action SERCPDUE Branch Details Report SERCPFLP Coupon Flipping SERCUCDL Securities Confirmed Unconfirmed Deals Repo
246. and Block dates respectively You cannot change these dates However you can indicate the date on which the blocked securities can be re traded in the market Specifying the release date does this In addition you can also indicate whether the entire quantity of securities is to be released as of the release date or whether securities have to be released in parts If you allow partial release then the quantity to be released partially can be indicated through the Release Securities screen Highlight Processing and Liquidate option in the Actions Menu or click liquidate icon from the toolbar The Release Securities screen is displayed ae ORACLE Release Securities Web Page Dialog gt wlx Contract Referennce Number 547er454 Blocked Quantity Release Quantity Enter the quantity of securities to be partially released and click Ok button Partial Release Allow You can indicate whether the entire quantity of securities is to be released as of the release date or only a part of the quantity has to be released for re trading Check this box to indicate that only a part of the specified quantity is to be released as of the release date Auto Release Allow If you specify that securities have to be auto liquidated then the system will automatically liquidate the specified quantity as of the release date If auto liquidation is not specified you have to manually liquidate the securities through the Release Secur
247. ank Portfolio Customer Portfolio Input By Authorized By Modification Authorized Date Time Date Time Number Open If you are calling a record that has already been created click on Summary view From the Summary screen you can open an existing record Highlight the record you wish to view and double click on it The details of the bank parameter record will be displayed in a tabular form Security MIS parameter In Oracle FLEXCUBE a maximum of 10 transaction classes can be maintained for a security and portfolio By specifying the security MIS parameter you can indicate how the MIS transaction classes for a security position Portfolio plus Security combination is built from the respective transaction classes of the security and portfolio The number that you enter in this field denotes the number of MIS transaction classes of the security that should be picked up to determine the MIS transaction of the security position i ORACLE Example Assume that the value that you enter in this field is 4 The first four transaction MIS classes of the security position will be picked up from the transaction MIS classes of the security The remaining six will be picked up from the MIS class of the portfolio First 6 Year to Month Display Decimals The YTM values which you can view through the Yield to Maturity details sub screen of the Deal Online screen are rounded off to the
248. ank Portfolio e SS deal with a Customer Buy Sell type of products 32 13 ORACLE 32 4 3 SS Deal with a Portfolio Type Of Product Bank Portfolio The preferences set up for a Bank Portfolio type of products are as follows e The costing method used for this product is Weighted Average e The accounting basis is Non Accrual e Monthly accrual frequency has been used for components like premium discount forward profit or loss e The revaluation process used is MTM Marked to Market e Market Price is used for limit tracking purposes Accounting Entries 32 4 3 1 SPLP Security Purchase from Long Position Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Debit SEC DISC TBACRD DEAL_DISCNT_AMT Credit SEC ASSET GL DEAL_NOMINALAMT Debit SEC BRIDGE GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_PREMIUMAMT Credit SEC PREM TBACRD DEAL_PREMIUMAMT Debit SEC BRIDGE GL FWD_DEAL_LOSS Credit SEC FWDEXP OFST FWD_DEAL_LOSS Debit SEC BRIDGE GL FWD_DEAL_PROFIT Debit SEC FWDINC OFST FWD _DEAL_PROFIT Credit SEC BRIDGE GL SE_FL_INT_PUCM Credit SE_FL_INT_RCPY SE_FL_INT_PUCM Debit SEC BRIDGE GL SE_FL_INT_PUEX Debit SE_FL_INT_RAPA SE_FL_INT_PUEX Credit SEC BRIDGE GL SE_FX_INT_PUCM Credit SE_FX_INT_RCPY SE_FX_INT_PUCM Debit SEC BRIDGE GL SE_FX_INT_PUEX Debit 32 14 ORACLE Accounting Role Amount
249. any 2 1 8 Fixed Income Securities The following types of securities are considered as fixed income securities 2 1 8 1 Bonds Bonds are fixed income securities The basic characteristics of the bonds are as follows Bondholders are typically lenders to the corporation and not owners as in the case of equity shares They carry no voting rights They carry a fixed interest rate which gets paid to the bondholder on a periodic basis There is a maturity period associated with the bonds upon which the principal is repaid back by the corporation to the bond holders The claim of bond holders take precedence over the claim of preference equity share holders in the event of liquidation Bonds are typically classified into fixed income securities with long term maturity 7 10 years commercial paper with very short maturity term lt 18 months and treasury notes which fall in the intermediary range Bond Features Callable As with preferred stocks bonds may be callable Issuers have the ability to retire the issue before maturity if they want to under set conditions Convertible Usually this convertible feature allows the bond to be converted into equity thereby reducing the corporate debt Adjustable rate bonds The coupon rate on this type of bond is changed periodically By changing the coupon rate to reflect current economic conditions the bond s price behaves more like that of a short term instrument Zero coupon bo
250. any interest related accounting entries related to the deals booked in the Ex period In case you do not opt for zero interest facility the system accrues the actual holdings during the accrual period including the buy sell deals booked in the Ex period For Example Let us consider a security with Coupon Start Date 01 Aug Next Coupon Date 08 Aug Record Date 05 Aug Coupon Interest 3 65 Per Annum Interest Accrual Frequency Daily Now let us assume that on 06 Aug 5000 Units are sold Case 1 If you do not opt for Zero interest Accounting entries are passed for event SSLP Interest Only Dr IntComp_RCPY 100 IntComp_SOEX Dr Sec Bridge GL 100 IntComp_SOEX Case 2 If you opt for Zero interest For interest the system does not pass any accounting entries oe ORACLE 4 6 2 Specifying Spot Date In this section you have to indicate the method by which Spot Date is calculated Spot date is calculated to keep a track of deal settlements You can click on the respective tab to go to this section of the screen Market Definition es al Market Code Market Type v _ lt lt lt a L Description Market Identifier Code Over The Counter Category v Option System Narrative Te Main Interest SpotDate Ex Date spot Date Method I Rolling Method SpotDays CountBasis w Weekday ofSpotDate sw SpotDays Holiday Treatment v Fixed Method
251. arket user manual for a detailed discussion of the other set up maintenance and processing functions 29 2 Maintaining Products SEN ORACLE A Repo Product is a category or a type of repo transaction For instance you can classify repo transactions involving short term zero coupon bonds as a repo product in Oracle FLEXCUBE Similarly you can classify reverse repo transactions involving customer portfolios at your bank as a reverse repo product A product thus serves to classify the repo transactions that you enter into You can define certain attributes for a product that you create Attributes are qualities that you define for a product The following are some of the attributes that can be defined for a product The product type whether a Repo or a Reverse Repo product The interest and charges that you would like to levy on repo deals involving the product The tax es that apply on the deals involving the product The type of accounts and the GL SLs to which the accounting entries have to be posted The advices to be generated at different points in the life cycle of deals involving the product The Management Information System MIS details The attributes that you define for a repo product will be inherited by all repo transactions involving the product However when entering a specific transaction you can change its attributes 29 2 ORACLE 29 2 1 Specifying Securities Repo Product Definition Details You c
252. arrett on the list and specify the Restriction Type as allowed 9 The Accounting Role to Head Mapping Class 9 1 Introduction The general ledgers and sub ledgers that your bank maintains are defined in the Chart of Accounts For instance assume that you have maintained the following GLs in the Chart of Accounts Name of the GL GL Code in Oracle FLEXCUBE Outright Asset GL OUTASSTGL Outright Liability GL OUTLIABTY Realised Trading Profit RETRPOOO1 Realised Trading Loss RETRLOOO1 Unrealised Revaluation Profit RELREVP01 Unrealised Revaluation Loss RELREVLO1 To each GL you can link more that one sub ledger For example assume you have linked the following SLs to the Outright Asset GL Name of the SL SL Code in Oracle FLEXCUBE Long Term Bonds OUTASST01 Medium Term Bonds OUTASST02 ou ORACLE Name of the SL SL Code in Oracle FLEXCUBE Short Term Bonds OUTASST03 In Oracle FLEXCUBE GL SLs are broadly referred to as Account Heads 9 2 General Ledger Types The GL SLs maintained in the Chart of Accounts can be classified into different categories The following are examples of the broad categories into which GLs fall e Asset e Liability e Realized Profit e Realized Loss e Income e Expense e Contingent Asset e Contingent Liability e Position GL e Position Equivalent GL These categories are referred to as Accounting Roles
253. asury Officer Securities Department Dear Sir Madam We hereby confirm that as per your instructions to us we have received the following securities against payment as per the details shown below Your Reference 16832 Our Reference 000SE01980380054 Securities Identification ISIN CADBONDNWCO01 North Woods Canadian Minerals Ltd Bonds Trade Date 07 FEB 1998 Place of Trade Toronto Stock Exchange Delivery Date 22 FEB 1998 Next Coupon Due Date 30 JUN 1998 Securities Book Value 5 000 000 00 CAD Quantity of Securities 5 000 000 Face Amount Safekeeping Account Deposited CAGS BZ6782 Securities Certificate Numbers NWB 52011 to NWB 52060 50 x 100 000 CAD worth Bond Certificates Deliverer of Rosedale Brokers Group Toronto 27 23 ORACLE Your Reference 16832 Securities Securities 56243 Deliverer s Reference Beneficiary of Securities Zerus Dynamic Fund Corporation Securities Registration Details Securities that have been received are registered in the name of the Zerus Dynamic Fund Corporation Securities Receipt Declaration Details Certificate Numbers of Bonds delivered match with the numbers as indicated in your Instruction and the Certificates are in a good condition Account for Payment 643 982 Securities Deal Price 104 PCT 104 Percent of Face Value Sec
254. at a discount of USD100 USD1000 USD900 USD100 If the market price of the security were to be USD1100 then the security would be quoting at a premium of USD100 In the Discount Premium method the percentage of the discounted price is quoted In the case of the above example it would be a 10 discount or a 10 premium The YTM price is quoted on the basis of its yield to maturity This price quotation method is applicable only for Zero coupon bonds The yield on discounted instruments is measured by the yield to maturity YTM which is the return on a security bought at current market price for the remaining time to maturity of the security The YTM would keep changing with the market price in case the market price increases above the straight discounted price YTM would decrease and vice versa In the Yield to Maturity quotation method the price is calculated as follows Face Value Purchase price Days in a Year YTM Price Days to maturity Interest Quotation Method For interest bearing instruments the price at which the instrument is quoted can include the accrued interest or can be calculated separately Indicate the interest quotation method for the security price code you are defining The interest quotation method could be either e Flat or e Plus accrued In the former method the price is quoted inclusive of the interest This is also called the Dirty price In the latter method the accrued int
255. at you specify can be e Daily e Monthly e Quarterly e Half yearly or e Yearly Statement Start Day Based on the frequency that you specify you can indicate the start date for the generation of the statement The system generates a statement of holding automatically as part of the end of cycle processing based on the preferences that you specified here If the generation date falls on a holiday If the statement generation date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen Statement Start Month You can also indicate the start month for the generation of the statement 11 2 13 Transaction Statement Statement of Transactions Required You can indicate whether a transaction statement should be generated for portfolios associated to the class Check against this option to indicate that it is applicable to the class If it is applicable to the class you can indicate preferences for its generation oy ORACLE Statement Frequency You can indicate the frequency with which a transaction statement should be generated The frequency that you specify can be e Daily e Monthly e Quarterly e Half yearly or e Yearly Statement Start Day Based on the frequency that you specify you can indicate the start date for the generation of the statement The system generates transaction statements for the portfolio automatically as part of the end of cycle processing based on the
256. ate for the Period 01 OCT 97 to 31 MAR 1998 has been fixed at 8 Coupon Number 4 to be paid on 01 APR 1998 will be USD 44 55 Other Information We shall confirm the final coupon amount as soon as we receive the same Please quote Our Reference in all further correspondence relating to above announcement Thanking You Bee ORACLE For Chemical Bank New York USA 27 2 13 Securities Advice of Money Income Chemical Bank 05 APR 98 890 Pearl Towers New York Lotus Avenue Tokyo Japan Sub Advice of Money Income from Securities Coupon Payment Kind Attention Mr Nomura Shikara Operations Head Securities Department Dear Sir Madam Please be advised that the Coupon for Security with details as shown below has been paid Our Reference 000SE01980940021 Identification of Securities for which ISIN USFRNICIO007 Coupon has been Paid IC Industries Finance Corporation Guaranteed FRN 1996 Securities Safekeeping Account 2938451 Quantity of Securities for which 2 000 000 00 Face Amount Coupon has been paid Coupon Number Collected 004 Coupon Due Date 01 APR 1998 eine ORACLE Our Reference 000SE01980940021 Coupon Interest Rate 8 00 Percent Per Coupon Gross Amount 89 100 00 USD Our Charges 20 00 USD Net Coupon Amount Proceeds 89 080 00 USD Value Date of Payment 01 APR 1998 Account Paid 218521 Other Information We have debited
257. ated You can also send this message when your bank has been instructed to deliver a specified amount of securities to a specified party against payment of funds on behalf of your customer che ORACLE Confirmation of receipt free The SK location sends you a receipt for having received a specified quantity of securities to a specified party without any payment You can generate and send a confirmation of receipt free message after the delivery of securities is confirmed for a securities deal involving the custody customer Confirmation of receipt against payment The SK location sends you a receipt for having received a specified quantity of securities sent to a specified party against payment of a specific amount You can generate and send a confirmation of receipt against payment after the delivery of securities confirmed for a securities deal involving the custody customer Confirmation of free delivery You can send this advice to a custody customer to confirm the delivery of a specified quantity of securities physically or by book entry without any payment to a specified party Confirmation of delivery against payment Your custody customer may instruct you to deliver a specified quantity of securities against payment to a specified party You can generate this advice confirming the delivery of securities against payment Advice of Cancellation In Oracle FLEXCUBE when you buy or sell securities either for yourself or o
258. atement of Transactions for your safekeeping account with us Our Reference OOOSEBN98 Safekeeping Account 40596832 Statement Period Start 01 JAN 1998 Statement Period End 31 MAR 1998 ER ORACLE Our Reference OOOSEBN98 Statement Preparation Date 08 APR 1998 Identification of Securities ISIN FRO000771617 ELF AQUITAINE Shares Security Currency FFR Security Denomination Units Posting Securities Securities Your Our Reference Quantity Balance Date Transaction Movement Reference Type 01 JAN Opening 20 000 1998 Balance 02 JAN Regular Buy IN 43598T 000SE01980020021 2 000 22 000 1998 07 JAN Regular Sell OUT 3475FL 000SE01980080007 3 000 19 000 1998 15 JAN Regular Sell OUT P94860 000SE01980150002 1 500 17 500 1998 28 JAN Regular Buy IN 484820 000SE01980280024 5 000 22 500 1998 05 FEB Regular Buy IN B84759 000SE04980360032 3 570 26 070 1998 24 FEB Regular Buy IN TT94857 000SE05980550021 4 000 30 070 1998 09 MAR Regular Buy IN K93529 000SE07980680050 15 000 45 070 1998 16 MAR Regular Sell OUT 180239 000SE05980750022 8 000 37 070 1998 28 MAR Regular Buy IN 134811 000SE08980870009 7 500 44 570 1998 31 MAR Closing 44 570 1998 Balance 27 40 ORACLE Other Information Please revert back within 15 days of statement date in case of any discrepancies found
259. ation should be performed at the Holdings level you have the option of selecting between Deal level revaluation and Position level revaluation while defining a portfolio See the Maintaining a Portfolio Preference class chapter of this User Manual for more details e ORACLE Specifying the Accrual level e Portfolio At the portfolio level accruals will be passed for the portfolio and currency combination e Holding At the holdings level entries will be passed for net holdings of a portfolio and for security across SK locations and SK location accounts 4 3 3 Specifying whether Coupon Dates can Move across Months In the Security Definition screen you can define whether a coupon payment falling due on a holiday should be shifted backward or forward In the Securities Branch Parameters screen you can specify if such a forward backward shift shall be allowed when it involves a movement across months In the Coupon Plotting field in the Holiday Treatment Move Across Months area you have to select either Yes or No accordingly Example For a security coupon frequency is Monthly and falls on the 2 9 of every month You have chosen Holiday Treatment for Coupon Plotting as Backward in the Security Definition screen In the Securities Branch Parameters screen you have disallowed movement across months In April say the 1 and 2 are Saturday and Sunday respectively both holidays Since movement across month
260. ation tool bar and clicking the adjoining arrow button Securities Market Price Codes Market Price Code Price Code Description Input By Authorized By Modification Authorized e Date Time Date Time Number Open If you are maintaining details of a new market price code click on id from the tool bar The Market Definition detailed screen will be displayed without any details If you are calling a market price code maintenance record that has already been defined choose the Summary option under Market Price Code From the Summary screen double click on a record to open it i ORACLE 7 Maintaining Safe Keeping Locations 7 1 Introduction As a part of the maintenance function you can define the various Safe Keeping SK Locations where securities can be lodged or withdrawn as and when they are traded with For every safe keeping location that you define you have to maintain SK accounts Therefore to record the movements of a security held at a particular location simply debit or credit the SK account depending on whether the security is being lodged withdrawn bought or sold Safe keeping locations can either be internal or external An internal location is one where the bank acts as the custodian While maintaining details of safe keeping locations you are required to indicate whether the SK location is your bank or an external location Basic details of every customer of your bank is maintai
261. blocked for other reasons will not bear any such details 26 Batch Processes 26 1 Introduction The End of Cycle process constitutes a set of programs that mark the logical beginning or end of a cycle of events You are required to execute many routine functions everyday as part of the End of Cycle process These functions can be classified as e Beginning of Day BOD programs e End of Day programs EOD The various BOD and EOD functions that are processed by the system are documented in this chapter 26 1 1 Beginning of Day Processing Before you start entering deals in the system you must perform the Beginning of Day operations The Beginning of Day operations that you must perform include daily processing of events for e Settlements Money as well as Security settlements e Bonds gt Coupon payment gt Redemption both series and quantity gt Maturities gt Calls eee ORACLE gt End of Trading e Equities gt Dividend payment both cash and stock gt Bonus gt Rights Tear Off Expiry gt Warrants Detachment Expiry 26 1 2 Processing Daily Events The daily events processing program is run as a mandatory program at the beginning of each working day and can be run only once during the day This program selects the events that have to be processed at BOD for all the branches As part of daily events the following will be selected and processed e All coupons which have the next coupon date withi
262. bsolute PriceThis is the price at which the block deal is transacted You can enter the price of the security as a price or a percentage of the price depending on the price quotation method specified for the security that is traded You can enter T or M to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million The deal price would include or exclude the purchased or sold interest depending on whether the security being dealt in is quoted flat or plus accrued For a spot deal if the deal price varies from the market price by more that the sensitivity range specified for the security you will be prompted for an override or will not be allowed to process the deal The price that you enter is taken to be in the currency of the security that is traded aa ORACLE Delivery Settlement date DSTL date The delivery settlement date is the date on which settlement of the traded securities should take place Depending on the type of deal spot or forward you are processing you can indicate the security settlement date In the subsequent fields you can indicate the locations from which and to which the security should be delivered 23 2 2 1 Indicating the Mode of Settlement You can specify instructions to the safe keeping location as to when the traded securities should be delivered or released Delivery The options available for the delivery of the traded securities e Deliver
263. bute can be captured on the screen These buttons are briefly described below Series Click on this icon to invoke the Series details screen If the redemption type of a bond is Series you can enter the series details in this screen Coupon Click on this icon to indicate the coupon details for the bond that you are maintaining Revision For bonds defined with floating interest and an asynchronous periodic interest rate revision you can define Revision details Click on this icon to invoke the Revision Schedules screen Redemption Click this icon to define redemption schedules for a security with Schedule Quantity Redemption that you are maintaining Interest This button invokes the Interest service of Oracle FLEXCUBE You can define interest details for a security in this screen Tax This icon invokes the Tax services MIS Click this icon to define MIS details for the security Fields Click this icon to invoke the User Defined Fields details screen we ORACLE 19 2 Entering the Details of a Security A security can be maintained in the Security Definition screen which is invoked from the Application Browser In the Securities Definition screen you can maintain details of the different kinds of securities that you deal in They include Bonds Zero Coupon Bonds Treasury Bills Equities Rights and Warrants When dealing in a security the details that you specified in this screen will be picked
264. by User SE MA0008 Security to be disallowed must be specified SE MA0009 Security to be allowed must be specified SE MA0010 Duplicate values encountered for this combination of CLASS CODE and MODULE SE MA0011 Duplicate values encountered for this class code SE MA0012 For WAC costing method the Accrue Premium flag and the accrue discount flag should have the same value SE MA0013 The accounting role record has been not been entered properly SE MA0014 Enter the class code SE MA0015 Enter the class description SE MA0016 Record deleted successfully SE MA0017 Enter the module SE MA0021 The Record is already closed SE MA0022 The Record is already open SE MA0023 A Market Code of this name already exists SE MA0024 Some element elements in the string entered is not a part of the Swift Character set Do you wish to continue 31 1 ORACLE Error Code Message SE MA0025 The Market Code From Date and To Date combination should be unique SE MA0026 The Class Code entered for this module already exists SE MA0027 The system is not able to generate accounting roles and amount tags for this charge Class SE MA0028 Do you wish to redefault to the class as maintained latest in the class definition SE MA0029 Existing role to head mappings will be deleted and redefaulted from class Wish to continue SE MA0030 Sorry Red
265. c Short Holdings MTM Realized Reval Expense HLDG_RS_MTM_INC Sec Short Holdings MTM Realized Reval Income HLDG_R_MTM_EXP Sec Net Holdings MTM Realized Reval Expense HLDG_R_MTM_INC Sec Net Holdings MTM Realized Reval Income HLDG_SH_MTM_EXP Sec Short Holdings MTM Reval Expns HLDG_SH_MTM_INC Sec Short Holdings MTM Reval Incom LOCOM_REVAL_EXP Sec Positions LOCOM Reval Expense LOCOM_RREVL_EXP Sec Positions LOCOM Realized Reval Expense LOCOM_REVAL_INC Profit on LOCOM revaluation if LOCOM basis is Acquisition Cost MTM_EXP Sec Positions MTM Reval Expense MTM_INC Sec Positions MTM Reval Income 32 4 ORACLE Amount Tag Description RDMPTN_PREM_AMT Redemption Premium Amount REALIZED_LOSS Securities Realized Trading Loss REALIZED_PROFIT Securities Realized Trading Profit REAL_MTM_EXP Sec Positions MTM Realized Reval Expense REAL_MTM_INC Sec Positions MTM Realized Reval Income RGHT_INTR_VALUE Rights Intrinsic Value SEC_ADJDEAL_AMT Securities Adjusted Deal Amount SEC_CASH_DIVDND Securities Cash Dividend Amount SEC_COST_AMOUNT Sec True Asset Cost Amount SEC_DEAL_AMOUNT Securities Deal Amount SEC_DISC_ACCR Sec Discount Earned Accrual Amount SEC_PREM_ACCR Sec Premium Paid Accrual Amount SEC_RDPREM_ACCR Sec Redemption Premium Accrual Amt
266. carries the title of the report information on the branch name branch code branch date the Date amp Time the User ID of the user the page number of the report and the module for which the report is generated Body of the Report This report contains details of 34 4 ORACLE Internal Action ID Specifies the ID for internal action Security ID Specifies the Security ID Security Description Briefly describes the security involved Security Currency Specifies the currency of the security Previous Coupon Date Specifies the date of the previous coupon Next Coupon Date Specifies the date of the next coupon Period Type Specifies the period type of the coupon 34 4 Statement of Holdings Statement of holdings provides details of securities balances and discrepancies You can set preferences as to generation of the report using Reports Statement of Holdings screen To invoke the screen type SDRPHOLD in the field at the top right corner of the Application tool bar and click the adjoining arrow button Statement Of Holdings Report Enter Statement Date 34 4 1 Report Options Here you can capture the following details Statement Date Specify the date of statement of holdings The system generates the report as of this date Once you have entered the date click OK button The system displays the print options screen Set your preferences as to printing th
267. cation APMT Payment Confirmation Custodian Custody Portfolio Customer NOTICE Notice of MT 550 Custodian Custody Portfolio OF Rights Customer 32 12 ORACLE Advice Advice SWIFT Sender of Receiver of Code Description Equivalent Message Message RGHTS NOTICE Notice of MT 551 Custodian Custody Portfolio OF Event Customer EVENT MONY Advice of MT 554 Custodian Custody Portfolio INCOME Money Customer ADV Income SEC Advice of MT 555 Custodian Custody Portfolio INCOME Income in Customer ADV the Form of Securities SEC Advice of MT 556 Custodian Custody Portfolio REDMPTN Redemption Customer ADV REQST Request for MT 570 Custody Portfolio Custodian FOR Statement Customer STMT Custodian Safekeeping Location SEC HLD Statement of MT 571 Custodian Portfolio STATMNT Holdings Customer Safekeeping Custodian Location SEC TXN Statement of MT 572 Custodian Portfolio STATMNT Transactions Customer Safekeeping Custodian Location PNDING Statement of MT 573 Custodian Portfolio TXN Pending Customer STMT Transactions Safekeeping Custodian Location In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life cycle of an SS deal Samples of accounting entries advices and events have been given for two different types of SS deals They are e SS deal with a Portfolio type of product B
268. cation for the transaction in the external source as the external reference number Source You have to indicate the source from which contracts have to be uploaded 22 2 3 Indicating details of the security that is traded Security Code While entering the details of a deal you should indicate the security that the deal involves and the market in which it is traded You can select a security code from the picklist The picklist will contain a list of all the securities that you maintained in the Securities Definition screen The trading in the security should be allowed for the portfolios involved in the deal As you have already maintained details of the security all the features of the security like its price the quotation method the corporate actions that it involves and several other details of the security will be processed based on these details After you indicate the securities that are being traded in the deal you can indicate the market in which they are traded The market in which the security is traded is defaulted from the Security Definition screen You can change the default and select a market code from the picklist available The picklist will contain valid market codes maintained in the Market Definition screen ORACLE Market Code Indicate the market in which the security involved in the deal is traded Select a market code from the option list The option list will contain valid market codes maintained in th
269. ce option enabled Map this portfolio to an SK location for which you have allowed Banker s Acceptance e Define a Loan MM placement product in the Securities Bank Parameters maintenance e Define a Bank Sell type of deal product with the Banker s Acceptance option enabled e Define a combination Bank Sell Bank Buy or Bank Sell Customer Buy product using the above Bank Sell product e Enter a Securities deal using the above combination product and security The portfolio that you specify for the Sell leg will need to be enabled for BA e On authorization of the securities deal a loan MM contract is created with the issuer of the security as the counterparty 22 2 6 3 Specifying Advices for the Deal From the Securities Deal Input screen click Advices button The advices screen is displayed To recall the advices that can be generated for the events that occur during the life cycle of a deal are defined for the product to which the deal is associated The details of the advices applicable for an event are displayed in the Advices screen The party type to whom a specific advice should be sent is picked up automatically based on the type of deal you are entering and the parties involved in the deal poe ORACLE Leg Reference 0008808120650002 Event Details Event Code Description Advice Details E Advice Code Suppress Priority Party Id Party Name Advice Description Address1 Address2 Address3
270. cessed by the system Chapter 28 Customer Correspondence explains the various types of advices generated at each stage for the Securities module Chapter 29 Making Queries tells you how to make queries for specific information The steps to be followed to build a query are also detailed here Chapter 30 Handling Repos discusses the details that you need to maintain in the Securities module to process Repo and Reverse Repo deals Chapter 31 SGL Maintenance explains the manner in which you can print Subsidiary General Ledger SGL forms for Repo and Reverse Repo deals Chapter 32 Error codes and Messages for Securities lists the error messages that you may encounter while working with Oracle FLEXCUBE Chapter 33 Annexure A Accounting Entries and Advices for the Securities module lists the suggested event wise accounting entries and advices for the Securities module Chapter 34 Reports explains the various report programs and reporting features available under the Securities module ve ORACLE 1 4 Related Documents You may need to refer to any or all of the User Manuals while working on the Securities module Procedures Messaging System Management Information System Central Liability Products Settlements Interest Charges and Fees Tax User Defined Fields 1 5 Glossary of Icons This User Manual may refer to all or some of the following icons icons Function New Copy Save ld x
271. cify that tax is applicable for a product deals involving the product will inherit the attribute However you can waive this tax if it has been defined for the product the deal involves at the time of deal processing Click Preferences button to invoke the preferences screen Preference Preferences Payments Product Code Allow Brokerage Pay Past Schedules Prepayment Penalty Track Accrued Interest Forward Dating Allowed Tax Applicable Allow Rollover Automatic Liquidation Intra day Deal Verify Funds For Principal Verify Funds for Interest Verify Funds For Penalty Amount Holiday Treatment Holiday Currency Ignore Holidays Authorization Rekey Fields Rollover Details Liquidation Order Currency Value Date Contract Amount Maturity Date Choosing a deal product Accrual Frequency Start Month Start Date Minimum Default Maximum Unit Rate Variance Normal Rate Variance Maximum Rate Variance Product Description Holiday Treatment Preferences Schedule Movement Cascade Schedules Move Across Month Move Forward Move Backward Securities Block Deal Block Product When defining the preferences for a repo product that you are creating you have to indicate a Block Security deal product that you would like to use to process repo deals involving the product You can choose from a list of Block Security products that maintained at your bank in
272. ck OK button 34 7 ORACLE For field wise explanation of the Print Options screen please refer to the chapter Retrieving Information in Oracle FLEXCUBE in Reports user manual 34 8 ORACLE 34 6 1 Contents of Report The contents of this report have been discussed under the following heads 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 The following details are displayed Deal The reference number of each deal Reference Version The version number Settlement The settlement date of the deal Date Trade Date The date as of which the trade would take place Transaction Date The date on which the transaction would take place Security The description of the security Description Security The currency attached to the security Ccy Security The unique code that identifies the security Code Deal Value The total value of the deal Deal The quantity of the deal Quantity Adjusted The adjusted deal price Deal Price 34 9 ORACLE 34 7 Corporate Action Tracking Ex Date Report You can generate corporate actions Ex Date report by using Corporate Action Tracking Ex Date Report screen To invoke the screen type SERCADUE in the field at the top rig
273. cle of the securities Some of these actions can be directly correlated to the return which the investors earn on these securities and others are relating to the various happenings on the securities during its life cycle Investors returns Corporate actions which fall under this category can be e Cash dividend on equities preference shares e Stock dividend on equities e Interest on bonds fixed income securities e Redemption of bonds fixed income securities either on Call maturity date e Exercise of rights warrants associated with securities Corporate actions which do not fall under this category are e Stock splits e Mergers and acquisitions ak ORACLE 2 1 12 1 Cash dividend Corporations reward the investors by declaring cash dividends which would normally be a small portion of the company s earnings after interest payment and tax Companies plough back the remaining portion of the earnings into its reserve which can be re used for funding the company s growth in future The dividend declared as explained above is paid to the investors in cash When voting on the amount and form of a dividend the Board of Directors provides two dates a record date and a pay date The record date is the point of reference for determining shareholder eligibility for the dividend The pay date is typically a couple of weeks after the record date Three days before the record date and about three weeks before the pay date
274. combination of Branch Code Portfolio Id and Security Id does not exist SE MA0374 Mandatory Field SK Location Id is null 31 14 ORACLE Error Code Message SE MA0375 Mandatory Field SK Location Account is null SE MA0376 Mandatory Field Security Form Code is null SE MA0377 Mandatory Field To Series is null SE MA0378 Current Holding Unauthorized Holding values not available for this Position Ref No and To Series at this SK location Id and Account SE MA0379 Quantity moved should be less than or equal to the available quantity in the series SE MA0380 Mandatory Field Quantity Moved is null SE MA0381 The quantity available in this series is null SE MA0382 The Effective Date does not lie in the coupon period of the Security SE MA0383 Cannot unlock the record is already confirmed SE MA0384 Record can be inserted only if the interest revision is manual SE MA0385 Event Date is before the interest start date of the security SE MA0386 Event Date should be before the redemption date of the security SE MA0387 No data found for Security Interest Start Date Redemption or Expiry Date SE MA0388 This combination of Security Id Interest Component and Event Date already exists SE MA0389 Value for Event Date is mandatory SE MA0390 This combination of Security Id Interest Component and Effective Date alr
275. ct that you create Once defined a portfolio restriction class can be made applicable to any number of products 14 2 Specifying the Portfolio Restriction Classes You can invoke the Portfolio Restriction Class Maintenance screen from the Application Browser If you are maintaining details of a new portfolio restriction class choose New from the Actions Menu or click l from the tool bar The Portfolio Restrictions Class Maintenance screen is displayed without any details To invoke the Securities deal Portfolio Restrictions Class Maintenance screen choose Securities Classes from the Application Browser Thereafter choose Pfolio Restrictions and Detailed under it You can invoke the Securities deal Portfolio Restrictions Class Maintenance screen by typing SEDDPRCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button i ORACLE If you are calling a Portfolio Restriction Class record that has already been defined choose the Portfolio Restriction Class Maintenance Summary screen From the Summary screen double click a class to open it Securities Deal Portfolio Restrictions Class Maintenance Class Code Description Module SD Securities Deal Module Portfolio Restriction Restriction Type Allowed 2 Disallowed o la Portfolio Access NM Portfolio Id Product Portfolio Description Restriction T
276. culate_repo_face_value SE Unhandled exception in function BA0271 sepkss_corpaction_msg fn_process_notice SE Unhandled exception in function BA0272 sepkss_corpaction_msg fn_check_advice SE Unhandled exception in function sepkss_corpaction_msg fn_handoff BA0273 SE Error updating advice_generated field to Y BA0274 SE Error updating advice_generated field to P BA0275 SE Error updating internal_action_id in setbs_event_log BA0276 SE Unable to handoff to mstbs_msg_handoff Function BA0277 sepkss_advice_utils fn_insert_msg_handoff returned false SE Error updating statement date number fields in setms_portfolio_master BA0278 SE Unhandled exception in function fn_statements_handoff BA0279 SE Matched buy deals have not settled DSTL will not be done for 1 BA0280 CS Unhandled exception in fn_create_cash_flow version 1 CF0001 CS Cstbs_event_due_dates not populated CF0002 CS Unhandled exception in fn_create_cash_flow version 2 CF0003 CS Unhandled exception in fn_restore_cash_flow CF0004 CS Unhandled exception in fn_authorize_cash_flow 31 46 ORACLE Error Message Code CF0005 CS Unhandled exception in fn_settle_cash_flow CF0006 CS Unhandled exception in fn_process_charges CF0007 CS Unhandled exception in fn_tax_charges CF0008 CS Unhandled exception in fn_is_referral CF0009 CS Unhandled exception in fn_process_settlements_lists
277. culation is done 365 365 days in a year Click on Actuals in Numerator Method field click on 365 days in 4 30 ORACLE Actual The Actual number of days in the period The Actual number of days in Actual that year Click on Actuals in Numerator Method field click on Actuals in Denominator Method field Denominator Method field Actual This is similar to the Actual 365 method except that leap days are always 365 ignored in the numerator day count calculation Japanese Click on Actual Japanese in Numerator Method field click on 365 in Denominator Method field Actual Sum of A and B where 365 ISDA A Interest accrual days falling within the leap year 366 B Interest accrual Days not falling within the leap year 365 The denominator is the actual number of days in a year Click on 365 ISDA in Numerator Method field click on Actual in Denominator Method field Actual The actual number of calendar days for which calculation is done 360 360 days Click on Actual in Numerator Method field click on 360 in Denominator Method field Denominator Method Select the denominator method from the adjoining drop down list This list displays the following values e 360 e 365 e 364 4 6 Interest Method for Computing Coupon Interest Apart from the above mentioned method for calculating the interest you can also use the ACT ACT ISMA Interest Method and ACT AC
278. curities Unutilized Deals MTM Realized Reval Expense UNSD_R_MTM_INC Securities Unutilized Deals MTM Realized Reval Income UNSD_SE_MTM_EXP Unutilized Sell Deals MTM Revaluation Expense UNSD_SE_MTM_INC Unutilized Sell Deals MTM Revaluation Income UNSR_BY_MTM_EXP Unutilized Buy Deals MTM Realized Revaluation Expense UNSR_BY_MTM_INC Unutilized Buy Deals MTM Realized Revaluation Income UNSR_SE_MTM_EXP Unutilized Sell Deals MTM Realized Revaluation Expense UNSR_SE_MTM_INC Unutilized Sell Deals MTM Realized Revaluation Income WARR_INTR_VALUE Warrants Intrinsic Value 32 6 ORACLE Amount Tag Description INTCOMP_PUCMA This Amount tag represents the value of the Bought Interest if any at the time of Purchase for the sold securities If there were more than one purchase this tag will be a sum of all the bought interest in FIFO order During sale these tags have value only if the sold units are bought in the current coupon period TOTALINT_TIAC This amount tag represents the total interest accrued for the eligible units total interest Bought interest SEC_PREM_TOTALACCR This amount tag represents the total Premium accrued for the Sold units SEC_DISC_TOTALACCR This amount tag represents the total Discount accrued for the Sold units SEC_BRIDGE_TFR This amount tag can be used to move the balance between the bridge buy and bri
279. curity Definition screen The Yield Calculation Parameters screen is displayed Yield Calculation Parameters Yield Calculation Parameters T Bills YTM For T Bills Annualizing Method j Ha luse Bond Formula Day Count Method Numerator Reinvestment Period Days Day Count Method Denominator Yield Calculation Parameters Bonds Reinvestment Period Days Day Count Method Numerator Annualizing Method v Day Count Method Denominator C Premium Discount For Current Interest Period 19 2 19 1 Specifying YTM method for T Bills The basis for YTM calculation for T Bills can either be 10 Simple interest 11 Effective Compound interest If you enable the Use Bond Formula option YTM is calculated using the effective interest formula typically used for bonds For Bonds and for T Bills with the effective interest method of YTM calculation you need to specify the following details Reinv Period Days The effective interest formula assumes that coupon payments are reinvested at the same rate as the yield of the T Bill Bond till the maturity of the security You have to specify this period in terms of days a ORACLE Annualizing Method For Bonds and for T Bills with effective interest you need to specify the annualizing method This is the method by which the System computes the periodic YTM from the deal YTM which is annualized The options available are e Simple e Compound If the Annualizing m
280. curity Identification The resultant security Identification to which shares have been awarded is defaulted here ae ORACLE Portfolio Identification This is the portfolio ID of the equity for which the bonus to cash conversion details are being defined Stock Keeping Location This is the SK location where the security is lodged and for which cash payment is to be received Stock Keeping Account This is the account number which is to be credited when the payment due is received Record Date The record date is defaulted from the Stock Dividend definition screen Event Date The event date is defaulted from the Stock Dividend definition screen Stock to Cash Action Id The stock to cash action Id assigned in the Stock Dividend screen is defaulted in this screen Initial Bonus This field indicates the bonus amount that is due to be paid Bonus Encashed You can choose to convert either a part of or the entire bonus that is due Specify the amount to be encashed in the Bonus to be Encashed field If you choose to encash only a part of the amount due then the residue bonus will be automatically calculated and displayed in the Residue Bonus Due field Assume that you have a holding of 500 units in a particular security Bonus is declared in the ratio of 2 1 Therefore you are liable to get 250 units of shares free If you indicate that bonus is to be encashed for 125 units only then the remaining 125 units which need to be encash
281. currently quoted in the market This price is compared with the deal price to determine the forward profit or loss The market price of the security as maintained in the price code maintenance screen is defaulted You have an option to change the default AM ORACLE The forward profit or loss is the difference between the deal price and the spot price and is calculated from the spot date of the deal to its settlement date The spot date is calculated by adding the spot days specified for the market in which the security is traded to the trade date Spot date Trade date spot days The forward profit or loss would be accrued from the spot date to the settlement date of the deal The accrual of the forward profit and loss will be done on the basis of the accrual preferences specified for the portfolio to which the security belongs Even if you have indicated that no accrual should be done on the settlement of the deal the accrual will be done automatically In case of forward deals Spot Price is defaulted from the market price maintenance and the spot price cannot be changed Payment Currency If the currency of the security is different from the settlement currency you should indicate the currency in which payment is made All the components of the deal like the deal amount the charges and tax that is levied will be settled in this currency By default the security currency is taken to be the payment currency If you indicate t
282. customers according to the common features that they share For example customers can be grouped into e Banks e Corporates e Financial Institutions excluding banks e Individuals Each group may be referred to as a customer category A customer restriction class identifies a unique list of customer categories that can avail a service When building a service at your head office you can associate it with any Customer Restriction Class that you have maintained The restrictions defined for the class will apply to the service R ORACLE 8 3 1 The Customer Category Restrictions Class screen You can maintain a list of either allowed or disallowed Customer Categories in the Customer Category Restrictions Class screen This screen can be invoked from the Application Browser You can invoke the Customer Restrictions Class Maintenance screen by typing CSDCUCCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Customer Restrictions Class Maintenance Module Description Class Code Description Restriction Type Allowed Disallowed Customer Categories L Code Description oO la Customer Access Class W Customer Id Category Customer Name Restriction Type Allowed v Number Input By Authorized By Modification Authorized e Date Time Date Time Open A Customer Category Restrictions Class
283. d Discount the price is quoted based on the discount at which the security is bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold YTM the price is quoted based on its yield to maturity This price quotation method is applicable only for Zero coupon bonds oe ORACLE The yield on discounted instruments is measured by the yield to maturity YTM which is the return on a security bought at current market price for the remaining time to maturity of the security The YTM would keep changing with the market price in case the market price increases above the straight discounted price YTM would decrease and vice versa The price using this quotation method is calculated thus Face Value Purchase price Days in a Year YTM Price Days to maturity Based on the deal quantity and the price quotation method the deal amount is determined Irrespective of the price quotation method that is used the net result is the same Example Take a USD 100 bond maturing 20 months from the settlement date which you have purchased at a premium of USD 20 We will examine the entry that you will have to make at the input price field while entering the details of the deal Price USD 120 Premium 20 Premium USD 20 Percentage price 120 YTM 12 Using any of the above price quotation methods the price of the security amounts to USD 120 A
284. d 052 SE MRKT Failed to get the next working day while computing spot date 053 SE MRKT Failed in holiday check while computing spot date 054 oo Failed in holiday check while computing spot date 31 82 ORACLE Error Code Message SE MRKT 056 SE MRKT 057 SE MRKT No record found for market spot date 058 SE MRKT Error during getting market spot date 059 SE MRKT Zero days got when computing the days in a month 060 SE MRKT Failed in setting the date to the correct format while 061 computing spot date SE MRKT Failed to set the date to the correct format 062 SE MRKT Failed in holiday check while computing spot date 063 SE MRKT Failed in holiday check while computing spot date 064 SE MRKT Failed to get next working date while computing spot date 065 SE MRKT Failed to get spot date 066 SE MRKT Failed to get market details while computing ex date 067 SE MRKT Market Record is not authorized 068 SE MRKT Could not get Ex date 069 SE MRKT Error in holiday check while computing ex date 070 SE MRKT Failed in holiday check while computing ex date 071 SE MRKT Failed in getting next working day when computing ex date 072 SE MRKT Failed to get next working day when computing ex date 31 83 ORACLE Error Code Message 073 SE MRKT Market Ex date d
285. d SE MA0214 This combination of rate code tenor code currency code and effective date already exists for this branch SE MA0215 Rates for propagated rate codes can be maintained only at the head office branch SE MA0216 This rate code already exists SE MA0217 For CURRENCY HOLIDAY as the holiday type HOLIDAY CURRENCY is mandatory SE Input to Product Description is Mandatory cannot be NULL PRDOO1 SE Record is Unauthorized Closure Not Allowed PRDOO2 SE Are you sure you want to Close the record PRD003 SE Record Successfully Saved PRD004 SE A combination product with this product as a leg is open Closure NOT PRD005 Allowed SE Override Limit CANNOT be greater than Stop Limit PRDOO6 SE Are you sure this is a Back Valued Product PRD007 SE Product Start Date CANNOT be greater than Product End Date PRD008 31 8 ORACLE Error Code Message SE Product end Date CANNOT be before Today PRD009 SE Are you sure you want to redefault the Class PREF01 SE Deal Product Copy Failed PRD010 SE Deal Product Delete Failed PRD011 SE Security Product Copy Failed PRD012 SE Security Product Delete Failed PRD013 SE Charges have not been defined for the Product PRD014 SE Security Restrictions have not been defined for the Product PRD015 SE Portfolio Restrictions have not been defined for the Product PRD016 SE Tax Co
286. d and vice versa 19 2 19 2 Processing Bonds and T bill based on the YTM parameters While processing a Bond if the Price quote is not by Yield to Maturity the YTM is computed based on the formula given below a ey Ady 5 C R P 1 y P Ad P i 1 y e Pois the Purchase price of the Bond e Nisthe Total number of coupons e Ciis the Coupon payment for coupon i e yogis the Periodic YTM e Yois the Annualized YTM e Ais the Day Count Method Denominator la ORACLE e nis the Coupons in a Year e P isthe Period of Reinvestment If Null defaulted to A n e R P is the Redemption Price e Alis the Accrued Interest e Adj is the Coupon Date Value Date e Adwis the Redemption Date Value Date The formula used to calculate the yield given price for T Bills provided you have enabled the Use Bond Formula option will be RP Ad 1 y e Pois the Purchase price of the T Bill e R P is the Redemption Price e 0 is the Periodic YTM e Adis the Redemption Date Value Date e Ais the Day Count Method Denominator The following example explains the computation of YTM for T Bills using the formula mentioned above Purchase Price USD 90 Redemption Price USD 100 Day count method Numerator Actual Day count method Denominator 365 Reinvestment Period 183 days Redemption Date 30 June 2003 Purchase Value Date 31 Jan 2003 Annuali
287. d branch then the settlement processing is disabled and the settlement account remains as a fund branch account maintained for the fund If the corporate account exists in different branch then the Inter branch account GL maintenance is used for resolving the bridge account oe ORACLE 22 5 2 Capturing Account Details As mentioned earlier you have specified the accounts to be debited and credited for the deal amount in the Securities Deal Input screen For deals that settle in a currency other than the security currency the local currency equivalent of the Deal Amount is called the Amount Equivalent Amount Equivalent is also the term used for the amount involved in the second leg of the accounting entry for the deal F Settlement Details Web Page Dialog xj Reference Number CHOCBCS001850009 Component Account Details Message Details Parties Parties Cover Parties Other Details Clearing Details Local Clearing IBAN Account Number Settlement Details D Component Currency Branch Account Account Currency D C Exchange Rate Rate Code Spread Definition USD CHO 100050 USD c USD CH usb CHO 7 PAD_DEAL_PROFIT USD Hi usD USD D Uso dahh 4 iL Settlement Direction D Debit C Credit Component Description The accounts and amount involved in the Debit and Credit legs of the accounting entry for the deal amount will be displayed as you have already entered them in the Securities Deal Input screen
288. d deals allowed for this product 32 4 4 1 BOOK Booking of securities deal Accounting Entries If brokerage is considered for Assets the following accounting entries are passed Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL BROK_PREM Debit BROKPAY BROK_PREM Credit If brokerage is considered for Liabilities the following accounting entries are passed Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL BROK_DISC Debit BROKPAY BROK_DISC Credit For Brokerage marked as Consider as Discount and denominated in a brokerage currency other than the contract currency the DISC and PREM amount tags will be posted into the Bridge Head in the contract currency If a particular charge component is considered for discount for Assets the following accounting entries are passed Accounting Role Amount Tag Dr Cr Indicator SEC SETTLEMENT lt Charge Class gt _DISC_ Debit SEC BRIDGE GL lt Charge Class gt _DISC_ Credit SEC BRIDGE GL lt Charge Class gt _PREM Debit SEC SETTLEMENT lt Charge Class gt _PREM Credit cd ORACLE For charge components marked as Consider as Discount and denominated in a charge currency other than the contract currency the DISC and PREM amount tags will be posted into the SEC BRIDGE GL head in the contract currency Advices Nil 32 4 4 2 AMND Amendment of securities
289. d in populating accrual details for a portfolio SE IAC2 015 Failed in logging exception during interest accrual SE ICLC 001 Failed in computing interest for cum period SE ICLC 002 Failed in computing interest for ex period SE ICLC 003 Failed in computing interest amount 31 81 ORACLE Error Code Message SE ICLC 004 Failed in building period table for interest SE ICLC 005 Failed in building interest rate table SE IMV1 001 Failed in populating period accrual SE IMV1 002 Failed in populating interest quantity movement SE IMV1 003 Failed in populating purchased and sold interest SE IMV1 004 Failed in populating purchased and sold tax SE IMV1 005 Failed in building daily queue for interest rebuild SE IMV1 006 Failed in building daily queue for interest accrual SE IMV1 007 Failed in interest period adjustment SE IMV1 008 Failed in tax period adjustment SE IMV1 009 Failed in populating interest adjustment details SE IMV1 010 Failed in populating tax adjustment details SE ISRV 001 Failed in obtaining interest value date variance SE ISRV 002 Failed in building deal array SE ISRV 003 Failed in building cash flow array SE MRKT Failed in computing market spot date 001 SE MRKT Failed in computing market Ex date 002 SE MRKT Failed to get market details while computing spot date 051 SE MRKT Market Record is not authorize
290. d while processing Transaction level tax 007 SE CPRC Failed in Settlements processing 008 SE DATE Failed in computing day count 001 SE DATE Failed in getting denominator 002 SE DATE Failed in computing the number of days 003 SE DATE Failed to get next leap date 004 SE DATE Failed to get next periodic date 005 SE DATE Failed in add months function 006 SE DATE Failed in add months function 007 SE DATE Failed in calculating the months between two dates 008 SE DATE Failed in getting the date in the correct format 051 SE DATE Could not convert the date to the correct format 052 SE DATE Failed in check for leap year 053 SE DATE Failed in getting the date in the correct format 054 SE DATE Could not convert the date to the correct format 055 31 78 ORACLE Error Code Message SE DATE Failed in check for leap year 056 SE DATE Failed in getting the date in the correct format 057 SE DATE Could not convert the date to the correct format 058 SE DPOP Failed in populating Dividend for branches 001 SE DPOP Failed in inserting Dividend record 002 SE DPOP Account currency is not the same as Issuer payment 003 currency SE DPOP Failed in Tax processing for dividend 004 SE DPOP Failed in Charge processing for dividend 005 SE DPOP Failed in Transaction Tax processing for dividend 006 SE DPOP Failed in Settleme
291. daily On 31 January only realized revaluation of settled positions in the portfolio will be done 11 3 6 Interest Accrual Preferences The interest on coupon bearing instruments can be accrued over the tenure of the instrument As a portfolio preference you can indicate whether interest should be accrued over the tenure of coupon bearing instruments that constitute it Interest Accrual Check against this option to indicate that interest should be accrued for coupon bearing instruments in the portfolio Leave it unchecked to indicate that accrual is not applicable In Oracle FLEXCUBE interest accrual is done for all un matured securities with primary date less than the accrual date Example You have purchased a 1000 7 bond You hold it for 5 years to maturity You receive 70 as interest each of the years 1000 x 70 for a total of 350 interest payments You can choose to accrue the interest due to the bond over its tenor or realise the 350 when the bond matures If you specified that interest should be accrued you can indicate accrual preferences like the e Accrual frequency e Accrual start day and e Accrual start month Note that you do not specify the interest accrual method while defining preference classes You can specify the same at the time you define a securities portfolio The accrual preferences that you specify will be made applicable to all portfolio products to which the preference class is associated
292. dated e The currency in which it was liquidated Bee ORACLE 22 7 Processing Brokerage on a Deal 22 7 1 When capturing the details of a deal that involves brokerage you will have to specify the brokerage details applicable to the deal To recall you have already specified the name of the broker through whom the deal was brokered in the Securities Deal screen The details specified for the broker including the brokerage rule linked to the broker is defaulted However you can change some details like whether brokerage should be booked in advance in arrears or whether it should be waived altogether Click Brokerage button to define the brokerage details that are applicable to the deal leg you are processing You will be allowed to enter details of a broker only if brokerage was allowed for the product to which the deal is associated 7 Brokerage Details Web Page Dialog a x EJ Reference Number CHOCBCS001850006 Rule Code Broker Code Description Broker Name Payable Brokerage Currency Currency Amount Amount Liquidation Booking Status No Booking Advance Arrears Reference Number 7 Consider for Discount Features of the Contract Brokerage Details Screen The code assigned to the broker through whom the deal was brokered is displayed along with the broker s name If the brokerage payable currency is the same as the brokerage paid currency then the same amounts brokerage paid and bro
293. days The quantity of bonds is generally quoted in the market in two forms e Units e Nominal value In the units scenario bonds are bought in units and are quoted at a nominal price Since fixed income securities usually mature at the face value the prices of such securities are always quoted at discount Years to maturity and interest rate of the fixed income security are the two primary factors which determine the price of the security Here again the price at which it is quoted can be either Clean price or it can be Flat price Clean price is the basic price of the security and flat price contains the basic price plus the accrued interest on the security from the last interest payment date In the first case the buyer will pay the seller the accrued interest from the last interest payment date separately Even though the outflow for the buyer is same in both the cases the important thing is from the accounting point of view Accrued Face value of bond x rate of interest x Interest Number of days bond is owned 360 Days used for interest computation the variables mentioned within in the above formula can be done using any of the nine methods as mentioned below e Actual Actual e Actual 360 e Actual 365 e Actual 364 e 30 US Actual e 30 US 360 e 30 US 365 e 30 US 364 a ORACLE EURO Actual EURO 360 EURO 365 30 30 30 30 EURO 364 In the nominal val
294. de Slogan Rate Type Product Group Product Group Description Start Date End Date Remarks accountng Rote Events eranch Currency customer instrument Pretrences charges rax ms reas Maker Date Time Mod No Checker Date Time Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details tax details etc by clicking on the appropriate icon in the horizontal array of icons in this screen For a Portfolio product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to a Portfolio product in the SP Product Definition Main screen and the SP Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Interest A ORACLE e User Defined Fields e Settlements Product Type The first attribute that you define for a portfolio product is its type You can broadly classify portfolio products into three types e Customer Portfolio e Bank Portfolio e Issuer Portfolio If the bank issues securities e g Central Bank issuing government bonds it can
295. de should be entered D00015 31 49 ORACLE Error Message Code SE Security series should be entered DO0016 SE Payment date should be entered DO0017 SE Spot date should be entered DO0018 SE Spot price should be entered DO0019 SE Payment Currency should be entered DO0020 SE Interest days should be entered D00021 SE Counterparty should be entered D00022 SE SK location should be entered D00023 SE Portfolio should be entered DO0024 SE User reference should be entered D00025 SE Dealer code should be entered DO0026 SE Money settlement date should be entered DO0027 SE SK Account should be entered DO0028 SE Actual money settlement date should be entered DO0029 SE Overrides need to be confirmed for Authorization DO0030 SE Do you want to undo the changes you have made D00031 SE Do you want to delete the contract D00032 31 50 ORACLE Error Message Code SE Do you want to undo the last unauthorized changes DO0033 SE Authorized contract can not be deleted DO0034 SE Contract successfully deleted DO0035 SE User Reference Number should be unique DO0036 SE Liquidate Failed DO0037 SE Rollover Failed DO0038 SE Failed to generate new version Reversal of contract Failed DO0039 SE Failed to copy the contract DO0040 SE Failed to delet
296. deal you are processing Events Click this icon to view details of the events and accounting entries that the deal involves The screen also displays the overrides that were encountered for the deal Limits Click this icon to view the forward profit that you have made or the loss that you have incurred on account of the deal Walkin In the screen that corresponds to this button you can indicate the credit lines under which your liability to the deal should be tracked The details of this screen are discussed under the head Specifying credit administration details MIS Details Click this icon to define MIS details for the deal tes ORACLE Advices Click this icon to invoke the advices screen In the screen corresponding to this icon you can view suppress and prioritize the advices that are to be generated for each leg of the deal This screen along with its fields has been detailed under the head Specifying Advices for a deal Netcons Click this icon to view your net consideration in the deal Parties In the screen that corresponds to this button you can indicate the parties involved in the deal Settlements Click this icon to invoke the settlement screens Based on the details that you enter in the settlement screens the deal will be settled The details of these screens have been discussed in the section titled Maintaining Settlement Instructions Tax Thi
297. deanscuensse 34 1 34 1 INTRODUCTION cccccccecesssssscecececeesssececececeesesssececccsceeaaeceeececseaaesececsceeseaaececececeeseaaeaeseeeceesenseaeeeeeeeenes 34 1 34 2 CORPORATE ACTION TRACKING COUPON EXDATE ccccsccessescecesssececseneeceeaeeecsesaeeecneeeeessseeeensaeees 34 2 34 21 Contents Of Repoti ic ccscvasievessinscuassiasivvenecacpesousiagesdans a surgeigedsessngenseuensgedsteveneepedgetonwensanaddessd 34 3 34 3 COUPON FLIPPING ccccecssssscecececsesesccecececeeneseseceecceceeaaeceeececsenaaecececscsesesaecesececeeseasaeceeeceesesneaeseeeceenes 34 4 34 31 Report OP HONS seiigis 34 4 34 3 2 Contents Of Repoti anii e e e a I E a e EA EE E E RE 34 4 34 4 STATEMENT OF HOLDINGS sears oranin covets oi igiena ria Ea Eea EREE aA Eas oed AEREE ra ETR Sitia 34 5 34 4 1 Report Options cecccecccscesseesseeseeeseeeseeeeeesecesecaecuaecuaecaaecaaecaaeeseeeseecaeeseeseeeeseesaesaeceeceaeceaesaeeaeeeaeens 34 5 34 4 2 Contents of REPort cccccccsccesseeseeseeeseeescesscesecusecuaeceaecaaecaaeesaeeseecssecaeeseeseeeeseseaecaecuaessaecaaessaseseeeneees 34 6 34 5 SECURITIES ACTIVITY REPORT ccsccccccceceesessssececececsesssaeceecceceesnsaececececseseaaeeesececeesesaeeeeeeeceeneeaeeeeeeeenes 34 7 34 5 1 Contents of REPort cccccccsccesseeseesseeseeescesscesecusecusecaecaaecaaeesaecasecaeeceeeceeseeesesesecaecaecsaecaaecseeeneeeneees 34 7 34 6 BACKDATED DEALS REPORT ccccssessecececeesessscececececsenseaecececec
298. der By The Value list contains the options e Ascending e Descending Click the option of your choice say Descending Click Accept button The following is displayed in the Ordering screen SECURITY_ID Desc Click Ok button The details of securities in their respective portfolios will be displayed in the descending order in the Portfolio Movements Summary screen If you decide to cancel the ordering you have specified click Clear Order By button The screen clears and you can specify a new order S For more information on the Query option please refer to the chapter on queries in the Common Procedures manual of Oracle FLEXCUBE 29 Handling Repos 29 1 Introduction Securities repurchase agreements referred to as repos are entered into to raise money or meet your Central Bank statutes To invest short term surplus funds at minimal risk reverse repo transactions are entered into The repo and reverse repo transactions are similar to money market transactions In Oracle FLEXCUBE they are handled in the same manner as the money market placement and borrow transactions The set up maintenance and processing functions discussed in the Money Market user manual also apply to repos However you would have to maintain a few additional details in Oracle FLEXCUBE to handle repo transactions In this chapter we shall discuss only those additional details that need to be maintained Please refer to the Money M
299. dge sell GL s if different GL s are used for Bridge buy and bridge sell This amount tag will only be populated for the sell leg in the case of BBBS and CBCS kind of deals SEC_PREM_ACCR Premium Paid Accrual Amount SEC_INTADJ_ACCR Interest Adjustment Accrual Amount SEC_DISC_ACCR Discount Earned Accrual Amount ACCRUED_INT_ADJ Accrued Interest Adjustment Amount BROK_DISC Brokerage Discount Amount BROK_PREM Brokerage Premium Amount DR_CHG_DISC Consolidated Debit charges for the deal CR_CHG_PREM Consolidated Credit charges for the deal When revaluation entries of the previous financial year are being reversed at BOD on the first working day of the particular financial year the following Amount Tags are used HLDG_LO_MTM_INC_PY HLDG_LO_MTM_EXP_PY HLDG_SH_MTM_INC_PY HLDG_SH_MTM_EXP_PY 32 7 ORACLE e HLDG_MTM_INC_PY e HLDG_MTM_EXP_PY e UNSD_BY_MTM_INC_PY e UNSD_BY_MTM_EXP_PY e UNSD_SE_MTM_INC_PY e UNSD_SE_MTM_EXP_PY e UNSD_MTM_INC_PY e UNSD_MTM_EXP_PY e MTM_INC_PY e MTM_EXP_PY e LOCOM_REVAL_EXP_PY The amount tags have already been explained in the table above except for the fact that they have the PY suffix 32 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 Portfolio type of product List II contains samples of 32
300. ds do not match Please reenter the portfolio ID DOO066 31 52 ORACLE Error Message Code SE Money settlement date does not match please reenter the money DO0067 settlement date SE Failed to validate the dates DO0068 SE 1 2 3 is 4 holiday Continue DOO0069 SE Trade date is earlier than product start date DO0070 SE Deal Settlement date is earlier than product start date DOO071 SE Money Settlement date is earlier than product start date D00072 SE Trade date should not be after product end date D00073 SE Deal Settlement date should not be after product end date D00074 SE Money Settlement date should not be after product end date D00075 SE Trade Date cannot be after Today s System Date D00076 SE Trade Date cannot be after the Deal Settlement Date D00077 SE Trade Date is same as The Settlement Date D00078 SE Money Settlement Date cannot be earlier than the Trade Date D00079 SE Money Settlement Date cannot be later than Settlement Date DO0080 SE Actual Settlement Date cannot be earlier than Money Settlement Date DO0081 SE Actual Settlement Date cannot be earlier than the Deal Settlement DOO0082 Date SE Interest Value Date cannot be earlier than Trade Date DO0083 31 53 ORACLE Error Message Code SE Interest Value Date cannot be after the Settlemen
301. ds for a bond that can be converted into a predetermined amount of the company s equity at certain times during its life usually at the discretion of the bondholder aie ORACLE 34 Reports 34 1 Introduction All activities that are performed in the Securities module are recorded The inputs you have made for different securities portfolios and deals can be viewed in the form of meaningful reports as and when you may require them The various report programs and reporting features available under the Securities module are explained in this chapter You can generate the following reports for the Securities module e Corporate Action Tracking EXDATE e Coupon Flipping e Corporate Action Tracking Ex Date Report e Corporate Actions Coupons Pending Action e Corporate Actions Coupons Action e Confirmed Unconfirmed Report e Disposition Report e Deal Settlement Report e Securities with Short Positions Report e Portfolio to Portfolio Deals Report e Forward Profit and Loss PnL Accrual Report e Securities Maturity Report e Securities Contracts Overrides Report e Securities Activity Report e Backdated Deals Report e Statement of Holdings e Report on Customer Holdings of Share Certificates e Securities Exception Report e Matched Unmatched Confirmation Message Report 34 1 ORACLE 34 2 Corporate Action Tracking Coupon EXDATE To generate the Corporate Action Tracking Coupon EXDATE report invoke the related scre
302. e Round Up 12 5 will be rounded up as 13 Round Down 12 5 will be rounded down as 12 Round Standard In this case since the fraction is greater than 0 5 the entitlement will be rounded up to 13 ats ORACLE You can also choose to retain the fractional unit as 12 5 The ratio and rounding standard for the Resultant security is computed in the same manner as the Parent to Intermediate security ratio Note the Following e The ratio and rounding fraction calculation basis is the same for rights as well as warrants Click on the appropriate button Rights or Warrants before entering details to indicate whether you are maintaining details for rights or warrants e The Intermediate Security Id LOV fetches only those securities which are created with Security Type as Right Warrant and the Tearoff Issue date for such security is greater than the Current System e Exercise End Date should be less than the Expiry Date of Intermediate Security 20 2 2 Specifying Event Narrative For both rights as well as warrants you can enter a free format narrative for the event being defined The narrative or message that you enter here will be used while generating SWIFT messages for Rights Warrants Click on the Narrative button the event narrative screen is displayed Corporate Action Id Narrative You have the option of entering a free format
303. e for February If you specify the frequency as quarterly and fix the revaluation date as 31 the revaluation will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly revaluation frequency Revaluation Start Month If you set the revaluation frequency as quarterly half yearly or yearly you have to specify the month in which the first revaluation has to begin besides the date on which the revaluation should be done Example You have selected the half yearly option and specified the start date as 31 and the start month as June The system will do the first revaluation will be done on 30 June for the period from January 1 to June 30 and the second one on 31 December for the period from 1 July to 31 December If the revaluation date falls on a holiday If the revaluation date falls on a holiday the revaluation is done as per your holiday handling specifications in the Branch Parameters screen Realized and unrealized revaluation for a portfolio can be done at different frequencies It is important to note that if the realized and unrealized revaluation frequencies fall on the same day realized revaluation always takes priority over unrealized revaluation He ORACLE Example Today s working date is 31 January You have defined realized and unrealized revaluation for the portfolio The realized revaluation frequency is monthly and the unrealized revaluation is
304. e on 31 December for the period from 1 July to 31 December If the accrual date falls on a holiday If the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen 11 3 2 Limit Tracking Your liability in holding a security is tracked under a Credit Line You have already specified security limits which indicate the maximum limit upto which you can trade in the security For limit tracking purpose you can indicate the basis on which your liability to the security should be determined In Oracle FLEXCUBE you can use one of the following options e Face value e Market price e Book price If you indicate face value then the face value of the instrument will be used to track your liability in holding security Your liability using the face value is calculated thus iE ORACLE Liability Face Value Number of units held The market price indicates the price at which the security is currently quoted in the market Your liability to the security is calculated by using the current market value of the security multiplied by the number of units held Liability Market Value Number of units held The book price refers to the price at which you hold a security The book price of a security is derived using the costing method that you specified for the portfolio Your liability is the book price multiplied by the total number of units held Liability Book P
305. e Action Maintenance Redemption detailed screen will be displayed without any details If you are calling a redeemable security record that has already been created click on Summary view The details of existing records will be displayed in a tabular form From the Summary screen choose an existing record to open it Redemption Type The Redemption type for a security will be defaulted as defined at the Security Instrument While defining redeemable securities you can specify the method in which the security is to be redeemed You can indicate whether the redemption type is to be Bullet Quantity or Series In a bullet type of redemption all the holdings in the security will be redeemed on maturity For quantity redemption the nominal held in the security is redeemed by a specific percentage on a date different from the maturity date While redeeming the security either the face value of the security or the number of units held in the security will be reduced by the percentage you specify e ORACLE In a series type of redemption the holdings in the specified security pertaining to the specified list will be redeemed on a date other than the maturity date 20 6 1 1 Specifying Redemption Schedules For securities which are redeemable on call and with redemption type Quantity you can choose to redeem a specific amount of the face value by entering the requisite percentage factor or cashflow amount in the Redemption Quantity field
306. e Additional Details screen you can define details like the spot price details the settlement currency the settlement SKL exchange rates for deals in a foreign currency and other such details ma o gt Dil Product az E User Reference Deal Reference External Reference Source Description E Main Additional Spot Price Actual DSTL Date Price Quote Discount Payment Currency Interest Quote Premium 4 Security Currency Interest Value Date Forward P amp L Rate Spot Price Deal Nominal Settlement SKL A d C djusted Price Spot Date Trade Details T Bill Withholding Tax Deal Type v Priority v Securities Format Security Series Dealer Conforms to ISMA Bankers Acceptance Remarks Placement Loan Ref Certificates Payment Account Payment Account Leg Reference Leg Reference Other Details Other Details Branch Branch C Ey Account z Account Jaz Input By Authorized By Contract Authorized Date Time Date Time Status 22 2 5 1 Specifying Spot Price Details for the Deal For forward deals you should also indicate spot price details The spot price details that you specify will determine the calculation of forward profit that you have made or the loss that you have incurred in a forward deal Spot Price and Spot Date The spot price refers to the price at which the security is
307. e Amount Tag Dr Cr Indicator SEC COUPON PAY SE_FL_INT_IINI Credit 32 33 ORACLE Accounting Role Amount Tag Dr Cr Indicator SEC COUPON RECV SE_FL_INT_IINI Debit SEC COUPON PAY SE_FX_INT_IINI Credit SEC COUPON RECV SE_FX_INT_IINI Debit Advices No advices allowed for this event 32 4 3 24 CPCD Coupon Init Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC COUPON REGV SE_FL_INT_ICOL Credit SEC SETTLEMENT SE_FL_INT_ICOL Debit SEC COUPON REGV SE_FX_INT_ICOL Credit SEC SETTLEMENT SE_FX_INT_ICOL Debit Advices No advices allowed for this event 32 4 3 25 CPLQ Coupon Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC COUPON PAY SE_FL_INT_ILIQ Debit SE_FL_INT_RCPY SE_FL_INT_ILIQ Credit SEC COUPON PAY SE_FX_INT_ILIQ Debit SE_FX_INT_RCPY SE_FX_INT_ILIQ Credit Given below is the sample accounting entries that will be posted if you use the alternative accounting roles for this event Accounting Role Amount Tag Dr Cr Indicator SEC COUPON PAY SE_FX_INT_ILIQ Debit SE_FX_INT_RCPY SE_FX_INT_ILIQ Credit 32 34 ORACLE Accounting Role Amount Tag Dr Cr Indicator SE_FX_INT_IMEM SE_FX_INT_TIAC Debit SE_FX_INT_ SE_FX_INT_TIAC Credit SE_FX_INT_RCPY
308. e Market Definition screen The market in which the security is traded is defaulted from the Security Definition screen You can change the default Rules for amendment The entries made in this field can be amended before the deal is authorized However if amendment is required after authorization you should reverse the deal and enter it again Deal Type Indicate the type of deal you are processing Using the Securities module of Oracle FLEXCUBE you can enter spot or forward deals You can choose the appropriate option from the option list A spot deal is one that settles on or before the spot date of the deal A forward deal is one that settles on a date after the spot date of the deal Deal Quantity Securities that are traded can be quoted in terms of e Units 100 units of a security or e As a Nominal securities worth USD 5000 The price quotation method defined for the security in the security definition screen is defaulted You can change the quotation method that is defaulted The deal quantity that you specify should be expressed in the security quotation method 22 2 4 Indicating Deal Details After you have indicated the securities that are traded and the market in which they are traded you can indicate details of the security that are specific to the deal you are processing Deal Quantity Indicate the quantity of the security that is traded The quantity that you specify depends on the method in which the secu
309. e ORACLE 7 2 1 4 Specifying KEST Type for a Customer This is specified in the Field Name to Value Definition screen invoked by clicking on Fie in the Customer Information Maintenance screen User Defined Fields User Defined Fields C Fieis Name Here you need to specify whether e the customer is directly paying the KEST to the Government e the customer has to be exempted from paying KEST e the KEST type is A or B 7 2 1 5 Specifying KEST rates in the Securities Price Definition Maintenance screen The current market price of various securities is maintained in the Market Price Definition screen Further you can update the market price of the securities through this screen You need to specify the rates for KEST A and KEST B at the time of maintaining market prices Therefore at the time of defining a customer you need to specify the type of KEST whether A or B During market price maintenance for a particular security you indicate the actual rate for KEST A and KEST B ia ORACLE Click on Ficus the Securities Price Definition Maintenance screen to indicate the rates for KEST A and KEST B The Field Name to Value Definition screen is displayed User Defined Fields User Defined Fields 2 oO laz The system will display the user defined fields KEST A and KEST B if you have maintained these UDF s He
310. e Receive Free Pay You can upload a securities deal using Gateway A Module upload procedure is introduced to validate the following data at the time of creating a deal e Product Code e Security Code e Deal Quantity It is mandatory to specify a value for the above fields If the value for any of the above fields is missing system will stop any further processing of the message Subsequently system will send an appropriate error message Once the validation is complete for all fields the errors overrides generated will be scanned to identify the type of error Using the Module upload process you can also amend financial details for a Securities deal This upload process will accept 2 sets of upload record type variables They are Set 1 Combination of base data and request message data Set 2 Base data of the deal to be modified Each field value that needs to be changed will be compared to Set 1 and Set2 Any difference in the field value will trigger a business logic validation If the validation fails system will return a fault message Bete ORACLE Product CBCS P User Reference CHOCBCS001 850006 External Reference Main Additional Security Security Code SECIDO1 Market Code MKTT Deal Matching Deal Quantity 1 000 00 Price Quote Price avy Input Price 100 Price In Local Currency Absolute Price 100 Securities From Leg Product DLCS Portfolio Customer 0000000 SK Location SK Accou
311. e adjoining drop down list This list displays the following values 29 6 ORACLE e 360 e 365 e 364 For further information refer the section Associating Discount Accrual Components to Products in the Defining Discount Accrual Fee Classes chapter in the Bills and Collections User Manual 29 3 Capturing Details of Repo Contract When you enter into a repo or reverse repo deal you must associate it with a product that you have maintained By default a deal inherits all the attributes of the product with which it is associated Most deal details are captured for the product the deal involves These details default to the deal You can capture the details of repo deals in the Securities Repo Online screen You can invoke the Securities Repo Contract Online screen by typing SRDCONON in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Repo Contract Online Reference Number User Reference Product Code e Outstanding Balance Product Description Source E Contract Schedules Rollover Preferences Customer Amount Reporting Details Currency Local Currency Amount Amount Line Outstanding Balance Settlement Details Credit Account Broker Credit Branch Debit Branch Debit Account External Reference Reversed Reference Dealer Booking Date Rounding Details Other Details
312. e applicable to any number of products 12 1 1 Specifying the Deal Preferences Class You can invoke the Deal Preference Class Maintenance screen from the Application Browser The Deal Preference Class Maintenance Detailed screen is displayed without any details If you are setting up a new deal preference class choose New from the Actions Menu or click from the tool bar ie ORACLE You can invoke the Securities Deal Product Preference Class Maintenance screen by typing SEDDPFCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Class Code Class Description Deal Leg Type Bank Portfolio Buys v Exchange Rate Type az Preferences C Forward Deals Allowed O Spot Deals Allowed C Cancellation Allowed O Extension Allowed C Automatic Money Brokerage Allowed s Setlement Partial Release Allowed C Automatic Deal Settlement Rekey Requirements C Trade Date Deal Price O Security Id O Settlement Date C Portfolio Id C Money Settlement Date C Nominal Units Input By Authorized By Modification Authorized Date Time Date Time Number Open After you have defined a deal preference class choose Save from the Processing sub menu of the Actions Menu or click save icon from the tool bar to save the record Click Cancel to exit the screen You will be returned to the Application Browser 12 2 Features of the screen Scr
313. e earlier than today The trade date should be earlier than the maturity date of the security as specified in the Securities Definition screen For a series with a redemption record the trade date should be earlier than the redemption date Price Quote The method in which price is quoted is a feature of the market where the security is traded Each market may use a particular price quotation method The price of a security can be quoted as Price in this case the security is quoted on the basis of the price at which it is traded You have already maintained the face value of the security in the Security Definition screen The premium that you paid or discount at which you purchased the security is calculated against the face value of the traded security The price can be expressed as Face Value Premium or Discount Accrued Interest if the interest quotation method is Flat Price the price is quoted on the basis of the percentage of the price Price Market price Face value x 100 Discount in this case the price is quoted based on the discount percentage at which the deal was bought or sold Premium in this case the price is quoted based on the premium percentage at which the deal was bought or sold Premium here the price is quoted based on the premium at which the security was bought or sold That is the differential between the face value of the bond and the price at which it is bought or sol
314. e given below Events Click on this button to view the leg events accounting entries and overrides Settlement Click on this button to enter the settlement message details You can specify the following details The accounts to be debited for charges The method in which the event is to be settled whether it is an instrument as in acheck or a demand draft or a message as in SWIFT or mail message Details about the parties involved in the event Charge Click on this button to view the charge details associated with the product You are allowed to amend the charge amount and if necessary waive the application Please note that you are allowed to make these changes only at the time of processing the event Tax Click on this button to view the transaction tax details In addition to changing the charge amount you can also waive the application Please note that you are allowed to make these changes only at the time of processing the event Issuer Tax Click on this button to view the issuer tax details This is only a view screen you are not allowed to modify the details displayed in this screen You can view the issuer tax details only in case of coupon dividend or bonus to cash conversion events Coupon Click on this icon to view the coupon details This is a view only screen you are not allowed to modify any details displayed here The coupon events are displayed only for a corporate action event coup
315. e is Floating CL0011 CF This class is linked to a product Cannot close the class CL0012 CF No rates maintained for this class code Proceed CL0013 CF Event for association Basis Amount tag and Amount Category are CL0014 mandatory CF For module SS Basis amount category should be Normal CLO015 CF For module other than SS Basis amount category should be either CLO016 Expected or Overdue CF The value entered must be in the format 1 CO0004 CF Spread cannot be zero CO0005 CF Rate cannot be zero CO0006 CF Floor cannot be zero CO0007 CF Ceiling cannot be zero CO0008 31 6 Error Codes and Messages for Portfolio Online Error Message Code SE Reference No could not be generated PO0010 SE Authorizer cannot be the same as the Maker PO0001 SE Authorizer cannot be the same as the Maker 31 71 ORACLE Error Message Code PO0001 SE Contract Reference Number does not match PO0002 SE Contract Reference Number does not match PO0002 SE Customer ID does not match PO0003 SE Customer ID does not match PO0003 SE Currency Code does not match PO0004 SE Currency Code does not match PO0004 SE Overrides not confirmed PO0005 SE Overrides not confirmed PO0005 SE Reference No could not be generated PO0010 SE Failed while 1 into Change Log table PO0011 SE Failed while 1 into Change Log table PO0011 SE Safe Keeping
316. e is computed from the ex days set up defined for the local market of issue Resultant Security Identification Indicate the security of the equity type in which shares would be awarded Resultant Ratio and Dispose Fractions Select the of equity type of security in which shares should be awarded After this you are required to specify the ratio of the quantity of the new security awarded to the quantity of current holdings in the existing security Also indicate how the fractional elements in the parent security should be handled You can choose the following options Retain The fractional units would be retained Round Up Entitlements will be rounded up to the next full unit Round Entitlements will be rounded down to the previous full unit Down Round If the fractional unit is above 0 5 entitlements will be rounded up to standard the next full unit otherwise the entitlements will be rounded down to the previous full unit Stock to Cash Conversion Check this option to convert stock dividend declared to cash In such a case you are required to specify the date by which the stock to cash conversion option is to be exercised In addition also specify the price per unit This is the price at which the stock dividend would be converted into cash 20 24 ORACLE Stock to Cash Price Enter the price at which the stock dividend would be converted into cash End of Exercise Date Enter the date before
317. e maintaining pays corporate actions such as Coupon Payment The currencies can be selected from the picklists available 19 2 12 Specifying Relevant Dates You can capture the dates that are relevant to a security being maintained The following are the dates that you should specify e The Issue Tear off Date e The Start of Interest Date e The Start of Trading Date e The Redemption Expiry Maturity Date The Start of Interest Date and the Start of Trading Date that you specify should be greater than the Issue Tear off Date In case you want to extend the redemption date of the security after it is authorized indicate a new redemption date in the Redemption Expiry Date field Once you extend the redemption date you need to maintain a new coupon schedule for the newly extended period between the previous redemption date and the new redemption date In case you do not maintain a coupon schedule for the period the system will by default apply the bullet schedule for the new period No back dated buy sell deal input or reversal of a deal is allowed before the transaction date of the security extension On extension of the security YTM for all deals will be recomputed and the Discount Premium accrual will be completed till the extension date using the old redemption date Discount Premium accrual for only the unaccrued part will be done using the new redemption date after extension Additionally you can also maintain a new inte
318. e number of units or nominal that should be matched Click add icon to add the details of another buy leg to which you want to match the sell leg Click delete icon to cancel a buy leg that you have mapped to the sell leg Aneb ORACLE Example The following deals have been struck for a bank portfolio Leg reference number Purchase date Deal Number of units Buy 1 1 January Buy 100 Buy 2 1 January Buy 100 Buy 3 15 January Buy 100 Sell 1 1 February Sell 150 You match the 150 units that have been sold to 50 units of each of the buys The entries that you should make in the Deal matching screen for the sell leg of the deal are Sell deal reference Buy deal Number of units Sell 1 Buy 1 50 Sell 1 Buy 2 50 Sell 1 Buy 3 50 The summation displayed at the bottom of the screen contains the following information e The total quantity of securities that have been matched e The number required to be matched e The number yet to be to be matched 22 27 ORACLE For the sell leg While processing the sell leg of the deal you can view details of the buy deals that have been matched to the sell leg The reference number of the buy deal from which securities have been matched is displayed together with the number of units or nominal for which matching is done 7 Deal Matching Web Page Dialog e x B Leg Reference No CHODLCS001850012 Leg Description cust sell
319. e of the portfolio now stands at USD 1100 When the revaluation is run again the loss of USD 100 that was registered on 2 January is reversed and profit entries for USD 100 is passed to profit GLs es ORACLE Realized revaluation On 2 January the value a unit of the security falls to USD 9 Consequently the value of the portfolio is reduced to USD 900 When the revaluation is done the profit and loss GLs will reflect the loss of USD 100 On 3 January the value of securities increases to USD 11 The value of the portfolio now stands at USD 1100 When the revaluation is run again the loss of USD 100 that was registered is not reversed but the profit GLs will record an increase of USD 200 The profit as of 3 January is calculated based on the revalued portfolio value of USD 900 arrived at on 2 January Revaluation Method After you indicate the basis for revaluation you can indicate the revaluation method to be used and the frequency with which revaluation should be carried out The options available are e LOCOM lower of cost or market This method can be used for realized and unrealized revaluation e MTM marked to market This method can be used for realized and unrealized revaluation MTM revaluation can be based on either the Book Value MTM BV method or the Effective Interest method MTM EIM e MTMLOCOM This is a combination of the two methods LOCOM and MTM and can be used only for realized revaluation Portfolios ma
320. e query will be displayed in the Query screen To query for more than one SK account the other two criteria being the same click Or button and specify the next account number Check it for correctness and click Ok button The SK Movements Summary screen will display only those securities in USD for the account ACBNK4 with a Value date equal to 31 JAN 2000 To view the details of a particular SK location highlight the SK location code and double click on the selected record The details of securities lodged withdrawn in that particular location will be displayed If you want to view the latest details click Refresh button 28 1 2 The Other Query Screens Similarly you can query on the following e The balances in a particular SK location gt Current position gt Current holding gt Opening position gt Opening holding e The movement of securities within portfolios gt Opening balance gt Closing balance gt Movement as of e The balances in a particular portfolio gt Current position gt Current holding gt Opening position gt Opening holding 28 1 3 Ordering You can view a display of the fields in the Summary View in the ascending or descending order ee ORACLE Suppose in the Portfolio Balances Summary screen you want to see the Security ID for all the portfolios in a descending order Highlight the field Security ID from the Fields list and click on it In the Operator option list choose Or
321. e report and click OK button 34 5 ORACLE 34 4 2 Contents of Report The contents of this report have been discussed under the following heads 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 The following details are displayed Safekeeping The code that identifies the safekeeping location Location Safekeeping The account corresponding to the safekeeping location Location Account SWIFT Msg The reference number of the SWIFT message Ref No Sender Ref The reference number of the sender of the message no Security ID The code that identifies the security ISIN in ISIN in Books Books ISIN in ISIN in Messages Message Sec Type in The type of security as in books Books Sec Type in The type of security as in messages Msg Balance in The balance amount as in books books Balance in The balance amount as in messages Msg Discrepancy The unique code of the type of discrepancy and its details Type 34 6 ORACLE 34 5 Securities Activity Report This report provides details of security activity To generate the report type SERACTVT in the field at the top right corner of the Application tool bar and click the adjoining arrow button The system will display Print Options screen Set your pr
322. e security product preferences specified The value can be e Fixed e Floating Product Code You can associate every security that you maintain with a Security Product that you have maintained in the Security Product Definition screen ao ORACLE When you associate a security with a security product it acquires the attributes defined for the product This means you do not have to define the attributes of a security all over again when maintaining it On choosing a product you can view the type of security that you can associate with the product The Security Type field displays this information For instance you can associate a bond that you are maintaining only with a product created for Security Type Bond Description In the adjacent field you can view a brief description of the product with which you have chosen to associate the security that you are maintaining 19 2 2 Entering the Main Details In the Main section of the Security Definition screen you can maintain the basic details that mark for a security They include details such as its face value its tear off date start of interest date and expiry date Securities instrument Definition Security Id ISIN Identifier Security Status Security Description Trading Status Product Security Type Security Reference Interest Type Main Interest Others Market Of Issue Issuer Code Registered Bearer Quantity Quotation Fractional Quantity Form Type P
323. e the contract DO0041 SE Contract successfully deleted DO0042 SE Do you want to close the contract DO0043 SE Contract successfully closed DO0044 SE Failed to CLOSE the contract DO0045 SE Unauthorised contract can not be modified DO0046 SE Contract is already saved as template DO0047 SE Contract will be put on hold DO0048 SE Enter the template ID DO0049 31 51 ORACLE Error Message Code SE Enter the template Description D00050 SE Duplicate template ID encountered Please check the template ID D00051 SE Failed to copy the template D00052 SE Failed in contract event log processing D00053 SE Failed to unlock the contract D00054 SE User Id should be same as the maker Id D00055 SE unauthorized record can not be processed D00056 SE DSTL date should be entered D00057 SE New DSTL date should not be before the existing DSTL date D00058 SE Rollover completed successfully D00059 SE Failed to process the deal leg records DO0060 SE Security ID does not match Please reenter the security ID DO0061 SE Input price does not match please reenter the input price DO0062 SE Trade date does not match please re enter the trade date DO0063 SE deal settlement date does not match please re enter the deal DOO0064 settlement date SE Deal units are not matching please reenter the deal units DOO065 SE Portfolio I
324. ea terantean ies 2 1 2 1 2 Characteristic features of the Financial Markets ccccccscseesseecesscesecesecesecesecanecaeecaeenseeaeeeaeeeaeeeaees 2 2 2 1 3 Financial Intermediari eS resin r Biante Seane just E E A E 2 3 2 1 4 Intermediaries operating in Financial Markets cccsccscesceseseeseeeeecnsesecnceeececceneceseeneeaeeaeeseseeeeees 2 3 ZIS Fin ncial Assets Securities ee i a a eeraa a i aa 2 4 2 1 6 EUNET e e e e AE E E E E E E E E E 2 4 2 1 7 Preference SNAILS eiere aene ESE E R E E E E O EEE ES 2 4 2 1 8 Fixed INCOME Securities srenti aei e aE a a E a ER 2 5 2 1 9 Rights GN Warrants soppii a E E E E a A AE REON a 2 7 2 LAO Trade Ti TE QuUities reio e E E E e aa S evesnanstey 2 8 2 1 11 Trading in Bonds Fixed Income securities ecccessseesceenseteseceensecesecesacecuseeesaeeceseceeacectseceeaeecneeeenaes 2 9 2 1 12 Corporate Actions on Securities ceccccesecesseensecesseessecesscecusecesacecaeeesaceceaceesaeeceaeeesaeecseeeeaaeceeeeeeaaees 2 11 3 SECURITIES AN OVERVIEW eessssesesereccesosoesesesoecesosoeseseeccoerosoesesesosoesesesoeeosoroeseseeoeeorosoeseeecoesosorsesesoeessee 3 1 3 1 INTRODUCTION pin nonoo ae a E E E NEE E EEA E E E AEA ES 3 1 32 A SNAPSHOT OF THE MODUL Eiisscecccsciscscastisisccscusceccavasseezscncocesduscentecasducenesncesaesbadesseeavce EAEE EANES EN RAS 3 2 3 3 PROCESSING AT THE PORTFOLIO LEVEL AT THE BEGINNING OR END OF DAY s ssssssssssesesssssrsssesrreresereese 3 4 3 4 GETTING STARTED WIT
325. eady exists SE MA0391 Value for Effective Date is mandatory SE MA0392 System generated records cannot be modified SE MA0393 Cannot Unlock The record not authorized atleast once SE MA0394 Announcement Date should be less than Event Date and Effective Date SE MA0395 Value for field Interest Component is mandatory SE MA0396 Value for field Revision Rate is mandatory SE MA0397 The Event Date does not lie in the coupon period of the Security 31 15 ORACLE Error Code Message SE MA0398 The Record Date and the Event Date cannot be earlier than or equal to Today SE MA0399 Record for this Component and Currency already exists SE MA0400 Redemption Adjustment could not be done SE MA0401 The Total percentage for this security exceeds 100 SE MA0402 Redemption Price must be greater than or equal to equivalent percentage of the initial face value SE MA0410 Bonus Encashed can not be more than the Initial Bonus Due SE MA0411 Bonus Encashed Quantity should be an Integer SE MA0412 Record Date is Mandatory SE MA0413 Event Date is Mandatory SE MA0414 Record Date has to be later than Today SE MA0415 Event Date has to be later than Today SE MA0416 Event Date can not be earlier than Record Date SE MA0425 Failed to Unlock the record SE MA0426 Initiation can not be done as Initiation Processing Date is later than T
326. ease Allow Portfolio SK Location Quantity Description Description Counterparty SK Account Block Reference Block Type Event contcates settement aace charge Tox ws Input By Authorized By Contract Authorized Date Time Date Time Status On specifying the security code of the product for which securities are being blocked the manner in which the security is quoted is displayed in the Quote By field Based on the manner in which the security is quoted you can indicate the quantity of whether units or amount securities to be blocked Product Code This is the generic product which has been defined as a Deal product in the Securities Products menu It is selected from the pick list and used for blocking the securities Deal Reference No This is a system generated number This number is generated using the Branch Code Product Code Julian date and running serial number combination The number cannot be changed User Reference Enter a unique reference number to identify the deal The deal will be identified by this reference in addition to the reference number generated by Oracle FLEXCUBE By default the Deal Reference Number generated by the system will be taken as the User Reference No You can choose to change it and indicate a reference of your own You can query information on the portfolio by using any of the reference IDs Securi
327. ecececececececececececececececesececececacesseeseeeseesuenses 20 31 20 17 MANUALLY PROCESSING CORPORATE ACTION EVENTS cccccccececececececesecececececeseseseceseceseeeceeeseeseeeees 20 32 20 18 MOVING ON TO OTHER SCREENS cccccccccececececececececececececececececacececececacececscecececseeesseseuecseauseaseusueeaeenaes 20 33 21 DEFINING PORTFOLIOS ivsssscsssissscsssscisssocsssaseassasessssisssccscsssscssssosssassaseesseteassceeseasecesaessssusscseesnssisaseasees 21 33 Dial TINTRODUCTION sisiccsx Ackeseicsexcseatliiececel i cencdcigbecedelucece cibcasadeisceved loveatisladecsicibvssaieisietetiovetisledeeileeaval Ges 21 33 21 2 SPECIFYING PORTFOLIO DEFINITION DETAILS ccccccecccecececececececececececececececececececececececececececeseceeeeseeeess 21 2 21 3 ENTERING THE DETAILS OF A PORTFOLIO ccccccccecececesecececececececececececececececececececececececeseeececesececeeeceeeeess 21 3 213 Identifying GPOrGOMO vec seccs ccssneduccssnsasesstestecvarcevhevaeuSonevesvesteusbvelseveadsasotbebedatieid revivsdbeteusvobevebesegeuenesd 21 4 21 4 DEFINING PREFERENCES FOR A PORTFOLIO cccccccccececececececececececececececececececececececececececesececececececeeeeeeeeees 21 8 21 5 SPECIFYING THE ADVICES TO BE GENERATED ccccccececececececececececececececececececececececececececececececececeeeeeeeess 21 20 21 6 NIEWING EVENT DETAIUS osiicisccvsbevsccssseseunsvbustensspsssnstwessessswecosssubersersuwsvosussbesvedesdssolusuweyedus
328. ecurities Statement as per the details shown below Our Reference 000SES8981050320 Securities Safekeeping Account for which 40596832 Statement is being requested Identification of Securities for which Statement ISIN FRO000771617 is requested ELF AQUITAINE Shares Securities Statement Type Requested Statement of Transactions ae ORACLE Our Reference 000SES8981050320 Securities Statement Period Requested 01 JAN 1998 to 31 MAR 1998 Securities Statement Media By Mail Other Information Please inform us about transaction charges if any for the above securities statement request Please quote Our Reference in all further correspondence in relation to the above message Thanking you For Royal Bank of Scotland London UK 27 2 17 Securities Statement of Holdings PB 209870 02 APR 1998 Prudential Bache Securities International Singapore 280 Symphony Towers Sunrise Avenue New York USA ZIP 4650 248 07 Subject Securities Statement of Holdings Kind Attention Mr Jonathan Smith Senior Treasury Officer Portfolio Management Services Peet ORACLE Dear Sir Madam Please find attached herewith the Securities Statement of Holdings of your Safekeeping Account with us Our Reference 000SE01980610002 Safekeeping Account 35746 978 Securities Statement as of Date 02 APR 1998 Statement Preparati
329. ed will be reflected in the Residual Bonus field You can choose to encash them at a later date Adjusted Bonus Encashed The adjusted bonus is calculated by the system and displayed in this field Example These are the details of the bonus declared for a particular security of equity type Initial Bonus Bonus Encashed Adjusted Bonus Residual Bonus B ORACLE Initial Bonus Bonus Encashed Adjusted Bonus Residual Bonus 250 125 0 125 Record date 15 March 2000 Event date 31 March 2000 During the period between the Record Date and the Event Date you have inserted backdated deals As a result of this the position in the equity type has changed The holdings in this security have come down to 200 Since the bonus encashed is greater than the initial bonus the system does the necessary deductions and displays the adjusted bonus After the insertion of the back date deals the following data is displayed in the respective fields Initial Bonus Bonus Encashed Adjusted Bonus Residual Bonus 100 125 25 0 The calculations are such that the net bonus encashed minus the adjusted bonus will be equal to the initial bonus Residual Bonus If the bonus is encashed in parts then the residual amount due is displayed here 20 16 Processing Bonus to Cash Conversions The events table is scanned Those events with an initiation date less
330. ed during revaluation for the deal will be as follows Coupon Event Date Coupon 01 Mar 2003 USD 38 36 01 Apr 2003 USD 42 47 01 May 2003 USD 41 10 01 Jun 2003 USD 42 47 01 Jul 2003 USD 41 10 The computation of net present value for the deal is done as shown in the table below Date Ci Vd 1 Yo Vd P 1 yo Vd P Disc C 01 Mar 03 38 36 31 1 19729 0 084932 1 015411 37 77 01 Apr 03 42 47 62 1 19729 0 169863 1 031059 41 19 01 May 03 41 10 92 1 19729 0 252055 1 046432 39 27 01 Jun 03 42 47 123 1 19729 0 336986 1 062558 39 97 26 18 ORACLE Date Ci Vd 1 Yo Vd P 1 yo Vd P Disc C 01 Jul 03 41 10 153 1 19729 0 419178 1 078401 38 11 01 Jul 03 10500 153 1 19729 0 419178 1 078401 9736 64 9932 95 The pending interest amount received in advance as of the revaluation date is included to the NPV computed and Flat NPV as of revaluation date is derived Flat NPV NPV RIA 9932 95 4 11 9937 06 The Revaluation profit or loss is computed by marking the flat NPV obtained against the flat market price using the formula mentioned above Revaluation Profit Loss 102 100 9937 06 262 94 Revaluation Profit USD 262 94 27 Customer Correspondence 27 1 Introduction This chapter explains the advices generated at each stage for the Securi
331. ed funds While performing this role the financial markets aid in increasing production and income for the various units Types of Markets The main segments of the organized financial markets are as follows Money Market The money market is a wholesale debt market for low risk highly liquid short term instruments Funds are available in this market for periods ranging from a single day up to a year Government banks and financial institutions dominate this market Capital Markets The capital market is designed to finance long term investments The transactions taking place in this market are for periods over a year Forex Market The forex market deals with multi currency requirements which are met by the exchange of currency Depending on the exchange rate that is applicable the transfer of funds takes place in this market This is one of the most developed and integrated markets across the globe l ORACLE Credit Market Credit market is a place where banks financial institutions and NBFCs purvey short medium and long term loans to corporates and individuals Such a segregation of the financial market into various subgroups has enhanced the efficiency of resource allocation Each market is unique in terms of the nature of participants instruments etc 2 1 2 Characteristic features of the Financial Markets Financial Purpose Players Regulator Market Money Market Short term rupee Banks Government Central Ban
332. ed to manually process an event which was earlier marked for auto processing You can invoke the Corporate Action Manual Processing screen by typing BCDDOCCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills and Collections Document Master Maintainence Document Details Document Code Document Type Others v Language Code C Validate Shipping Document Short Description Guarantee Document Long Description O Bil Of Lading Clause Details Bi clause Code Description ol ll Input By Authorized By Modification Authorized Date Time Date Time Number Open The Corporate Action Manual Processing screen allows you to amend existing details such as the processing date You can also change the processing from automatic to manual or vice versa ie To amend the details of an existing event click on in the toolbar or Unlock from the Actions Menu eee ORACLE 20 18 Moving on to Other Screens To the right of the Corporate Action Manual Processing screen are displayed a vertical array of six icons By invoking these icons you will be able to view and in case of charges and tax modify the attributes of the event you are processing To select a screen click on an icon from the group of icons displayed at the right hand side of the screen A brief description of the functions icons represent th
333. ed view this screen will only display brokerage details You can change brokerage details for a deal only if you have clicked the Modify option from the Actions Menu Click Exit button to delete the details and return to the Securities Deal details screen 22 8 Uploading the Deals for Amendment From an external system you can upload Securities Deals that require amendment in Oracle FLEXCUBE The system will distinguish between the new and the deals that require amendment based on the action code of the uploaded record For a contract requiring amendment the action code will be AMND If the action code is AMND Oracle FLEXCUBE will first check whether the deal exists in the system or not If it does not exist in the system an error message will be displayed to notify that the deal cannot be amended The Reference Number provided by the external system has to same if it is a new deal or if it is an amendment to an existing deal ee ORACLE When you upload a new deal the Reference Number will be displayed in the User Reference Number field for that deal The User Reference Number will be the basis for checking whether the deal exists or not The upload for contract amendment will trigger the AMND event The same event is triggered even when the amendment is done in the Securities Deal Input screen The fields that can be amended for a Securities Deal are as follows e Deliver Free Pay e Original DSTL Date
334. ednesday as the case may be e Rolling Settlement Stocks traded on any day would get settled after a defined period For example if the stock exchange has a rolling settlement of 3 days then all deals done on June 01 will be settled on June 04 and all deals done on June 02 will be settled on June 05 and so on The investors can hold securities in any of the following forms ae ORACLE e Scrip based Certificates mentioning the details of the investor holding on the securities will be provided to every investor In this scenario the securities in physical form are typically held in the Safe keeping locations for the customer which can typically be a custodian broking house or a bank e Dematerialized No paper form holding of securities The security positions at each investor level are held electronically at the depository Any buy or sell by the investors in a dematerialized form will increase the holdings of the customer in a electronic format Securities never exist in physical form e Immobilized Very similar to Dematerialized But the physical forms of the certificates are available with the central depository 2 1 11 Trading in Bonds Fixed Income securities Bonds are traded on the stock exchanges However they are traded more in an Over The Counter OTC market scenario wherein most of the deals in the bonds lead to Delivery vs Settlement scenario The deals done in such a manner normally get settled within few
335. eeeeeaeeatees 10 11 10 2 11 Teno DICLAUS oiii E EE E E E E EE EE E E E EN etek 10 11 10 2 12 Capturing SWIFT Related InfOrmation c ccccccccecescseseessesscnseeecsseesceseesceseeseecesseeseesecaeeeeseasenseaees 10 11 10 3 DEFINING DEAL LIMITS FOR A PREFERENCE CLASS cccccscsesesseesceseseseseceeesecsesescssesesseseussesseseeenenseaegs 10 12 11 MAINTAINING PORTFOLIO PREFERENCE CLASS seseseeesresoesesececoeroroesesesoecesosoeseseecesesosceseeeseeessoe 11 1 TIE INTRODUCTION csee Eeee ENEE E VEE oe aE SE AEO KEEFE aE E 11 1 11 2 SPECIFYING PORTFOLIO PREFERENCES CLASSES eseseesesesereeeroeronsesteeeetntssestsesreoreeeoeseneeeroesrnsesreereeserese 11 1 11 2 1 Identifying Portfolio Preference Cass ccccccescceessesscessceseceseceseccecacecaceeseenseeeeeeeeeeeeseaseeeseeesneeeeaes 11 2 1122 Portfolio Type voce ve Resacwiseeste iaa i A E RA EEEE EEE E EE 11 3 LID Cosine Methodneenseieene ue E E E EEE a A a e iea ead 11 3 IIL24 Processing sagcecves ee cosiascereenesueseiisstge aoa aE E TE EEA EE I EEEE EARE 11 6 TI23 Book Discount Prenu serieren a weds Ges aes EAE EE A EEEE ESEESE 11 7 I1 26 BookIntrinsie Vall rimeni i iiie aE EAEE EAE E EEE E EAER 11 8 LID Rekey for AUMOviZQtiOMn onare i iia E E E E E E R E E E E EEN 11 8 T126 Rekey Fieldsin ae a E E E R a a E A E E E eE 11 9 11 29 Corporate Action Noties i a E E E E E E E E a 11 9 11 2 10 Treasury BUS ACCTUGL inani E E E EE E E E E E E E 11 10 11 2 11 P rch se Tnter s
336. een features are explained below 12 2 1 Identifying a Deal Preference Class Class Code In Oracle FLEXCUBE each Deal Preference Class that you maintain is identified by a unique ten character code called a Class Code You can follow your own convention for devising this code however one of the characters of the code should necessarily be a letter of the English alphabet Description You can specify a short description that will enable you to identify the deal preference class easily The short description that you specify is for information purposes only and will not be printed on any customer correspondence Nee ORACLE Deal Leg Type Each deal type has characteristic features that are unique to the type Certain deals also have two legs a buy and a sell leg A deal preference class that you set up can cater to a particular leg buy or sell of a deal You can indicate the deal leg type for which you are setting up preferences You can select one of the following from the picklist e Bank sell e Bank buy e Customer sell e Customer buy e Standalone lodge e Standalone withdraw e SKL to SKL transfer e Block securities By indicating the leg type you restrict the application of the class to products of the same type For instance you can associate a Deal Preference Class of the Leg Type Bank sell only with products that cater to the selling of securities by the bank 12 2 2 Exchange Rate Type You can specify the exchange
337. eenesseescesecssesecscescsseecssecseesecaeesecaaeesesaeeaeesecaaeseceeeeesaseneegs 16 2 16 2 INDICATING PREFERENCES FOR A PRODUCT ccccssesceseescsseceseeceeeseceeescsseseseseseeeseceesseseeeeaseesseessenenene 16 2 17 DEFINING ATTRIBUTES OF A DEAL PRODUCT ssesesesecceeesoesesesecoeoeroesesecesoesoroeseseseesesoseceeossoeoesee 17 5 17 1 INTRODUCTION snaa Ee E AEE Eae EAE EEEE ENEE EEEE 17 5 TPAD Product TY Pe scicesiceisovaas tas Sac tiee sti aeee AEE E A E EEEE T AEE tout lated 17 3 L7AZ Exchange Rate Variance grrnicciecc iiinn RRENA 17 3 17 2 SPECIFYING PREFERENCES FOR A PRODUCT ccccccccssssssssssssecesesessevssssessssnsecesesessesssasaseessensesesessesesssasaese 17 4 17 2 1 Specifying User Defined Fields ccccccccscccsceescessesseeesceescesecesecsecanecacecacecseeeseeseeseesaseneeeeeenaeenaeenaeents 17 5 17 2 2 Specifying accounting entries for KEST computation 1 cccccsscceeeceenseceeeceenseceeeeeenseceeneeenaeceseeeenaeeees 17 5 18 DEFINING A PRODUCT COMBINATION cscssssssssssscsssssssscssssessssssssesssssessssssssssssesssssesessessosees 18 6 18 1 MN TFRODUCTION nimonia e E E NEE E EE E A EAE EE EENE I A 18 6 18 2 CREATING A COMBINATION PRODUCT weiicissisecessieteticavesccsctscaece la bucceiveisdeecsucds coveesteiiete ETE ESINEN SEU Ea 18 6 18 2 1 Creating a Combination Product ccscccscccscccscecsceseeeseeeseesesusecusecececacecacecseeeaeeseeaeesaeeeeeeseeceeesenseeeeents 18 2 19 MAINTAINING A SECURITY
338. eeseeeeeseeeeeeeseeeaecuseeseenseceaecnseenaeenaeeas 23 1 23 1 2 Invoking the Block Securities Deal SCreC1 cccesccesceseeeseenseeseeseeseeeseeeseeseeeseeeseeeeceaecnsecnaesnaeenaeens 23 1 23 1 3 A description of the Block Securities Deal screen 1 esccescesseesseesseeseeeeeeeeceeeceeeeeeeesecesecuaecnaeenaeenaeens 23 2 23 2 ENTERING THE DETAILS OF A BLOCK DEAL ou ceccseseeseseescsseseseseceeeseeeeeesseeseseseseessesseseeseeseasseseneseseenene 23 3 23 2 1 Indicating Details of the Security that is Traded cccsccecescseseesseseessesecusesececaceeecuseeeesesseeaeeeeeeenaes 23 4 23 2 2 Indicating Deal Details s cecccecccssccsseesseesceeseeseeeseeesecuaecuaecanecacecaeeeseeaennesseeeseceseeeseceaecnaecaeeneeeseees 23 5 23 2 3 Specifying Details of the Single and Multiple Legs of a Deal 23 10 23 2 4 Specifying Details of the Multiple Leg of the Deal cccecccesccescesecsseeneeeeeeeeeeseeeeeeeeeeseeeseenseseaeeaas 23 10 23 3 ENTERING ADDITIONAL DETAILS OF A DEAL ccceccecceseessese cesses ceeesceecesesesesesecsesesesaesesseeseeeseeneseeenaees 23 11 23 3 1 Specifying Additional Details for the Deal cccccccecescceseeseeseeseesececseeecaceescseeeeeseeseesecaeeeesnaeeneeaees 23 11 23 4 UPLOADING THE DETAILS OF A BLOCK DEAL ccccecseseessesesssesecseeesessesesesesssesscsesesessesesssseuesseneseneneees 23 13 24 TRANSFERRING SECURITIES ACROSS LOCATIONS cssscsssssssscssssssesssessesessssssesssesesseseees 24 1
339. efaulting cannot be done Class maintenance has to be authorized first SE MA0031 This rate code cannot be copied since it has been propagated to the present branch from head office SE MA0032 This rate code cannot be closed since it has been propagated to the present branch from head office SE MA0033 This rate code cannot be unlocked since it has been propagated to the present branch from head office SE MA0034 Rate propagation has failed SE MA0035 STANDARD rate type is mandatory for any rate code SE MA0036 The rate code tenor code CCY code combination for this effective date is already existing in the database SE MA0037 This rate code can only be maintained at the head office and only be propagated from there SE MA0038 Duplicate Tenor Codes are not allowed SE MA0039 Minimum rate cannot be greater than Maximum rate SE MA0040 Default rate should lie between minimum and maximum rate SE MA0041 Class Code and Module are mandatory fields SE MA0042 This rate code already exists SE MA0043 Basis Amount Tag Event for Association Application and Liquidation are mandatory fields SE MA0044 Basis amount tag and Event for Association are mandatory fields 31 2 ORACLE Error Code Message SE MA0045 For Third Party as Charge Type Third Party Type is mandatory SE MA0046 This class cannot be closed because
340. eferences as to printing the report and click OK button For field wise explanation of the Print Options screen please refer to the chapter Retrieving Information in Oracle FLEXCUBE in Reports user manual 34 5 1 Contents of Report The contents of securities activity report have been discussed under the following heads 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 The following details are displayed Deal Reference The reference number of the deal Buy Leg Type The type of buy leg Sell Leg Type The type of sell leg Settlement Sk The settlement safe keeping Security Code The unique code that identifies the security Security A brief description of the security Description Market Code Market code for the security Deal Quantity The total quantity of the deal Trade Date The date of trade Dstl Date The deal settlement date 34 6 Backdated Deals Report This report provides details of security for backdated deals To generate the report type SERBKDDL in the field at the top right corner of the Application tool bar and click the adjoining arrow button The system will display Print Options screen Set your preferences as to printing the report and cli
341. eld Name to Value Definition screen In this screen you can specify user defined fields for a securities deal For deals uploaded as unauthorized deals it should be possible for any other user to amend them 17 2 2 Specifying accounting entries for KEST computation KEST is a scheme of levying withholding tax on the income earned by the customers of your bank This type of withholding tax is applicable only on incomes earned from securities Some of the customers might directly pay the KEST amount to the Government Under such circumstances your bank need not calculate the KEST amount The system generates the accounting role KEST_GL and the amount tags KEST_BSINT_AMT and KEST_DEAL_AMT for tax on bought sold accrued interest and tax on deal nominal amount respectively At the time of defining a deal product you need to specify the accounting entries that need to be passed for KEST calculation The accounting entries will be different for the sell and buy legs of a security deal You will have to define the following accounting entries to process KEST Accounting Role Amount Tag Debit Credit Indicator Sec Settlement KEST_BSINT_AMT Dr KEST_GL KEST_BSINT_AMT Cr Sec Settlement KEST_DEAL_AMT Dr KEST_GL KEST_DEAL_AMT Cr 17 5 ORACLE The accounting entries for the buy leg of a security deal will be Accounting Role Amount Tag Debit Credit Indicator Sec Settlement KEST_BSINT_AMT Cr
342. en by typing SERCPDUE in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Branch Details Report Options All Branches Specific Branch Report From Report To You may set the following options for report generation in the above screen All Branches Specific Branch You can either choose to view in the report all corporate action records of the securities in all the branches or in a specific branch If you choose Specific Branch specify the branch in the field below it Report From and Report To Dates You can specify here the from and to dates for the report The report displays all the corporate action records of the securities between those dates 34 2 ORACLE 34 2 1 Contents of Report Header Body of the Report The contents of this report are discussed under the following heads This report contains details of The Header carries the title of the report information on the branch name branch code branch date the Date amp Time the User ID of the user the page number of the report and the module for which the report is generated Branch Code This shows the Branch Code of the branch for which the report is generated Portfolio ID This is the Portfolio ID Portfolio A brief description of the portfolio Description Security Id This identifies the security involved Security A de
343. ences security preferences portfolio preferences or deal preferences e A set of events and the corresponding accounting roles and heads account types and the GLs involved or e A component tax interest or charge As part of your one time set up you can define several sets of classes of a particular type For instance you may want to disallow banks and financial institutions from availing a customer portfolio service that you offer You can maintain a Restrictions Class with a Disallowed List of customers and include Banks and Financial Institutions in this list When defining the Customer Portfolio Service as a product you merely need to associate this Restrictions Class to it The same principle applies to all classes that you build In Oracle FLEXCUBE therefore you do not have to specify restrictions preferences and components every time you create a product You only need to associate the different sets of classes that you have already maintained This feature eliminates redundancy and saves processing time 35 ORACLE 3 4 2 Defining Products You can use the Product Definition facility in Oracle FLEXCUBE to streamline your operations based on the types or categories of business segments you operate in A Portfolio Product is a category or a type of portfolio For instance you can define your investment portfolio of zero coupon bonds as a product in Oracle FLEXCUBE A portfolio product can thus serve
344. ent Class Maintenance screen by typing CSDACTCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Events Class Maintenance Class Code Description Module Module Description Event Class a Event Code Event Description Accounting Entries Input By Authorized By Modification Authorized exit Date Time Date Time Number Open For every event constituting the class being built you have to specify the accounting entries that should be passed if any and the advices that should be generated Defining Accounting Entries for the Event You can indicate the accounting entries that should be passed at an event in the Accounting Entries section of the Events Class screen The Accounting Entries section is invoked by clicking the Accounting Entries button Accounting Entries La T Class Code Class Description Event Code Event Description Accounting Entries Definition a Accounting Role Amount Tag DriCr Transaction Code Netting Indicator MIS Head ae ORACLE As part of the Accounting Entry details of an event you should specify the following details e The accounting role e The amount item e If a debit or a credit e The transaction code e If the entries are to be netted e The MIS Head If accounting entries are to be passed for an event you have to indicate the different Acco
345. eption in function sepkss_calc fn_bond_pricetoyield CALCO06 SE Unhandled exception in function sepkss_calc fn_bond_yieldtoprice CALCO7 SE Unhandled exception in function sepkss_calc fn_tbill_calc CALC08 SE Function fn_tbill_ calc does not understand mode 1 CALCO09 SE Function fn_tbill_calc cannot determine which is to be calculated CALC10 Yield or Price SE Error during Netcons Processing ONL100 SE Error processing Parties ONL101 SE Error processing of Advices ONL102 SE Error processing Subsystems ONL103 SE Error updating of Exchange Rates in Settlements ONL104 SE Error retrieving Deal Amount Tags ONL105 SE Error creating Deal Amount Tag list ONL106 SE Error retrieving Deal Detail ONL107 31 59 ORACLE Error Message Code SE Error retrieving Deal Master ONL108 SE Settlement CCY for a Netcons component different from Payment CCY ONL109 SE Error Processing Module Components during Settlements pickup ONL110 SE Error Processing Module Components for Net consideration ONL111 SE Error Processing Interest Components for Net consideration ONL112 SE Error Processing Tax Components under Net consideration ONL113 SE Error processing Parties CIF record missing ONL114 SE Error inserting into Unrel Unmatch Table ONL115 SE Error processing exposures ONL116 SE Error processing clean risk ONL117 SE Error i
346. ercise Expiry 20 35 ORACLE There are three main stages involved in the processing of the corporate action events The three stages are as follows Corporate action Initiation At the time of defining a new security you can indicate whether corporate actions have to be auto initiated A check box is available where you can make this specification If you leave this box unchecked then you will have to manually initiate the action Corporate action Collection Corporate action collection can be manual or automatic This specification is done for every security at the time of defining SK locations When the corporate action collection for a particular security is indicated as automatic then Beginning of Day programs will pick up all the corporate actions due and trigger the event You have to trigger the event manually if automatic process is not indicated It is important to note that the collection event is triggered only after the initiation event is complete Corporate action Liquidation Securities can be liquidated automatically or manually Deals specified as having an automatic mode of liquidation will be automatically liquidated on Event Date during the Beginning of Day processing Automatic or manual Liquidation of corporate actions is specified at the portfolio definition level If you specify that corporate actions have to be liquidated automatically then the appropriate liquidation event for the corporate action is t
347. ered the deal into Oracle FLEXCUBE The system defaults the transaction date to today s date Normally the transaction date would be the same as the trade date of the deal It would differ from the trade date if you enter a back valued deal Deal Type Securities that are traded can be quoted in terms of e Units 100 units of a security e As a Nominal securities worth USD 5000 eo ORACLE The price quotation method defined for the security in the Security Definition screen is defaulted You can change the quotation method that is defaulted The block deal quantity that you specify should be expressed in the security quotation method Quote By The Interest Quotation Method for interest bearing instruments can be e Flat e Plus Accrued You can indicate whether the deal price that you specified includes the purchased interest or the same has to be accrued separately Indicate flat if the price at which the security is quoted includes accrued interest The flat price is also called the Dirty Price Indicate plus accrued to indicate that the price at which the security is quoted excludes accrued interest This price is also referred to as the Clean Price You can specify an interest quotation method only if the deal involves the buying or selling of interest bearing bonds 23 2 2 Indicating Deal Details After you have indicated the securities that are traded and the market in which they are traded you can indicate de
348. erence If the security that you have chosen for the deal as well as the Sell leg deal product is enabled for BA processing then on authorization of the deal a loan or an MM placement is created with the issuer of the security as the counterparty The loan MM placement is created under the Loan MM product that you have maintained as part of Securities Bank Parameters The System performs the following validations while saving the deal e The Quote By field should have the value Nominal e A Loan MM product should have been maintained for Banker s Acceptance as part of Securities Bank Parameters e Incase of a Customer Buy Bank Sell deal money and deal settlements should take place on the same day e The deal should always be at a discount as BAs are always traded at a discount in the secondary market For such a deal the portfolios available to you for selection for the Sell leg will be those which you have enabled for Banker s Acceptance The loan MM placement that is created has the following attributes defaulted from the specifications of the concerned security deal e The Booking Date This defaults to the Trade Date of the deal e The Value Date This defaults to the deal settlement date e The Maturity Date This defaults to the Redemption Date of the security e The Amount This defaults to the Nominal Amount of the sell transaction e The Interest Amount This defaults to the Discount Amount of the securities
349. erest is quoted separately i e the price quoted is exclusive of the interest component This is also referred to as the clean price BR ORACLE Price This is the price at which the security is to be traded The price of the security keeps on fluctuating depending on the market rates Hence the updating of the price of the security at regular intervals is necessary To define a new price for an existing security click L and enter the new price This price will be associated with the particular security when it is traded To delete an existing price highlight the old price and click on the button Each time you change the price details of an existing security the old details will automatically get stored into a history file maintained internally a ORACLE 6 Maintaining Market Price Codes 6 1 Introduction The Securities Market Price Codes screen allows you to maintain codes for the price at which the security is trading in the market Since a particular security can be traded in different markets you can also maintain multiple price codes for the same security The price codes that you define in this screen are available in the Price Code picklist of the Price Definition maintenance screen These details can be amended at the time of defining a security You can invoke the Securities Market Price Codes Maintenance by typing SEDMKPCD in the field at the top right corner of the Applic
350. ernsssesenrerrnssenseresenenen 4 31 4 6 1 Exempting Interest for the Ex Period ccccccsccesessseescesecesecesecusecasecaaeeseeeseesseesaeeeeeeeeceaeceeseeeenaeeeaes 4 36 4 6 2 Specifying Spot Date ssrin eieaa eei ndei ia i re a ii tisa 4 37 4 6 3 Spec yint EX OIG syira reien ao aen E a Ee E e a EEE r EERE 4 38 AT SPECIFYING TAX DETAI Sh sci vero ecrire eenia en ASEE EEEE Ee E AE EAE E S E E EE TEE 4 39 4 7 1 Associating Scheme with Issuer TAX ccccccsseccessceessesescceessececeeencecsceeeaeeceaceeeacecueeeeacecseneeeneeceeneeeaaees 4 39 4 7 2 Indicating Stop Association cscccsceesceesceeseeeseesecesecsecuaecanecacecaeeeseeacecscecseeeseenseeeseeeseseeeeeeeaeeeaeeeeeaes 4 40 5 MAINTAINING PRICE DETAILS eeseseesseeseroeseseeecceroroeseseseeoeroroeseseceeoesoroeseeesoesoroeoesereeoseororsesecesoesoroeseseseee 5 1 5 1 INTRODUCTION sese sereni eene Eae eE RNS Kee EE Se EaD E e SS E SE EAN Ea EE 5 1 5 1 1 Price Quotation Method essien i E AAE AE EE E EEEE 5 2 6 MAINTAINING MARKET PRICE CODES eeseseeeeserorsesesecceeesosoesesecesoesoreeeeoesoroeseeecoesoroeoeseseeoeeosorseseeeeoeseee 6 1 Gl INTRODUCTION oii scissssesieissscsssabdsssvesiaiesesssasestessaacassuidssetesdabeassssaseetessbassssesaesetesdassbasvaauestssibspoibubdsvenedbabsdaeiaes 6 1 7 MAINTAINING SAFE KEEPING LOCATIONS sessesesesececeesoroesesecosoesoeoesesesoesoroesesesecoesoseseeoesosorseseseeoesoe 7 1 7 1 TOSNO B OSa y COIN P E E E E E ET 7 1 7 1 1 Exposure Line se
351. ers of function fn_process_interest_due BA0127 SE Unhandled exception in function fn_get_locks BA0128 SE Unhandled exception in function fn_SPLP_for_aleg BA0131 SE Unhandled exception in function fn_SPSP_for_aleg BA0132 SE Unhandled exception in function fn_SSLP_for_aleg BA0133 SE Unhandled exception in function fn_SSSP_for_aleg BA0134 SE Failed to insert into setbs_dstl_details for 1 BA0135 SE Failed to update setbs_dstl_master for 1 BA0136 SE Failed while rounding amount tag 1 for amount 2 BA0137 SE Unhandled exception in fn_memo_fpl_accrual BA0138 SE Failed to get the ESN for Memo accrual BA0139 SE Cannot settle 1 as it is not fully matched BA0140 SE Unhandled exception in fn_complete_DSTL BAO141 SE Failed to get current_holding BA0142 SE Failed to do DSTL for 1 as position goes ve for Issuer Portfolio 2 BA0143 SE Failed to do DSTL for 1 as position goes ve for Non Issuer Portfolio BA0144 2 SE Unable to select from setb_deal_detail for 1 31 38 ORACLE Error Message Code BA0145 SE Unable to select from setb_deal_master for 1 BA0146 SE Unable to select from setb_portfolio_master for 1 BA0147 SE Unable to update setb_caevent_tearoff_log BA0148 SE Unable to select from setm_security_master for 1 BA0149 SE Unable to select from setb_dstl_master for 1 and 2 BA0150 SE This program c
352. ers to the selling of rights from the portfolio which is doing the exercise and the buy leg to the buying of rights from the SK location of the holding Example You hold 100 units of equity in a bank portfolio To the equity is attached 100 rights that can be exercised on 15 June to purchase 100 units of shares When you exercise the rights you should associate with the deal a product combination that caters to the exercise of rights All the details that you specified for the product combination will be applicable to the deal 19 Maintaining a Security 19 1 Introduction In Oracle FLEXCUBE you have to maintain all securities that you deal in In other words you can only enter into deals involving securities that you have maintained in the system Maintaining a security involves various operations They include specification of the following e Issuer details e The Market of Issue e The relevant dates the Tear off Date the Start of Interest Date etc e The Price details e The coupon details When you enter into a deal the details defined for a security will automatically be picked up A security is maintained in the Security Definition screen which is invoked from the Application Browser ie ORACLE You can invoke the Securities Instrument Definition screen by typing SEDSEONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button tr Security Id Sec
353. ert back dated redemptions for a security provided the back dated redemption does not go beyond the previous coupon payment date For specifying back dated redemptions the quantity quotation for the security has to be Nominal Also you should have maintained the security as acallable one is the Security Definition screen However the effective date cannot be before the last coupon date Amendment is allowed only for unconfirmed schedules Secondly back dated amendment will not be allowed if the DSTL date falls on or after the event date of the redemption schedule In the case of back dated amendment corporate action for redemption is processed during End Of Day EOD processing In the case of insertion of back dated schedule the redemption processing is done during Beginning Of Day BOD processing of the next working day ele ORACLE Note that back dated amendment or insertion of redemption schedules cannot be done beyond the last coupon date Example System Date January 18 2003 Last coupon payment happened on January 01 2003 A back dated redemption schedule can go only as far back as January 01 2003 Also an inserted redemption schedule date must correspond with a coupon payment date If it does not then a coupon schedule will automatically be inserted by the system Example A security has a coupon period January 01 2003 to July 01 2003 System Date June 15 2003 Redemption schedule inserted March 31 2003 T
354. es centrally in the Settlements sub system of Oracle FLEXCUBE Defining preferences centrally means you do not have to specify settlement details every time you enter into a deal Security deals are settled by default according to the preferences specified for the counterparty When entering into a deal however you can change the default settlement details Settlements are effected by way of a funds transfer The seamless interface with the Funds Transfer module of Oracle FLEXCUBE allows you to effect a transfer effortlessly 3 4 9 Querying the system for details Oracle FLEXCUBE offers you an invaluable tool the Online Query facility Using this facility you can sieve data to locate the precise information that you require Here is how the facility works in the midst of your operations you would frequently want to retrieve very specific information relating to e SK security movements e SK location balances e Portfolio security movement e Portfolio balances The Securities module offers you a Query screen to locate each of the above types of information In the query screen specific to the type of information you are looking for you can enter the criteria by which you would like to filter data Only data that satisfies the criteria that you specify will be displayed for your reference The chapter Querying the System for details discusses this feature elaborately ale ORACLE 4 General Maintenance 4 1 Introd
355. es less than or equal to today After liquidation the events table is updated to indicate that disbursement for the event is complete Positions and holdings for warrants are updated a ORACLE 20 6 Maintaining Security Redemption Details One of the methods of retiring a bond is to redeem it The Securities Corporate Action Event Maintenance Redemption screen allows you to define and maintain details of redeemable securities You can invoke the Securities Corporate Action Maintenance screen by typing SEDREDDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Corporate Action Maintenance Redemption Internal Action Id External Action Id Internal Security Id oo la Issuer Reference Event Date Announcement Date Record Date E E Redemption Type v Call Indicator End of Trading Date E Restart of Trading Date Redemption Price Exchange Rate Fixing Date Issuer Payment Currency laz Redemption Quotation Redemption Quantity p Exchange Rate Dispose Fractions Series O Confirmed Confirmed Date aranne Fes Input By Authorized By Modification Authorized Exe Date Time Date Time Number Open If you are defining details of a new redeemable security choose New from the Actions Menu or click new icon from the tool bar The Corporat
356. es of Denominator Method maintained in Securities Instrument Definition screen are used for accrual and liquidation Interest amount calculation for Bonds for a given security Let us understand the above with the following example Consider the following facts PeR ORACLE A security purchased for 10 million at a rate of 5 p a with the coupon date of 15 Jan In case the frequency of the coupon is Yearly The ACT ACT ISMA method for a non leap year is Amount x 5 100 x 365 365 x 1 And for a leap year the ACT ACT ISMA method is Amount x 5 100 x 366 366 x 1 In case the frequency of the coupon is Half yearly Then for coupon on 15 01 the formula used in ACT ACT ISMA method is Amount x 5 100 x 184 184 x 2 And for coupon on 15 07 the formula used in this method is For anon leap year Amount x 5 100 x 181 181 x 2 For a leap year the formula is Amount x 5 100 x 182 182 x 2 In case the frequency of the coupon is Quarterly Then for coupon on 15 01 the formula used in ACT ACT ISMA method is Amount x 5 100 x 92 92 x 4 For coupon on 15 07 the formula used in this method is For anon leap year Amount x 5 100 x 90 90 x 4 For a leap year the formula is Amount x 5 100 x 91 91 x 4 For coupon on 15 10 the formula used in this method is Amount x 5 100 x 92 92 x 4 366 Basis While maintaining the Interest related details in the Security Definition screen you need to specify the whether the system should use leap year or
357. ess 6 3 SD LM Date input is a holiday Do you want to continue 00202 SD LM Customer clean risk exceeds for customer 1 for date 2 for currency 00203 3 The limit is 4 The actual amount is 5 and the difference is 6 SD LM Liability clean risk exceeds for customer 1 for date 2 for currency 3 00204 The limit is 4 The actual amount is 5 and the difference is 6 SD LM Limits Node 1 Unavailable Utilization will be updated later 99998 SD LM Limits Service Unexpected Error 1 99999 31 5 Error Codes And Messages for Non Securities 31 67 ORACLE Error Message Code TA CLO02 A class named 1 is already maintained TA CLO03 Class details Saved TA CL004 Record successfully deleted TA CLO05 The Record is already closed TA CLO06 Cannot maintain amount tags for this component Cannot authorize TA CL007 Do you want to delink the Tax Component CS This class code already exists CL1001 CS Please enter the class code CL1002 CS Do you want to print accounting entries class details for all modules CL1003 CS Module ID does not match with the Class Code CL1004 CS Duplicate Class Code encountered Please enter the class code again CL1005 CF Currency or rate missing CLO001 CF Max values should be lesser or equal to Min values CLO002 CF For Fixed interest rate Default rate is mandatory and Spread should CL
358. estrictions maintained for the portfolio product associated with a portfolio will by default apply You can use the defaulted restrictions or define security restrictions for a portfolio Click Security Restrictions button from the Portfolio Definition screen to invoke the Security Restrictions screen Security Restrictions Portfolio Id Portfolio Description Restriction Type Restriction Type Disallowed Allowed Security Product Restrictions Allowed Disallowed E3 E Code Description ol LH Securities Access HE F LH Disallowed x dii ORACLE 21 7 1 Features of the screen Restriction Type You can specify security restrictions in the form of an allowed or disallowed list You can indicate whether you are maintaining an allowed or a disallowed list type by choosing the appropriate option under the field Restriction type When you set up security restrictions the securities that do not figure in the allowed list cannot be traded with If you have maintained a disallowed list securities that do not figure in it can be involved in deals linked to the product Allowed Disallowed Under Security Restriction you will see a column displayed e An Allowed or Disallowed list depending on the restriction type you are maintaining For example if you have chosen to maintain an Allowed list the column will display
359. et Consideration Net Consideration Block Deal Reference Reversed Contract Reference Deal Type Interest Deliver ee Interest Date A Receive Maturity Date Transaction Date Quote By Leg Reference User Reference Broker Id MSTL Date Actual MSTL Date Charges Walk in Tax Leg Reference User Reference Broker Id MSTL Date Actual MSTL Date Charges Walk in Tax 22 1 2 A description of the Securities Deal Input Screen The securities deal input screen as it appears contains a header and a footer containing fields that are specific to the deal you are entering Besides these you will also notice two tabs and an array of icons along the lines of which you can enter details of a securities deal The two tabs are Main Click this tab to enter the essential terms of a deal This screen along with its fields has been detailed under the head Entering the details of a deal 22 3 ORACLE Main Click this tab to enter the essential terms of a deal This screen along with its fields has been detailed under the head Entering the details of a deal Additional In the screen that corresponds to this tab you can enter additional details that are required to process the deal The
360. etails not maintained 074 SE MRKT Market Ex date details not correctly maintained 075 SE MRKT Failed in getting the number of days in the month 076 SE MRKT Error while setting the format for the date while computing 077 ex date SE MRKT Could not set the ex date to the correct format 078 SE MRKT Failed in holiday check while computing ex date 079 SE MRKT Failed in holiday check while computing ex date 080 SE MRKT Failed in getting next working day when computing ex date 081 SE MRKT Failed to get next working day when computing ex date 082 SE NONE SE ONLXXX SE RVLO Failed to build array queue in revaluation 001 SE RVLO Failed in getting periodic revaluation date 002 SE RVLO Failed in periodic revaluation 003 SE RVLO Failed in getting market price for revaluation 004 SE RVLO Failed in reversal of revaluation 005 SE RVLO Price record could not be obtained for revaluation 051 SE RVLO Price record is not authorized for revaluation 31 84 ORACLE Error Code Message 052 SE RVLO Price record is not open for revaluation 053 SE RVL1 Failed in revaluation for a position 001 SE RVL1 Failed in getting position balance for revaluation 002 SE RVL1 Failed in processing for unsettled legs for revaluation 003 SE RVL1 Failed in mark to market revaluation 004 SE RVL1 Failed in computing amount tags for revaluation 005
361. ethod is Compound the relationship between the periodic YTM and the deal YTM is computed as follows Yo 0 1 If the Annualizing method is Simple it is computed as follows bE Where e yo is the Periodic YTM e Yois the Deal YTM e Ais the Day Count Method Denominator e P isthe Period of Reinvestment If Null defaulted to A n Apart from these details you need to specify the Day Count Denominator and Numerator methods for all Bonds and T Bills Day Count Method Numerator Indicate the day count numerator which is to be used to arrive at the number of days for yield calculation The options available are e 30 Euro e 30US e Actual ee ORACLE Day Count Method Denominator Select the day count method to be used while calculating yield from the adjoining drop down list This list displays the following values e 360 e 365 e 364 Values of Day Count Method Denominator maintained in Yield Calculation Parameters screen are used in Yield calculation of T Bills and Bonds Premium Discount for Current Interest Period Check this option to specify that the premium or discount should be accrued only for the current period This option will be applicable only if the security is a Floating Rate Bond Note the Following e This option will be disabled if the bank level parameter COMMON_YLD_ACCR is set to W e Asynchronous revision cannot be enabled if the Premium Discount for Current Interest Period is checke
362. ethod is also referred to as the Clean Price ero You can specify an interest quotation method only if the deal involves the buying or selling of interest bearing bonds For indexed securities In the case of indexed securities you can specify the number of units that are traded expressed either in the index or the local currency If you express the deal quantity in the local currency the equivalent in the index currency is displayed in the field titled Deal Quantity Similarly if you indicate the deal quantity in the index currency it s equivalent in the local currency is displayed in the filed titled LCY Qty Price Quote The method in which price is quoted is a feature of the market where the security is traded Each market may use a particular price quotation method The price of a security can be quoted as Price in this case the security is quoted on the basis of the price at which it is traded You have already maintained the face value of the security in the Security Definition screen The premium that you paid or discount at which you purchased the security is calculated against the face value of the traded security The price can be expressed as n ORACLE Face Value Premium or Discount Accrued Interest if the interest quotation method is Flat Price the price is quoted on the basis of the percentage of the price Price Market price Face value x 100 Discount in this case the p
363. exceeds the Line Limit Amount 00014 SD LM The Sub Line Tenor Limit Amount cannot be greater than the next 00015 higher Main Line Tenor Limit Amount 1 2 SD LM The Sub Line Tenor cannot be greater than Maximum Main Line 00016 Tenor 1 Days SD LM There are no Tenors specified for the Main Line 00017 SD LM The Line Code is Limits Template Details will be copied from template 00018 Continue SD LM The Sub Line Limit cannot exceed the Main Line Limit 1 2 00019 SD LM The Main Line Limit cannot be less than any of its Sub Line Limit 1 00020 2 SD LM The Main Line Tenor cannot be Less than the Minimum Tenor of any 00021 Sub Lines reporting to it 1 Days SD LM The Main Line Tenor Limit Amount cannot be less than the next lower 00022 Sub Line Tenor Limit Amount 1 2 SD LM The Limits Copy could not be completed 00023 SD LM Blank spaces cannot be a part of this field 00024 SD LM The Line Code should have a nine characters 00025 SD LM The Tenor Mnemonic is not entered 00026 SD LM The Limit is not entered 00027 SD LM The Collateral Start Date cannot be later than the Collateral Expiry 00028 Date SD LM The Margin computed is not between 0 and 100 00029 31 63 ORACLE Error Message Code SD LM The Collateral Currency is not entered 00030 SD LM The Collateral Type is not entered 00
364. f revaluation date The Net Present Value NPV is arrived by excluding the accrued interest as of the revaluation date from the sum of the discounted cash flows The NPV is computed on the basis of the following formula Case 1 EX Deal and Revaluation Date in the same coupon period of settlement date a C RP NPV eP i RIA Where Va way Tas y aA NPV Net Present Value of the deal Total number of Coupons between the revaluation date and the Redemption date excluding the first cash flow from the deal settlement date i e C 0 Ci i coupon Yo Periodic Deal YTM vd Coupon Date Revaluation Date Reinvestment Period RP Redemption Price Vdn Redemption Date Revaluation Date RIA Pending Interest amount Received in advance as of the Revaluation Date 26 8 ORACLE Case 2 CUM Deal or Revaluation date and settlement date are in different coupon periods N NPV S a w nia z A EA 0o Where NPV Net Present Value of the deal N Total number of Coupons between the revaluation date and the Redemption date excluding the first cash flow from the deal settlement date Ci i coupon Yo Periodic Deal YTM vd Coupon Date Revaluation Date P Reinvestment Period RP Redemption Price Vd Redemption Date Revaluation Date Al Accrued Interest as of the revaluation date The
365. fied as a Portfolio Preference Thus the redemption premium of all redemption premium bearing instruments in a portfolio will be accrued at the same frequency The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Accrual Start Day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency 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 31 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 and yearly accrual frequency Accrual Start Month 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 on which the accruals should be done Example You have selected the half yearly option and specified the start date as 3
366. folio definition screen to view the accounting entries that were passed and the overrides that were encountered for each event in the lifecycle of a portfolio x EJ Portfolio ID Description Event Details TF sr No Event EventDate Security Id Maker ID Maker DT Stamp Checker ID Checker DT Stamp z Accounting Entries I Branch Account DriCr Code Date ValueDate Ccy Fey Amount Exch Rate LCY Amount E gt Accounting entry details Highlight the event to view its accounting entries All the accounting entries that were passed and the overrides that were encountered for the event will be displayed The following information is displayed for each accounting entry e Branch e Account e Dr Cr indicator e The amount tag e The date on which the entry was booked e Value Date e The deal currency e Amount in deal currency ever ORACLE e The foreign currency equivalent if applicable e The exchange rate that was used for the conversion e Amount in local currency e All the overrides that were encountered for the event will also be displayed Click Exit button to exit the screen You will be returned to the Application Browser 21 7 Maintaining Security Restrictions for a Portfolio From the head office of your bank you can establish certain controls over the securities that a portfolio can trade in These controls are achieved by specifying restrictions The security r
367. g SEDBLKDL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button K5 Securities Block Deal Product az Deal Reference User Reference P Main Additional Security Transaction Date Security Code Deal Type t Quote By v Market Code Trade Date Interest be DSTL Date Interest Date E Deliver Receive v AbsolutePrice Price Quote Yield Deal Quantity Input Price Single Leg Buy Sell Enrich Uplosa Leg Product Leg Description Portfolio MSTL Date E O Auto MSTL Counterparty Pay Account Branch az SK Location Pay Account Broker SK Account Multiple Leg Deal Reference Leg Description Leg Product Multiple Leg Input By Authorized By Deal Status Authorized Date Time Date Time In the Securities Block Deal screen you can enter details of the multiple parties portfolios or customers involved in a deal Oracle FLEXCUBE will automatically create separate deals for each portfolio involved in the deal These individual deals are in turn linked to the Block deal You can view or edit the details of a sub deal by double clicking the party concerned in the Securities Block Deal Detail screen
368. g Details Local Clearing Instrument Details Type Component DEAL_NOMINALAMT Payment By Number Message Details of Charges Instrument Remitter all Charges Clearing Beneficiary all Charges Remitter our Charges Clearing Network Message Details Sender to Receiver Information Network Code 1 Cover Required Information 1 Information 2 Cover By Information 3 Clearing Information 4 Message Information 5 Information 6 Details of Payment Details of Payment 1 IF RTGS Payment RTGS Network Details of Payment 2 Details of Payment 3 Details of Payment 4 Transter Type Depending on the method in which you want to settle the deal you should input either Instrument or Message details Specifying instrument details For a deal that is being settled through an instrument you should specify the type of instrument being used It could be Manager s Check Check or a Demand Draft You should also specify the number that will identify the instrument This number will be printed on the instrument If the settlement is through an instrument you cannot specify party details for the deal Specifying message details For a SWIFT message you have to specify e Whether a Cover has to be sent to the Reimbursement Bank along with the payment message to the receiver e Bank to bank payment details these can be in the form of instructions or additional information to any of the parties involved in the deal e Information fr
369. g Security Preference classes of this User Manual To ORACLE For detailed information on each of the attributes please refer to the chapter called Defining Security Preference classes 15 3 Coupon Processing Coupon Plotting You can specify whether coupon events that fall on holidays should be shifted forward or backward You can also choose not to change the event date even if it is a holiday In the Coupon Plotting Holiday Treatment field you can select from the following options e Forward e Backward e Ignore The choice that you make here defaults to the specific securities that you define under this product Irrespective of the holiday treatment specified by you the system will not perform any holiday adjustment if in the Product Event Accounting Entries Maintenance you select No as the Holiday Treatment parameter A more detailed explanation is available in the Products manual If the forward backward shift in a coupon event date entails a movement across months then the event date will be guided by whether you have allowed disallowed movement across months in the Branch Parameters screen For more details and an example refer to the chapter on Bank and Branch Parameter Maintenance in this manual Accounting Value Date Interest calculations and accruals are done till the coupon event date However if the coupon event date is a holiday you can specify whether the actual processing of accounting entries
370. g the Coupon Frequency When building a class of preferences you can indicate if the coupons due for a bond are periodic Coupons for bonds maintained under the products with which you associate the preference class will be calculated according to the periodicity that you specify For an interest bearing bond with a periodic coupon you must indicate the Coupon Frequency Some coupon frequencies are listed below e Weekly e Monthly e Once in two months e Quarterly e Once in four months If you indicate that the coupon frequency is weekly you should also indicate the day on which the coupon is due For instance you can have a bond with a weekly coupon that is due on Wednesdays If the coupon frequency is in terms of a month you can choose to indicate that the coupon days should adhere to Month Ends The implication of this option is explained in the following example Example You would like to maintain a product for Periodic Interest bearing Bonds The coupon frequency for securities maintained under this product is Half yearly You are defining a preference class that you would like to associate with this product amongst others In the Product Preference Class Definition screen In the Security Type field choose the Bonds option and the Periodic Coupon option Now you can specify the Coupon Frequency as Half yearly You can opt to indicate that the coupon dates should adhere to month ends Let us study the impact of the Adhe
371. g the transaction This field corresponds to field 50 of S W I F T You will be allowed to enter details in this field only if you have initiated a customer transfer MT 100 and MT 202 Beneficiary Institution Here you can enter details of the institution in favour of which the payment is made It is in reality the bank that services the account of the Ultimate Beneficiary This field corresponds to field 58a of S W I F T You will be allowed to make entries into this field only for Bank Transfers when the remitter and beneficiary of the transfer are financial institutions MT 100 or MT 202 Here you can enter either e The ISO Bank Identifier Code of the Beneficiary Institution e The Name and Address of the Beneficiary Institution Ultimate Beneficiary The Ultimate Beneficiary refers to the Customer to whom the deal amount is to be paid This field refers to field 59 of S W I F T You can make entries into this field only for a customer transfer MT 100 and MT 202 The number of banks involved in the transfer would depend on the e Relationships and arrangements between the sending and receiving banks e Customer instructions e Location of parties e The banking regulations of a country aad ORACLE 22 6 Levying Tax on a Deal The tax details specified for the product to which the deal is associated will be automatically applied to the deal However while processing a deal you can waive the application of tax You can invoke
372. general attributes each time you enter a deal rendering the entry of a deal in Oracle FLEXCUBE quick and simple While defining a combination product you have indicated the preferred leg of the combination The preferences specified for the preferred leg will be defaulted to a deal involving a product combination The sequence of events involved in processing a securities deal right from the trade date to the settlement date can be entered in Oracle FLEXCUBE A deal would therefore require information on e The securities that are traded e The number of securities that are traded e The counterparties involved in the deal e The price at which the securities are traded e The portfolio to which the securities belong e The dealer involved in the deal e Details of the broker involved in the deal if applicable These details and several others required to process a deal in Oracle FLEXCUBE have been discussed in the course of this chapter Invoking the Securities Deal Input Screen You can invoke the Securities Deal Input screen from the Application Browser To enter the details of a new deal click new icon from the tool bar You can invoke the Securities Deal Input screen by typing SEDDLONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are calling a deal that has already been created choose the Deal Input Summary option The details of all the dea
373. gulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous 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 unles
374. h of them While revaluing the portfolio the system first checks for the price code associated with the security at the portfolio level Else the default price code maintained for the security will be used for revaluation You can link only one price code for a given security in a given portfolio 22 Processing a Securities Deal 22 1 Introduction Using the securities module of Oracle FLEXCUBE you can process the following deal types e Bank portfolio buys and sells e Customer buys and sells e Standalone lodge and withdraw e Accompany lodge and withdraw e Safe keeping location SKL to SKL transfer e Block securities til ORACLE These could be spot forward or back value dated deals Moreover these deals could be directly captured in Oracle FLEXCUBE or uploaded from an external system You can nevertheless amend an uploaded deal in Oracle FLEXCUBE Each deal that you enter in Oracle FLEXCUBE should necessarily be associated with a deal product or combination product To recall you have already defined deal products to group together or categorise deals that share broad similarities Deal products provide a general framework and serve to classify or categorise deals Under each Product that you have defined you can enter specific deals based on your requirement By default a deal inherits all the attributes of the product or combination product which is associated with it This means that you will not have to define these
375. h Collection All types SCLQ Securities Stock to Cash LIQD All types YACR Yield Accruals for deals All types Customer Buy Sell Type of Products Event Code Event Description Remarks Book Booking of Securities Deal All types AMND Amendment of Securities Deal All types CANC Cancellation of Securities Deal All types CCON Counterparty confirmation All types DACF Deliver Versus Payment Confirmation All types DFCF Deliver Free Confirmation All types DSTL Settlement of Securities Deal All types EXTN Extension of Deal Settlement Date All types MSTL Money Settlement of Securities Deal All types RACF Receive Versus Payment Confirmation All types RBLK Release Block of Security Position All types REAS Reassignment of Securities Deal All types REVR Reversal of Securities Deal All types 32 2 ORACLE Event Code Event Description Remarks RFCF Receive Free Confirmation All types In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed above 32 3 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE Amount Tag Description CURR_FV Current Face Value SEC_DEAL_AMOUNT Securities Deal Amount DEAL_DISCNT_AMT Securities Deal Discount Amount DEAL_NOMINALAMT Securities Deal Nominal Amount DEAL_PREMIUMAMT Securities Deal Premium Amount FWD_DEAL_LOSS Securities Forward Loss FWD_DEA
376. h Date SE MA0475 There must be atleast one open record on the redemption date for series redemption Cannot close this record SE MA0476 End Date cannot be greater than Branch Date SE MA0477 End date cannot be less than Start Date SE MA0478 Open Coupon record s exist after the redemption event date Cannot save SE MA0479 Open Interest Revision record s exist after the redemption event date Cannot save SE MA0480 There must be atleast some percentage left on the final redemption date SE MA0481 Redemption Price must be greater than or equal to Initial Face Value 1 SE MA0482 Open Bullet redemption record not correctly maintained for security 1 SE MA0483 Only One open Bullet Redemption record should be maintained for security 1 SE MA0484 Atleast one open redemption record should be maintained for security 1 on the maturity date 2 31 18 ORACLE Error Code Message SE MA0485 Sum of all the open redemption records is not 100 for 1 SE MA0486 The trading date is later than the end of trading date maintained in the redemption record SE MA0487 Deal Trade date lies in a non trading period SE MA0488 Deal Settlement date is after the security maturity date SE MA0489 Redemption Validations for this security failed SE MA0490 Select the From Event Date SE MA0491 Select the To Event Date SE MA0492 The From Date cannot be greater than the To date
377. he Safe Keeping location to and from which the securities will be delivered Price Code You need to specify the price code from which the security price is to be picked up for this market All the details maintained here are picked up and defaulted to the Securities Definition screen You are allowed to change the information at the time of defining securities Specifying Yield Calculation Parameters Apart from the other main details you can specify the Yield Calculation Parameters for Bonds and T bills for each market definition record that you maintain YTM method for T Bills The basis for YTM calculation for T Bills can either be e Simple interest e Effective Compound interest Use Bond Formula If you enable the Use Bond Formula option YTM is calculated using the effective interest formula typically used for bonds For Bonds and for T Bills with the effective interest method of YTM calculation you need to specify the following details Reinvestment Period The effective interest formula assumes that payments are reinvested at the same rate as the yield of the T Bill Bond coupon schedules till the maturity of the security You have to specify this period in terms of days en ORACLE Annualizing Method For Bonds and for T Bills with effective interest you need to specify the annualizing method This is the method by which the System computes the periodic YTM The options available are e Simple e Compo
378. he currency INR The portfolio involves a product for which the re key fields assigned are the portfolio customer and currency Mr Atkins makes a mistake and enters the portfolio currency as USD instead of INR When Mr Jeffrey Hunt who has rights to authorise the portfolio selects the portfolio for authorisation and indicates the re key fields of portfolio currency as INR the details of the portfolio will not be displayed When this happens Mr Hunt can inform Mr Atkins of the mistake and have it rectified The portfolio details will not be displayed if The value in the field that has to be re keyed has been entered wrongly at the time of portfolio definition or The re key value is input wrongly at the time of authorisation It could also be that Mr Atkins has correctly captured the currency of the portfolio as INR and the authoriser Mr Hunt makes an error while entering the re key value Assume Mr Hunt enters the currency as GBP In such a case also the details of the portfolio will not be displayed for authorisation 11 2 9 Corporate Action Notice When a corporate action is due for a security in a portfolio you can generate Corporate Action notices to the holder of the security You can indicate whether Corporate Action Notices should be generated for securities in a portfolio Check against the option Corporate Action notice required to indicate that the notice should be generated Leave it unchecked to indicate
379. he 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 31 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 the half yearly and yearly accrual frequency Accrual Start Month 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 on which the accruals should be done Example You have selected the half yearly option and specified the start date as 31 and the start month as June The first accrual will be done on 30 June for the period from January 1 to June 30 and the second one on 31 December for the period from 1 July to 31 December If the accrual date falls on a holiday If the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen 11 11 ORACLE 11 2 11 Purchase Interest While defining non WAC portfolios you can indicate the point at which Purchase Interest is to be adjusted For portfolios with WAC as the costing method this option is always set to Sale and Coupon and the purchase interest is taken into accruals and not tracked separately The options are e Sale and Coupon indicates that the purchase acquired inte
380. he initiation event has to be invoked manually for holdings to be created Positions and holdings for Rights are updated to reflect the latest once the event is completed 20 4 2 Rights Exercise If you associate a security of rights type with an exercise type of product in the deal input screen the exercise event is carried out for the security involving the product You have to indicate the quantity of rights to be exercised along with the SK location and the SK account where the rights are lodged You can view details of the quantity of the resultant security along with other details such as the exercise price In case there are charges the charge details will also be displayed Depending on the quantity of rights exercised the holdings in the rights security will go down and the holdings in the resultant security will go up For the event Rights Exercise Collection for long position RELC only those events with the collection date less than or equal to today and for which collection has not already been made will be selected for processing Once the collection is complete the Rights Exercise Initiation for long position RELT is triggered The Rights Exercise event processes those events that have not yet been initiated despite having initiation date of today or less than today After the rights initiation event is through the Rights Exercise Disbursement for long periods RELL event is triggered In case of auto liquidation the
381. he settlement currency to be different from the security currency you should also indicate the exchange rate to be used for the conversion 22 2 6 Price Details of the Deal The following information of the price of the deal is displayed Interest Value Date This is the number of days for which accrued interest has been calculated The interest value date that you specified earlier is used in the calculation For cum coupon deals this is the difference between the last coupon date and the interest date For ex coupon deals the interest days is the difference between the settlement date and the ex coupon date Discount This is the amount of rebate in the purchase or sale price of the deal as compared to the nominal price of the security Premium This is the price or amount paid by the buyer in addition to the nominal amount ails ORACLE Forward P amp L The forward profit or loss is the amount of profit made or the loss incurred in the deal It is the variance between the deal price and the spot price of the security Deal Nominal The deal nominal refers to the net consideration of the deal The sum of all the components of a deal is the net value of the deal Adjusted Price This is the price of interest bearing instruments exclusive of the interest component Interest bearing instruments can be quoted as flat or plus accrued The adjusted price is applicable only for flat quoted instruments The price of such instruments te
382. he system breaks the existing coupon period into two e January 01 2003 to March 31 2003 and e March 31 2003 to July 01 2003 Any deals booked after the Record Date of the inserted redemption schedule will have to be manually reversed and then re booked by you after authorizing the inserted redemption schedule This is because the status of these deals will change from Cum to Ex due to the insertion of the coupon redemption schedule Following the insertion of the redemption schedule the system will automatically adjust the ALPL and DPRP events of all deals and rebook them End and Restart of trading period You can indicate the date on which trading in the security will be suspended and the date on which the trading will be resumed This is done by way of specifying the End of Trading Date and the Restart of Trading Date Exchange Rate and the Exchange Rate Fixing Date If the issuer payment currency is different from the security currency then specify the exchange rate between the security currency and the issuer payment currency can be specified In addition you can also indicate the date on which the exchange rate between the security currency and the issuer payment currency will be announced Redemption Price For securities having Factor or Cashflow redemption quotation the redemption price is calculated automatically For securities having Percentage as the redemption quotation you need to specify
383. heck against this option to indicate that money settlement should be automatic Leave it unchecked to indicate manual settlement If you specify the automatic mode of money settlement deals involving a product to which the class is applied will be automatically settled on the settlement date If the money settlement date falls on a holiday If the money settlement date of a deal falls on a holiday the deal will be settled depending on your specifications in the Branch Parameters screen 12 2 5 Extension Allowed You can choose to allow extension of the Settlement Date for deals involving a product to which a preference class is applied Check against this option to allow extension of the settlement date Leave it unchecked to disallow extension This feature is useful when you need to extend the settlement date for the deal You need not enter a new deal for the extension period but simply amend the settlement date of the deal to a future date Example The settlement date of a deal is 1 April You need to extend the settlement date of the deal by two days If you have allowed extension of deal for the product you can settle the contract on 3 April 12 2 6 Rekey Requirements All operations on a deal input amendment modification etc have to be authorised by a user other than the person who carried out the operation They need to be authorized before the End of Day operation commences Authorization is a method of checking the
384. hich is part of the Core Entities module of Oracle FLEXCUBE The Customer Ids available in the picklist are defaulted from the CIF maintenance screen By linking a Credit Line to a Liability Number you actually assign a limit to the customer linked to the line Every credit seeking customer is linked to a liability number and the credit facilities granted to him are tracked against this liability number In the Customer Information Maintenance screen you need to link customers to specific SK Locations For this purpose you can create a customer category called Safe Keeping Locations This can be created through the Customer Category detail screen All the SK Locations that you have maintained can come under this category After defining the category you only need to associate the liability number of the customer with the customer category The customers thus defined can be linked to a credit line through the Limits maintenance screen For further details on the Customer Information Maintenance screen please refer to the Oracle FLEXCUBE user manual Core Entities 7 1 1 Exposure Line To track the maximum limit up to which securities can be held in each SK location you can specify the exposure line for SK location After defining the customer ID in the CIF maintenance screen click on the Limits button and maintain an overall limit for each SK location You can also specify the limit beyond which you would not like to expose yourself or y
385. hich the number of days are to be calculated for interest charge commission or fee components and whether their application is tenor based is displayed here based on the specification you made at the product level You can choose to change it The following are the options available e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 29 5 ORACLE e Actual 365 e 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 e 30 US 364 e Actual 364 For further information refer the section Specifying the Interest Details for the Product in the Interest chapter in the Interest User Manual 29 2 4 Associating Discount Accrual Components to Products After building discount accrual fee classes you can associate the class with product in the Discount Accrual Preference Association screen is invoked To invoke the Discount Accrual Preference association screen click Discount button in the Securities Repo Product Definition screen Discount Accrual Preference Association Product Code Product Description Class Code Class Description Accrual Preference Discount Accrual Required Frequency Handling of Fore Closure Acquisition Type Day Count Method 10f1 ra Currency Code Numerator Method Denominator Method Denominator Method z o Specify the following details Denominator Method Select the denominator method from th
386. hile processing a deal you can indicate the date on which the traded securities should settle On the security settlement date that you specify for the deal the settlement will take place automatically If the settlement date falls on a holiday If the money or security settlement date of a deal falls on a holiday the settlement will take place based on your specifications in the Branch Parameters screen 22 10 Reassigning a Deal to another User Only the user who entered a deal can delete it If a deal has to be deleted and the user who entered it is not around to do it you can reassign the deal to another user so that the other user can delete it Typically this situation may arise during end of day operations when a deal that is not authorised has to be deleted and the user who entered the deal has left office for the day You can reassign a deal through the Reassign User screen You can invoke this screen from the Application Browser Procedure To reassign a deal to another user you need to e Step 7 You first need to indicate the product associated with the deal You can select a product code from the picklist which contains a list of the products that you have created e Step 2 After you have selected the product indicate the contract reference number of the bill you wish to reassign to another user You can select a reference number from the picklist which contains a list of all the unauthorised active deals e Step 3
387. hile trading in securities of a portfolio you can have a short position Check against the option short positions allowed to allow short positions for the portfolio If you indicate that short positions are not allowed for a portfolio Oracle FLEXCUBE will not allow a deal that causes the short position to be processed Banker s Acceptance You can indicate whether or not the portfolio that is defined under the product which is based on this class can be used for a Banker s Acceptance deal You will be allowed to select this option only for Issuer type portfolios Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances oe ORACLE 11 2 5 Book Discount Premium You can indicate how an asset belonging to a portfolio should be booked In other words the basis for asset accounting in a portfolio In Oracle FLEXCUBE an asset can be booked on the following basis e Non accrual basis e Accrual basis To understand these asset accounting methods we will examine an example and apply each basis method to it Example You have purchased a USD 10 bond for USD 15 on 1 January from a customer portfolio You have paid a premium of USD 5 for the bond On 30 January you sell the bond for USD 20 Non accrual basis Using the non accrual basis the following accounting entries will need to be passed Dr Premium to be accrued USD 5 Cr Customer USD 15 Dr Asset USD 10 On 1 March
388. ht corner of the Application tool bar and click the adjoining arrow button Corporate Action Tracking Ex Date Report Corporate Action Type All Corp Actions Selected Branch Report From Report To Specifying the following details Corporate Action Type Select the corporation action type from the drop down list The following are the options available e All Corp Actions e Cash Dividend e Stock Dividend e Redemption e Rights e Warrants Selected Branch Select the branch for which you want to generate the report Report From Specify the date from when you want to generate the report Report To Specify the date to which you want to generate the report 34 10 ORACLE 34 7 1 Contents of Report The contents of corporate actions Ex Date report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module date and time at which the report has been generated and the page number of the report Body The following details are displayed Branch Code The branch code Portfolio ID The portfolio ID Portfolio The description of the portfolio Description Security Type The type of security Security ID The security ID and description Security Description Counterparty The counterparty details Details Issuer Ccy The issuer and security currency Security Ccy
389. ht directly pay the KEST amount to the Government Under such circumstances your bank need not calculate the KEST amount However for customers who are not paying the KEST directly to the Government you can calculate the KEST amount The KEST that has to be paid to the Government can be of two types e KESTA e KESTB The difference between KEST A and KEST B is that the rate of KEST B is slightly higher than KEST A The rate of KEST depends on the type of transaction e For normal security transactions KEST will be a fixed percentage of the income earned by the customer e For mutual fund transactions the rate is announced on a daily basis Further the rates for mutual fund will differ from one mutual fund to another An external application called Data Provider will provide the rates to Oracle FLEXCUBE through an interface Defining KESTYTPE as a User Defined Field For every customer that you maintain in Oracle FLEXCUBE you need to specify e whether the customer is paying the KEST directly to the Government e whether the customer is exempted from paying the KEST e the KEST type either A or B This is used to calculate the KEST amount if the customer transacts in securities through your bank In Oracle FLEXCUBE factory shipped UDF s like KESTTYPE KEST A and KEST B are available to capture the KEST type of a customer and KEST rates for each type ea ORACLE e The user defined field KESTTYPE is associated with the
390. icate the Coupon Frequency The coupon frequency can be e Weekly e Monthly e Once in two months e Quarterly e Once in four months etc Tete ORACLE If you indicate that the coupon frequency is weekly you should also indicate the day on which the coupon is due For instance you can have a bond with a weekly coupon that is due on Wednesdays If the coupon frequency is in terms of a month you can indicate that the coupon days should adhere to Month Ends The implication of this option is explained in the following example Example You are maintaining a Periodic Interest bearing Bond The coupon frequency is Half yearly In the Interest Section of the Security Definition screen Choose the Periodic Coupon option You can specify the Coupon Frequency as Half yearly You can also indicate that the coupon dates should adhere to month ends Let us study the impact of the Adhere to Month End option with relation to this security Assume the Issue Date of the Security is 30 June 2000 and the Maturity Date is 30 June 2002 The coupon frequency is half yearly If you choose the Adhere to Month End option The coupons for this security would be due on the following dates e 31 December 2000 e 30 June 2001 e 31 December 2001 e 30 June 2002 If you do not choose the Adhere to Month End option The coupons for this security would be due on the following dates e 30 December 2000 e 30 June 2001 e 30 December 2001 e 30 Ju
391. ign it a unique code Port_In_01 and describe this Accounting Role and Head class as Class for Portfolio Maintenance of Individuals You can indicate that this class is specifically for the Securities module When defining the accounting roles and heads for the portfolio service in the Securities module Port_In_01 will be available to you You can associate the service with Port_In_01 9 3 3 Mapping Roles to Heads You can choose a role by double clicking on it Now you have to associate the role with an account head a GL You can choose a particular head by double clicking on it Choosing add icon confirms the association of a role with the corresponding head in the Accounting Head column If you would like to disassociate a role and a head choose the delete icon In a similar fashion you can associate all heads which you would like to include in a class with a role ORACLE 9 4 The Event Class A deal goes through different stages in its life cycle such as e Deal Booking e Money Settlement of Securities Deal e Settlement of Securities Deal e Reversal of Securities Deal e Cancellation of Securities Deal etc Each stage is referred to as an Event in Oracle FLEXCUBE The following are examples of the events for a portfolio that you maintain e Booking of Contingent Asset e Accrual of Discount Earned e Accrual of Interest Earned e Forward Profit and Loss Accrual At an event you may want to generate advices or po
392. ike to revise the interest rates at a different frequency choose the Allow Asynchronous Revision option If the asynchronous revision of rates is periodic click on the Periodic Revision option and specify the Revision Frequency For a frequency that is weekly indicate the day on which the revision is due For instance you could indicate that the interest rates for securities should be revised every Monday If the revision frequency is in terms of a month you can choose to indicate that the revision days should adhere to Month Ends The implication of this option is explained in the following example Example You are defining a Security Preference Class that you would like to associate with a Security Product You have maintained several securities under this product We shall study the impact of the Adhere to Month End option with reference to a security maintained under the Product Assume the Issue Date of the security with floating interest and an asynchronous rate revision is 01 January 2000 and the Maturity Date is 31 December 2000 You have specified that the interest rate revision frequency is quarterly If you choose the Adhere to Month End option The rate revisions for this security would be due on the following dates e 31 March 2000 e 30 June 2000 e 30 September 2000 e 31 December 2000 are ORACLE If you do not choose the Adhere to Month End option The rate revisions for this security would be due on the follo
393. ils You can specify tenor details for the Security Preference Class being defined The tenor can be in terms of e Days e Months e Years Securities maintained under a product should adhere to the minimum and maximum tenor limits that you specify here For example if you specify the tenor in Days specify the Minimum Tenor as 2 and the Maximum Tenor as 100 the system ensures that the period between the Issue Date and the Redemption Date does not exceed 100 days 10 2 12 Capturing SWIFT Related Information If trade is restricted Ownership or transfer of a security can be subject to restrictions imposed by the Issuer or Market You can indicate if trade involving the securities maintained under a product is Restricted You can choose the Restricted option to indicate this Securities with trade restrictions will be reported as such in the SWIFT messages generated for deals In Field 22F of the Market Side Securities Trade If the position has been covered You can allow or disallow selling of a security from a short position Enter this information when building a Preference Class Your specification will default to all securities maintained under products This default can be changed Choose the Covered option if your positions on securities should be covered By not choosing the Covered option you indicate that securities maintained under products with which you associate the class can be sold from a short position
394. ils are displayed Deal Reference No Reference number of the deal Security ID The security ID Security Description of the security Description Interest Amount Interest applicable on the deal Face Value of Deal Face value of the deal Leg Reference No Reference number of the transaction leg Leg Type Type of transaction buy or sell Counterparty The deal counterparty Counterparty Name Name of the deal counterparty Portfolio ID The portfolio ID Portfolio Description of the portfolio Description Leg Reference No Reference number of the transaction leg Leg Type Type of transaction buy or sell Counterparty The deal counterparty Counterparty Name Name of the deal counterparty Portfolio ID The portfolio ID Portfolio Description of the portfolio Description 34 23 ORACLE 34 13 Securities with Short Positions Report You can generate the securities with short positions report by using the Securities with Short Positions Report screen To invoke this screen type SERSHSEC in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Securities with Short Positions Report From Details Security Id To Details Security Id 34 13 1 Selection Criteria By indicating From and To security IDs you can generate the securities with
395. imit Currency is not Entered 00069 SD LM Overall Limit is not Entered 00070 SD LM Liability Clean Risk Limit is not Entered 00071 SD LM Line Not Authorised 00100 SD LM Line Closed 00101 SD LM Line Not Found 00102 SD LM Invalid Customer ID 00103 SD LM Liability ID Not Specified 00104 SD LM Account ID Not specified 00105 SD LM Reference Id not specified 00106 SD LM Amount tag not specified 00107 SD LM Amount not specified 00108 31 66 ORACLE Error Message Code SD LM Currency not specified 00109 SD LM Branch not specified 00110 SD LM Line 1 Amount exceeds Limit for specified tenor by 2 00111 SD LM Line 1 Amount exceeds all available tenor limits by 2 00112 SD LM Line 1 Amount exceeds line limit Limit 3 2 Utilisation 4 2 00113 Overdraft 5 2 SD LM Main Line 1 Amount exceeds Main line limit amount Limit 3 2 00114 Utilisation 4 2 Overdraft 5 2 SD LM Line has matured 00115 SD LM Line not available 00116 SD LM Amount exceeds limit for liability 1 Limit 3 2 Utilisation 4 2 00117 Overdraft 5 2 SD LM Clean risk limit exceeded for Customer 1 On 2 Limit 4 3 00200 Utilisation 5 3 Excess 6 3 SD LM Clean risk limit exceeded for Liability 1 On 2 Limit 4 3 00201 Utilisation 5 3 Exc
396. in the transfer and SK account numbers In addition to transferring securities from one SK location to another you can also transfer securities from one account to another within the same SK location You can invoke the Transfer Across Safe Keeping Locations Forms screen by typing SEDSKONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon on the toolbar This screen will be displayed with no values in the fields eae ORACLE If you are calling a record that has already been created click on Summary view From the Summary screen you can open an existing record The details of the records that you have created will be displayed in a tabular form Transfer Across Safe Keeping Locations Forms Transaction Details Product Deal Reference User Reference Instrument Details Security Code Security Series Quote By Transaction Date Details Transaction Date Deal Quantity Trade Date DSTL Date C Auto Settlement Portfolio Details Portfolio Counterparty Transfer From SK Location SK Account Form Type Transfer To SK Location SK Account Form Type events aries soremen aace meresi ox i Input By Authorized By Contract Authorized Date Time Date Time Status Product Code In Oracle F
397. in the Security Restrictions Class Maintenance screen This is invoked from the Application Browser If you are maintaining details of a new security restrictions class choose New from the Actions Menu or click E from the toolbar The Security Restrictions Class Maintenance screen is displayed without any details You can invoke the Security Restrictions Class Maintenance screen by typing SEDPSRCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are calling a Security Restrictions Class record that has already been defined choose the Summary option of the Security Restrictions Class on the Application Browser ioe ORACLE On the Summary screen double click on a class to open it Main Screen Class Code Description Module Security Restriction Restriction Type Allowed 5 Disallowed ol i E Security Access E Security Id Product Security Description Restriction Type Fj az Disallowed Input By Authorized By Modification Authorized Exit Date Time Date Time Number Open 13 2 1 Identifying a Security Restrictions Class A Security Restrictions Class is identified with a unique Code and a Description Class Code In Oracle FLEXCUBE every Security Restrictions Class that you maintain is identified by a unique ten character code called a Class C
398. in the table below Advice Advice SWIFT Sender of Receiver of Code Description Equivalent Message Message TRADE Trade MT 517 Trade Instructing Trade Executing CONF Confirmation Party Party AFFM Affirmation Buyer Trade Counterparty MKT Market Side MT 518 Trade Executing Trade TRADE Trade Party Counterparty CONF Confirmation RECV Receive MT Custody Portfolio Custodian SEC Free 520 MT540 Customer FREE Custodian Safekeeping Location DLVR Deliver Free MT Custody Portfolio Custodian SEC 522 MT542 Customer 32 11 ORACLE Advice Advice SWIFT Sender of Receiver of Code Description Equivalent Message Message FREE Custodian Safekeeping Location DLVR Deliver MT Custody Portfolio Custodian SEC Against 523 MT543 Customer APMT Payment Custodian Safekeeping Location RECV Received MT 521 Custody Portfolio Custodian SEC against MT 541 Customer APMT payment Custodian Safekeeping Location RECV Receive MT 530 Safekeeping Custodian FREE Free Location CONF Confirmation Custodian Custody Portfolio Customer RECV Receive MT 531 Safekeeping Custodian APMT Against Location CONF Payment Confirmation Custodian Custody Portfolio Customer DLVR Deliver Free MT 532 Safekeeping Custodian FREE Confirmation Location CONF Custodian Custody Portfolio Customer DLVR Deliver MT 533 Safekeeping Custodian FREE Against Lo
399. indicate the details relating to the range of trade dates and the corresponding spot date for each slab You also have to specify whether the spot date lies in the current month or in a future month You can select the relevant option from the picklist available for the month indicator 4 6 3 Specifying Ex date The Ex date referred to here is the same as the Record date You need to specify the ex date to keep a track of corporate events for securities that are using this market place as the default market Click on the Ex Date tab to go to this section of the screen Market Definition Market Code Market Type Description Market Identifier Code Over The Counter Category Option System Narrative Main Interest SpotDate ExDate Rolling Method Ex Date Method x Rolling Method Ex Days Count Basis v Weekday of Ex Date l Ex Days Holiday Treatment Fixed Method E From Day To Day Month Indicator Ex Date Weekday of Ex Date Holiday Treatment v v v Input By Authorized By Modification Authorized Date Time Date Time Number Open There are different methods for calculating the ex date It can be calculated as a certain number of ex days prior to the next coupon date of the security or it can be fixed for a market place for a specific period i ORACLE 4 6 3 1 Rolling Method Expiry Date Method
400. ing in Secondary Dealers government securities Forex Dealers Forex Market Ensure exchange in currencies In a market which is not well regulated these intermediaries increase the risks for the investor In order to prevent any misappropriation of the lenders funds and to reduce the risks of the investors a well regulated environment has to be developed With markets in various countries harmonizing their regulations these financial intermediaries are now becoming global players po ORACLE 2 1 5 Financial Assets Securities Financial assets constitute an abstract but verifiable financial stake that maybe represented through a paper document or a computer system but does not disappear just because something happens to the piece of paper or the computer on which it was recorded Financial assets can be broadly classified into Equities Stocks fixed income securities and derivatives The financial stakes represented by securities are stakes in some business government or other legal entity If the security is equity stock then the investor s role is ownership together with other investing shareholders if any If the security is a bond then the investor is a creditor and the other entity can be corporate or government If the security is an option then the investor has certain well defined rights and the other entity has corresponding obligations 2 1 6 Equities Buying equities of any company corporatio
401. io You would specify amongst other details e The securities that you are not allowed to deal in long term zero coupon bonds securities issued by alcoholic beverage companies and companies blacklisted by Greenpeace e Ifyou would like to provide Transaction Corporate Action and Holdings Statements and if so the frequency the start date and the start month e The GLs that would be impacted e The advices that need to be generated e The charges that you would levy e The taxes that would apply e If you would like to auto liquidate for Corporate Actions e The MIS Heads under which you would like to report the portfolio a ORACLE If you maintain a hundred such customer portfolios under the same scheme you will repeat the above operations as many times By defining portfolios with similar attributes as a product you can standardise these operations For example for a portfolio product you can define e The GLs that would be impacted by associating an appropriate Events Accounting Entries and Advices Class e The advices that need to be generated e The charges that you would levy by associating a Charge Class e The taxes that would apply by associating a Tax Class e The MIS Heads under which you would like to report the portfolios Portfolios maintained under the product will acquire these attributes defined for the product Defining a customer portfolio scheme as a product reduces the effort involved in
402. ion and the processing of corporate actions coupons dividends bonus rights warrants and redemptions defined for an instrument The module automatically generates the SWIFT Telex and mail messages specified for the events linked to deals or portfolios It helps you automatically track your positions and holdings across various safe keeping locations and automatically track online your exposure to a customer at the deal level for total or pre settlement risks At the end of day you can also track your exposure to selected issuers and safe keeping locations Defining Products in Oracle FLEXCUBE helps you streamline your operations based on the various types or categories of business segments you operate in For example if you are an issuer of securities you can define the different types of issuer portfolios as products If you offer customer portfolio maintenance schemes you can define each type of scheme as a product Similarly if you maintain short term zero coupon bonds you can define it as a product You can likewise define different deal types into products The Securities module gives you the flexibility to define upfront components such as interest charge and tax restrictions such as branch currency customer security and portfolio preferences and events and accounting entries into Classes When defining a product you merely need to associate it with the different classes that you have built Yo
403. ipinn eona a Ee E E Eo E i O ENE aE EAS 7 3 7 1 2 Specifying SK Location ACCOUNL csccescceseesseesseesseeseesseeeseesecesecaecaecuaecaaecsaeeseecaeeseeeeeeeeeesseeeaessenaes 7 3 7 1 3 Makino OUR PV x ins caacesvs veuas cant uaccans coi sSane tabunnancdsctessestoues tau sachacn iu inated seuadeasanees sdeabeteennegs vp caudgasioreevennaestes 7 4 T2 COMPUTATION OF KEST ai sccsccsccuscsccssesoss coves secsavsess secucsvess veeduscencbudoncescditesteusssesutedaiauveves ct eveesedesequcstseneevedsey 7 4 7 3 SPECIFYING GENERATION OF NEW SWIFT MESSAGES s esssssssessssiesssssesesstersssesstnterensssnseneseneinenenseneneeenen 7 7 8 BUILDING BRANCH amp CURRENCY RESTRICTION CLASSES sseesesesseesseroesesesccoerosoesesesoeoesosesoeesseee 8 7 8 1 MAINTAINING RESTRICTIONS AS CLASSES si isccocsscccsccsisscescescesasctsasesscevcesecseeacsstoscescoteosaseesuacecesteosesteveneedescs 8 7 8 1 1 The Advantage of Defining Restrictions as CIASS S ccccccceesceescesecesecesecusecasecaeeeseeeseeeseeseeeneeeaees 8 3 8 2 THE BRANCH AND CURRENCY RESTRICTIONS CLASS SCREEN s s ssssesseestsestetsssestsesttninsnsstsisreernenne 8 3 8 2 1 Maintaining Branch Restrictions sesesesseeeeeeseerseresesreerrrresrsreesrsresrsserresesreesesrentsserrresenressrsreseseeet 8 4 8 2 2 Maintaining Currency RestrictionS seessseeeeeeeesesrsreerreresrerreresrertsserrresesteesrsrestsserrresenrreesrentsseee 8 4 8 3 SPECIFYING THE CUSTOMER CATEGORY RESTRICTIONS CL
404. irtual Coupon Date is Mandatory 00240 SE Effective Date must later than Start of Interest Date 00261 SE Effective Date must be earlier than Redemption Expiry Date 00262 SE Effective Date is Mandatory 00263 SE Event Date must be Unique 00281 SE Event Date must be later than Issue Tearoff Date 00282 SE Event Date must be earlier than Redemption Expiry Date 00283 SE Cumulative To Be Redeemed must be lesser than 100 S00284 SE Redemption Price must be greater than equal to Initial Face Value 00285 31 24 ORACLE Error Message Code SE Event Date is Mandatory SO0286 SE To Be Redeemed is Mandatory S00287 SE Redemption Price is Mandatory S000288 SE Disposition of Fractions is Mandatory S000289 SE Redemption Price must be greater than equal to Face Value being 00290 Redeemed SE Series is Mandatory 00291 SE Attributes defaulted from Market of Issue would be redefaulted 00401 Proceed SE Coupon Schedules would be deleted Proceed 00402 SE Revision Schedules would be deleted Proceed 00403 SE Redemption Schedules would be deleted Proceed S00404 SE Interest Component s would need to be associated afresh 00405 Proceed SE Tax Component s would need to be associated afresh Proceed 00406 SE MIS would need to be associated afresh Proceed SO00407 SE Unable to Update Maintenance Stamp in Securi
405. is identified with a unique Code and a Description The customer restriction classes maintained have to be for a specific module in Oracle FLEXCUBE A class maintained for one module would be unsuitable for another For instance you may choose to offer trade finance facilities to certain customer categories but disallow these categories from availing your portfolio maintenance services Restriction Type You can specify customer restrictions in the form of either an allowed list or a disallowed list om ORACLE Customer categories that do not figure in an allowed list cannot avail that service associated with the customer restrictions class Customer categories that do not figure in a disallowed list can avail the service Exempting Specific Customers belonging to a Category You can exempt customers belonging to a particular category from the allowed or disallowed list Example You have maintained Financial Institutions as a customer category and you do not want Financial Institutions to avail a service that you offer You can maintain a disallowed list in the Customer Category Restrictions Class screen and include Financial Institutions in the list However you would like Cavillieri and Barrett Inc a financial institution to avail this service When you include Financial Institutions in your disallowed list all customers belonging to this category will be displayed in the Customer Access column Move to Cavillieri and B
406. it has been already attached to a product products SE MA0047 Swift Qualifier length cannot be less than four SE MA0048 For Net Consideration as yes net consideration type add subtract is mandatory SE MA0049 Duplicate values encountered during amount tag insertion SE MA0068 Initial Face Value can not be zero SE MA0069 Limits Maintenance will be deleted Proceed SE MA0070 Weekday mandatory for weekly schedules SE MA0071 Frequency is mandatory for periodic coupon revision SE MA0072 Limits not maintained Proceed SE MA0073 Lot Size is mandatory SE MA0074 Interest quotation method is mandatory SE MA0075 Interest Rate Type is mandatory SE MA0076 The maximum tenor must be greater than minimum tenor SE MA0077 Price Code cannot be null if Renouncable is Yes SE MA0078 Tenor cannot be null if Redeemable is Yes SE MA0079 Equity type is mandatory SE MA0080 Price Quotation method is mandatory SE MA0081 Face value or units is mandatory SE MA0082 Tenor details not input SE MA0083 Initial Face Value not input SE MA0084 Exception Limit should be greater than Override Limit SE MA0085 Number of Decimals Mandatory SE MA0086 Cannot Close The record has already been processed SE MA0087 Cannot Reopen Record date is past 31 3 ORACLE Error Code Message SE MA0088 Cannot Unlock The reco
407. ities Delivered Against Payment Kind Attention Mr Hugh Stevens Treasury Officer Securities Department Dear Sir Madam We hereby confirm that as per your instructions to us we have delivered the following securities against of payment as per the details shown below Your Reference 689560 324 Our Reference 000SES1980840007 Securities ISIN HK0043762191 Identification HKD 1 SWIRE Properties Ordinary Registered Trade Date 20 MAR 1998 Place of Trade Honk Kong Stock Market Delivery Date 28 MAR 1998 a ORACLE Your Reference 689560 324 Securities Book Value 500 000 00 HKD Instructing Party ABC Investments Quantity of Securities 50 000 Shares Safekeeping Account Delivered from 106789 Securities Certificate Numbers SSE 120011 SSE 120060 50 x 100 Share Certificates Receiver of Securities W I Carr Hong Kong Beneficiary of Securities Eastern Securities Hong Kong Beneficiary s Safekeeping Account with Receiver of Securities 987056 Securities Registration Details Securities delivered have been registered in favour of Eastern Securities Hong Kong Securities Receipt Declaration Details Share Certificates with numbers as indicated in your instruction to us have been delivered physically to the Receiver of Securities Account for Payment 9056 3428 Securities Deal Price 12 HKD
408. ities deal is calculated on the basis of the Transaction Tax Scheme associated with the product that the deal involves A tax class is a specific type of Issuer or Transaction tax A tax scheme is a Set of Issuer or Transaction tax classes 3 4 4 Building a Transaction Tax Scheme When building a transaction tax class you associate it with a tax rule A rule identifies the logic required to compute tax The logic built into a tax rule defaults to the tax class with which you associate the rule For a tax rule you can define the following e The tax currency e The minimum tax amount e The maximum tax amount e The floor amount e The floor charge 38 ORACLE e The ceiling amount e Ifyou would like to apply a rate or a flat amount e The basis amount etc You can group any number of transaction tax classes into a tax scheme When defining a security deal product you can associate it with a transaction tax scheme that you have built Transaction taxes for all deals associated with the deal product will be calculated by default according to the components built into the scheme 3 4 5 Building an Issuer Tax Scheme When building an Issuer tax class you associate it with a Rate Code and nota Tax Rule A code uniquely identifies a rate value You can group the Issuer tax classes that you have built into an issuer tax scheme When maintaining a security product you can associate it with an issuer tax scheme that you have built
409. ities screen Portfolio Indicate the portfolio from which you are blocking securities Click the adjoining option list and select the portfolio code from the pickilist Once you specify the portfolio Id the counterparty details are defaulted in the adjacent fields Description Here you can view the description of the Portfolio which is automatically updated once the Portfolio Id is selected SK Location and the SK Account You can indicate the code assigned to the SK location where the securities have been lodged and the account to which they belong Description Here you can view the description of SK Location based on the SK Location Id selected te ORACLE Quantity If the manner in which the security is quoted is Units enter the number of units to be blocked If the quotation method used is Nominal enter the amount of securities to be blocked Counter Party Based on the Portfolio Id selected the counterparty details will be automatically updated Description Here you can view a brief description of the counter party based on the Portfolio Id selected Block Reference and Block Type Securities can be blocked when they are used as collateral for other transactions processed in Oracle FLEXCUBE You can track the securities that are blocked as collateral for Money Market Placements In the Blocked Securities Deal screen the reference number of the MM placement for which securities are blocked is displayed Securities
410. k finance Fls Corporates Fils MFs individuals Capital Market Long term rupee Corporates Banks E g US SEC finance Fls individuals MEFs Flls Forex Market Short Long term Banks corporates Central Bank foreign currency forex dealers finance Credit Market Short long term Banks Fls NBFCs Central Bank rupee finance Within the abovementioned sub markets based on the transactions financial markets can further be classified into open markets and negotiated markets The basic distinction between these two types of markets is based on how the securities are bought and sold In an open market the securities will be offered to a large number of investors who can buy and sell them any number of times before the maturity period The public issue of securities takes place in an open market On the other hand the negotiated market will have only a selected group of investors to whom the securities are offered and sold It will generally be a private contract between the seller and the buyer A bought out deal and a car loan are good examples of transactions in a negotiated market Another useful and important distinction between markets in the financial system is the primary market and the secondary market The primary market is a place for the fresh issue of securities Corporates banks Fls and government can issue new securities and raise funds for investment purposes The secondary market deals in securitie
411. kerage payable are displayed against the currencies You have the option to change these currencies While you cannot input the brokerage payable amount the brokerage paid amount can be changed 22 44 ORACLE The following brokerage details are displayed e The brokerage liquidation status If it has been liquidated the liquidation reference number is also displayed e The rule code and description that has been linked to the broker 22 7 1 1 Indicating when brokerage should be booked Booking You can indicate preferences as to when the brokerage applicable to the deal should be linked The options available are e Advance e Arrears The preference specified for the broker will be displayed You can change it in this screen say from advance to arrears or vice versa You have a third option That is of waiving brokerage If you opt for no booking no accounting entries will be passed for brokerage for this deal Consider As Discount This option is defaulted from the deal product level However the following validations are carried out e The checkbox is unchecked if the booking method is other than Advance e Ifthe Capitalize option is not checked for the broker deal product and currency combination in the Charge Class Maintenance screen then this option will be left unchecked If you invoke the Contract Brokerage Details screen for operations like delete change authorise liquidate and detail
412. l 29 5 Maintaining Asset Liability Linkage You can carry out an asset liability matching also through the repo block screen Click Repo button to access the screen J Repo Block Web Page Dialog bk Contract Reference No Repo Details F O Portfolio Identification Securityld SK Location SK Account Securty Form Quantity Units Cey Input Price Contract Equiv You can also click on the P button positioned next to the Deal Reference Number to view details of messages MKTTRADECONF DLVRSECFREE RECVSECFREE that have been associated with the Block Security product These messages will not be sent if the security block contract is amended and the quantity or price changed Oracle FLEXCUBE handles a repo contract in much the same manner as a Money Market deal Please refer the Money Market user manual for details 30 Printing Subsidiary General Ledger Form Repo and Reverse Repo Deals 30 1 Introduction 30 13 ORACLE At the time of defining a security you can specify a form type for the security If the form is of type SGL the system automatically generates a corresponding SGL advice An SGL advice is generated for security repo and reverse repo deals when the following events occur e On authorization of a securities deal e On initiation of a repo deal e On liquidation of a reverse repo deal 30 1 1 SGL Form Maintenance An SGL advice is printed on formatted stationery
413. l amount details of the buyer the seller etc and process the deal Block Deal Reference This is a system generated deal reference for the sub deals created by way of a block deal product Reversed Contract Reference Number The reference number of the contract that is being reversed and rebooked is displayed here User Reference You can enter a reference number for the deal A deal will be identified by this number in addition to the Deal Reference No generated by the system This number should be unique and cannot be used to identify any other deal By default the Deal Reference Number generated by the system will be taken as the User Reference No While reversing a deal the tag 23Gis populated as CANC In this case tag 20C INGENL should be populated with the value DCN For the subsequent A1 Linkages block the value for the tag 20 C will be populated as 20C PREV followed by the reference number Deal Reference In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system This number tag is used to identify the deal you are entering it is also used in all the accounting entries and transactions related to this deal Hence the system generates a unique number for each deal The deal reference number is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format Y
414. l innovations technological up gradations and most importantly changing regulatory mechanism made the process of raising funds from the market place a complex task Investors preferences for financial assets have also changed Designing instruments that catch the investors attention has now become a specialized service Likewise proper expertise is also necessary for establishing transactions in the financial markets Large volume of transactions taking place in the markets will have to be recorded promptly and accurately Some of the important intermediaries operating in the financial markets include investment bankers underwriters stock exchanges registrars depositories custodians portfolio managers mutual funds financial advertisers financial consultants primary dealers secondary dealers self regulatory organizations etc The role of these intermediaries is summarized in the following table 2 1 4 Intermediaries operating in Financial Markets Intermediary Market Role Stock Exchange Capital Market Secondary market for securities Investment Bankers Capital Market Credit Corporate Advisory Market services Issue of securities Underwriters Capital Market Subscribe to un Money Market subscribed portion of securities Registrars Capital Market Issue securities to the Depositories investors on behalf of Custodians the company and handle share transfer activity Primary Dealers Money Market Market mak
415. l leg Messages Web Page Dialog 3 x El Leg Reference No CHODLCS001850012 Leg Description cust sell Messges O Advice Code Advice Description Party ID Party Name Address1 Adare 2l T MKTTRADECONF Market Side Trade Confirm WALK YO1 WALKYO1 EJ Ee E Party Details O Party Type Description Address1 Address2 Addre 2 7 DEAG 7 PSET 7 SELL EJ 4 gt You can specify the following for each of the parties involved in a leg of the deal The party type beneficiary advising bank issuing bank reimbursing bank etc The CIF ID assigned to the party if the party is defined as a customer in Oracle FLEXCUBE The country to which the party belongs The party s mail address The media type through which the advises should be routed and the respective address es 22 34 ORACLE The parties involved in a leg of a deal depend on the type of deal you are processing The party details for the party type PSET will be populated in the following SWIFT messages e MT 540 e MT 541 e MT 542 e MT 543 Note the following e Ifyou have specified the party type DEAG in the Party and Party Narratives screen it is mandatory to specify PSET e The party details should not begin or end with and should not have two consecutive slashes such as Specifying media details for a party The advices for a party will be sent to the default media maintained in the Customer Addre
416. liability In the Central Liability module of Oracle FLEXCUBE you can categorise different types of securities into Collateral Types For example you can define Government Bonds as one type of collateral and Corporate Bonds as another type For a preference class you can indicate a Collateral Type All securities maintained under a product with which you associate the preference class will fall under the Collateral Type that you specify 10 2 9 Opting for Automatic Initiation of Corporate Actions Check against the option Auto Initiation of Corporate Action to indicate that corporate action for securities should be automatically initiated On choosing this option corporate actions for a security will be automatically initiated on the due dates that you specified If you do not choose this option you have to manually initiate all corporate actions required for a security os ORACLE 10 2 10 Indicating the Price Code for Revaluation Every security that you deal in must be associated with a Price Code A Price Code identifies the price of a security in a specific market To ascertain the value of a security with reference to the prevailing market rates you need to constantly revalue it When defining a Preference class specify the Price Code that you would like to use to revalue securities The value of a security in a market will be determined with respect to the current rates of the corresponding price codes 10 2 11 Tenor Deta
417. lick the adjoining option list for a list of valid currency codes Select the appropriate Dispose Fractions Indicate how fractions should be handled The options available are Retain Fractions will be retained as they are Round Up Entitlement will be rounded up to the next full integer Round Down Entitlement will be rounded down to the previous full integer Round Standard Entitlement will be rounded up to the next full integer if the fraction is greater than 0 5 Else it will be rounded down to the previous full integer Confirmed Check this box to indicate that the occurrence of the event is confirmed iat ORACLE Confirmed Date When you select the check box and save the record the confirmed date will be defaulted with the current date Exchange Rate and Exchange Rate Fixing Date When the issuer payment currency is different from the security currency the exchange rate between the security currency and the payment currency has to be indicated Along with this the date on which the exchange rate will be announced should also be entered 20 14 Processing dividends Only those records which have been authorised and confirmed will be picked up for processing The Dividend Initiation or tear off for long position DVIN event is triggered for those dividends with initiation date less than or equal to today s date Based on the initiation date only those events for which initiation has not been done
418. lls In case of T Bills you have to select the numerator and denominator methods which will be used to arrive at the day count method for calculating yield for T Bills The options available for calculating the Numerator are e 30 Euro e 30US e Actual The options available for calculating the Denominator are e 360 e 365 e 364 You can select the appropriate ror For each Security the Yield Calculation Parameters are defaulted from the market of issue depending on whether it is a Bond or a T Bill You will be allowed to modify these details one ORACLE Example for 364 Days Interest Method For a given bond security SEC364M2 schedules are generated as shown below Security Instrument SEC364M2 Quantity 100 Security Face Value 100 Interest Rate 2 Denom Method Actual 364 Deal Value Date 2 Sep 2008 Deal Maturity 23 Nov 2008 Coupon Schedule Weekly No Coupon Due Date Days Interest Amount 1 9 Sep 2008 7 3 89 2 16 Sep 2008 7 3 89 3 23 Sep 2008 7 3 89 4 30 Sep 2008 7 3 89 5 7 Oct 2008 7 3 89 6 14 Oct 2008 7 3 89 7 21 Oct 2008 7 3 89 8 28 Oct 2008 7 3 89 9 4 Nov 2008 7 3 89 10 11 Nov 2008 7 3 89 11 18 Nov 2008 7 3 89 12 23 Nov 2008 5 2 74 Example for Yield T Bills Bonds Security Instrument SEC364M2 Deal Input Price 100 Redemption Price 120 Denom Method 364 4 28 ORACLE DSTL Date 2 Sep 2008 Deal Maturity 23 Nov 2008
419. ls that you entered earlier will be displayed in a tabular form From the summary screen you can open an existing deal by double clicking it ai ORACLE Securities Deal Input Product User Reference External Reference Description iG Main Additional Security Security Code Market Code is Deal Quantity Price Quote Input Price Price In Local Currency Absolute Price Securities From Leg Product Portfolio Counterparty SK Location SK Account Advance Deal Match Limits Parties Securities To Leg Product Portfolio Counterparty SK Location SK Account Advice Deal Maton Limits Parties Input By Date Time Authorized By Date Time ir Deal Reference Source 5 Description Description Trade Date DSTL Date Local Currency Quantity Original DSTL Date Deal Input Time e Yield Leg Description Description Description Brokerage Events MIS Details Settlements Leg Description Description Description Brokerage Events MIS Details Settlements Accommodate Lodge Auto MSTL Accompany Withdraw Auto MSTL Contract Status Authorized N
420. luation profit loss is R MP N NPV If you have selected Nominal as the Quantity Quotation Method the below formula will be used to compute the Revaluation profit loss eee ORACLE R MP Where N NPY Fy R Revaluation Profit or Loss on the revaluation date MP Market Price Clean on the revaluation date N Deal Quantity NPV Net Present Value of the deal on the revaluation date FV Face Value of the security Unsettled Sells If the Quantity Quotation Method is Units the below formula will be used to compute the Revaluation profit loss R NPV MP N When the Quantity Quotation Method is Nominal the formula used for computing the Revaluation profit loss is N R NPV MB Where Rn Revaluation Profit or Loss on the revaluation date MP Market Price Clean on the revaluation date N Deal Quantity NPV Net Present Value of the deal on the revaluation date 26 7 ORACLE 26 2 2 Unrealized Revaluation for Settled Deals If the revaluation method for Unrealized revaluation is set to MTM EIM the unrealized revaluation for settled deals will be done as of the revaluation date All the coupon cash flows between the revaluation date and redemption date along with the redemption price is discounted to the revaluation date The YTM which is effective as of the revaluation date for the deal is used to discount the cash flows as o
421. lways quote Our Reference in all further correspondence regarding the above instruction Thanking you For Merrill Lynch New York USA 27 2 6 Securities Deliver Against Payment Instruction HSB 85652 25 MAR 1998 Hang Seng Bank London U K 765 Copper Arch Charles Avenue Hong Kong ZIP 7890 542 02 Sub Our Instruction to Deliver Securities Against Payment Kind Attention Ms Cheng Wen Lee Custody Services Officer Securities Department Dear Sir Madam ee ORACLE Please arrange to deliver the securities against payment as per our instructions shown below Our Reference 000SES1980840007 Securities Identification ISIN HK0043762191 HKD 1 SWIRE Properties Ordinary Registered Trade Date 20 MAR 1998 Place of Trade Honk Kong Stock Market Delivery Date 28 MAR 1998 Securities Book Value 500 000 00 HKD Instructing Party ABC Investments Quantity of Securities 50 000 Shares Safekeeping Account Delivered from 106789 Securities Certificate Numbers SSE 120011 SSE 120060 50 x 100 Share Certificates Receiver of Securities W I Carr Hong Kong Beneficiary of Securities Eastern Securities Hong Kong Beneficiary s Safekeeping Account with Receiver of Securities 987056 Securities Registration Details Securities delivered are to be registered in favour of Eastern Securities Hong Kong Securities
422. m e Coupon Frequency Annual e Previous Coupon Date 15 01 1999 e Next Coupon Date 15 01 2000 e Numerator Method ACTUAL e Denominator Method ACTUAL e Denominator Basis Per Annum In case 366 basis is Leap Year The interest is calculated based on the day count derived for each of the two years in which the coupon date fall and the formula applied is 10 000 000 x 5 100 x 350 365 10 000 000 x 5 100 x 15 366 In case 366 basis is Leap Date Here the system will apply ACT ACT FRF interest method to compute the coupon interest Since this period does not include 29 February the denominator for interest calculation will be 365 and the formula will be 10 000 000 x 5 100 x 365 365 oe ORACLE Case 2 Assume the following parameters are maintained for a half yearly coupon e Nominal 10 000 000 e Interest Rate 5 per Annum e Coupon Frequency Half yearly e Previous Coupon Date 15 01 2000 PCD 15 07 1999 e Next Coupon Date 15 07 2000 PCD 15 01 2000 e Numerator Method ACTUAL e Denominator Method ACTUAL e Denominator Basis Per Annum In case 366 basis is Leap Year The interest is calculated based on the day count derived for each of the two years in which the coupon dates fall if the previous and the next coupon dates fall in different years If both coupon dates fall in the same year the denominator will be 365 or 366 respectively depending on whether the current year i
423. m the class you can change the default If you do so your specification here is defaulted to any portfolios using the product Example This example explains the computation of the revaluation profit during realized revaluation if revaluation method chosen is LOCOM and LOCOM basis is Acquisition Cost Date Even Unit Pric Net Holdin Book Brea Outstan t s e considerati gs Value k ding on even Revaluat Revaluatio Price ion Loss n Profit Loss 1 Jan Buy 100 10 1000 100 1000 10 0 02 31 Jan Reva 8 200 100 800 8 200 02 luatio n 2 Feb Buy 50 9 450 150 1250 8 333 200 02 333 28 Feb Reva 8 5 25 150 1275 8 5 175 02 luatio n 3 Mar Buy 100 10 1000 250 2275 9 1 175 02 31 Mar Reva 9 25 250 2250 9 200 02 luatio n 4 Apr Buy 50 7 350 300 2600 8 666 200 02 667 30 Apr Reva 10 200 300 2800 9 333 0 02 luatio 333 n Revaluation of 31 January 2002 Holdings 100 Book Value 1 000 Revaluation Price 8 Revaluation Loss 1 000 800 200 Revised Book Value 800 11 30 ORACLE Accounting entries posted on 31st January 2002 Debit Credit Accounting Role Amount Indicator Dr LOCOM_REVAL_EXP 200 LOCOM_REVAL_EXP Cr LOCOM_REVAL_LBY 200 Revaluation of 28 February 2002 Holdings 150 Book Value Break even Price 8 33 Revaluation Price 8 5 Revised Book Value 100
424. maintaining a portfolio By classifying your securities portfolios and security deals into products you not only save time you can easily retrieve information relating to securities portfolios or deals of a particular type 3 4 3 Handling Interest Charge and Tax components In Oracle FLEXCUBE you can build interest charge and tax components upfront When defining a product you merely have to attach the required components Thus a security maintained under a security product acquires the components associated with the security product Similarly portfolios and deals acquire the components associated with the respective products they involve The following example illustrates the advantage of defining a component upfront Example The following transaction taxes apply on all the securities deals that you enter into A Stock Exchange tax Local tax 1 applicable on the deal amount Local tax 2 an additional tax In Oracle FLEXCUBE each of these taxes is referred to as a component of the deals that you enter into In Oracle FLEXCUBE you can build each of these components upfront Since these taxes apply on all deals you can associate the tax components to all the deal products that you maintain at your bank Deals involving a product acquire the components defined for the product The advantage is clear you do not have to define these taxes every time you enter into a securities deal Ph ORACLE Building Interest
425. mber 1999 are holidays If you check on this field then during the Automatic Batch Update function run as part of EOD operations only the events scheduled for 15 November 1999 will be processed ORACLE The events scheduled for the holidays i e 16 November 1999 and 17 November 1999 will be processed during the Automatic Batch Update function run during the BOD operations on 18 November 1999 4 3 2 Specifying Revaluation Level Revaluation entries can be passed at the portfolio level or at the holding level e Portfolio At the portfolio level revaluation entries will be passed for the portfolio and currency combination e Holding At the holdings level entries will be passed for the net holdings for a portfolio and security across SK locations and SK location accounts Example The following are the securities held in a portfolio at your bank Portfolio Security ID PF1 SE01 PF1 SE02 PF1 SE03 PF1 SE04 The security currency for SE01 SE02 and SE03 is USD The security currency for SE04 is GBP If you indicate that revaluation should be passed at the holdings level entries will be passes exclusively for the following combinations 4 PF1 SE01 5 PF1 SE02 6 PF1 SE03 7 PF1 SE04 If you specify that entries should be passed at the portfolio level then the revaluation entries will be made in the following manner PF1 SE01 SE02 SE03 PF1 SE04 If you indicate that revalu
426. mber of days are to be calculated for interest charge commission or fee components and whether their application is tenor based is displayed here based on the specification you made at the product level However you can change it The following are the options available in the drop down list e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 e 30 Euro Actual e 30 US Actual e Actual Actual g ORACLE e 30 Euro 364 e 30 US 364 e 6 Actual 364 Index Specify the index of the security Spread Specify the spread of the security Floor Specify the lower limit of the security Ceiling Specify the upper limit of the security 20 Maintaining and Processing Corporate Actions 20 1 Introduction In the Securities module of Oracle FLEXCUBE defining the corporate action is a part of the maintenance function The processing of corporate action events is done as part of the End of Cycle process The following are the corporate action events that can take place e Settlements Money as well as Security settlements e Bonds gt gt gt gt gt gt Interest coupon payment Redemption both series and quantity Maturities Calls End of Trading Warrants detachment tradable e Equities gt gt gt 20 1 1 Stages in the Processing of a Corporate Action Event Dividend payment both cash and stock Bonus Rights Tear Off Ex
427. me For a Security Preference Class you can identify a Price Quotation method During trade the securities maintained under a product with which you associate the Preference Class will by default be quoted in the manner that you specify However when maintaining a security you can identify its price quotation method E ORACLE 10 2 6 Identifying the Holder The holder of a security can be either of the following e The Registered e The Bearer If you would like the securities maintained under a product with which you associate the Securities Preference Class you are defining to be Bearer type securities choose the Bearer option Else choose the Registered option However when defining a product while retaining the other preferences that default from the associated class you can change the default Registered Bearer indicator While maintaining a security under a product in the Securities Definition screen you could choose to retain the defaulted Registered Bearer indicator 10 2 7 Specifying the Material of a Security Securities can be in different formats Option Description Scrip based Issued in a paper format Dematerialized In an electronic format Immobilized Securities in lieu of which proxies are traded Combination Issued in one or more of the above formats 10 2 8 Indicating the Collateral Type A customer can offer you securities as collateral against a
428. mendment of the rate value corresponding to a rate code Default Tenor Each rate code is associated with a tenor For instance you have a Rate Code LIBOR You can link any number of tenor codes to the same rate code Tenor Code Description 1W One week rate 2W Two week rate 2M Two months rate 6M Six months rate 1Y One year rate When building an interest component you can specify a Tenor Code that you would like to associate with the Floating Interest Rate Code Interests for contracts maintained under a product will be calculated using the rate corresponding to the Rate Code and the Tenor Code 15 7 ORACLE 16 Defining Attributes of a Portfolio Product 16 1 Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Securities Portfolio product You can create a securities portfolio product in the Securities Portfolio Product Definition screen invoked from the Application Browser In this screen you can enter basic information relating to a Portfolio product such as the Product Code the Description etc You can invoke the Securities Portfolio Product Definition screen by typing SEDPFPRD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Product Code Exchange Rate Variance in Product Description Override Limit Product Type Stop Limit Description Rate Co
429. ment IACR entry will be posted for the matched buy deals s On reversal of a sell deal the interest accrual process will pass an adjustment entry for the relevant matched buy deals This is illustrated in the example below Example Let us continue with the example discussed above You have struck 3 deals 2 buy 1 sell for 10 year RBI Bonds S1 for the Trading Portfolio P1 Further the 12 units sold comprise of 10 units from D1 and 2 units from D2 The other details of the deal are as follows e Coupon Period 1 Jan to 30 Jan e Coupon Amt 1 USD per day per unit e Interest Accrual Frequency Daily Coupon Accrued on D1 till 4 Jan 40 USD 10 units 1 USD 4 days Accrual will not happen for D1 after 4 January as all the 10 units are sold out on 5th January Coupon Accrued on D2 till 4 January 45 USD 15 units 1 USD 3 days After 4 January for D2 accrual will happen only for the remaining 13 units 15 2 units sold 13 Now on 10 January the sell deal D3 is reversed Between 5 and 10 Jan coupon accrued on D2 65 USD 13 units 1 USD 5 days Due to the reversal of the sell deal the interest accrual process will pass accrual entries for the period 5th Jan to 10 Jan for the buy deals D1 and D2 D1 60 USD 10 units 1 USD 6 days a ORACLE D2 12 USD 2 units 1 USD 6 days Subsequently interest accrual will continue for deals D1 and D2 till redemption CPLQ The accrual
430. ment date is earlier than today D00139 SE New Deal Settlement Date is greater than one of the sell leg Deal DO0140 Settlement Dates matched to 1 SE New Deal Settlement Date is earlier than one of the buy leg Deal DO0141 Settlement Dates matched to 1 SE Failed to compare Deal settlement dates for matched deals DO0142 SE Failed in 1 pickup DO0143 SE Please enter the narrative type DO0144 SE Failed to generate Position Reference Number DO0145 SE Contract reversed DO0146 SE Do you want to reverse the contract DO0147 SE Failed to select the record DO0148 31 55 ORACLE Error Message Code SE Selected record has changed please reselect DO0149 SE Do you want to re pickup the subsystems DO0150 SE Number of units entered is not in multiples of minimum tradable DO0151 security units SE DSTL date is earlier than start of trading date for the security DO0152 SE DSTL date is not earlier than the security redemption date DO0153 SE Settlement SKL is mandatory DO0154 SE Payment Currency Security Currency ratio is mandatory D00155 SE Failed to authorize the contract D00156 SE Failed to validate the rekey fields D00157 SE input quantity has exceeded maximum limit D0158 SE Failed to default the product details D00159 SE Spot date should be less than Deal Settlement date DO0160 SE Failed to default price com
431. ment of coupon payments refer to the chapter on Securities Products in this manual Using the Holiday Calendar Currency list If the issuer currency and the security currency are not the same then you might wish to have coupon events fall on days which are common working days for both currencies Example The Bundesbank issuer currency EUR issues a USD denominated bond security currency USD for which one of the coupon payments falls due on February 01 2003 which is a Saturday a holiday for both EUR and USD In addition Monday February 03 2003 is a holiday for USD You have chosen Forward as the holiday treatment option for processing of coupon events Then subject to the holiday treatment preferences that you maintain the coupon payment is processed with a value date of Tuesday February 04 2003 the next common working day for both currencies For any security you can maintain a list of currencies whose holiday calendars are to be consulted by the system in determining common working days Click H button to invoke the following list ae ORACLE Holiday Currency E Security Id olida o Use the option list against each field to select a currency whose holiday calendar you wish to be included in the computation of common working days If one of the currencies maintained in this list is the local currency of the branch then the system will use the branch holiday calendar
432. mponents have not been defined for the Product PRD017 SE Interest Components have not been defined for the Product PRD018 SE Input to Product Start Date is Mandatory cannot be NULL PRD019 SE Input to Product Description is Mandatory cannot be NULL PRD020 SE Input to Product Group is Mandatory cannot be NULL PRD021 SE Input to Exchange Rate Override Limit Variance is Mandatory cannot PRD022 be NULL SE Input to Exchange Rate Stop Limit Variance is Mandatory cannot be PRD023 NULL SE Input to buy Product Sell Product Mandatory cannot be NULL PRD024 SE Rekey Values for the Buy and Sell Products Differ 31 9 ORACLE Error Code Message COMBP01 SE Values for 1 for the Buy and Sell Products Differ COMBP02 SE Start Date 1 of the Combination Product is lesser than Start Date 2 COMBP03 _ of Product 3 SE End Date 1 of the Combination Product is greater than End Date 2 of COMBP04 Product 3 SE The Normal Rate Variance of the Buy and Sell Products Differ COMBP05 SE The Maximum Rate Variance of the Buy and Sell Products Differ COMBP06 SE Counter Product is Mandatory if Rights Exercise is applicable COMBP07 SE Product 1 is Closed Reopening of Combination Product NOT Allowed COMBP08 CS Product Code is NOT Unique PRD008 SEREAS New User and Current User must be different 01 SEREAS Contract 1 has been reassigned from User 2 to User
433. n Product It is the Security Portfolio Code that has been maintained under Securities Security Portfolio Definition Portfolio Description It is the description of portfolio identification aa ORACLE 15 Defining Attributes of a Securities Product 15 1 Introduction A Security Product is a category or a type of security For instance you can define short term zero coupon bonds in the local currency as a product in Oracle FLEXCUBE Similarly you can define Rights as a product A security product thus serves to classify the securities that you deal in In this chapter we shall discuss the manner in which you can define attributes specific to a Securities SP product You can create a securities product in the SP Product Definition screen invoked from the Application Browser In this screen you can enter basic information relating to a SP product such as the Product Code the Description etc You can invoke the Securities Security Product Definition screen by typing SEDSEPRD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Product Code Exchange Rate Variance In Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Rate Type Product Group Product Group Description Start Date End Date Remarks Braen Currency customer Prererences meres mis hat Maker Date Time Mod No Checker Date
434. n Date Application Date e Ais the Day Count Method Denominator The price obtained for the current day is compared with the price obtained during the previous day s EOD processing P1 The difference between the price of the deal on the current day and the previous day P2 P1 is the amount for which accrual entries will be passed on the current working day Example Let us assume in your country all Securities Bonds Tbills CPs are quoted in the market on a yield basis Additionally no tax is levied on any capital gains to encourage trading but 35 tax is charged on the Discount Amount Accrual in a straight line method would divide the discount amount equally to the number of days to mature But your bank would like to calculate the present value on the Security on a daily basis and difference will be booked as Discount Earned In this method the present holding cost will be always lesser than the straight line revaluation if it is bought in discount and hence capital gain will be higher during the sell ely ORACLE AT Bill worth 50 000 000 00 FV is Bought on 1 Sep 2002 Maturing on 08 Aug 2003 at Annual Yield rate of 13 On Buy Buy Date 01 SEP 2002 Redemption Date 08 Aug 2003 YTM Price 13 B3 Quantity Nominal 50 000 000 00 B4 Days to Mature 341 B5 Price 89 1701 B6 ROUND 100 1 B3 B5 365 4 Net Consideration 44 585 050 00 Discount 5 414 950 00 B14
435. n YTM click D button The Yield to Maturity details screen is displayed Yield To Maturity Details Payment Account Deal Reference Yield To Maturity T H Effective Date Yield To Maturity o _ Je Pd YTM values can change due to Coupon Rate Revision Redemption redefinition or extension of a security The YTM values are rounded off to the number of decimal places specified in the Securities Bank Parameters screen Interest Date If you are entering the details of a buy or sell deal you can indicate the date from which purchased or sold interest for interest bearing bonds should be calculated For securities whose issue market has trade based accounting aoe ORACLE Interest value date Trade date For securities whose issue market has settlement date based accounting the settlement date is defaulted to the settlement date You have the option to change the defaulted date However the interest value date that you enter in this case should be in the same coupon period as the settlement date Interest computations will be performed on line from the last coupon date including to interest value date excluding in the case of deals where settlement date is before ex date In case the settlement date is past the ex date the computation will be from interest value date including to the next coupon date excluding The interest might need to be received or paid depending on whether the deal is a buy o
436. n behalf of a customer an appropriate SWIFT message is generated The SWIFT message that is generated depends on the type of deal processed When a buy or sell securities deal is cancelled an MT 592 can be generated to the same party to whom the earlier SWIFT message was sent The MT 592 will contain the following details e The Reference Number of the reversed deal e The date on which the deal was transacted e The original message type and e The text of the original SWIFT message An MT 592 will be generated when a deal is reversed only if you have associated the advice tag REVSWIFT to the reversal event 27 1 2 Corporate action related advices Corporate Action related advices are generated to intimate the customer of the following ara ORACLE Notice of rights You can send a notice of the rights event whenever you maintain and confirm a Rights event involving a security Notice of event You can generate an advice to notify a custody customer when you maintain details of a new corporate event affecting a security This advice can be sent before confirmation of the event Advice of money income You can generate this advice to notify a custody customer when the coupon amount the security redemption amount or any other money amount is disbursed Advice of income in the form of securities You can generate this advice to inform your custody customers about the income generated from additional securities in the cus
437. n cannot be processed before initiation for internal Action ID 1 BA0112 and position reference 2 SE Liquidation cannot be processed before initiation collection for internal BA0113 Action ID 1 and position reference 2 SE Unhandled exception when others for internal Action ID 1 and BA0114 position reference 2 SE Error updating processed flag in setbs_caevent_log to Y Processed for BA0115 Action ID gt gt 1 SE Unhandled exception when others in function fn_dividend_auto BA0116 SE Error selecting corporate actions record for internal Action ID 1 and BA0117 position reference 2 SE Unhandled exception when others in function fn_dividend_manual BA0118 SE Unable to lock record in setbms_corp_actions_due for internal Action ID BA0119 1 and position reference 2 SE Error selecting corporate actions record for update BA0120 SE Error selecting portfolio product and Portfolio Ref No for Portfolio ID gt gt BAO121 1 SE Unhandled exception in function fn_process_event BA0122 SE Function sepkss_utils fn_lock_cstb_contract returned false for position BA0123 reference 1 SE Failed to lock cstbs_contract for position reference 1 BA0124 SE Unhandled exception when others of function fn_coupon_auto BA0125 SE Coupon amount due is zero for component 1 31 37 ORACLE Error Message Code BA0126 SE Unhandled exception when oth
438. n case the Security is a Bond and you have specified the bank parameter COMMON_YLD_ACCR as Y then gt The initial cash flow for yield computation is taken from the net considerations of the deal gt Yield is computed based on actual cash flows instead of the face value e Securities Batch gt Coupon rate revision during EOD processing IRVN process initiates the coupon rate revision activity on the effective date of coupon rate revision This is triggered before the YTMCALC YTM Recalculation amp ALPL processes The system triggers the IRR re computation prior to ALPL profit loss realization processing As a result of the revision the CRVN event for the deal is passed based on the new coupon rate gt Sell deal the system triggers an IRR effective on the sale date during processing of a sell deal In this case the Yield value does not change but the cash flows are recomputed based on the current outstanding amount Yield is recomputed only if the sell deal is back dated and a rate change has happened subsequent to the DSTL date of the sale deal System throws up an override is a back dated sell or buy deal is input for a security for which rate revision has already occurred sia ORACLE gt Reversal of Sell Deal in case of reversal of a sell deal the IRR record as of the DSTL date of the sale deal is deleted and a new IRR record is created as of the earliest IRR re computation date The re computed da
439. n ex days from today e All confirmed calls final maturities series or quantity redemption activities which are within spot days from today e Primary to secondary conversions for securities with primary date less than or equal to today e Bonus rights tear off for securities for which the bonus tear off date is less than or equal to today e Warrants detachment for securities for which the warrants detachment date is less than or equal to today e Cash dividends for securities with dividend detachment date less than or equal to today e End of trading is defined for securities which are due for redemption or maturity Deals which were posted on the previous day with today s date as the settlement date will also be processes and settled For all such deals the contingent entries are reversed and the money settlement asset and liability profit and loss booking is done 26 1 3 Invoking the Automatic Daily Program To run the Batch process invoke the End of Day Batch Process screen You can invoke the End of Day Batch Process screen by typing AEBEODST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button coe ORACLE End of Day Batch Start Select Activity Select Time Level Continue with AEOD Branch Current Status Run Till The system picks up the batch in accordance with the mandatory batch programs maintenance Click Ok button to run
440. n lead to investors becoming owners of the corporation As a shareholder investor has certain basic rights A claim proportional to the number of shares held to a portion of the corporation s assets The power to vote on company business at shareholders meetings again in proportion to shares held The right to dividends that may be voted by the Board of Directors Sometimes a pre emptive right to purchase new shares before they are offered to the general public The liability of the investor shareholder is limited to the proportion of the holdings of the investor in the corporation 2 1 7 Preference Shares Preference shares are also shares with certain variations They carry a fixed dividend which is announced at the time of the issue They have no voting rights Payment of dividend to these shares are done first prior to dividend payment on equity shares The claim of the preference share holder precedes the claim of equity shareholder ed ORACLE Preference shares may be cumulative or non cumulative If they are cumulative they are entitled to a dividend whether or not the firm earns it If during a particular year the company does not have adequate earnings to distribute as dividends the dividends in arrears are accumulated and paid in a later year when earnings are sufficient Some preference shares are convertible This option permits the shareholders to exchange preference shares for equity shares of the same comp
441. n specify the number of units that are traded either in the index or local currency If you express the deal quantity in the local currency the equivalent in the index currency is displayed in the field titled Deal Quantity Similarly if you indicate the deal quantity in the index currency it s equivalent in the local currency is displayed in this field Maturity Date This field is applicable only in case of Bonds or securities with a redemption date This is automatically generated to reflect the maturity date of the security being traded Original DSTL Date This is automatically generated by the system to reflect the original delivery settlement date as per the market code maintenance for Spot days You can change the date by using the calendar menu Transaction Date The transaction date is the date on which you entered the deal into Oracle FLEXCUBE The system defaults the transaction date to today s date Normally the transaction date would be the same as the trade date of the deal It would differ from the trade date if you enter a back valued deal Deal Input Time This is system updated date and time stamp Quote By This is the Quantity quotation method Here you specify whether the Security quantity quoted above is in Units or in Nominal 22 2 4 1 Specifying details for the buy and sell leg of a deal In this section we will discuss the details that you should specify for the buy and sell legs of a deal The preferences
442. nd the Exchange Rate Fixing Date If the issuer payment currency is different from the security currency then you can specify the exchange rate between the security currency and the issuer payment currency In addition you can also indicate the date on which the exchange rate between the security currency and the issuer payment currency will be announced The exchange rate that you define in this screen will be used for conversion when the security is being processed If no exchange rate has been maintained then the mid rate will be used for conversion 20 9 1 Linking Interest Component to Tax Component An interest component can be the basis amount tag of one or more tax components Since each coupon that is maintained can have a number of interest components you need to link each of these components to the tax components The interest components can also be in a currency other than the tax currency Therefore in addition to linking an interest component with the tax component you need to specify the tax currency If the currency of the interest component is different from the tax currency then specify the tax exchange rate To link an interest component with a tax component and to specify the tax currency for the exchange rate click Exchange Rate in the Coupon Maintenance screen The Exchange Rate for Tax Currencies screen is displayed Exchange Rate for Tax Currencies Internal Action CHi g Issuer Payment Currency Security
443. ndent e Name and address of the Receiver s Correspondent e Other identification codes for example account number F Settlement Details Web Page Dialog Reference Number PSSPCPS002760001 Component Account Details Message Details Parties Parties Cover Parties Other Details Clearing Details Local Clearing Ordering Institution Beneficiary Institution Ordering Institution 4 Beneficiary institution 1 Ordering Institution 2 Beneficiary Institution 2 Ordering Institution 3 Beneficiary Institution 3 Ordering Institution 4 Beneficiary Institution 4 Ordering Institution 5 Beneficiary Institution 5 Ordering Customer Ultimate Beneficiary Ordering Customer 1 Ultimate Beneficiary 1 Ordering Customer 2 Ultimate Beneficiary 2 Ordering Customer 3 Ultimate Beneficiary 3 Ordering Customer 4 Ultimate Beneficiary 4 Ordering Customer 5 Ultimate Beneficiary 5 Ordering Institution The Ordering Institution is the financial institution which is acting on behalf of itself or a customer to initiate the transaction This field corresponds to 52a of S W I F T ae ORACLE In this field you can enter one of the following e The ISO Bank Identifier Code of the Ordering Institution e The branch or city of the Ordering Institution e The Name and address of the Bank Ordering Customer The Ordering Customer refers to the ordering customer of the deal Here you can enter the name and address or the account number of the Customer orderin
444. nds These are discounted instruments offered below the face amount paying par or face value amount at maturity The difference is the interest earned Registered Bearer bonds Registered bonds are fully registered This means the name of the owner or that of the nominee is maintained by a registrar Interest on these bonds would be paid to the owner as appearing in the books of the registrar as of the interest payment date Bearer bonds are transferable by endorsement The interest coupons are issued along with the bonds and the person who submits the interest coupon to the bank as of the interest payment date earns the interest on those bonds Registrar does not maintain the books of the owners of the bonds for these bonds ae ORACLE e Series bonds Corporations may issue bonds in series say 1 Il Ill etc Most of the characteristics would be the same across all the series except that the maturity date for the series can be different and it might follow an order Bonds may be retired redeemed by three methods e In redemption the bonds are retired and the bondholders are paid cash Here again the bonds are retired completely in one stroke or in a logical sequence of the series e In a conversion the bondholders exchange their bonds for shares of common stock e In a refunding the corporation retires one bond issue by issuing another 2 1 8 2 T Bills Issued on behalf of the government Treasury bills are short term instrument
445. nds increases during the period nearing the interest payment date and subsequently falls after the interest payment date The adjusted price is thus the deal price stripped of the interest component 22 2 6 1 Specifying Trade Details Deal Type You can select the Deal type from the drop down list The Deal Type can be e Primary e Secondary Priority Indicate the priority of the deal you are processing Select one of the following options from the option list e High e Normal e Low The priority that you specify is picked up and used by S W 1 F T Dealer Indicate the dealer at your bank who bought securities from the portfolio Select a dealer code from the option list Conforms to ISMA This is an indicator to denote whether the deal has been made as per ISMA International Securities Market Association requirements This indicator is displayed during deal confirmation Indicating the security series Security Series Here you can specify the format of the security You can select a format from the list pene ORACLE e Dematerialized e Immobilized e Combination 22 2 6 2 Marking a Securities deal for Banker s Acceptance A Banker s Acceptance BA is a facility by which you guarantee the redemption of a security This facility is processed in Oracle FLEXCUBE by the creation of a loan or a money market placement deal with the issuer of the security as the beneficiary of the loan or the placement Placement Loan Ref
446. ne 2002 You can define the actual coupon schedules in the Securities Definition Coupon Schedules screen You can invoke this screen by clicking the Coupon button ee ORACLE Coupon Schedule E Base Start Date Discrete Continuous Base End Date Base Frequency Adhere To Month End o E x A In this screen you can specify the first coupon due date Base Start Date and the last coupon due date Base End Date If you choose the Continuous option the system calculates all intermediate coupon due dates based on the frequency specified If you specify a weekly frequency you must also specify the Week Day You can also choose to adhere to month ends For Discrete Irregular coupon schedule definition you will have to set the coupon dates For continuous coupon schedules to introduce an intermediate coupon date click add icon Enter the intermediary Coupon Date in the Base Start Date field and choose the Discrete option Even if the coupon schedules are defined to be continuous you have the flexibility to amend the coupon payment dates Click ZOOM button in the Coupon Schedule screen to invoke details of the coupon periods Coupon Period Coupon Period Details LJ Previous Coupon Date NextCouponDate Period Type Previous Virtual Second Date Previous Virtual First es ee di ee ORACLE You can enter your coupon date amendments in this screen provided the amended dates do not
447. ned in the Customer Information Maintenance screen Here you assign a unique CIF number to each customer so that the limit lines can be set for each customer While defining external SK locations indicate the CIF code assigned to the particular customer This aids in tracking limits for every SK location The safe keeping locations you have maintained and authorised in this screen are in turn linked to different portfolios through the Portfolio Definition screen The picklist containing the location ID s of the various SK locations in the Deal On Line screen will reflect only those SK location ID s associated with the particular portfolio Therefore at the time of entering a deal if you specify the SK location ID that has been linked to a particular portfolio the SK account s linked to the SK location is reflected in the picklist You can specify these SK account in the To and From fields respectively i ORACLE You can invoke the Safe Keeping Location Maintenance screen by typing SEDSKLOC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Safe Keeping Location Safe Keeping Location Id Safe Keeping Location Type Internal or External Description Customer Id External Type Exposure Line laz C Bankers Acceptance Safe Keeping Location Account Cl Message to Incident HEE Command System Corporation Acti
448. neeseeseesecacesecaseesesaecaeesecaeesecseeeeseaseneegs 19 8 19 2 8 Specifying Type of Price QUOTATION sccesceeseseeeesceeeeeseceseceseceaecacecacecaceeasenseeeeeeeseeeeeaeenaesnaesnaeents 19 9 19 2 9 Capturing Information Specific to the Security Type sccecccsscesseesseeeseeeeesceseceecuaecnaeceaecneeeaeeeaeees 19 10 19 2 10 Indicating Banker s Acceptance s cesccssesseesseesseeseeeneeseeesceeeeesecesecaecsecuaecaaecseeeseeeseeeseeseeeeeeeaees 19 12 19 2 11 Specifying Currencies ssiri isien aeae a jun cebenssasssedtndsuaeaded sees jesdeamentavsdboccesseon 19 13 19 2 12 Specifying Relevant Date Siaui ssces s c55 seee ssagssesdeaass caageesaedanass reste sage doptvodeaseseddacdpsesevcnses 19 13 19 2 13 Specifying Price Detalls sssaaa E E E E E ESER 19 15 19 2 14 Entering Interest Details for a Bond snosseseeseseeeeeeeesseeesereeresereresrsressrsrenrssereresesrresrsresesrens 19 16 19 2 15 Opting for Automatic Initiation of Corporate Actions ssesssssesesseeeseesesreerrseeresrreresrsreerreee 19 22 19 2 16 Indicating a Revaluation Price Code eeeneeneeeneeereeeeeeeesesrresesrrssrsresrsserrresesrresesreeresene 19 22 19 2 17 Indicating the Collateral Type sisirin naa a a E E Ri 19 22 19 2 18 Specifying the Market for Revaluation cccccccsccesecesecesecsseesseeseeeseeeeeeseeesecesecuseceaecaesaeeaeeeaeees 19 23 19 2 19 Specifying the Yield Calculation Parameters for a Security 19 23 19 3 INTEREST METHOD FOR COMPUT
449. ng Date cannot be greater than Event Date SE MA0281 For Spot Days Count Basis as WORKING DAYS holiday treatment becomes mandatory SE MA0282 For Ex Days Count Basis as WORKING DAYS holiday treatment becomes mandatory SE MA0291 Exchange rate fixing date has to be provided SE MA0292 Exchange rate has to be provided SE MA0293 Issuer payment CCY has to be provided SE MA0294 Announcement Date should not be greater than today SE MA0295 Confirmed Date should not be greater than today SE MA0296 Exchange Rate Fixing Date should not be greater than today SE MA0297 Confirmed Date has to be provided SE MA0298 Value for Dispose Fraction is mandatory SE MA0299 Value for Resultant Ratio Num should not be less than or equal to zero SE Value for Resultant Ratio Denom should not be less than or equal to MAO307 zero SE MA0308 Value for Dividend Type has to be provided SE MA0309 Only confirmed records can be closed SE MA0310 Only confirmed records can be reopened SE MA0311 Do you really want to confirm the record SE MA0312 End of Trading Date has to be greater than today SE MA0313 Restart Trading Date has to be greater than End of Trading Date SE MA0314 This Event Date cannot be maintained for the Security 31 13 ORACLE Error Code Message SE MA0350 Value for field Announcement Date is mandatory
450. ng options from the drop down list e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 e 30 Euro Actual e 30 US Actual at ORACLE Actual Actual 30 Euro 364 30 US 364 Actual 364 Forward PL Accrual Specify the following details Accrual Method The accrual method refers to the method to be used to calculate the amount of forward profit or loss that is to be accrued You can select one of the following options from the drop down list Redemption Premium Specify the following details 30 Euro 360 30 US 360 Actual 360 30 Euro 365 30 US 365 Actual 365 30 Euro Actual 30 US Actual Actual Actual 30 Euro 364 30 US 364 Actual 364 Accrual Method The accrual method refers to the method to be used to calculate the amount of premium that is due to you for holding the bond You can select one of the following options from the drop down list 30 Euro 360 30 US 360 Actual 360 21 11 ORACLE 30 Euro 365 30 US 365 Actual 365 30 Euro Actual 30 US Actual Actual Actual 30 Euro 364 30 US 364 Actual 364 The value of the accrual method maintained in the Security Portfolio Definition screen is used for calculating the accrual interest for a given portfolio Indicating the Revaluation Level As a branch parameter if you have indicated that revaluation should be
451. ng profit loss While processing SSLP the system includes trading profit and loss with following parameters e O S Redemption Premium Accrual e Un accrued Premium e Un accrued Discount e O S Interest Adjustment Accrual ree ORACLE 12 Defining a Deal Preference Class 12 1 Introduction Preferences are the options available for defining the attributes of a deal Preferences are based on the type of deal you define such as Bank portfolio buys and sells customer buys and sells standalone lodge and withdraw safe keeping location SKL to SKL transfer and block securities The following are some of the preferences that you can define e Exchange rate preferences e The mode of money settlement e The mode of delivery settlement e Allowing brokerage A set of such preferences can be grouped together into what is called in Oracle FLEXCUBE a Preference Class You can maintain several deal preference classes The preferences that you define will give a deal distinctiveness unique to the type it represents The advantage of Defining a Portfolio Preference Class While creating a deal product instead of specifying preferences for each product you only need to associate the appropriate deal preference class to the product All the attributes defined for the class will be by default applicable to the deal product You can change the preferences that are defaulted to suit the deal product Once defined a deal preference class can be mad
452. ng the adjoining arrow button Rate Source Definition Rate Source Description Input By Date Time Here you can capture the following details Rate Source Authorized exit Open Specify a unique code to identify the rate source you wish to maintain The code cannot exceed 10 characters Description Enter a brief description for the rate source In order to process MT340 MT 360 and MT361you need to maintain the following rate sources SWPMKR AUBBSW ORACLE BLBG 10 00 SWPMKR 11 00 BLBG 11 00 SWPMKR 3M SWPMKR COMP BLBG 365 BLBG BLBG SWAPRATE 1 1 00 SWAPRATE 4 00 RFRCBANKS BLOOMBERG 10 00 BLOOMBERG 15 00 FRASETT TONAR 17096 17097 BLBG REUTERS 10 00 REUTERS 15 00 CD3220 BLBG BID RFRCBANKS WIBO COMPOUND BLOOMBERG OIS COMPOUND NBSKO7 ICAPSP REUTERS H 15 BLBG 4 18 ORACLE H 15 OlS CPD FIX3SR 3 00 SWAPRATE SWAPRATE 3 00 BBA BLOOMBERG HIGHGRADE MCPLSWAPINDEX ICAPBKT SWPMKR100 SWPMKR99 ISDC ISDD TELERATE ISDD TELERATE ISDA TELERATE CDC CDC COMPOUND ISDA ISDC TELERATE ISDA TELERATE 10 00 TELERATE 15 00 TELERATE RFRCBANKS WIBO TELERATE TELERATE BRBO TELERATE 4 19 ORACLE e TELERATE e TELERATE e SWAP RATE 4 4 1 3 Defining Rate Type You can maintain rate types using the Rate Type Definition screen You can invoke this screen by typing CFDRTTYP in the field at the top right corner of the Application tool bar
453. nimum Tradable oting Rights Decimals Quantity Bankers Acceptance Tenor Unit Lot Size Quantity Quotation Minimum Registered Bearer Price Quotation Maximum i Form Type Interest Quotation Price Code Collateral Type P Price Code Description Auto Initiation of Corporate Coupon Processing Actual Value Date Coupon Plotting Coupon Date Amendment Limit Floating Rate Fixing Limits When defining a product you can choose to specify preferences for the product by the following methods e Associating the product with a Security Preference Class e By defining these preferences specifically for the product If you would like to associate a Security Preference Class to a product choose Default from Class button from the Security Product Preferences screen A list of the Security Preference Classes that you have maintained will be displayed Choose the preference class that is applicable to the product that you are creating Click Floating Rate Fixing button to display Floating Rate Fixing Parameter screen For detailed information on this screen refer to the section Specifying the Interest Rate Revision Frequency in the chapter Defining Security Preference classes of this User Manual Click Limits button to display Currency Wise Limits screen For detailed information on this screen refer to the section Defining deal limits for a preference class in the chapter Definin
454. nor Code Specify a unique code to identify the tenor for which this rate code should be applicable Tenor Code Description Enter a brief description for the tenor code You can add multiple tenor codes for the rate code by clicking L button Similarly you can delete a tenor code by selecting the desired row and then clicking A button In order to process MT340 MT360 and MT361 you need to maintain the following rate codes e AONIA e BBR AUBBSW e BBR BBSW e SWAPRATE e BA CDOR e BA e CORRA e TBILL e ISDAFIX e CLICP e CIBOR e DKKOIS e ANNSR e ANNUALSR e EONIA e EURIBOR e TEC10 CNO e HIBOR e HONIX e ISDA e IDMA ORACLE IDREFIX SBI SOR TELBORO1 TELBOR BMK CMT INBMK MIBOR MIFOR MIOIS MITOR RFRCBANKS BBSF LIBOR MUTANCALL TIBOR TONA TSR CD3220 CD KSDA TIHE BANXICO NIBOR NIBR BBR NZIONA WIBOR WIBOR ANNUAL STIBOR SIBOR SONAR SOR 4 15 ORACLE BRIBOR SOR THBFIX CMS COF11 FEDFUND FEDFUND ISDAFIX3 SANDPINDEX SIFMA TREASURYRATE TRSYRATE TRSYRATE BBR BA BA TBILL TBILL LIBOR EURIBOR TAM TMM LIBOR HIBOR SOR LIBOR TSR BBR WIBOR SIBOR SOR BRIBOR 4 16 ORACLE 4 4 1 2 Defining Rate Sources SOR CMS COF11 ISDA LIBOR TIBOR You can maintain rate sources using the Rate Source Definition screen You can invoke this screen by typing CFDRTSRC in the field at the top right corner of the Application tool bar and clicki
455. nserting into Securities Event Log ONL118 SE Error inserting Core Contract control table ONL119 SE Error updating Core Contract control table ONL120 SE Error inserting Core Contract event log table ONL121 SE Error retrieving Spot Price ONL122 SE Error processing event 1 ONL123 SE Error authorizing event 1 ONL124 31 60 ORACLE Error Message Code SE Error retrieving data from Core Contract control table ONL125 SE Error Deleting contract ONL126 SE Error inserting Deal Master ONL127 SE Error inserting Deal Detail ONL128 SE Error inserting into Deal Matching tables ONL129 SE Error copying contract ONL130 SE Error splitting price ONL131 SE Error retrieving Face Value ONL132 SE Error retrieving Market Price ONL133 SE Error handing off messages ONL134 SE Error retrieving DCN ONL135 SE DEAL_NOMINALAMT not defined in product accounting entry ONL136 SE Active or Unauthorized Reversed Cancelled Sell Legs are linked to this ONL137 buy leg Only completely unmatched buy legs or buy legs linked to authorised reversed cancelled sell legs can be reversed SE Error during updation of blocked balances ONL138 SE Portfolio cannot go short Current position insufficient ONL139 SE Holdings insufficient to be blocked ONL140 SE Error verifying available balance for Portfolio ONL141 31 61
456. nstrument is measured by its yield to maturity YTM YTM is the yield on a security calculated from the purchase date to its maturity The YTM keeps changing with the market price In case the market price increases above the straight discounted price YTM would decrease and vice versa The price using this quotation method is calculated thus Face Value Purchase price Days in a Year YTM Price Days to maturity Based on the deal quantity and the price quotation method the deal amount is determined Irrespective of the price quotation method that is used the net result is the same oe ORACLE The price quotation specifications defined for the product under which the security is maintained will default in this screen However this quotation method can be specific for a security 19 2 9 Capturing Information Specific to the Security Type You can capture information that is specific to the type of security you are maintaining If the Security Type is bond You can indicate if Call and Put options are available for the bond that you maintain in this screen The issuer of a bond may also offer the option of converting the bond into shares or equities Such bonds are referred to as Convertible bonds Choosing the Convertible option can capture this information You can also indicate if the bonds would be Redeemable and if so the mode of redemption An issuer can redeem bonds in three ways e Series e Quan
457. nt Advices Deal Match Limits Parties Securities To Leg Product DLCB Portfolio CHOCD04001850006 Customer MARKT SK Location JLOCA SK Account 11111 Advices Deal Match Units Patties Description cust buy cust sell R Deal Reference CHOCBCS001850006 Source FLEXCUBE Description SECIDO1 Description MKT OF TRADE Trade Date 7 3 2000 DSTL Date 7 3 2000 Yield 16 6407176324 871263 770538 D Local Currency Quantity Original DSTL Date Deal Input Time 2000 07 03 11 58 54 Leg Description cust sell IF Accompany Lodge Description ABHISEK Description JZ Auto MSTL Brokerage Events MIS Details Settlements Leg Description cust buy IF Accompany Withdraw Description kernel Description SK LOCATION I Auto MSTL Brokerage Events MIS Details Settlements F Securities Deal Input Web Page Dialog J ah Block Deal Reference Reversed Contract Reference Number Deal Type Spot z Interest Plus Accured Deliver Free E Interest Date 7 3 2000 Receive Free z Maturity Date 11 3 2000 Transaction Date 7 3 2000 Quote By Nominal Leg Reference CHODLCS0018650009 User Reference CHODLCS001850009 Broker Identification MSTL Date 7 3 2000 Actual MSTL Date 7 3 2000 Charges Walkin Netcons Tax Leg Reference CHODLCB001850006 User Reference CHODLCB001850006 Broker Identification MSTL Date 7 3 2000 Actual MSTL Date 7 3 2000 Charges Walkin Netcons Ta
458. nt Definition screen Contract interest Details Security Id Creation ESN Component Rate Code Tenor Code Spread Rate FlatAmount Acquired Amount Interest Method 30 Euro 360 v Security Index Spread Floor L Ceiling Specify the following details Security Id You can identify a security that you are maintaining with a unique identifier The identifier is referred to as the Security ID Specify the security id Creation ESN Event sequence number gets displayed by the system Component Component gets displayed by the system Traa ORACLE Waiver Check this box to indicate that interest on the contract should be waived Rate Code While processing a contract you need to indicate this code to make the rate applicable to the contract Specify a valid rate code to identify the rate you are defining The adjoining option list displays all the valid rate code maintained in the system You can select the appropriate one Tenor Code Specify a valid tenor code to identify the tenor for which this rate code should be applicable The adjoining option list displays all the valid tenor code maintained in the system You can select the appropriate one Spread Specify the spread Rate Specify the interest rate Flat Amount Specify the flat amount Acquired Amount Specify the acquired amount Interest Method The method in which the nu
459. nt Details The amendments through upload of the following fields are considered as financial anendment Currency Counterparty Amount Booking Date Value Date Cr Dr Branch Code Cr Dr Account Number Holiday Currency Commitment Revolving Non revolving Maturity Type User Input Maturity Date Note the following If the request received has settlement details then the values sent as part of the upload should be uploaded If Settlement Details are not sent and are maintained in the list of amendable fields then the details corresponding to the parent contract is copied to the child contract In case the request is a financial amendment then the contract is reversed and rebooked If it is non financial amendment then the normal amendment procedure is followed In case of financial amendment Settlement Instructions requires a special handling The financial anendment can be done only through upload and not through front end However if the SGEN message is already generated then financial amendment upload is not allowed 29 11 ORACLE For amending a contract if the source is null it indicates that the contract is created in Oracle FLEXCUBE and you are not allowed to amend If the value is not null then you are allowed to amend a contract Specifying Interest Details Numerous interest rates and fees can be defined through the ICCF Interest Commission or Fee screen To invoke this screen click ICCF bu
460. nt of Bank Sell deals The computed yield will be stored at branch portfolio security level The yield computation for WAC portfolio will be triggered for the following events e Buy Deal Sell for Issuer e Reversal of a buy deal Reversal of Sell for Issuer e Back dated Buy Back dated Sell for Issuer e Reversal of Back dated buy Reversal of Back dated Sell for Issuer eel ORACLE Maturity Date Extension If you have chosen to accrue premium or discount you need to specify the following accrual preferences also Accrual method Accrual frequency Accrual start day Accrual start month The accrual preferences that you specify will be made applicable to all portfolio products to which the class is associated Accrual Method Select the method to be used to calculate the amount of premium or discount to be accrued from the adjoining drop down list This list displays the following values 30 Euro 360 30 US 360 Actual 360 30 Euro 365 30 US 365 Actual 365 30 Euro Actual 30 US Actual Actual Actual 30 Euro 364 30 US 364 Actual 364 Accrual Frequency The premium or discount on securities can be accrued over the tenor for which you hold the security The frequency at which these components have to be accrued has to be specified as a Portfolio product preference Thus the premium or discount components of all securities in a portfolio will be accrued at the same frequency
461. nt to start Event Selection and ALPL AC007 SE Event Selection and Processing and ALPL process Failed AC008 SE Event Selection and Processing and ALPL process successfully AC009 completed SE Unhandled Exception in Sepkss_repo fn_populate_work_table BA0001 SE Unhandled Exception in Sepkss_repo fn_repo_block_deals BA0002 SE Unhandled Exception in fn_create_block_deals BA0003 SE Unhandled Exception in fn_ammend_block_deals BA0004 SE Unhandled Exception in fn_delete_block_deals 31 30 ORACLE Error Message Code BA0005 SE Insert to setbs_deal_master bombed BA0006 SE Insert to setbs_deal_detail bombed BA0007 SE Insert to cstbs_contract bombed BA0008 SE Insert to setbs_mm_repo_linkage bombed BA0009 SE Updation of cstbs_contract bombed BA0010 SE Insert to setws_repo_rrepo_blocks bombed BA0011 SE Unhandled Exception in Sepkss_repo fn_delete_action BA0012 SE Security Value 1 should not be less than Loan Amount 2 BA0013 SE Unhandled Exception in fn_calculate_security_val BA0014 SE Unhandled Exception in Sepkss_repo fn_repo_release_block BA0015 SE Unhandled Exception in sepkss_repo fn_repo_authorize BA0016 SE Old Deal Reference cannot be Null BA0017 SE Copy Flag should be either V or N BA0018 SE Select from Cstb Contract failed BA0019 SE Select from setbs_deal_master failed BA0020 SE Unhandled excep
462. nterest Revision screen You can capture details like the date on which the interest rate was announced the date on which the interest rate revision would be processed and the value date of rate revision You can invoke the Interest Revision screen by typing SEDRVNDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button interest Revision Corporate Action Id External Corporate Id Parent Security Id az Interest Component laz Issuer Reference Announcement Date Event Date Effective Date Automatic Auto Revision Rate Manual MIS Rate CO Confirmed Confirmation Date Input By Authorized By Modification Authorized exit Date Time Date Time Number Open To enter interest rate remission details Choose New from the Actions Menu or click l on the toolbar If you are calling an interest revision record that has already been created click on Summary view From the summary screen you can choose to open an existing record The details of the record that you have created will be displayed in a tabular form Corporate Action Identification This is the system generated ID to uniquely identify the interest revision External Corporate Identification This is the Id assigned to the event at the time of event declaration Enter the Id associated with the event to uniquely identify it Iss
463. nts with an expiry date less than or equal to today are selected for processing Rights expiry consists of two separate events e Rights expiry initiation selects the event to be processed e Rights expiry disbursement selects the event to be liquidated from the events list The event Rights Expiry Initiation for long position RXLT is triggered for those events which have an initiation date less than or equal to today but have not yet been initiated After RXLT is through the event Rights Expiry Disbursement for long position RXLL event is triggered Only those events with the disbursement date less than or equal to today and for which liquidation has not already been done will be processed Positions and holdings are updated for rights once the event is completed 20 5 4 Processing a Warrants Expiry Event On the event date holdings in the warrants security are depleted for the relevant portfolios The event is triggered automatically if you have specified so otherwise it will have to be triggered manually The Events table is scanned when the Warrants Expiry Initiation for long position WXLT event is triggered Only those events with initiation dates less than or equal to today s date are picked up The Events table is updated after the completion of the event After WXLT the Warrants Expiry disbursement or liquidation for long position WXLL is triggered for those events which are not yet liquidated but have disbursement dat
464. nts processing for dividend 007 SE DPOP Failed in insert of dividend record 008 SE DPOP Failed in logging exception when populating dividend 009 SE DPOP Failed in populating Dividend for branches 010 SE DPOP Failed to get next working date when dividend population 021 SE DPOP 022 SE DPOP Incorrect number of records returned during dividend 023 population SE DPOP Receive Account could not be got when populating dividend 024 SE DPOP Pay Account could not be got when populating dividend 31 79 ORACLE Error Code Message 025 SE DPOP Account currency is not the same as Issuer payment 026 currency SE DPOP Pay Account could not be got when populating dividend 027 SE DPOP 028 SE DPRC Failed in processing dividend for branches 001 SE DPRC Failed in processing dividend event 002 SE DPRC Failed to set subsystem flags during dividend processing 003 SE DPRC Failed in processing amount due during dividend processing 004 SE DPRC Failed in Tax processing for dividend 005 SE DPRC Failed in Charge processing for dividend 006 SE DPRC Failed in Transaction Tax processing for dividend 007 SE DPRC Failed in Settlements processing for dividend 008 SE DSRV 001 SE IACO 001 Could not build queue array during interest accrual SE IACO 002 Failed to get periodic accrual date SE IACO 003 Failed in adjustment of acc
465. nts table is scanned and those events with a collection date less than or equal to today and for which collection has not been done are picked up for processing Once the processing is through the events table is updated to indicate that collection is complete for this event The Coupon Disbursement event CPLQ is triggered depending on whether the position is short or long This function picks the event from the Events table and liquidates it after executing doing the necessary validations Triggering the event AICN completes the accrual of interest if accruals are due The AICN event is triggered before the events for liquidation CPSL or CPLL are triggered All details relating to Tax and ICCF are updated Once the event is complete the Events table is updated to indicate that liquidation is complete for the event If the security currency is different from the issuer currency and you have maintained the exchange rate and the exchange rate effective date then this rate will be used for conversion Else the mid rate will be used for conversion If the positions table has not been updated till the event date then positions and holdings are projected up to the event date It is at depending on whether the interest calculation is position based or holding based SUIR ORACLE 20 11 Maintaining Interest Rate Revision Details You can capture the interest rate revision details for a security that has already been defined through the I
466. o Definition screen is displayed without any details You can invoke the Security Portfolio Definition screen by typing SEDPFONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are calling a Portfolio Definition record that has already been defined choose the Portfolio Definition Summary screen Five ORACLE From the Summary screen double click a portfolio to open it Security Portfolio Definition Portfolio Id Portfolio Reference ar Fund Identity P Product Code ContractMain Main Preferences Detail Preferences Portfolio Type Customer Portfolio Description Customer Branch Branch Branch Name Branch Name Customer Account Currency laz Description Currency Name Portfolio Costing Method Customer Name Asset Accounting Basis Book Intrinsic Value Processing Details Contra Holding Allowed Rights Auto Liquidate for alidate When a Corporate Actions Warrants Corpus Account Short Position Allowed Accrue Withholding Tax for Coupons Bankers Acceptance te Tonioa events si cation secur Restnctons sb Prce rance ras Input By Authorized By Contract authorized Date Time Date Time Status The Securities Portfolio Definition screen consists of a header
467. o costing method and they apply to both deal and position level revaluation Accounting Role and Description Amount Tag and Description Debit Credit MTMINCOME MTM_INC Debit SECURITYASSET MTM_INC Credit These are the entries passed during reversal of revaluation at BOD on the next working day If the next working day happens to be the first working day of the new financial year the entries passed are Accounting Role and Description Amount Tag and Description Debit Credit Prev year adj GL 1 MTM_INC_PY Debit SECURITYASSET MTM_INC_PY Credit Where Prev year adj GL 1 is the previous year adjustment GL maintained in the Chart of Accounts for the GL head MTM_INC 32 4 3 28 YACR Yield Accruals for all deals Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC PREM EARNED SEC_PREM_ACCR Debit SEC PREM TBACRD SEC_PREM_ACCR Credit SEC INT ADJ REC SEC_INTADJ_ACCR Debit SEC INT ADJ INC SEC_INTADJ_ACCR Credit SEC DISC TBACRD SEC_DISC_ACCR Debit SEC DISC EARNED SEC_DISC_ACCR Credit Advices No advices allowed for this event 32 38 ORACLE 32 4 4 SS deal with a Customer Buy Sell type of product The preferences set for this product are as follows e Standard rate type is used for this product e Brokerage not allowed e Mode of money settlement is automatic e Extension allowed e Forwar
468. o foe i ua Reverse 1 4 ORACLE Template Refer the Procedures User Manual for further details about the icons ve ORACLE 2 Securities Domain 2 1 Overview of Securities Domain The role of the financial system can be broadly classified into the following e Savings Function Mobilize savings in a way to provide a potentially profitable and low risk outlet e Policy Function Through the policy function the government ensures a smooth flow of funds from savings into investments in order to stabilize the economy e Credit Function After mobilizing the savings and laying down the necessary policies for the transfer of these funds the credit function of the financial system will then ensure that these savings will transform into the necessary credit for investment and spending purposes Financial system evolved due to certain complexities associated in performing these functions e Generally the requirements of the borrowers do not match that of the savers Savers are concerned about the safety of funds return and liquidity and borrowers are concerned about the terms of the funds borrowed cost of funds and the ease associated with borrowing funds e The return risk profile expectations of both borrowers and lenders savers differ 2 1 1 Financial Markets 2 1 1 1 The financial markets channel the savings of the households and other surplus budget units to those individuals and institutions that ne
469. o maintain a disallowed list and include the six disallowed branches in it You indicate whether you are maintaining an allowed or a disallowed list type by choosing the appropriate option Specifying a Branch to be Allowed Disallowed Under Branch Restriction click add icon to display the list of available Branch Codes and Its Descriptions through its option list From this option list you can select the Branch Code to be Allowed Disallowed 8 2 2 Maintaining Currency Restrictions A currency restriction identifies a unique list of allowed or disallowed currencies When creating a product at your head office you can associate it with any Branch and Currency Restriction Class that you have maintained The branch and currency restrictions defined for the class will apply to the product Choosing the List Type You can specify currency restrictions either in the form of an allowed or a disallowed list Branches can deal only in products that figure in the allowed list Branches cannot deal in products that figure in a disallowed list it ORACLE Specifying a Currency to be Allowed Disallowed Under Currency Restrictions click add icon to display the list of available Currency Codes and Its Descriptions through its option list From this option list you can select the Currency Code to be Allowed Disallowed Click Cancel to delete your specifications 8 3 Specifying the Customer Category Restrictions Class You can group your
470. o product You can change the defaulted preferences to suit the product The preferences that you specify for a portfolio are comprehensive and cover all types of securities that can constitute it Depending on the type of security the preferences will apply Once defined a portfolio preference class can be made applicable to any number of products 11 2 Specifying Portfolio Preferences Classes You can maintain portfolio preference classes in the Portfolio Product Preference Class Definition screen If you are maintaining details of a new portfolio preference class choose New from the Actions Menu or click from the tool bar The Portfolio Preference Class Maintenance screen is displayed without any details You can invoke the Securities Portfolio Product Preference Class Maintenance screen by typing SEDPFPCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are calling a portfolio restriction class record that has already been defined choose the Summary option E ORACLE From the Summary screen double click a class of your choice to open it Securities Portfolio Product Preference Class Maintenance Class Code Module Main Details Processing Book Discount Premium Accounting Basis Corporate Action Notice SP Securities Portfolio Module v Short Position Allowed Corpus Account Auto Liquidate for
471. o view of and double click it aves ORACLE You can invoke the Bonus to Cash Conversion screen by typing SEDBNSCS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bonus to Cash Conversion Corporate Action Id Reference Number Security Id Security Quantity Resultant Security Id Portfolio Id Safe Keeping Location Safe Keeping Account Record Date Event Date Stock To Cash Action Id Initial Bonus Bonus Encashed Adjusted Bonus Encashed Residual Bonus Input By Authorized By Modification Authorized exit Date Time Date Time Number Open In the Bonus to Cash conversion main screen enter the security ID the portfolio ID and the SK location Id from where bonus due is to be received Corporate Action ID This is the system generated ID to uniquely identify the declaration of Stock Dividend This value is defaulted Reference Number This is the system generated ID to uniquely identify the Corporate action of Stock to cash conversion Security Identification This is the security Id of the equity for which the bonus to cash details are being maintained The description associated with the specified code is displayed in the adjacent field Security Quantity This is the quantity of security for which the bonus was declared Resultant Se
472. o view the charge details associated with the product You are allowed to amend the charge amount and if necessary waive the application Tax Click on this button to view the transaction tax details In addition to changing the tax amount you can also waive the application Parties Click on this button to enter details of parties and party narratives 25 Maintaining Block Security Details 25 1 Introduction A specified quantity of securities can be stopped from being traded in the market This is done by specifying details of the securities to be blocked in the Securities Deal Input Block Securities screen You can invoke the Securities Deal Input Block Securities screen by typing SEDBLONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon from the toolbar The screen will be displayed with no valued in the fields To view details of records previously maintained call on the Summary View screen The details of all the records maintained will be displayed in a tabular format Highlight the record of your choice and double click it aoe ORACLE ida of B pil Product az Deal Reference Description User Reference P Security Code kz Form Type Script Based x Quote By Description Security Series Block Date Release Date Partial Release Allow Transaction Date Auto Rel
473. oaledee sababsondbovedeeoaee A AEE E Eaa aE 30 13 30 1 1 SGL FOP MAIN ENGNC 6 vice inicccociesesssesecsnneconoseeseacsesinsuscssserenaeonasweesnserencsecesusseesereveseesenecocesionssesesesaccseses 30 2 31 ERROR CODES AND MESSAGES FOR SECURITIES scsscssscsssssssccccccsssscscecccsssssccscececescssssceee 31 1 31 1 ERROR CODES AND MESSAGEG csssssssssssssesssssssesssesssessssessessssessesssessseeseseseessessseesseeseesssenseeeseseseeeees 31 1 31 2 ERROR CODES AND MESSAGES FOR SECURITIES ONLINE ssssssssssssesssesssssssesssssssesssssssesssesssesssesssenes 31 19 31 3 ERROR CODES AND MESSAGES FOR BATCHES ssssssessssssseessesssesssesssesssessssssseessesssessssessessssessessssessenss 31 30 31 4 ERROR CODES AND MESSAGES FOR DEAL INPUT 0000ssesssssssessscsessseesssecsessssssssssssssssssssesseesseseseeseeees 31 48 31 5 ERROR CODES AND MESSAGES FOR NON SECURITIES s0ssssesssesssesesescessssesssessscsssesssessesessseessssseeeeees 31 67 ORACLE 31 6 ERROR CODES AND MESSAGES FOR PORTFOLIO ONLINE s0ssssssesssseessssssssssssssscsesssessssesseeesessseseeees 31 71 31 7 ERROR CODES AND MESSAGES FOR OTHERS csssesseeeesseeecseseececsnsceceesaeeecsnsaeeeceeeeceeaaeeecseseeeeeseeeeeneaes 31 76 32 ANNEXURE A ACCOUNTING ENTRIES AND ADVICES ccsscssssssssscsscccsssscssscsssessssscsssessssces 32 1 32 1 ACCOUNTING ENTRIES FOR SECURITIES MODULE cccc sccecsssceceessececsesaeeecseccece
474. oday SE MA0427 Collection can not be done as Collection Processing Date is later than Today SE MA0428 Liquidation can not be done as Liquidation Processing Date is later than Today SE MA0429 Do you want process Initiation SE MA0430 Do you want process Collection SE MA0431 Do you want process Liquidation SE MA0482 Failed to process Initiation SE MA0433 Failed to process Collection SE MA0434 Failed to process Liquidation SE MA0435 Initiation processed Successfully 31 16 ORACLE Error Code Message SE MA0436 Collection processed Successfully SE MA0437 Liquidation processed Successfully SE MA0438 Do you want to reverse the event 1 SE MA0439 Failed to process the event SE MA0440 Failed to apply Charges SE MA0441 Failed to apply Tax SE MA0442 Failed to pickup Settlements SE MA0443 Event can not be processed Security Quantity is zero SE MA0444 Event can not be processed Security Quantity is Negative SE MA0445 Event can not be processed Rights due is zero SE MA0446 Event can not be processed Rights due is Negative SE MA0447 Event can not be processed Warrants due is zero SE MA0448 Event can not be processed Warrants due is Negative SE MA0449 Event can not be processed Residual Bonus Due is zero SE MA0450 Event can not be processed Residual Bonus Due is Negative SE MA0451 Even
475. ode Description You can briefly describe the Class that you are maintaining The description helps you identify a class when you create a product The description is for information purposes only and will not be part of any customer correspondence 1s ORACLE When maintaining a Security Restrictions Class you have to specify the module for which you are maintaining the class A class can be maintained either for the Securities Portfolio module or for the Securities Deal module This is because a restrictions class maintained for one module would be unsuitable for another For instance you can choose to allow deals in some securities but disallow the same securities in a portfolio Restriction Type You can specify security restrictions in the form of an allowed or a disallowed list You cannot deal in security products that are not listed in the allowed list of Security Restrictions Class If you have maintained a disallowed list for a class security products that do not figure in it can be involved in deals linked to the product to which you associate the restrictions class You can indicate if you are maintaining an allowed or a disallowed list type by choosing the appropriate option under this field 13 2 2 Security Restriction A security restriction class identifies a unique list of allowed or disallowed security products Code It represents the list of Security Product Code maintained under Securities Security Product
476. ofit or loss is applicable to a portfolio class you can indicate accrual preferences like the e Accrual method e Accrual frequency e Accrual start day e Accrual start month og ORACLE The accrual preferences that you specify will be made applicable to all portfolio products to which the preference class is associated Srne forward profit or loss amount is accrued over the period starting from the deal spot date to the deal settlement date We will call this the regular accrual cycle However based on the accrual frequency preferences that you specify the accrual start date can fall before or between the regular accrual cycle If the accrual start date that you specify falls before the spot date of the deal no accrual will be carried out until the spot date If the accrual start date that you define falls between the spot date and the settlement date accrual will begin on the start date that you specify On the accrual start date accrual entries will be passed even for the lapsed period between the spot and the accrual start date Example You strike a forward deal on 1 January to buy 100 units of a security The settlement date of the deal is 20 January and the Spot date is 01 January You have specified the following accrual preferences Start date 10 Start month January Based on the regular accrual cycle accrual can start any time between 1 January and 20 January Based on the accrual preferences that you specify acc
477. ol bar and click the adjoining arrow button gt Forward Profit amp Loss Accrual Report Memo Actual Memo Accrual Accrual Processing Date 34 17 1 Selection Options You may specify the following option before you generate the report Memo Accrual Check this box to indicate the memo accrual should be used for the report 34 31 ORACLE Accrual Processing Date Select the accrual processing date 34 32 ORACLE 34 17 2 Contents of Report The contents of this report are discussed under the following heads Header The Header carries the title of the report information on the branch code branch date the ID of the user who generated the report the date and time at which it was generated the page number of the report and the module for which the report is generated Body of the Report The following details are displayed Portfolio The portfolio of the deal Fpl Accrual The currency of the forward profit and loss accrual Currency Security The security involved in the deal Forward PnL The total forward profit or loss accrued amount Accrued Deal Type The type of the deal Leg Reference The reference number of the transaction leg Accrued The interest accrual amount till date Todate Security The quantity involved in the security Quantity Accrual From Date The interest accrual from this date Accrual To The forward profit or loss
478. om the sender to the receiver oe ORACLE 22 5 4 Capturing Party Details To effect a securities deal you may have to pass on funds through a series of banks before it actually reaches the ultimate beneficiary Through the two Parties screens you can capture details of all the parties that will be involved in settlement of the deal F Settlement Details Web Page Dialog wk Reference Number CHOCBCS001850009 Component Account Details Message Details Parties Parties Cover Parties Other Details Clearing Details Local Clearing Intermediary Intermediary 1 Intermediary Reimbursement Institution Reimburse Institution 1 Intermediary 2 Reimburse Institution 2 intermediary s Reimburse Institution 3 intermectory 4 Reimburse Institution 4 ates 8 Reimburse Institution 5 Receiver Correspondent Account With Institution Correspondent 1 Account with Institution 1 Correspondent 2 Account with Institution 2 Correspondent 3 Account with Institution 3 Correspondent 4 Account with Institution 4 Correspondent 5 Account with Institution 5 Receiver of Cover 0000000 Receiver 0000000 These screens contain fields that explore the possible routes in which the deal components can be transferred Intermediary Reimbursement Institution An Intermediary Reimbursement Institution is the financial institution between the Sender s Correspondent and the Receiver s Correspondent through which the reimbursement of the de
479. ome security determined upon issuance and expressed as a percentage of par ISMA It stands for the International Securities Markets Association It is a self regulatory organization and trade association originally located in Zurich Switzerland that encourages systematic and compliant trading in the international securities market ISITC It stands for the International Securities Association for Institutional Trade Communication It is an organization that develops invaluable recommendations for straight through processing and other electronic trade and communications procedures recommendations that are repeatedly adopted by the industry and become standards that have transformed trading processes Redemption It is the return of an investor s principal in a security such as a bond preferred stock or mutual fund shares at or prior to maturity Redemption Premium It is the amount paid to the holder of the security called for redemption in addition to the principal amount of and any accrued interest on the security Yield It is the income return on an investment This refers to the interest or dividends received from a security and are usually expressed annually as a percentage based on the investment s cost its current market value or its face value Yield to Maturity It is the rate of return anticipated on a bond if it is held until the maturity date YTM is considered a long term bond yield expressed as an annual rate
480. ompleted based on the old yield and old cash flows till the application date New cash flows are built on the application date The YTM for all the existing deals is recalculated as of the application date based on new cash flows Also future accruals linked to DPRP event are calculated based on the new YTM During amendment of back dated redemption schedules accruals linked to DPRP event are completed based on the old yield and old cash flows till the event date of redemption New cash flows are built as of the event date The YTM for all the existing deals is recalculated as of event date based on the new cash flows For re computation of YTM the following formula is used for NPV calculation NPV Face value Un accrued Discount Un accrued premium Future accruals linked to DPRP event are computed based on the new YTM coupon accruals are also adjusted based on the new face value Back dated redemption processing on amendment is done at EOD owe ORACLE 20 9 Maintaining Interest Coupon Details The securities coupon definition screen allows capture of additional details of a coupon event for a security of bond type The details that are displayed in this field such as the Internal action ID the Internal Security ID and description the Event date etc are picked up from the Security Definition screen You are only allowed to amend existing details like the currency in which the issuer would make the cash payments the exchange
481. on 21 Defining Portfolios 21 1 Introduction eee ORACLE After creating Portfolio Products you can proceed to set up a securities portfolio In Oracle FLEXCUBE securities portfolios can be defined for the following e The Bank e The Bank s Customers e An Issuer of securities The portfolios that you set up should necessarily be associated with a portfolio product All portfolios associated with a portfolio product will inherit the attributes defined for it Certain attributes can be changed to suit the portfolio you are defining While setting up a portfolio you can indicate details such as e The currency of the portfolio e The revaluation method and frequency e Inventory management preferences valuation method LIFO FIFO deal matching WAC The basis for asset accounting in case of a bank portfolio You can also specify restrictions on the securities that the portfolio can trade in The preferences that involve accounting entries specified for a product is defaulted These preferences cannot be changed In Oracle FLEXCUBE portfolio products and securities portfolios are defined at the bank level They will be available to the branches of your bank based on the restrictions that you set up 21 2 Specifying Portfolio Definition Details You can invoke the Portfolio Maintenance screen from the Application Browser If you are setting up a new portfolio click new icon on the tool bar The Portfoli
482. on Currency For all types of portfolios indicate the currency of the portfolio You can select a currency code from the available option list The securities that constitute a portfolio can be in currencies other than the portfolio currency When entering a deal involving the securities of the portfolio the currency conversion would be done using the standard rate maintained in the Exchange Rate screen The same will be done when income is earned by the securities that are part of a portfolio ae ORACLE 21 3 1 1 Specifying Book Intrinsic Value A warrant or right attached to a security entitles the holder to convert it into common stock at a set price during a specified period Thus rights and warrants have a hidden or intrinsic value The intrinsic value of a right or warrant is the difference between the exercise price of the unit and the market price of the resulting security For asset accounting purposes you can choose to book or ignore the intrinsic value of rights and warrants Check against the field Rights to indicate that the intrinsic value of the rights attached to securities in the portfolio should be included for asset accounting Check against the field Warrants to indicate that the intrinsic value of the warrants attached to securities in the portfolio should be included for asset accounting Leave the fields unchecked to indicate that intrinsic value should be ignored Example You have purchased a hundred units
483. on cash flow that are considered during revaluation for the deal will be Coupon Event Date Coupon 01 Feb 2003 USD 42 47 01 Mar 2003 USD 38 36 The computation of net present value for the deal is as illustrated below Date Ci Vd 1 Yo Vd P 1 yo 4 Vd P Disc C 01 Feb 03 42 47 47 1 15545 0 128767 0 981566 43 26 01 Mar 03 38 36 19 1 15545 0 052055 0 992507 38 65 15 Jan 03 10025 64 1 15545 0 175342 0 974983 10282 23 10200 32 The accrued interest as of the revaluation date is excluded from the NPV computed and Flat NPV as of revaluation date is derived Flat NPV NPV Al 10200 32 26 03 10174 29 Revaluation profit or loss is computed by marking the flat NPV obtained against the flat market price using the formula mentioned above A ORACLE Revaluation Profit Loss 10174 29 102 100 25 71 Revaluation Loss USD 25 71 26 2 2 3 Unsettled EX Sell Deal Revaluation Date after Deal Settlement Date Deal Settlement Date 27 Jan 2003 Record Date 25 Jan 2003 Revaluation Date 20 Mar 2003 Deal Quantity 100 Deal Price USD 99 30 Annual YTM 19 72949 Periodic YTM 19 72949 Accrued Interest as of Revaluation date from previous coupon date USD 26 03 01 Mar 2003 to 20 Mar 2003 Market Price as of Revaluation Date USD 102 During revaluation of past
484. on Collection Manual Safe Keeping Location Account Auto ol Input By Authorized By Modification Authorized Exe Date Time Date Time Number Open If you are maintaining details of a new safe keeping location click on wl from the tool bar The Safe Keeping Location detailed screen will be displayed without any details If you are calling a safe keeping location maintenance record that has already been defined choose the Summary option under SK Location Maintenance From the Summary screen double click on a record to open it Safe Keeping location Identification Every safe keeping location that you define needs to be assigned a unique identification code This ID is in turn linked to a single or to multiple accounts depending on the number of accounts you want to link to a specific safe keeping location Description In addition to the SK Location ID you can also specify a title or a short description of the SK location you are defining This will enable you to identify the SK location quickly The short description that you specify is for information purposes only and will not be printed on any customer correspondence oc ORACLE Customer Identification You might be holding securities on behalf of your customer therefore it becomes necessary to maintain a customer profile with respect to the securities held This information can be maintained in the Customer Information Maintenance CIF screen w
485. on Date 02 APR 1998 Statement Reference Currency USD Securities Statement Number 24 Identification of Security Market Valuein Exchange Value in Securities Type Price Security Rate Statement per Unit Currency Reference Currency ISIN Shares 67 25 403 500 00 1 75 706 125 00 USD G0000682341 SGD SGD Plastic Fabrication and Molding Corporation ISIN Shares 6 375 98 493 75 1 75 172364 06 USD G0000764341 SGD SGD Tribeca Device Assembler Corporation Limited ISIN Shares 22 50 225 000 00 1 75 393 750 00 USD S G0000988721 SGD SGD Singapore Precision Computing Inc ISIN Shares 10 25 12 300 00 1 75 21 525 00 USD SG0000698791 SGD SGD Tawdry Textiles and Fashion Corporation Limited Total Value of 739 293 75 1 293 764 06 Securities SGD USD Other Information 27 38 ORACLE Please revert back to us within 15 days from statement date in case of any discrepancies in the above Securities Statement of Holdings Please always quote Our Reference in all further correspondence with respect to above Securities Statement of Holdings Thanking you For DBS Bank Ltd Singapore 27 2 18 Securities Statement of Transactions RBC 98235 08 APR 1998 Royal Bank of Scotland Paris Nestor House Playhouse Yard London UK ZIP 2850 2465 Subject Securities Statement of Transactions Kind Attention Mr Raymond Sinclair Treasury Officer Securities Settlements Department Dear Sir Madam Please find enclosed herewith the Securities St
486. on Date for UNLOCK action to happen SE MA0263 Issuer Reference cannot be null SE MA0264 Record Date should lie between Previous Coupon Date and Event Date SE MA0265 This Security Code already exists in this branch SE MA0266 Price Code Price Quotation Market Value Date and Price are mandatory fields SE MA0267 For Price Quotation Method as YIELD TO MATURITY Interest Quotation Method has to be null SE MA0268 For a BOND Interest Quotation Method is mandatory SE MA0269 Market Value Date has to be greater than equal to security Tearoff Date 1 SE MA0270 Market Value Date has to be less than equal to Redemption Date of the Security 1 SE MA0271 Record Records once authorised cannot be deleted but it they can be modified SE MA0273 This 1 cannot be unlocked as Record Date is already past SE MA0274 Parent Security Id Intermediate Security Id and Resultant Security Id are mandatory fields SE MA0275 Announcement Date cannot be later than the Record Date itself 31 12 ORACLE Error Code Message SE MA0276 Record Date cannot be later than the Event Date SE MA0277 Record Date cannot be later than Today or Today itself SE MA0278 Exercise End Date has to be earlier than the Expiry date of the Intermediate Security 1 SE MA0279 End of Trading Date has to be today or beyond SE MA0280 End of Tradi
487. on chapter deals with setting up products that cater to deal combinations Chapter 20 Maintaining a Security explains the details that you need to enter to maintain a security Chapter 21 Maintaining and Processing Corporate Actions enables you to understand the maintenance of corporate actions and the processing of corporate action events Chapter 22 Defining Portfolios deals with setting up of Portfolios for the Bank your customers and for an Issuer of securities We ORACLE Chapter 23 Processing a Securities Deal deals with processing the following types of Securities deals e Bank portfolio buys and sells e Customer buys and sells e Standalone lodge and withdraw e Safe keeping location SKL to SKL transfer e Block securities Chapter 24 Processing a Block Securities Deal explains the manner in which block deals are processed in Oracle FLEXCUBE Chapter 25 Transferring Securities across Locations explains how to transfer securities from one Safe Keeping location to another or from one account to another within the same location In addition it also tells you how to stop a specified quantity of securities from being traded in the market Chapter 26 Maintaining Block Security Details deals with specifying a quantity of securities to be stopped from being traded in the market Chapter 27 Batch Processes documents the Beginning and End of Day functions that are pro
488. on leg Security Code The security Id Security Description Brief description of the security involved Message The message Parameters The parameters of the security Counterparty The counterparty involved in the security Portfolio Id The Portfolio Id Portfolio Description The description of the portfolio Maker Id The maker Id Checker Id The checker Id 34 20 Securities Exception Report You can generate securities maturity report by using the Securities Exception Print Form screen To invoke the screen type SERXCPT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Securities Exception Print Form Print From From Date Print To To Date 34 20 1 Selection Options You can specify the Redemption Expiry Date before you generate the report 34 20 2 Contents of Report 34 36 ORACLE The contents of this report are discussed under the following heads Header The Header carries the title of the report information on the branch name branch code branch date the Date amp Time the User ID of the user the page number of the report and the module for which the report is generated Body of the Report The following details are displayed Branch Date This is the branch date Contract Ref No This is the reference number of the contract Module Thi
489. onal Start Shipping 1 Bank Ltd Singapo Common re Shares ISIN Instructio 87973 Royal 2 500 25 MAR 32 500 00 SGD G000057232 ns does 2 Bank of 1998 1 not OOOSE Canada Singapore match 08980 Singapo International Counterp 45000 re Trading arty s 8 Corporation Instructio Shares ns ISIN Deliver 23432 Societe 3 600 28 MAR 52 750 00 SGD G000057232 Against 8 General 1998 1 Payment OOOSE e Singapore Instructio 09980 Singapo International ns Failed 51002 re Trading as Funds 4 Corporation were not Shares delivered ai ORACLE Other Information Please revert back to us in case of any discrepancies in the above securities statement of pending transactions Please quote Our Reference in all future correspondence in relation to the above securities statement of pending transactions Thanking You For Development Bank of Singapore Singapore 28 Making Queries 28 1 Introduction In the Securities module of Oracle FLEXCUBE you can query information on e SK security movements e SK location balances e Portfolio security movements e Portfolio balances Whenever you are in the Summary View screen you can query to see specific information The Query screen is displayed Specify the criteria based on which information is to be displayed For instance you may want to know whether a specific external customer has any accounts in a particular SK location and wha
490. ondary deal e Buy or sell type of deal e Deal type is spot or forward 22 3 1 1 Viewing the KEST amount during deal processing At the time of processing a security deal for a customer the system will pick up the KEST rate from the market price maintenance maintained for the various security codes based on the KEST type specified for the customer If the KEST rate is non zero the system will calculate the KEST amount for the above mentioned amount tags It is displayed in the Deal Net Consideration screen P ORACLE Click on Netcons in the Securities Deal Input screen to invoke the Net Consideration screen 7 Deal Net Consideration Web Page Dialog S x Bi Leg Reference No CHODLCS001850012 Leg Description cust sell CumEx Coupon CUM Interest Days 1 O Component Description Currency Amount In Currency Payment Currency Rate i Amount In payme El TF DEAL_NOMINALAMT USD 1 000 00 USD 1 00 7 INT_FLOTIN USD 0 41 USD 1 00 EJ 4l Total Amount In Payment Currency 1 000 41 Interest Details ot baa b m Component Description Currency Amount In Currency Payment Currency Rate Amount In peal I INT_FLOTIN USD 0 41 USD 1 00 If the picked up KEST rate is zero the amounts will not be displayed in the Net Consideration screen as the amount will also be zero The system will not calculate the KEST amount on the Bank leg of the security deals Therefore for Bank Buy
491. ons in a year P Period of Reinvestment Defaulted to A n if null R P Redemption Price wee ORACLE A Accrued Interest Ad Coupon date Value date Ad Redemption date Value date 4 5 2 2 Processing for Treasury Bills The YTM is computed using O S Deal Nominal if COMMON_YLD_ACCR is set to Y During Revaluation of T Bills and Accrual of Discount for T Bills the O S Deal Nominal is also used to compute the Net Present Value NPV The formula used for computation of YTM for T Bills is the same Where Yo 4 Annualizing Method is SIMPLE in this case P Notation Po Purchase price of the T Bill R P Redemption Price Yo Periodic YTM Ad Redemption Date Value Date PPeriod of Reinvestment Yo Deal YTM ADay Count Method Denominator Sr If the parameter COMMON_YLD_ACCR is set to Y discount accrual is calculated at nominal value and no scale up would be done during the discount accrual process This is applicable to both T Bills and Bonds wee ORACLE Day Count Method Numerator Indicate the day count numerator which is to be used to arrive at the number of days for yield calculation The options available are e 30 Euro e 30US e Actual Day Count Method Denominator Select the day count method to be used for calculating yield from the adjoining drop down list This list displays the following values e 360 e 365 e 364 Yield Calculation Parameters for T Bi
492. ormat YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that have elapsed in the year Example January 31 1998 translates into the Julian date 98031 Similarly February 5 1998 becomes 98036 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those elapsed in February 31 5 36 User portfolio reference number In addition to the reference number generated by the system you can enter a reference number for the portfolio This number in addition to the Portfolio reference number generated by the system will be used to identify the portfolio This number should be unique By default the Portfolio reference number generated by the system is taken as the User PortfoliolD Portfolio Identification Enter a unique reference number to identify the portfolio The portfolio will be identified by this reference in addition to the portfolio reference generated by Oracle FLEXCUBE The portfolio reference generated by Oracle FLEXCUBE is defaulted to this field You can choose to change it and indicate a reference of your own You can query information on the portfolio by using any of the reference IDs Fund ID You can indicate as to which fund the aggregate account balance of all the customers under this account class will report for the depositor contribution from the option list Portfolio Type This field is defaulted from the product code that
493. ort Body The following details are displayed Branch Code The branch code Security Description Int Component Portfolio ID The portfolio ID Portfolio The description of the portfolio Description Security ID The security ID description and the initial component C A Date The date of corporate action Counterparty The counterparty details Security Ccy The issuer and security currency Issuer Ccy Days The number of days Nominal The nominal Basic Qty The basic quantity Rate The interest rate Interest Amount The interest amount Initiation Collection Liquidation The initial collection liquidation 34 13 ORACLE 34 9 Corporate Actions Coupons Action You can generate corporate actions report for the current day by using Corporate Action screen To invoke the screen type SERCAPRO in the field at the top right corner of the Application tool bar and click the adjoining arrow button 5 Corporate Action Corporate Action Events Processed Select Event Initiation Branch Selection All Branches Specific Branch Selected Branch az Corporate Action Type Coupons Others Report As On Specify the following details Select Event Select the event from the drop down list The following are the options available e Initiation e Collection e Liquidation e Any of the above e All of the above Branch Selection Indicate the branch for
494. ositions Deals or For Realized Revaluation the amount tags should be replaced with the equivalent tags for Realized Revaluation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator LOCOM_REVAL_EXP LOCOM_REVAL_EXP Debit LOCOM_REVAL_LBY LOCOM_REVAL_EXP Credit MTM_EXP MTM_EXP Debit MTM_LBY MTM_EXP Credit MTM_ASS MTM_INC Debit MTM_INC MTM_INC Credit If you have chosen Deal level revaluation the following entries are passed for Revaluation LOCOM Method Revaluation Expense LOCOM Method Accounting Role and Description Amount Tag and Description Debit Credit MTM_EXP Expense GL for MTM_EXP Revaluation Expense Debit Revaluation MTM Method MTM Method MTM_LBY Liability GL for MTM_EXP Revaluation Expense Credit Revaluation MTM Method MTM Method MTM_ASS Asset GL for MTM_INC Revaluation Income Debit Revaluation MTM Method MTM Method MTM_INC Income GL for MTM_INC Revaluation Income Credit Revaluation MTM Method MTM Method LOCOM_REVAL_EXP Expense LOCOM_REVAL_EXP Debit GL for Revaluation LOCOM Revaluation Expense LOCOM Method Method LOCOM_REVAL_LBY Liability GL LOCOM_REVAL_EXpP Credit 32 37 ORACLE Advices No advices allowed for this event 32 4 3 27 RRVL Reversal of Position and Deal level Revaluation These entries can be set up for any kind of portfoli
495. oss Safe Keeping Locations Facility to change the format of the security 3 3 Proce sina at the Portfolio Level at the Beginning or End of Day Corporate Actions of coupons dividends and stock to cash for bank and customer portfolios gt Manual and auto initiation at the security level gt Manual and auto collection from the SK location by the bank gt Liquidation and disbursement of the corporate action to the portfolio Deal Settlement and updating of holdings Profit and loss booking for user entered and auto deals Accrual entries passed Accrual of Interest Discount Premium Redemption Premium Forward Profit and Loss accruals i ORACLE e Revaluation entries posted 3 4 Getting Started with the Module Oracle FLEXCUBE s Securities module helps you streamline your operations to a remarkable degree This is borne out by the following maintenance features The maintenance functions can be broken into the following categories 1 Maintaining commonly accessed data such as market SK locations Interest Charge and Tax components and so on required to simulate the specific business related environment that you desire 2 Building classes 3 Defining products 3 4 1 Building Classes In Oracle FLEXCUBE a Class embodies a generic set of attributes A class could represent e A set of restrictions branch currency customer security restrictions or portfolio restrictions e A set of prefer
496. osure SE MA0232 Failed to generate the Action Id SE MA0247 Spot Days Count Basis and Spot Days are mandatory fields SE MA0248 For Weekday of Spot day being mentioned holiday treatment becomes mandatory SE MA0249 Ex Days Count Basis and Ex Days are mandatory fields SE MA0250 For Weekday of Ex day being mentioned holiday treatment becomes mandatory SE MA0251 From Day To day Month Indicator Spot Date and Holiday Treatment are mandatory fields SE MA0252 To Day cannot be earlier than From Day SE MA0253 For Month Indicator as FUTURE future months becomes mandatory SE MA0254 For Month Indicator as PREVIOUS previous months becomes mandatory SE MA0255 Both Include To Dates should be same either YES or NO 31 11 ORACLE Error Code Message SE MA0256 Both Liquidation and Accrual Denominator Basis Should have the same value SE MA0257 Market Code as well as Market Description is mandatory before invoking TAX maintenance SE MA0258 For Holiday Treatment being mentioned Weekday of Spotday becomes mandatory SE MA0259 For Holiday Treatment being mentioned Weekday of Ex day becomes mandatory SE MA0260 For Months Indicator as CURRENT Spot Day has to be greater than To Day SE MA0261 For Months Indicator as CURRENT Ex Day has to be less than or equal to From Day SE MA0262 Application Date should be less than the Previous Coup
497. ote on Processing Bonds and T bill based on the YTM parameters While processing a Bond or a T Bills if the Price quote is not by Yield to Maturity the YTM is computed based on the formula given below N R P po Eea RP Ati Ady 14 yy 1 yy e Pg is the Purchase price of the Bond e Nis the Total number of coupons e CC is the Coupon payment for coupon i e yois the Deal YTM Periodic e Yois the Deal YTM e Ais the Day Count Method Denominator e nis the Coupons in a Year e P isthe Period of Reinvestment If Null defaulted to A n e R P is the Redemption Price e Alis the Accrued Interest e Adj is the Coupon Date Value Date e Adwis the Redemption Date Value Date The formula used to calculate the yield given price for T Bills will be R P fy Ad 1 Y a Where a ORACLE e Pois the Purchase price of the T Bill e R P is the Redemption Price e Yois the Deal YTM e Adis the Redemption Date Value Date e Ais the Day Count Method Denominator End of Day processing accrual by the straight line method During EOD processing on each day the system picks up all deals in Bonds and T Bills marked for DPRP accrual based on Constant Yield Basis DPRP stands for Discount Premium and Redemption Premium In case of Bonds from the formula mentioned below the YTM computed and stored at the time of saving the deal is used to arrive at the price of the de
498. ount derived for each of the two years in which the coupon dates fall if the previous and the next coupon dates fall in different years If both coupon dates fall in the same year the denominator will be 365 or 366 respectively depending on whether the current year is a leap year or anon leap year For coupon on 15 01 2000 the formula used is 10 000 000 x 5 100 x 169 365 10 000 000 x 5 100 x 15 366 And for coupon on 15 07 2000 the formula used in this method is 10 000 000 x 5 100 x 182 366 In case 366 basis is Leap Date For coupon on 15 01 2000 the formula used in ACT ACT FRF method is 10 000 000 x 5 100 x 184 365 This period does not include 29 February And for coupon on 15 07 2000 the formula used in ACT ACT FRF method is i ORACLE 10 000 000 x 5 100 x 182 366 29 February falls in this period Case 2 Assume the following parameters are maintained for a Quarterly coupon e Nominal 10 000 000 e Interest Rate 5 per Annum e Coupon Frequency Quarterly e Coupon Date 1 15 01 2000 PCD 15 10 1999 e Coupon Date 2 15 04 2000 PCD 15 01 2000 e Coupon Date 3 15 07 2000 PCD 15 04 2000 e Coupon Date 4 15 10 2000 PCD 15 07 2000 e Numerator Method ACTUAL e Denominator Method ACTUAL Denominator Basis Per Annum In case 366 basis is Leap Year The interest is calculated based on the day count derived for each of the two years in which the coupon dates fall if the previous and ne
499. our customer to a particular SK location By defining a limit for each SK location you can limit your exposure to the particular SK location Banker s Acceptance You can indicate whether or not the SK location can be used for a Banker s Acceptance portfolio The settlement account maintained for this SK customer should be a GL Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances 7 1 2 Specifying SK Location Account For every SK location that you maintain you can define multiple accounts Apart from defining individual accounts for each security you can also define separate accounts for customer and bank portfolios for the same security we ORACLE You can add to or delete from the list of SK location accounts maintained To add a new account click Es and enter the new SK Account Number This number will be associated with the particular safe keeping location to track all future transactions involving the security To delete an button existing SK account highlight the SK account number and click on the 7 1 3 Making Query Click on the Search button in the Summary View screen to display the Query screen 7 2 Computation of KEST 7 2 1 1 KEST is a scheme of levying withholding tax on the income earned by the customers of your bank This type of withholding tax is applicable only on incomes earned from securities Some of the customers mig
500. ovided by the external system has to same if it is a new instrument or if it is an amendment to an existing one When you upload a new instrument the external security Id number will be displayed in the Security ID field for that instrument The Security ID will be the basis for checking whether the instrument exists or not The upload for security amendment will trigger the AMND event The same event is triggered even when you make the amendment in the Securities Definition screen itself The fields that can be amended for a Security are as follows e ISIN Identifier e Description e Redemption Expiry Date e Outstanding Issue Size e Payment Currency At the time of uploading a securities instrument if only the Security Id and Product is provided and the source preference has Put on Hold on Exception then the instrument will be uploaded with status Hold Subsequently any user can modify the same If the instrument is created from the front end and kept on hold only then can the same user modify the instrument If the instrument is created having a market code whose country code is different then the country code of the home branch in which the instrument is created will be treated as Foreign Market Instrument Otherwise the instrument will be treated as Local Security Instrument In Oracle FLEXCUBE the following batch functions will be created to handle triggering of notification e Notification fo
501. performed at the Holdings level you have the option of selecting between Deal level revaluation and Position level revaluation for a specific portfolio This option will not be made available if as a branch parameter you have indicated that the revaluation should be performed at the Portfolio level You will not be allowed to revalue a portfolio at the deal level if the Costing Method for the portfolio is WAC The default level is positions and that cannot be changed The entries passed for deal level revaluation at the event BRVL Securities Revaluation of Positions Deals are Debit Accounting Role and Description Amount Tag and Description Credit Debit MTM_EXP Expense GL for MTM_EXP Revaluation Expense Revaluation MTM Method MTM Method Credit MTM_LBY Liability GL for Revaluation MTM_EXP Revaluation Expense MTM Method MTM Method Debit MTM_ASS Asset GL for Revaluation MTM_INC Revaluation Income MTM Method MTM Method Credit MTM_INC Income GL for Revaluation MTM_INC Revaluation Income MTM Method MTM Method Debit LOCOM_REVAL_EXP Expense GL LOCOM_REVAL_EXP Revaluation for Revaluation LOCOM Method Expense LOCOM Method 21 12 ORACLE Debit Accounting Role and Description Amount Tag and Description Credit Credit LOCOM_REVAL_LBY Liability GL for LOCOM_REVAL_EXP Revaluation Revaluation LOCOM Method Expense LOCOM Method A n
502. ponents DO0161 SE Deal is already settled Can not continue DO0162 SE Failed to save the contract DO0163 SE Failed to reserve record for liquidation DO0164 SE Zero units are available for release DO0165 31 56 ORACLE Error Message Code SE Failed to maintain the template DO0166 SE Contract reference number can not be null Please contact support DO0167 SE Failed to get the counter product details for deal product DO0168 SE Please input rights exercise details before proceeding further DO0169 SE Please enter the Parties details for leg with reference number 1 D00170 SE Failed to initialize the parameters DOO171 SE Failed in Holiday checks DO0172 SE Failed to get the resultant security code DO0173 SE Deal quantity can not exceed the maximum allowed quantity for DO0174 exercise SE Trade Date validations failed D00175 SE Trade date is not between start of exercise date and the end of DO0176 exercise date SE Deal settlement date can not be greater than the redemption DO0177 date expiry date of security SE Failed to validate the DSTL date DO0178 SE Failed to update rows for the deal DO0179 SE Failed in rights exercise processing DO0180 SE Deal quantity should be greater than 0 D00181 SE From leg position can not be same as the to leg position D00182 31 57 ORACLE
503. products of a particular type For instance you can associate a Security Preference Class with the Security Type defined as Bonds only on products maintained for bonds The security type specified also determines the other preferences that you can define for a preference class For example if you indicate the security type as Bond you can also define details relating to interest 10 2 2 Defining Interest Details for a Bond When maintaining a preference class for bonds you must define interest related details These interest details will default to the security bond product with which you associate the class These default interest details can be modified to suit the product Interest Type If you have indicated the security type for a preference class as Bond you should also indicate the Type of Interest It could be one of the following e Fixed e Floating After defining the interest details you can indicate the Coupon and Interest Rate Revision details The Interest Quotation Method The Interest Quotation Method for a bond can be either of the following e Flat e Plus Accrued When the interest component is included in the market price of a security the quotation method is referred to as Flat A flat price of a security is also referred to as the Dirty Price When the interest component is excluded from the market price of a security the quotation method is referred to as Plus Accrued NPR ORACLE Specifyin
504. r You can define the attributes specific to a Portfolio product in the SP Product Definition Main screen and the SP Product Preferences screen In these screens you can specify the product type and set the product preferences respectively Ire ORACLE For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Interest e User Defined Fields e Settlements 17 1 1 Product Type An important detail in defining a product is to specify the type of product you are creating The product type identifies the basic nature of a product A Securities Deal product that you create can be of the following types e Bank buys e Bank sells e Customer buys e Customer sells e Standalone lodge e Standalone withdraw e Safe keeping location SKL to SKL transfer e Block securities The accounting entries that are passed the messages that are generated and the processing of deals involving this product are determined by your entry to this field 17 1 2 Exchange Rate Variance For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all deals associated
505. r Customer USD 20 Cr Asset USD 10 abo ORACLE Cr Premium to be accrued USD 4 Cr Profitand Loss USD6 Customer If you are setting up a Customer portfolio you should indicate the customer for whom you are setting it up Select a customer code from the picklist available For a customer portfolio indicate the default branch of the customer Also indicate default account that should be either debited or credited when an accounting entry involving the portfolio is passed You can set up several portfolios for a customer of your bank Customer Name The customer name is automatically generated based on the customer code selected Customer Branch Indicate the default branch in which the customer or issuer maintains accounts with your bank Select a branch code from the option list This field is applicable only for customer portfolios Customer Account Indicate the default account that should be used for deals involving the portfolio This field is applicable only for customer portfolios Select an account from the option list The option list will contain a list of all the valid accounts that the customer maintains with your bank Description A brief description about the customer account will be displayed Portfolio Costing Method Indicate the method in which the Holding cost of the portfolio should be calculated These preferences are defaulted from the Portfolio product and cannot be changed during Portfolio definiti
506. r Local Instrument Changed e Notification for Securities Coupon Revision Announcement e Notification for Local Market Security Price This batch function will log a notification into the Database queue This will in turn be picked up by the Gateway and will be sent to the external system ie ORACLE During batch handoff for security instrument only the Local Security Instrument will be handed off and not the Foreign Market Instrument 19 5 Bulk Upload Security Instruments amp Market Security Price Using Bulk upload more than one security instrument or market security price can be uploaded If during upload if any one of the instrument or security price has error then the whole upload will be rejected The instrument and security price cannot be uploaded through the same XML simultaneously If the same instrument which has been uploaded successfully is uploaded again an error will be thrown but in case of security price the upload will go through If for the same security price a different data is being sent then it would amend the existing security price with the new information Once the upload is successful all the records will be auto authorized irrespective of maintenance done at the source preference 19 5 1 Specifying Contract Interest Details Numerous interest rates can be defined for a contract through the Contract Interest Details screen To invoke this screen click Interest button in the Securities instrume
507. r a sell Price in Local Currency Enter the price at which the deal was transacted expressed in the local currency This field is applicable only for nominal quoted index securities If you specify the deal price in the index currency the local currency equivalent is displayed in this field You can enter the price of the security as a price or a percentage of the price depending on the price quotation method that you specified earlier You can enter T or M to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million The deal price would include or exclude the purchased or sold interest depending on whether the security being dealt in is quoted flat or plus accrued For a spot deal if the deal price varies from the market price by more that the sensitivity range specified for the security you will be prompted for an override or will not be allowed to process the deal Receive The receive instructions that you can specify to the SKL involved in a deal are e Receive against payment e Receive free Absolute price Incase the price quote is Premium Premium Price etc the Absolute Price is the actual price i e Premium FV of the security This is a system generated field eons ORACLE Local Currency Quantity Enter the number of units traded in the deal expressed in the local currency This field is applicable only for units quoted index securities For indexed securities you ca
508. r indicator e Code e The date on which the entry was booked e Value Date e The deal currency e Amount in deal CCY pare ORACLE e The foreign currency equivalent if applicable e The exchange rate that was used for the conversion e Amount in local currency e All the overrides that were encountered for the event will also be displayed Click Exit button to exit this screen You will be returned to the Securities Deal Input screen 22 2 6 8 Specifying Credit Administration Details In Oracle FLEXCUBE liability tracking is done using credit lines allotted to a customer If you indicated that your exposure to the deal should be tracked you can indicate the credit lines under which it should be tracked Click Limits button from the Securities Deal Input screen the Limits screen is displayed Exposure Lines Leg Reference Undelivered a Total a C Track Clean Risk Limit C Track Pre Settlement Risk Limit In this screen you can indicate the credit lines under which you want to track your e Undelivered risk exposure e Total exposure to the deal leg Your undelivered risk arises only if you specified that the mode of security settlement for the deal is deliver free You can choose a credit line from the picklist available in this screen Click Exit button to delete the entries In either case you will be returned to the Securities Deal Input screen 22 3 Deal Ne
509. r message upon saving the record For Collateral Debt Obligations CDOs the sum of intermediate cash flows cannot be greater than the face value If the Security Type is equity The issuer of equity can grant a holder voting rights This information can be captured when maintaining a security with the Security Type Equity If the Security Type is Right or Warrant Rights and Warrants can be renounced You can capture this information when maintaining rights and warrants 19 2 10 Indicating Banker s Acceptance You can indicate whether or not you intend to use the security you are defining for a Banker s Acceptance deal If this option is checked it implies that you can fund the issuer of the security through a loan contract or a money market placement deal You can also trade in the security on your own behalf The value for this field defaults based on your specification in the Security Product Preferences screen If the default value is Yes you can change it to No but not the other way round The quantity quotation for this security has to be Nominal if the Banker s Acceptance option is enabled ae ORACLE Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances 19 2 11 Specifying Currencies When maintaining a security specify the currency in which it is issued You can also indicate the currency in which the issuer of the security that you ar
510. rading Processing 2 c ccs 2esspcot sesh sotevnctiaetoivent onien denver ested bed aeeai eiA a iaa 20 16 20 8 PROCESSING OF AMENDMENT ON REDEMPTION SCHEDULES ccccccecececececececececececececececeeseecececeeeeeeeess 20 16 20 9 MAINTAINING INTEREST COUPON DETAILS c ccccccccecececececececececececececececececececececececececeeececececececeeeeeeeeess 20 17 20 9 1 Linking Interest Component to Tax Component scscsscesessceseeseeseeseesecceeecseeeeeseseeesecaeeeeenaeeneaees 20 18 20 9 2 Specifying Event NArr ative sussistere isein sites inoaii iivaa Erai nK EEEa 20 19 20 10 PROCESSING INTEREST COUPONS cccccccccececececececececececececacecacacacecacecacacaceeacecacecasecscacacacauscaueeseaeaeaeaes 20 19 20 11 MAINTAINING INTEREST RATE REVISION DETAILS ccccccccececesecececececececececececesecececeseceseceseeeseesuenees 20 20 20 12 MAINTAINING STOCK DIVIDEND DETAILS cccccccccececececececececececececececececececesececececacesecaseeaeeeessesuenaes 20 22 20 13 MAINTAINING CASH DIVIDEND DETAILS ccccccccececececececececececececececececececececececececececaceusseseuesseseaeaes 20 25 20 14 PROCESSING DIVIDENDS ccccccccccececececececececececececececececececececacecacecececacacacaeasesacacasacaeasesaeauseaseeaeseseenaes 20 28 20 15 MAINTAINING BONUS TO CASH CONVERSION DETAILS cccccccecececececececececesecesecececeseceseceseeeseeeeeeees 20 28 20 16 PROCESSING BONUS TO CASH CONVERSIONS ccccccccececececec
511. rd not authorized atleast once SE MA0045 For Third Party as Charge Type Third Party Type is mandatory SE MA0089 Announcement Date should not be greater than or equal to Exercise End Date SE MAO090 Record Date cannot be later then Event Date SE MA0091 For Redeemable securities Event Date should be less than Redemption or Expiry date SE MA0092 Event Date should be greater than Issue or Tear off Date of the security SE MA0093 Either Dividend Amount or Dividend Rate is mandatory SE MA0094 Record Date Cannot be earlier than End of Exercise Date SE MA0095 Value for field Internal Security Id is mandatory SE MAO096 Value for field Event Date is mandatory SE MA0097 Value for field Record Date is mandatory SE MA0098 Value for field Issuer Payment CCY is mandatory SE MA0099 Value for field Resultant Security Id is mandatory if Cash to Stock Option is Yes or Reinvest SE MA0100 Exclusive Lock Acquired by Rajesh S from row 90 to 104 SE MA0102 Event Date should not be less than the Issue or Tear off Date of the security SE MA0103 For Redeemable securities Event Date should be less than Redemption or Expiry date SE MA0104 Record Date cannot be later then Event Date SE MA0105 Announcement Date should not be greater than Event Date SE MA0106 Announcement Date should not be greater than Record Date SE MA0107 Internal Security Id cannot be NULL SE MA0108 Event Date cannot be NULL SE MA0109 Record Date
512. re you need to indicate the actual rates for the two KEST types Consequently at the time of processing a security deal for a customer the system will pick up the KEST rate from the market price maintenance based on the KEST type specified for the customer for a particular security code The system will display the override KEST Rates are not entered if you try to save the market price details without specifying the KEST rates 7 3 Specifying Generation of New SWIFT Messages If you need to generate new SWIFT messages MT 540 541 542 or 543 for any transactions involving the transfer receipt or delivery of securities for a counterparty you must indicate this when you are maintaining the counterparty BIC codes in the BIC Code Details screen You can indicate this by checking the 15015022 box on the screen If the messages MT 520 521 522 or 523 must be generated for any transactions involving the transfer receipt or delivery of securities for the counterparty you can leave the IS015022 box unchecked to indicate the same 8 Building Branch amp Currency Restriction Classes 8 1 Maintaining Restrictions as Classes ne ORACLE From the head office of your bank you can establish certain controls over your branch operations You can achieve these controls by specifying restrictions In Oracle FLEXCUBE you can define restrictions of the following types e The branches that can offer a service and the currencies in which
513. re calling a product combination that has already been created choose the Summary option ee ORACLE From the Summary screen you can to open an existing product combination by double clicking on it Securities Combination Product Maintenance Product Code Description Slogan Product Group Product Start Date Product End Date Remarks Combination Details Preferredleg Buy Leg Sell Leg Buy Product Sell Product Counter Product Input By Authorized By Modification Authorized Date Time Date Time Number Open 18 2 1 Creating a Combination Product Product Code In Oracle FLEXCUBE each product combination that you create is identified by a unique four character code called a product code You can follow your own convention for devising this code however one of the characters of the code should necessarily be a letter of the English alphabet Description You can specify a short description that will enable you to identify the product combination easily The short description specified is for information purposes only and will not be printed on any customer correspondence Product Group Each product combination is classified under a specific group The different groups are defined in the Product Group Definition screen To indicate the group to which a product belongs select a group code from the picklis
514. re to Month End option with relation to a security that you have maintained under the product Assume the Issue Date of the Security is 30 June 2000 and the Maturity Date is 30 June 2002 The coupon frequency is half yearly If you choose the Adhere to Month End option The coupons for this security would be due on the following dates e 31 December 2000 e 30 June 2001 e 31 December 2001 e 30 June 2002 If you do not choose the Adhere to Month End option The coupons for this security would be due on the following dates e 30 December 2000 e 30 June 2001 a ORACLE e 30 December 2001 e 30 June 2002 The coupon due dates for all securities maintained under the product with which you associate the preference class will be calculated in a similar manner depending on the option you choose Specifying the Interest Rate Revision Frequency You can revise the interest rates for bonds with floating interest The revision frequency can be different from the coupon frequency and is referred to as Asynchronous interest rate Revision Asynchronous revision can be e Periodic e Non periodic As part of your preferences for a Security Class you can indicate Interest Rate Revision details The revision details defined for the class will apply on all securities maintained under a product with which you associate the class By default interest rates will be revised according to the coupon frequency defined for a bond If you would l
515. reen displays in tabular columns the following details e The component in consideration e The currency in which the component is defined e The component amount in the component currency e The payment currency of the component eri ORACLE e The payment amount derived using the exchange rate that you specify e The direction in which money flows A sign next to a component indicates that the buyer pays the component amount to the seller and a sign indicates that the seller pays the component amount to the buyer If the component and payment currencies are different the default exchange rate used for the conversion is displayed You have the option to change the exchange rate to be used in the conversion However the rate that you specify should be within the exchange rate variance specified for the product to which the deal is associated The net consideration for the deal expressed in the payment currency is displayed at the bottom of the screen Viewing details of the bought or sold interest Along with other interest details the interest amount is displayed This is the amount of accrued interest to be paid or received on the settlement date The interest is calculated by the system depending on whether the deal is an ex coupon or cum coupon deal You have the option to change the amount calculated for the interest and issuer tax components Interest is applicable only if e Itis an interest bearing security e Itis a sec
516. reen you can capture relevant details such as the dividend type rate or amount the issuer payment currency the exchange rate and the rate fixing date ayen ORACLE You can invoke the Cash Dividend Definition screen by typing SEDCDVDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button You can create a new record by clicking on id in the toolbar or New from the Actions Menu You can call an event record that has already been created through the Summary View screen From this screen choose an existing record and double click it The details of the highlighted record will be displayed in a tabular form Cash Dividend Definition Corporate Action Id External Corporate Action Id Security Id Security Issuer reference Event Date Announcement Date Record Date Dividend Type Dividend Amount Dividend Rate Issuer Payment Currency Exchange Rate Fixing Date Exchange Rate Dispose Fractions C Confirmed Confirmed Date Narrative Fields Input By Authorized By Modification Authorized Date Time Date Time Number Open Corporate Action Identification This is the system generated ID to uniquely identify the declaration of Cash Dividend External Corporate Action Identification This is the Id assigned to the event at the time of even
517. references While creating a product you have specified Role to Head Mapping preferences The preferences specified for the product associated with the portfolio is defaulted Click Role to Head from the Securities Portfolio Definition screen Role To Head Mapping Portfolio Role to Head Mapping Role To Head Portfolio Id Portfolio Description e Description Security Product Role to Head Class Mapping B Product Role To Head Description o az az Security Role to Head Class Mapping ol az a While defining a portfolio you can change the role to head mapping class that is defaulted from the portfolio product You can select a new Role to Head Mapping class and make it applicable to a portfolio Oracle FLEXCUBE provides complete flexibility in mapping accounting roles to heads The levels to which accounting entries can be defined are follow Level one You accept the role to head mapping class defaulted from the product associated with the portfolio In this case the role to head mapping class will be made applicable across all securities in the portfolio ore ORACLE Level two The Role to Head Mapping Class that is defaulted from the product is not applicable to the portfolio being defined You can specify another role to head mapping class and make it applicable to the portfolio In this case the new
518. rekeyed has been entered wrongly at the time of deal definition The re key value is entered wrongly at the time of authorisation It could also be that Mr Atkins had correctly captured the Portfolio ID as PFO1 but the authoriser Mr Hunt made an error while entering the re key value Assume Mr Hunt enters the currency as PF03 In sucha case also the details of the deal will not be displayed for authorisation oe ORACLE 12 2 7 Specifying Other Preferences Besides the above preferences you can also specify the following e Forward deals allowed whether forward deals can be entered into by using a product to which the class is applied e Cancellation allowed whether deals entered using a product to which the class is associated can be cancelled e Spot deals allowed whether spot deals can be entered using a product to which the class is applied e Partial release allowed whether partial delivery of securities is allowed for the deals involving a product to which the class is applied This preference is applicable only if the leg type that you selected is Block securities Check against the relevant preferences to indicate that it is applicable to the class you are defining Leave it unchecked to indicate that it is not applicable to the deal preference class 13 Security Restriction Classes 13 1 Introduction From the head office of your bank you can establish certain controls over the securities that
519. rence number of the deal Leg Reference No Reference number of the transaction leg Leg Type Type of transaction buy or sell Security Code Security code 34 20 ORACLE Description Description of the security Portfolio ID The portfolio ID Deal Quantity Quantity of security traded Face Value Per Face value of the traded unit of security Unit Settlement Details Details of deal settlement Tag Ccy This is tag currency Account The account used for deal settlement 34 12 Deal Settlement Report You can generate security deal settlement report by using the Settled Deals screen To invoke the screen type SERDLSTL in the field at the top right corner of the Application tool bar and click the adjoining arrow button Securities Settled Deals Deal Settlement Date Specify the following details Deal Settlement Date Specify the settlement date for the deal from the adjoining calendar 34 12 1 Contents of Report The contents of this report have been discussed under the following heads 34 21 ORACLE Header The Header carries the title of the report information on the branch code branch date the ID of the user who generated the report the date and time at which it was generated the modules covered in the report and deal settlement date 34 22 ORACLE Body The report is sorted by the deal reference number The following deta
520. rences for the portfolio The preferences defined for the portfolio product to which the portfolio is associated is defaulted You have the option to change some of the defaults but certain details that are characteristic of the product type to which the portfolio belongs cannot be changed The preferences that you can specify are spread over two screens e The Main preference screen e The Detail preferences screen ere ORACLE Security Portfolio Definition Product Code Description e ContractMain Main Preferences Detail Preferences Corporate Action Notice Required C Corporate Action Notice Required L g Corporate Action Required Notice Days Notice Days Type Statement of Holdings Statement Of Holdings required Statement Frequency v Statement Start Day Statement Start Month Statement Number T Bill Accrual Accrual Frequency Accrual Start Day Accrual Start Month Cl Accrue Discount for T Bill U S FF ka C Accrue Withholding Tax For T Bill Discount Statement of Transactions Statement Frequency Statement Start Day Statement Start Month Statement Number Statement Of Transactions required aie To noaa eens sx tacaton securi Resinctona spice aace ms Input By Date Time Authorized By Date Time Contract Status Authorized The Portfolio
521. rency the trade details Click on the tab titled Additional to invoke this screen Securities Block Deal Product a Deal Reference User Reference F Main Additional Format Remarks e Payment Currency Conforms to ISMA Rate Deal Type v Security Currency Priority x Spot Price Dealer Settlement SKL Input By Authorized By Deal Status Authorized Date Time Date Time Specifying Additional Details for the Deal For forward deals you should also indicate spot price details The spot price details that you specify will determine the calculation of forward profit that you have made or the loss that you have incurred in a forward deal Spot Price The spot price refers to the price at which the security is currently quoted in the market This price is compared with the deal price to determine the forward profit or loss The market price of the security as maintained in the price code maintenance screen is defaulted You have an option to change the default The forward profit or loss is the difference between the deal price and the spot price and is calculated from the spot date of the deal to its settlement date In case of forward deals the spot price is defaulted from the market price maintenance and the price cannot be changed n ORACLE Payment CCY If the currency of the security is different from the settlement currency
522. rent Years Income GL Contribution For Premium SEC BRIDGE GL UNACCRD_PREMIUM Unaccrued Premium Debit Securities Bridge GL Settlement Amount 32 22 ORACLE Accounting Role Amount Tag Debit Credit Indicator DEAL_PREMIUM UNACCRD_PREMIUM Unaccrued Premium Credit Deal Premium GL Amount SEC PREM TBACRD SEC_PREM_TOTACCR Total Premium Debit Sec Deal Premium To Accrued on Sold Units Be Accrued GL DEAL_PREMIUM SEC_PREM_TOTACCR Total Premium Credit Deal Premium GL Accrued on Sold Units SEC PREM PAID SEC_PREM_TOTACCR_PY Total Premium Debit Sec Premium Paid Accrued on Sold Units Previous Year s Expense GL Contribution ACCR_PRM_XP_MEM SEC_PREM_TOTACCR_PY Total Premium Credit Accrual of Premium Accrued on Sold Units Previous Year s Expense Memo GL Contribution SEC PREM PAID SEC_PREM_TOTACCR_CY Total Premium Debit Sec Premium Paid Accrued on Sold Units Current Year s Expense GL Contribution ACCR_PRM_XP_MEM SEC_PREM_TOTACCR_CY Total Premium Credit Accrual of Premium Accrued on Sold Units Current Year s Expense Memo GL Contribution When Wipe Deal Purchase Interest is set to Sale the accounting entries pertaining to Purchase Interest are as follows Accrued Accounting Role and Amount Tag and Description Debit Credit Description Indicator SEC BRIDGE SEL Securit
523. repo contract 29 3 1 Specifying Interest Details Numerous interest rates and fees can be defined through the ICCF Interest Commission or Fee screen To invoke this screen click Interest button in the Security Repo Contract Online screen Main ViewDetails ame Grace Period Contract Reference Number Interest Component interest Amount Currency Spread Event Acquired Interest C Waiver Accrual Required Rate Type v Denominator Basis Maximum Rate 366 Basis Minimum Rate Minimum Spread Customer Margin Maximum Spread Grace Period Consider as Discount Specify the following details Interest Basis The method in which the number of days are to be calculated for interest charge commission or fee components and whether their application is tenor based is displayed here based on the specification you made at the product level You can choose to change it The following are the options available e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 29 9 ORACLE e 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 e 30 US 364 e Actual 364 For further information refer the section Specifying Interest Details in the Capturing Details of Deposit chapter in the Deposits User Manual 29 4 Uploading Deals for Amendment From an external system you can upload Securities Deals that require amendment in Oracle FLEXCUBE
524. rest as of Revaluation date from previous USD 34 25 coupon date 01 Jan 2003 to 26 Jan 2003 Market Price as of Revaluation Date USD 102 During revaluation of settled cum deals all the coupons between the revaluation date and the redemption date are discounted to the revaluation date Therefore the effective coupon cash flow considered during revaluation for the deal is Coupon Event Date Coupon 01 Feb 2003 USD 42 47 01 Mar 2003 USD 38 36 01 Apr 2003 USD 42 47 01 May 2003 USD 41 10 01 Jun 2003 USD 42 47 01 Jul 2003 USD 41 10 The computation of net present value for the deal is done as shown in the table below om ORACLE Date Ci Vd 1 Yo Vd P 1 yo Vd P Disc C 01 Feb 03 42 47 6 1 15545 0 016438 1 002378 42 37 01 Mar 03 38 36 34 1 15545 0 093151 1 013550 37 84 01 Apr 03 42 47 65 1 15545 0 178082 1 026065 41 39 01 May 03 41 10 95 1 15545 0 260274 1 038323 39 58 01 Jun 03 42 47 126 1 15545 0 688525 1 051144 40 40 01 Jul 03 41 10 156 1 15545 0 852459 1 063701 38 63 01 Jul 03 10500 156 1 15545 0 852459 1 063701 9871 19 10111 40 The accrued interest as of the revaluation date is excluded from the NPV computed and Flat NPV as of revaluation date is derived Flat NPV NPV Al 10111 40 34 25 10077 15 Revaluation profit or loss is computed by marking
525. rest is to be netted during any sale in the first coupon of the purchase or on the first Coupon of Purchase during Coupon liquidation against the coupon amount e Sale indicates that purchase interest is to be held till redemption When a sale is made purchase interest is reduced proportionately during partial sale full sale redemption If you select this option purchase interest is not netted during coupon liquidation This option can be overwritten at the product level Example You have purchased one unit of a bond with a face value of USD 10 000 and coupon rate of 3 65 p a and monthly coupons on 10 Jan 2002 The bond Issue Interest Start Date is 01 Jan 2002 and the Redemption Maturity Date is 01 Jan 2003 The entries posted for purchase Acquired interest component are as follows The parameter Wipe Deal Purchase Interest is set to Sale During SPLP Security Purchase Debit IntComp_BOT 10 Credit Bridge Buy 10 During CPLQ Coupon Liquidation on the BOD of 1 Feb 2002 Debit Payable 31 Credit IntComp_OFF 10 the purchased interest Credit Int_RCPY 21 The accrued interest Debit Int_Memo 21 movement from unrealized to realized Credit Int_INC 21 movement from unrealized to realized You sell the security on 15 Feb 2003 ae ORACLE During SSLP Security Sale Debit Bridge Sell 0 the difference between Sold interest and interest
526. rest revision schedule for the extended period Example Consider a security with the following parameters Face value 100 USD Trade Start date 01 march 2003 Redemption date 31 august 2003 Redemption Type BULLET ile ORACLE Quantity quotation method Units Assume a buy deal is done on 16 mar 2003 for 100 units of the above security with purchase price 90 USD unit Discount on buy 100 100 90 1000USD qs Assuming monthly accrual frequency with date as 31 the first accruals will be run on 31 03 2003 Discount accrual method is assumed to be STRAIGHT LINE Number of days for which discount has to be accrued will be 31 mar 2003 16 mar 2003 1 16 days Total number of days for discount accrual will be 31 aug 2003 16 mar 2003 168 days Total discount to be accrued 1000 USD Discount already accrued 0 Discount to be accrued till date 1000 16 168 95 24 USD Discount to be accrued today 95 24 USD Now suppose the redemption date is extended to 30 November 2003 on 15 April 2003 During EOD the system triggers accruals for all the deals involving this security to complete accruals till 14 April 2003 For the above deal Total discount to be accrued 1000 USD Discount already accrued 95 24 USD Number of days for which discount has to be accrued 14 apr 2003 16 mar 2003 1 30 days Discount to be accrued till date 1000 30 168 178 57 USD Discount already accrued 95
527. revaluation date is actually the Processing Date Spot Days this is arrived on the basis of the market for revaluation defined in the Security Online screen Revaluation profit loss is found out per unit of security and scaled up to find out the profit loss for the deal quantity The coupon cash flows and the forward price between the revaluation date and the deal settlement date is discounted to the revaluation date The YTM with effective date of the deal settlement date is used to compute the net present value The interest accrued for the period between the coupon date or the security start date and the revaluation date is excluded from the NPV obtained and the clean price is obtained The NPV is computed on the basis of the following formula 26 4 ORACLE Case 1 Revaluation Date lt Deal Settlement Date N NPV 5 4 t__ Ar gt 3 mi y 1 4 Where NPV Net Present Value of the deal N Total number of Coupon cash flows between the deal settlement date and the revaluation date Ci i coupon Yo Periodic Deal YTM vd Coupon Date Revaluation Date p Reinvestment Period Po Forward Flat Purchase Price vd Deal Settlement Date Revaluation Date Al Accrued Interest as of the revaluation date Case 2 Revaluation Date gt Deal Settlement Date AY NPV E e AF L y 1 y Where NPV Net Present Value of the deal N
528. rgent Coupon Dates S00651 SE The Tenor of the Security does not conform to the Tenor Variance S00652 specified at the Product Level SE Coupon Date missing on Redemption Date 1 S000653 SE No Series has been defined for Redemption on Event Date 1 S000654 SE Revision Schedule Definition resulted in convergent Revision S000655 Dates SE Effective Date of Revision on Event Date 1 does not lie within the SO0656 same Coupon Period as the Event Date SE Interest Rate not populated for Interest Component 1 SO0657 SE All Interest Components have been Waived SO0658 SE Tax Rate Code not populated for Tax Component 1 SO0659 SE The Issue date should be later than the product start date SO0660 31 29 ORACLE Error Message Code SE The Redemption or Expiry date cannot be later than the product SO0661 end date SE The Redemption Price is lesser than the Initial Face Value SO0662 Continue 31 3 Error Codes and Messages for Batches Error Message Code SE Failed to Lock SE Leg Reference No 1 for 2 event ACO001 SE Failed to get End Of Input for the current branch AC002 SE This is an End of Day process AC003 SE First run the predecessor programs before Event Selection and ALPL AC004 program SE Process Till Date is Mandatory ACO005 SE Process Till Date cannot be greater than 365 days from today ACO006 SE Are you sure you wa
529. ributes to suit specific security product we ORACLE 10 2Specifying Security Product Preference Classes Security preference classes are maintained in the Security Product Preference Class Definition screen which is invoked from the Application Browser You can invoke the Security Product preference Class Definition screen by typing SEDSEPCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Class Details Class Code Description Module ecurities Security Module Security Type Bond v Equity Type i x Interest Type v Market Of Issue az Restricted Renounceable Redeemable Covered Fractional Quantity Call Option Convertible Allowed Put Option y Minimum Tradable voting Rights Quantiy Redemption Type Quantity Ms aa Bankers Acceptance Decimals Tenor Unit b Quantity Quotation Units v Registered Bearer Registered v Minimum Tenor B v a Price Quotation Price orm Type Scrip Bas f c Q Form Type Scrip Based M Maximum Tenor Interest Quotation v Collateral Type az Allow Asynchronous Method c Revision c Revi Periodic Coupon P Periodic Revision Coupon Details Frequency 4 Adhere To Month End Revision Frequency Week Day v Adhere To Month End Auto Initiation Of Price Code a Corpora
530. rice Number of units held Example You enter a deal in Oracle FLEXCUBE to buy 100 units of equity for a bank portfolio The face value of the equity is USD 10 Currently the equity is quoted in the market for USD 15 The book price of the security using the Weighted Average Costing method is USD 12 For simplicity assume that you have set up your exposure limit to the equity as USD 1200 You have indicated that an exposure beyond this amount is an exception and further processing of the deal should be stalled If your exposure to the security reaches USD 1200 an override should be sought Face value Your liability in holding 100 units of the security is Face Value Number of Units Liability USD 10 100 USD 1000 The deal will go through smoothly as it is below the security limit that you set up Market Value Your liability in holding 100 units of the security is Market Value Number of Units Liability USD 15 100 1500 In this case Oracle FLEXCUBE will not allow you to process the deal as you have exceeded the security limit that was set up Book value Your liability in holding 100 units of the security is Book Price Number of Units Liability USD 12 100 USD 1200 When you save the deal Oracle FLEXCUBE will prompt you with an override message If you choose to ignore the override the deal will go through EEE ORACLE You can specify limit tracking preferences for each of the following security types e
531. rice Quotation Decimals Redemption Type Interest Quotation Equated Redemption Redemption Quotation Renounceable Security Currency Confirm Corp Action Call Option Payment Currency Put Option Issue Size Issue Date Face Value Outstanding Issue Size Start of Interest Date Issue Price Min Trading Size Start of Trading Date Current Face Value Lot Size Redemption Date Redemption Price Status Senes coupon renion Redemton Schedule erst Tax ts Feas Authorized By Contract Authorized Status Date Time Date Time The following are some of the basic details that you can indicate for a security e The Market of Issue e The Issuer ID e The price details e The relevant dates Tear off Start of Interest etc ae ORACLE e The quantity price and interest quotation methods e The currency of the security e If there are Call and Put options associated with the security e The Redemption Quotation whether percentage factor or cashflow e The type of redemption whether in quantity series or bullet e If you can trade the security in fractional quantities e The minimum quantity in which the security can be traded Note that a security will acquire by default all the attributes defined for the product under which it is maintained These default attributes can be changed to suit a particular security 19 2 3 Identifying the Market and the Issuer For a security you can identify a Market of Issue Only a market
532. rice is quoted on the basis of the discount percentage at which the deal was bought or sold Premium in this case the price is quoted on the basis of the premium percentage at which the deal was bought or sold Premium here the price is quoted on the basis of the premium at which the security was bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold Discount the price is quoted on the basis of the discount at which the security is bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold YTM the price is quoted on the basis of its yield to maturity This price quotation method is applicable only for Zero coupon bonds The yield on discounted instruments is measured by the yield to maturity YTM which is the return on a security bought at current market price for the remaining time to maturity of the security The YTM would keep changing with the market price in case the market price increases above the straight discounted price YTM would decrease and vice versa The price using this quotation method is calculated thus Face Value Purchase price Days in a Year YTM Price Days to maturity Based on the deal quantity and the price quotation method the deal amount is determined Irrespective of the price quotation method that is used the net result is the same Example Take a
533. riggered In case of manual liquidation of corporate actions only those actions which have undergone the tear off event will be eligible for liquidation If more than one event is due for liquidation for the same security then you have to trigger each event one after the other Please remember Liquidation for a corporate event is done automatically only if you check the Auto liquidate Corporate Events field in the Portfolio Definition screen If for a portfolio you have unchecked the auto liquidate option then the liquidation event is liquidated manually If the automatic disbursement fails then the event will be identified for processing in the next Event Selection program The same program can however be force liquidated through manual disbursement 20 2 Defining Rights and Warrants As part of the maintenance function in Oracle FLEXCUBE you need to maintain basic details of Rights and Warrants as and when they are issued hci ORACLE Rights and warrants can be defined through the Securities Rights and Warrants Corporate Action maintenance screen The details that you maintain here relate to the ratio at which rights and warrants are issued the resultant security id the resultant ratio the exercise start and end date etc at ORACLE You can invoke the Securities Rights Warrants Definition screen by typing SEDRWDEF in the field at the top right corner of the Application tool bar and clicking on the adjoining
534. rity is quoted units or nominal If the security is quoted in units you should indicate the number of units of the security that was traded If it is quoted as Nominal indicate the sum of the face value for which it is purchased Example You have bought 100 units of a security of face value USD 100 If the security quotation method is units then while indicating the deal quantity you should indicate 100 aoe ORACLE If the quotation method is nominal you should indicate USD 10000 USD 100 x 100 Units at the deal quantity prompt Trade Date The trade date is the date on which the deal is transacted It is also referred to as the deal date The date that you enter can be either today s date or a date earlier than today The trade date should be earlier than the maturity date of the security as specified in the Securities Definition screen For a series with a redemption record the trade date should be earlier than the redemption date Interest The Interest Quotation Method for interest bearing instruments can be e Flat e Plus Accrued You can indicate whether the deal price that you specified includes the purchased interest or the same has to be accrued separately Indicate flat if the price at which the security is quoted includes accrued interest The flat price is also called the Dirty Price Indicate plus accrued to indicate that the price at which the security is quoted excludes accrued interest This quotation m
535. rity that is traded c cccscesccsseesceseeseesecnsesecseeecseeseeseeaeeeeaecaseeseeeeees 22 7 22 2 4 Indicating Deal Details ccccccccccscicesrcsressonesnscvdensseassonssoctioosesaseeneesseongessereussesesensesersevensoenesessosnsess 22 8 22 2 5 Entering Additional Details of a De dl scsccecsssssecssesecsseesenseeseesecasesecacesecsseeneeeceeeeeeaeeaeeaeeneeseees 22 17 22 2 6 Price Details of the Deal csccesccesccsseesseesseesseeseessesecsecaecaeceaecaaecaeeeaeeeaeeeseseneeeeeeeeeeeeeeeeeaeeesenaes 22 18 22 3 DEAL NET CONSIDERATION v 2evecesiecssactstesecensesyvusesssvespbenvsseessepdonee cue EEE EE eoa n EE 22 30 22 4 SPECIFYING DETAILS OF THE PARTIES INVOLVED IN A DEAL ccecseccesescsesecsesecseeesesseseseseseeeseeseeeeseees 22 34 22 5 MAINTAINING SETTLEMENT INSTRUCTIONS FOR A DEAL LEG ccecceseccsesecesesscseeesesseseseseseeesecneeeenaees 22 35 22 5 1 Capturing Settlement Instructions sccecceeceesceeseeescesscesecesecusecuecesecaecasecauecseeeseeeseeeeseeneeeseneenaes 22 36 22 5 2 Capturing Account Details esccecccsscesseesseesseeeceeeeeescesecesecaecuaecaaecaeeeaeeeaeeeaeeeaeeeeeeeseaeeeaeenaessaeeaas 22 37 22 5 3 Capturing Details of the Deal OUtDUtL cecceeeceeeceeceesceeecesecusecueecaeecaeeeaeesaeeeaeeeeeeeeeeseceaeenseeaeaas 22 37 22 5 4 Capturing Party Details cccicisscccsrisoicsneinosenneasedsessionanvoeusedssesientoonensnacepsdenaseoensedteoedeoseasegseseavesnenesens 22 39 22 6
536. rk Stock Exchange Settlement Date 05 APR 1998 Deal Price 102 5 PCT Number of Days Accrued 59 Settlement Amount 1 032 750 00 DEM Quantity of Financial Instrument Confirmed 1 000 000 00 Face Amount Trade Priority Indicator Normal Trade Transaction Type Cum Coupon Payment Mode Against Payment Trade Settlement conditions Unexposed Delivery Partial Settlement of Securities is not allowed Confirmation Parties Buyer Name Goldman Sachs amp Company Address 602 South End Towers JFK Avenue 27 6 ORACLE Our Reference 000SSPT980070021 New York U S A Seller Name Pierson Heldring en Pierson Address 45 28 Hanover House Coopers Avenue Amsterdam Holland Step in Broker Name Brown Brothers Harriman Address Sheraton House Jefferson Avenue New York USA Settlement Parties Buyer Receiver Name Goldman Sachs amp Company Address 602 South End Towers JFK Avenue New York U S A Safekeeping Account 4820 2180 Cash Account 728412 Seller Deliverer 27 7 ORACLE Our Reference 000SSPT980070021 Name Pierson Heldring en Pierson Address 45 28 Hanover House Coopers Avenue Amsterdam Holland Safekeeping Account 90568 32 Cash Account 386098 24 Receiver
537. rked with this revaluation method will be revalued only if they register a loss Revaluation entries are passed at the portfolio level The revaluation basis and method that you specify will determine the manner in which a portfolio is revalued You can select MTM EIM method of revaluation for the portfolio that you are defining only if the following conditions are satisfied e The portfolio costing method is not WAC e Revaluation happens at the Deal level e The asset security is accounted for on accrual basis e The accrual method for Discount Premium and Redemption Premium is Constant Yield and e No Short position is allowed Specifying the Revaluation Basis if the Revaluation Method is LOCOM For portfolios in respect of which you have opted for realized revaluation and the revaluation method is LOCOM and the costing method is WAC you have two options with regard to revaluation basis the basis for LOCOM e If you choose the LOCOM basis as Acquisition Cost the revaluation profit is realized only to the extent of the accumulated realized loss that is revaluation profit goes towards offsetting accumulating revaluation loss e f you choose the LOCOM basis as Holding Cost revaluation profit is not recognized only the revaluation loss if any is realized oe ORACLE If a portfolio product uses a preference class for which this specification has been made the specification is defaulted fro
538. rnational Securities Market Association requirements This indicator is displayed during deal confirmation Dealer You can also capture details of the dealer at your bank that handled the leg of the deal Remarks Enter additional information about the product 23 4 Uploading the Details of a Block Deal After you have specified all the details of the buy ands sell legs you should upload the block deal Click on Upload from the Securities Block Deal Main screen to upload the details of a deal The upload session will automatically create sub deals for each of the parties involved in the multi party leg of the transaction of the block deal You can navigate to the individual sub deals by double clicking the party concerned on the block deal screen You can specify details like the certificate numbers details of the brokerage tax charge etc applicable to the sub deals in the Securities Deal Online screen ne ORACLE 24 Transferring Securities across Locations 24 1 Introduction Depending on customer specification you may need to withdraw a specified quantity of securities from one particular safe keeping location and lodge them in another location To transfer securities from one SK location to another you need to specify certain essential details They can include details such as the quantity of securities to be transferred the date on which the settlement is to take place the codes assigned to the SK locations involved
539. roduct Once you specify the product portfolio the counterparty details are picked up by the system and displayed in the adjacent fields Counter Party The counterparty name or details is displayed based on the Portfolio Id selected 24 1 1 Specifying the SK locations and accounts As part of the general maintenance for the Securities module of Oracle FLEXCUBE you can define various SK locations The securities can be lodged or withdrawn or bought into or sold from the SK locations as and when they are traded with In addition to maintaining SK locations you need to define SK accounts for each of the locations maintained The codes assigned to SK locations and SK account in the SK Location Maintenance screen are picked up and displayed in this screen Therefore while transferring a specified quantity of securities from one SK location to another you have to indicate the SK location code from which securities are to be withdrawn and the location where they are to be lodged In addition you are also required to indicate the accounts from and to which securities are to be transferred You can do this by entering details in the Transfer From and Transfer To fields You can transfer a specified quantity of securities from one account to another within an SK location Indicate the SK location code in the Transfer From field and specify the account from and to which the securities are to be transferred Form Type When you change the form type
540. roker If you are processing a bank buy or bank sell deal that involves brokerage you can indicate the ID of the broker through whom the deal was brokered You can select a Broker ID from the picklist available The picklist will contain a list of valid brokers with whom you can enter deals On indicating the broker code the name of the broker is also displayed You will be allowed to enter details of a broker only if brokerage was allowed for the product to which the deal is associated Indicating whether your liability to the deal should be tracked You can indicate whether your liability to the deal should be tracked If you indicate positively you can indicate the credit lines against which the buy and sell leg of the deal should be tracked Click WalkIn button from the relevant leg of the deal to specify the credit line against which the deal should be tracked The screen that corresponds to this button is discussed under the head Specifying credit administration details 22 2 4 2 Specifying Details of the Sell Leg You can specify the following details for the sell leg of a deal e The Portfolio from which you are selling securities e The counterparty the holder of the portfolio from which you are selling securities e The safe keeping location from which securities need to be collected pent ORACLE e The account at the sake keeping location from which the traded securities need to be transferred e Details of the
541. rt 35 2 ORACLE Function ID Function Description SERDISRP Disposition Report SERDLSTL Securities Settled Deals SERFWPNL Forward Profit amp Loss Accrual Report SERMATRP Security Maturity Report SEROVDRP Securities Overrides Report SERSHSEC Securities with Short Positions Report SERTPDL Portfolio To Portfolio Deals Report SERXCPT Securities Exception Print Form SESSKMOV Safe Keeping Movements Summary SRDCONON Securities Repo Contract Online SRDPRMNT Securities Repo Product Definition SRDVAMND Security Repo VAMI 35 3 ORACLE ORACLE Securities April 2014 Version 11 3 83 02 0 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashira 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2005 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Re
542. rual SE IACO 004 Failed in period accrual function SE IACO 005 Failed in coupon date accrual SE IACO 006 Failed in deleting accrual queues SE IAC1 001 Failed in accrual for a position 31 80 ORACLE Error Code Message SE IAC1 002 Failed in computing quantity for accrual SE IAC1 003 Failed in computing interest balances SE IAC1 004 Failed in obtaining interest history SE IAC1 005 Failed in computing interest amounts SE IAC1 006 Failed in computing tax balances SE IAC1 007 Failed in obtaining tax history SE IAC1 008 Failed in computing tax amounts SE IAC1 009 Failed in passing portfolio entries during interest accrual SE IAC2 001 Failed in obtaining previous interest amounts SE IAC2 002 Failed in obtaining previous tax amounts SE IAC2 003 Failed in computing net interest amounts during accrual SE IAC2 004 Failed in computing net tax amounts during interest accrual SE IAC2 005 Failed in building interest entry lists SE IAC2 006 Failed in building tax entry lists SE IAC2 007 Failed in processing amount tag during interest accrual SE IAC2 008 Failed in populating interest accrual details SE IAC2 009 Failed in populating tax accrual details SE IAC2 010 SE IAC2 011 SE IAC2 012 Failed in populating accrual period SE IAC2 013 Failed in populating accrual details for a position SE IAC2 014 Faile
543. rual Required l The reference number of the deal leg for which you are defining charge details is displayed The screen will contain a list of all the charge components applicable to the deal leg Associating a charge component to a deal leg All the charge components applicable to the deal leg you are processing will be displayed together with the rule that is linked to the component In this section of the screen you can e Change the charge rule linked to the component e Disassociate a charge component from the deal leg Changing the charge rule linked to a component The rule that is linked to a charge component is displayed next to the component To link a new rule to the component A list of all the charge rules maintained will be displayed Select the appropriate rule from the picklist The new rule will be made applicable to the charge component one ORACLE Disassociating a charge component from the deal leg You can disassociate a charge component from the deal leg In the Association section of the Contract Charge screen click against the waive option positioned next to the component In this case the charge component is attached to the deal leg but is not calculated Indicating the charge components to be applied to a deal leg In the application section of the screen you can indicate the charge components that should be applied to the deal leg The list of components that is displayed depends on the charge
544. rual can start only on 10 January However when accrual is done on the 10 January it will be done also for the elapsed period 01 to 10 January Accrual Method Select the method to be used to calculate the amount of forward profit or loss that is to be accrued from the adjoining drop down list This list displays the following values e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 e 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 11 24 ORACLE e 30 US 364 e Actual 364 Accrual Frequency The forward profit that you make or the loss that you incur while trading in securities of a portfolio can be accrued until the settlement date of the deal The frequency with which these components have to be accrued has to be specified as a portfolio preference Thus the forward profit or loss will be accrued at the same frequency for all securities in the portfolio The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Accrual Start Day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency If you want to fix the accrual date for the last working day of the month you should
545. s Product Code Component Details Product Description Component Component Description Interest Details Stop Association Leg Type Event Details Primary Interest Event For Association Event Description Basic Amount Tag Description Amount Category Rate Details Rate Type Floating Rate Type Accrual Required Coupon Flat Amount Per Unit Default Rate Code Default Rate Source Default Tenor Other Details Rate Code Description Rate Source Description Tenor Description Default Waiver Amend After Association Allow Rate Code Amendment 15 4 1 1 Specifying Interest Type Details While building an Interest Component you can define e Primary Interest Applicable only for Securities Module 15 5 Allow Rate Type Amendment Allow Rate Amend ORACLE e Coupon Applicable only for Securities Module 15 4 1 2 Specifying Event Details Events and the Basis Amount The term Event can be explained with reference to a deal A deal goes through different stages in its life cycle such as e Deal Booking e Money Settlement of Deal e Reversal of Deal e Cancellation of Deal Each stage is referred to as an Event in Oracle FLEXCUBE The event at which you would like to associate the interest component being defined to a contract is referred to as the Association Event The basis on which an interest is calculated is referred to as the Basis Amount For instance a co
546. s reference in addition to the Deal Reference generated by Oracle FLEXCUBE This reference should be unique and cannot be used to identify any other deal By default the Deal Reference generated by Oracle FLEXCUBE is taken as the User Reference No 23 2 1 Indicating Details of the Security that is Traded Indicating the security that is traded While entering the details of a deal you should indicate the securities that are traded in the deal and the market in which it is traded Security Code You can select a security code from the picklist The picklist will contain a list of all the securities that you maintained in the Securities Definition screen As you have already maintained details of the security all the features of the security like its price the quotation method the corporate actions that it involves and several other details of the security will be processed based on these details Trading in the security should be allowed for the portfolios involved in the block deal Market Code After you indicate the securities that are being traded in the deal you should indicate the market in which they are traded The market in which a security is traded is defaulted from the Security Definition screen You can change the default and select a market code from the picklist available The list will contain valid market codes maintained in the Market Definition screen Txn Date The transaction date is the date on which you ent
547. s with the longest maturity of one year Bills are discounted instruments Discounted instruments usually do not have a coupon or fixed interest rate Instead the bills are bought at say 8 amount and you receive a higher amount the face value of say 10 at maturity The difference between the two amounts is the discount The rate of interest earned is built into the discount 2 1 8 3 T Notes and T Bonds Issued on behalf of the government Treasury bonds and notes are longer term instruments Notes are issued for one to ten years Bonds are issued with maturities ranging from 10 to 30 years Bonds and notes have fixed or coupon interest rates and pay interest on a semi annual basis The interest is computed on a 365 day basis not 360 as with bills and other instruments 2 1 8 4 Treasury Strips Issued on behalf of the government The Treasury also issues long term discounted Treasury instruments known as strips These instruments do not pay interest periodically Instead they pay face at maturity The difference between what is paid at the time of purchase and what is received at maturity represents the interest earned 2 1 8 5 Certificates of deposit CDs CDs are one of the major instruments of the money market sector which includes T Bills commercial paper and banker s acceptances A certificate of deposit is a negotiable security issued by commercial banks against money deposited over a period of time The value
548. s a leap year or anon leap year For coupon on 15 01 2000 the formula used is 10 000 000 x 5 100 x 169 365 10 000 000 x 5 100 x 15 366 And for coupon on 15 07 2000 the formula used in this method is 10 000 000 x 5 100 x 182 366 In case 366 basis is Leap Date For coupon on 15 01 2000 the formula used in ACT ACT FRF method is 10 000 000 x 5 100 x 184 365 This period does not include 29 February And for coupon on 15 07 2000 the formula used in ACT ACT FRF method is 10 000 000 x 5 100 x 182 366 29 February falls in this period Case 2 Assume the following parameters are maintained for a Quarterly coupon e Nominal 10 000 000 e Interest Rate 5 per Annum e Coupon Frequency Quarterly e Coupon Date 1 15 01 2000 PCD 15 10 1999 e Coupon Date 2 15 04 2000 PCD 15 01 2000 W ORACLE e Coupon Date 3 15 07 2000 PCD 15 04 2000 e Coupon Date 4 15 10 2000 PCD 15 07 2000 e Numerator Method ACTUAL e Denominator Method ACTUAL Denominator Basis Per Annum In case 366 basis is Leap Year The interest is calculated based on the day count derived for each of the two years in which the coupon dates fall if the previous and next coupon dates fall in different years If both coupon dates fall in the same year the denominator will be 365 or 366 respectively depending on whether the current year is a leap year or non leap year For coupon on 15 01 2000 the formula used in is 10 000 000 x 5 100
549. s and Warrants Tear off from the parent security at a user specified ratio Exercise giving a user defined resultant security at a user defined ratio and exercise price Automatic expiry on the date specified Portfolio features supported Bank Portfolio Costing basis Deal Matching LIFO FIFO and Weighted Average Costing Independent accrual option at flexible frequencies Flexible accrual options for forward profit or loss Revaluation using MTM or LOCOM for Settled or Total positions Option to restrict the portfolio from taking a short position Flexible user defined accounting entries and advices for each event Facility to specify upfront the GLs to which accounting entries for a portfolio product would be posted You can change the default to suit a specific portfolio maintained under a product Issuer Portfolio Costing basis is always WAC and the portfolio is always short in the issued security Independent option for accruing interest and discount on zero coupon bonds issued by the portfolio at a user defined frequency Flexible user defined accounting entries and advices for each event Customer Portfolio Can attach pre defined charge components built with different charge bases such as the coupon liquidation amount stock to cash liquidation amount etc to a customer portfolio Can specify the notices to be generated for the various corporate actions due ona security in the portfolio sa ORACLE De
550. s icon invokes the Tax services The application of tax on a deal is discussed under the head Levying tax on a deal 22 2 Entering the Details of a Deal Through the Securities Deal input screen you can process all type of deals Bank portfolio buys and sells Customer buys and sells Accompany lodge and withdraw SKL to SKL transfer and Block securities You can enter the details of a deal by using a deal product product combination 22 2 1 Product You should necessarily use a product or a product combination that has already been created to enter the details of a deal Based on the type of deal you are entering you can select a product or a product combination from the picklist available at the Product field It is mandatory that you use a product combination to process the following deal types that involve two legs a buy and a sell e Bank portfolio buys and sells e Customer buys and sells e Accompany lodge and withdraw eee ORACLE You can use a deal product to process a e Deal that involves only one leg either a buy or sell e Safe keeping location SKL to SKL transfer and e To Block securities A deal will inherit all the attributes defined for the product to which it is associated For deals that are associated with a product combination the preferences specified for the preferred leg of the product combination will be applied You can further add details that are specific to the deal like the dea
551. s is disallowed the coupon plotting date will NOT move to 31 March Instead it will shift to 3 April 4 3 4 Specifying whether Accounting Value Date can Move across Months Interest calculations and accruals are done till the coupon event date However if the coupon event date is a holiday the accounting entries are processed as part of the batch process on the next working day or the previous working day depending upon your specification Select Yes or No in the Accounting field in the Holiday Treatment Move Across Months area If the coupon plotting date itself has moved to a working day then this field becomes irrelevant Example January 31 is a coupon event date falling on a Sunday branch holiday In the Security Definition screen you have specified that the Accounting Value Date Holiday Treatment as Forward Since January 31 is a holiday the system will find the next working day February 01 If you have marked the Move Across Months Parameter as YES then the value date of the accounting entry will be February 01 If you have marked it as NO then the value date of the accounting entry will be January 31 itself For both Coupon Details and Accounting Value Date if movement across months is allowed then such movement takes place subject to necessity and as per other preferences maintained even if this entails a movement across accounting periods or across financial years S ORACLE 4
552. s is the module name Event Code This is the event code Error Code This is the error code Message This is the message Security Id This is the security identification code Security Description This is the security description Portfolio Id This is the portfolio id Portfolio Description This is the portfolio description 34 37 ORACLE 35 Screen Glossary 35 1 Function ID List The following table lists the function id and the function description of the screens covered as part of this User Manual Function ID Function Description AEBEODST End of Day Batch Process BCDDOCCD Bills amp Collections Document Code Maintenance CFDFLRAT Floating Rate Maintenance CFDRTCD Rate Code Maintenance CFDRTSRC Rate Source Definition CFDRTTYP_ Rate Type Definition CSDACTCL Events Class Maintenance CSDCBRCL Branch Currency Restrictions Class Maintenance CSDCUCCL Customer Restrictions Class Maintenance CSDRHMCL Role to Head Mapping Class Maintenance SDRPHOLD Statement Of Holdings Report SEDBLKDL Securities Bulk Deal Input SEDBLONL Securities Block Release Block Input SEDBNKPM Securities Bank Parameter Maintenance SEDBNSCS Bonus To Cash Conversion SEDBRNPM Securities Branch Parameters SEDCDVDF Cash Dividend Definition SEDCOMBP Securities Combination Product Maintenance SEDCPNDF Coupon Mainten
553. s previously issued in the primary market thereby providing liquidity to the investors Investors can buy and sell securities in the secondary market on a continuous basis Due to this the volume of transactions taking place in the secondary market are far greater than those taking place in the primary markets Except for the capital market the other sub markets present in the financial system either do not have a secondary market or their operations in the same are negligible The secondary market transactions of the capital market take place at the stock exchanges All securities that are issued in the primary market will have to be listed on the stock exchanges to enable trading activity The secondary market helps in undertaking maturity intermediation by bringing together savers and users with conflicting maturity targets ee ORACLE 2 1 3 Financial Intermediaries Having designed the instrument the issuer should ensure that these financial assets reach the ultimate investor in order to garner the required amount When the borrower of funds approaches the financial market to raise funds mere issue of securities may not suffice Adequate information of the issue issuer and the security should be passed on the supplier of funds for the exchange of funds to take place To serve this purpose financial intermediaries came into existence Major changes have been witnessed in the type of issuers and investors participating in the market Financia
554. s required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and its 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
555. screen also displays price related details calculated on the basis of the amounts that you specified in the Main screen The features of this screen have been detailed under the head Entering additional details of a deal On the Securities Deal Input screen you will also notice a toolbar with icons The same set of icons is available for each leg of a deal The buttons on this toolbar enable you to invoke a number of functions that are vital to processing a deal These buttons have been briefly described below Advices Click this icon to invoke the advices screen In the screen corresponding to this icon you can view suppress and prioritize the advices that are to be generated for each leg of the deal This screen along with its fields has been detailed under the head Specifying Advices for a deal Brokerage Click this icon to indicate brokerage details applicable to the deal leg Charges This button invokes the Charge service of Oracle FLEXCUBE On invoking this function you will be presented with a screen where the charge rate amount currency and the waive charge parameter can be specified The procedure for making charge components applicable to a deal leg is discussed under the head Levying charges on a deal Deal Match If you are trading in a portfolio that involves deal matching you can indicate deal matching preferences Click this button to match earlier buys in a portfolio to the
556. scription of the security involved Description Interest Specifies the interest component involved Component Record Date Date of creation of the record Counterparty Specifies the details of the counterparty Details Issuer Ccy Currency of the issuer of the security Security Ccy Currency of the security Basis Quantity Specifies the basis quantity of the security involved Interest Rate Specifies the rate of interest charged No of Days Number of days Interest Amount Specifies the Interest Amount calculated Portfolio Total Specifies the total number of portfolios held 34 3 ORACLE 34 3 Coupon Flipping The Coupon Flipping report gives the details of the previous coupon and the next coupon for a particular security To generate the Coupon Flipping report invoke the related screen by typing SERCPFLP in the field at the top right corner of the Application tool bar and then clicking on the adjoining arrow button Coupon Flipping Coupon Event Date You may specify the Coupon Event Date in the above screen Once this is set the report will display the previous coupon details and next coupon details based on the event date 34 3 1 Report Options You may specify the following option before you generate the report e Event Date 34 3 2 Contents of Report The contents of this report are discussed under the following heads Header The Header
557. scsssssesscsscescsseessesecesesscseseseseseesesessuseesseseseaesese 26 4 26 2 1 Unrealized Revaluation for Unsettled Buy and Sell Deals n os 26 4 26 2 2 Unrealized Revaluation for Settled Deal s ceccescsscssssssesscssesseeseeseesecseeecsseeecsseecessecseesesaeeeeeeaeeeeeaees 26 8 ORACLE 27 CUSTOMER CORRESPONDENCE ccsssssssssssssscssccsssessessssssscssssssessssessecsssessessssessessssessessesessecssess 27 19 Ziel INTRODUCTION sess ch tiieoclescuschwizetetiat ENEN EEN E EAE NEEN EEANN EEEN EEEE NE EEKEREN EE 27 19 274 Deal Related Advices niekai e eeir reiras ohe Sa eaid osea Teeraa ESEE EEN 27 19 27 1 2 Corporate action related advices ssis ienkear ieena sasoiari ei ee ienei 27 3 274 3 Statement related GAViCES usiseme deniaiion iieo ae a i keane i 27 4 21 2 SAMPLE OF ALG THE ADVICES siseesccuc sets cosageivescasetstesnsctceoensetttencsccsesexcevidy EEE EEEE EAEEREN REEE 27 5 27 2 1 Securities Trade Confirmation Affirmation Message scscccccsccssesssesecssesecsseeeceseesceseeeeseeneeeecnsseeeeaees 27 5 27 2 2 Securities Market Side Trade Confirmation ccccccccssesscssecssesecsseeseeseeseeseeseeececeeeesseeaceaecaeeeseeeeens 27 8 27 2 3 Securities Receive Free Instruction 1 ccccccscesseeseesseessesecesecesecesceecesecnsecaecaaecseeesaeeseesseeeseeeeeeaees 27 12 27 2 4 Securities Receive Against Payment INStruction cccsccecceesseecesecesecesecusecsecaecusecsecseesseeseeesees 27 14 27 2 5 Securities Deliver Free
558. securities dealer at your bank who sold securities from the portfolio e The money settlement date A note on the settlement date The money settlement indicates the date by which the buyer should pay for the securities bought The settlement date should be later than or the same as the Trade date and earlier than the maturity date of the security For forward deals the settlement date should be later than the default Spot date For spot deals in the primary or secondary market the settlement date should not be a holiday in any of the payment currencies An override will be sought if the money settlement date is a holiday in any of the currencies involved in the deal 22 2 4 3 Specifying Details of the Buy Leg of a Deal In this section we will discuss the details that you should specify for the buy leg of the deal You can specify the following details for the buy leg of a deal e The Portfolio into which you are buying securities e The counterparty the holder of the portfolio into which you are buying securities e The safe keeping location to which securities need to be delivered e The account at the sake keeping location to which the traded securities are being transferred e Details of the securities dealer at your bank who bought securities into the portfolio e The date by which the seller should receive the amount for which securities were sold Besides these you can specify details for the buy leg by invoking the buttons on the
559. sert to Cstb Contract Failed BA0069 SE Unhandled Exception in fn_cstb_contract_insert BA0070 SE Updation Of Cstb Contract Failed BA0071 SE Unhandled Exception in fn_cstb_contract_update BA0072 SE Insert to setbs_deal_master Failed 31 34 ORACLE Error Message Code BA0073 SE Unhandled Exception in fn_deal_master_insert BA0074 SE Insert to setbs_deal_detail Failed BA0075 SE Unhandled Exception in fn_deal_detail_insert BA0076 SE Insert to setbs_deal_parties Failed BA0077 SE Unhandled Exception in fn_deal_parties_insert BA0078 SE Insert to setbs_deal_parties_narrative Failed BA0079 SE Unhandled Exception in fn_deal_narrative_insert BA0080 SE Inserting into exception for reference number 1 failed BA0081 SE Unhandled exception in getting all legs to be processed for MSTL BA0082 SE Insert into event log bombed for leg 1 BA0083 SE Unhandled exception in fn process leg for MSTL for leg 1 BA0084 SE Failed to Lock SE Leg reference no 1 for 2 event BA0085 SE Portfolio ID does not exist for position reference 1 BA0086 SE Corporate action notice details could not be got for 1 BA0087 SE Failed to update corporate actions due table for 1 BA0088 SE Failed in identifying if processing is required BA0089 SE Failed in inserting into contract event advice table for 1 31 35 ORACLE
560. sessseesseeeeeeeceeeeeeecesecuaecnaecnaecneeeneeeaeens 27 36 27 2 17 Securities Statement Of Holdings ccsccssessceseescsseensesecsceseesecsceeecseecesecacesecaeeeeesaeesesaeeaeeaeeaaeaes 27 37 27 2 18 Securities Statement of Transactions cccccsccescessceseceseceseeaceesceeeeeeeceeeceseseeseeeeeeeseseceaeseaessaeeas 27 39 27 2 19 Securities Statement of Pending Transactions scccesccscesscssesssesecsseeecuseeeeseacesecuseeseeaeeteeeseeees 27 41 28 MAKING QUERIES cscsssscesscsssscsescsssssssssnssssssssesssssnessssnessessessscssssessssnessesesssessesssssossssscessessosenses 28 43 25 1 SIN FRODUCTION sesties oI EEEE oe ta tisha AE 28 43 28 1 1 Querying Details of Securities Safe keeping MOVeMeNntS 1 1ccecccseeseeeseeesenceesseeeeeeeeeeneeeneneenaes 28 43 264 2 The Other Query Sheen ss icievciescvisciiecincunsetinssiiisseeroniesicucctaitssutechnseileondaasdeebisue vueuiee Saudiiesmtayeebonteleeee 28 2 DEAS Ordern o nesis ne A sudpcbmadinsiasagosgebe ssegnse devuetoenlasipaenedssedsteets a 28 2 29 HANDLING REPOS iii seasessccsccicscssnscnecasee osssendosessssssvestsencoessesesecessaussonsoscessuccosa50sasestsencesesedsedsssdsssencescaetsacn 29 3 29 1 INTRODUCTION i iceses2 sees2ssisdesssclscticss seevebstscesdsstedeces nt dseuesanbecdebatsdeedsacbdeccsctsecadsetsuedei tevesivetiveesi Hasestsettueess 29 3 29 2 MAINTAINING PRODUCTS sssisisiciscessssiseesesctscesssstsceckedesoeesstbecvebcesceedsetsdesksctauesssessbeus
561. sesuaaececececsesesaecesececeesesaseeeeeeceeseaeaeseeeeeenes 34 7 34 0 1 Contents Of REPOTE sissies aaen ae EA E AE E EE E ENSE EA E E E EE 34 9 34 7 CORPORATE ACTION TRACKING EX DATE REPORT cccsssseceesecceceesseeecessaeeeseesecesaaececseneeeessnseeeneaee 34 10 34 74 Contents Of REPOTE sasse pis ennei a e E nenensudeiaeasoaesdeusedwacsnse r A E EEES 34 11 34 8 CORPORATE ACTIONS COUPONS PENDING ACTION ccsccccssseceessccecesseeeecseseeeesnneeeceeueeessenaeeeeseeeeeneaee 34 12 348 1 Contentsof th Report sieisen guenean aes raiu nanao Ne ERE a EEE EEE 34 12 34 9 CORPORATE ACTIONS COUPONS ACTION ccssccessesceceesececseceececsceeceesaeeecssnaeeesaesecesaaeeeceesaeeeeeeeeeeneaes 34 14 34 9 1 Contents OF thE Report sssrinin onair ae raa eae E ERE E Ea REER 34 15 34 10 CONFIRMED UNCONFIRMED REPORT csssceceessececeeseececesseececseececsesaececseceecscaeeecsesaeeecseeeeceesrseeneaaees 34 17 34 10 1 Contents Of REPOT isisa 3s seetagtaste seas iosssaztisths A R E a E a 34 19 34 11 SECURITY DISPOSITION REPORT c sccccssceceeseececeeseececsneeceesueeecsesaececeseeecessaeeecsecaecessneeecsesaeeeesenaeeess 34 20 34 11 CONTENTS Of Repoti asainne a a A E R Gen geetages 34 20 34 12 DEAL SETTLEMENT REPORT eiiieaen e a a aea a aE EE Ea a E aS naai 34 21 34 12 1 Contents of REDONE xis ties bs eaaa a E a R T es 34 21 34 13 SECURITIES WITH SHORT POSITIONS REPORT c sccecsesceceessececeeseeeeceneaeceeaeeecsasaeee
562. should be shifted forward backward You can also choose that the accounting entries shall be passed as of the coupon processing date itself even though it is a holiday In the Acct Val Dt Holiday Treatment screen you can select from the following options e Forward e Backward e Ignore The choice that you make here defaults to the specific securities that you define under this product If the forward backward shift in an accounting value date entails a movement across months then the value date will be guided by whether you have allowed disallowed movement across months in the Branch Parameters screen oe ORACLE A coupon event date falling on a holiday may itself be shifted to the previous or following working day In that case holiday treatment for the accounting value date becomes irrelevant For more details and an example refer to the chapter on Bank and Branch Parameter Maintenance in this manual Coupon Date Amendment Limit For continuous coupon schedules the coupon payment dates are automatically populated according to the coupon frequency that you specify while defining a security You can amend these dates within the limit that you specify in the Coupon Date Amendment Limit field For more details on changing coupon dates for continuous schedules refer to the Securities Online chapter in this manual 15 4 Capturing Interest Details Click Interest button and invoke the following screen interest Detail
563. ssaececseaeeeeeseeeecseaeeeenenaees 32 1 32 2 SECURITIES EVENTS icsscescessssences Sedessseavecess a a ea aa a wtustecsceceeesaseusadedeecavassncecgecdeed eied 32 1 32 21 Portfolio Type Of Products scsiescccssvestevssscsesnvencssneseiescienesdettevesusbusnesbebetestdevssde veeiedessuvesivsnesebiebnedtevsd 32 32 2 2 Customer Buy Sell Type of Products cc sccccssescsssesscesecssesecnseeseeseeseesecaeesecaeeeeesaeseeeeesaseeesaecatesesaeeeeees 32 2 32 3 AMOUNT TAGS iii scecccidcs ose tcnccecnenosusdevcpientuelvey a dhvtvebe teas eustuiovnauccense eveee nul ee N 32 3 32 4 ACCOUNTING ROLES rsen Seale duathebvcs Welvenue teases MEM vs cite haves evel a vee ers eR wee 32 8 32 4 1 List I Acct Roles for a Portfolio Type Of Product 32 8 32 4 2 List 2 Acct Roles for a Customer Buy Sell Type of Product ccccsccesceseeeseeeseeeseereeeeeeeeeeenensees 32 10 32 4 3 SS Deal with a Portfolio Type Of Product Bank Portfolio sses 32 14 32 44 SS deal with a Customer Buy Sell type Of PrOAUCE 1 scscceseeseeseessesecnsesecuseeeeuseescesecatesecaecateeeaeeaes 32 39 33 GLOSSARY sisscsinsssscescnssnsssessencsscobessstessencsestsesdoveresssdavsedesvoncsecetssnassovenedsssseveed snveesnseuencessesesssecsescssstacesveness 33 1 323 1 SECURITIES TERMS 5c enere sree reneo E EEE cue hlacsoedda vies cacaneeea EEEE 33 1 34 REPORTS sisdsssssssccecesxstennssnsctecestsnvesseccssnesvedeesunsccsscestacsbacccouasvccuesansscescesnsces coussnasessuacessesdsenss ssecsssces
564. sses table for the party If you want to send the advices through another medium you should indicate it in the Parties screen for the party The address for this medium should also be indicated The advices will be sent through the new medium only if you indicate so in the Advices screen of Securities Deal Input screen If not the advice will still be sent to the default address defined for the party even if a different medium has been input You can use this feature to send a one off advice through a different medium For example for a particular customer you would normally send all advices through mail and hence haven t defined SWIFT or TELEX advices at all But for a particular deal you want to send the advices through SWIFT In such a case you can specify the medium as SWIFT and specify the address only for the deal you are processing 22 5 Maintaining Settlement Instructions for a Deal Leg So far we have discussed the basic information that is captured through the Securities Deal Input screen To recall along with other details of a deal you have also specified the buy or sell amounts and the accounts to be debited or credited The Debit and Credit amounts and accounts indicate the accounting entry that has to be passed at your bank to effect the deal This entry is for the deal amount only Apart from the details of these two accounts you may have to capture the following details to effect a deal successfully e The accounts to
565. ssueeecsesaeeecsenaeeess 34 24 34 13 1 AAE A EA E AAE A AA A E AA A A AE 34 24 34 13 2 Contents Of REPOT suea R E R E the tyetbectests 34 24 34 14 PORTFOLIO TO PORTFOLIO DEALS REPORT cccccesssececsesceeessececessuececsuceeceesaeeeceeaaeeecsnsaeeeesneseeneaaees 34 26 34 14 1 CONTENTS Of REDON isinin a a E a ioe beesbeeteges 34 26 34 15 REPORT ON CUSTOMER HOLDINGS OF SHARE CERTIFICATES cc ssscceceesceceesseeeceeaeeecsneeeeessneeeenenaees 34 28 34 15 1 Contents Of REPOT aman a E a a a E E E tee beesbeeteges 34 28 34 16 MATCHED UNMATCHED CONFIRMATION MESSAGE REPORT 0 sssssceesescecessseeeceesaeeecseceeeesseeeenenaees 34 29 34 17 FORWARD PROFIT AND Loss PNL ACCRUAL REPORT ccsssscecessececeeseecessneeeceesaeeecsnseeeesseeeeneaaees 34 31 34 171 Selection OPtiOnS ves ca esosesuasscieseesecvesssetsantebsntancaversinieycdysteoucvubeeausuat st EE EEE ESAE 34 31 34 17 2 Contents Of Repot vicseiativsccvenscsccssncusesutesscevites eie EATE EA 34 33 34 18 SECURITIES MATURITY REPORT seee dees ketones else en el aia asian eva ede EKES EAEN ENESE 34 34 ORACLE 34 181 S lection OPONSE E hes tiunsensduciisdndsssSoveeuvedinesiwnsonnsaa vas cedtaeeedias 34 34 34 18 2 Contents Of REDOVE ansen e EE E E EA E EE E EE E E 34 34 34 19 SECURITIES CONTRACTS OVERRIDES REPORT ccccccecececececececececececececececececececececececeeececececececececeseeecs 34 35 34 19 CONLENES Of REP OVE riire ee E E E E E E ceinesduroutoouiosineaysesenavesszs
566. ssuer class click Default From Class button The Default from Class screen will be displayed In it are available a list of tax classes specific to the Securities module Select the tax scheme to be associated with the issuer tax All the components linked to the particular scheme will be associated with the market code you are defining To change the tax scheme which has already been linked to a market code in the Market Definition screen click on the f button in the toolbar ORACLE 4 7 2 Indicating Stop Association The tax components linked to a tax scheme will be automatically applied to all deals involving the security associated with the particular market code However if you want to stop applying one or more of these components to new contracts that are initiated you can do so by checking the Stop Association field Stopping the application of a tax component for a market code would be equivalent to deleting the component for all deals involving the security However you have the option of using the definition made for the component once again To do so uncheck this field Deals that are subsequently input will pick up the components Entry to certain fields in the Market Definition screen is mandatory If you try to save the record without inputs to all these fields the record will not be saved You will be prompted to give all the mandatory inputs before attempting to save it again ORACLE 5 Main
567. st that you maintain for the class By default all securities entered against this product will be allowed Requirement Assume that you would like to disallow a specific security SECO5 All securities maintained under the different security products will be displayed in the Security ID column under Security Access Highlight the security SECO5 in the Security ID column In the Restriction Type column corresponding to SECO5 choose the Disallowed option Result When you associate the restrictions class SE_CUS_PR1 with a portfolio product say CP01 you can deal in all securities involving SZC1 except the security SECO5 Ia ORACLE 14 Maintaining Portfolio Restriction Classes 14 1 Introduction From the head office of your bank you can establish certain controls over the portfolios that your branches can trade in These controls can be achieved by specifying restrictions A set of restrictions can be grouped together is called a Restriction Class in Oracle FLEXCUBE You can maintain several portfolio restriction classes The Advantage of Defining Restrictions as Classes While creating a product instead of specifying restrictions for each product you need to only associate the appropriate portfolio restriction class to the product All the attributes defined for the class will be applicable to the product These defaulted restrictions can be changed to suit the product Thus you need not define restrictions for each produ
568. st accounting entries For instance when you settle a deal a Money Settlement Event you would e Pass the requisite entries e Print a payment advice You can define the accounting entries and advices to be passed for a set of events as an Event Accounting Entries and Advices Class An Events Class can be associated to a deal or portfolio product that you have maintained At an event in the life cycle of a deal relating to a product or a portfolio the appropriate entries will be passed Advices will be generated as defined for the associated events class 9 4 1 Maintaining an Event Accounting Entries and Advices Class An Events Class is identified with a unique Code and a Description When you define an Events Class you choose first of all the set of events that would belong to the class Events are usually unique to a module For instance events like Securities Purchase from Long Position and Accrual of Securities Discount Earned are specific to Portfolios in the Securities module Therefore to build an Events Class that you would associate with a service offered in the Securities Portfolio module choose the event from a list of events specific to the Securities Portfolio module The events that you would like to include in an Events Class can be identified through the Events Accounting Entries and Advices Class Maintenance screen This screen is invoked from the Application Browser os ORACLE You can invoke the Ev
569. ster BA0043 SE No data found in setm_sk_location BA0044 SE Error while updating setm_corp_actions_due BA0045 SE When Others of fn_cash_dvnd_population BA0046 SE No data found in setm_stock_dividend BA0047 SE Error while rounding Rights fraction BA0048 SE When Others of fn_bonus_population BA0049 SE No data found in setm_rights BA0050 SE When Others of fn_rights_population BA0051 SE No data found in setm_warrants BA0052 SE When Others of fn_warrant_population BA0053 SE No data found in setm_redemption BA0054 SE When Others of fn_redemption_population BA0055 SE Unhandled exception in fn_redemption series 31 33 ORACLE Error Message Code BA0056 SE No data found in setm_coupon BA0057 SE When Others of fn_coupon_population BA0058 SE Unhandled exception in fn_get_sk_for_buysell BA0059 SE Select from SE Master and Detail to Populate Work Table Failed BA0060 SE Security Ccy not maintained for Internal Security Id BA0061 SE Latest ESN not maintained for Contract Reference BA0062 SE Updation of setbs_deal_master bombed BA0063 SE Updation of setbs_deal_detail bombed BA0064 SE Select from setbs_mm_repo_linkage failed BA0065 SE Insert to setws_tmp_repo_exposure bombed BA0066 SE Unhandled Exception in fn_calculate_repo_exposure BA0067 SE Unhandled Exception in sepkss_copy fn_secopy_adeal BA0068 SE In
570. t Product Slogan You can specify a marketing punch line to be associated with the product combination This slogan will be printed on all the advices that are sent to the customers involved in a deal involving this product combination ue ORACLE Specifying the life span of a product A product combination that is defined can be used over a specific period by defining a start and an end date The settlement date of a deal involving a product should be e The same as or later than the Start Date e The same as or earlier than the End Date of the product The start and end date of a product combination is useful when you are defining a product combination for a specific period If you do not specify an End Date a message is displayed prompting you to indicate whether you are creating an open ended product combination In this case the product combination can be used till it is closed Product Remarks You can enter information about the product combination intended for the internal reference of your bank Your remarks will not be printed on any correspondence with the customer Combining two deal products into a combination When you create a product combination you should only associate two unique deal products One catering to the buy leg and the other to the sell leg of a deal The combination could be between any of the types listed below e Bank buys e Bank sells e Customer buys e Customer sells For instance you
571. t SEC BRIDGE SEL Security INTCOMP_PUCMA Purchase Debit Bridge GL SALE Interest INTCOMP_BOT Deal Purchase INTCOMP_PUCMA Purchase Credit Interest Interest SEC BRIDGE SEL Security INTCOMP_TIAC Interest Accrued Debit Bridge GL SALE INTCOMP_RCPY Interest INTCOMP_TIAC Interest Accrued Credit Receivable Payable INTCOMP_IMEM Interest Income INTCOMP_TIAC Interest Accrued Debit Memo INTCOMP_ Interest Income INTCOMP_TIAC Interest Accrued Credit For Discount DEAL_DISCOUNT Deal Discount UNACCRD_DISCNT Debit GL SEC BRIDGE GL Securities UNACCRD_DISCNT Unaccrued Credit Bridge GL Settlement Discount Amount DEAL_DISCOUNT Deal Discount SEC_DISC_TOTACCR Total Debit GL Discount Accrued on Sold Units SEC DISC TBACRD Sec Deal SEC_DISC_TOTACCR Total Credit Discount To Be Accrued GL Discount Accrued on Sold Units ACCR_DIS_IN_MEM Accrual of SEC_DISC_TOTACCR Total Debit Discount Income Memo GL Discount Accrued on Sold Units SEC DISC EARNED Sec SEC_DISC_TOTACCR Total Credit Discount Earned Income GL Discount Accrued on Sold Units For Premium SEC BRIDGE GL Securities UNACCRD_PREMIUM Unaccrued Debit Bridge GL Settlement Premium Amount DEAL_PREMIUM Deal Premium UNACCRD_PREMIUM Unaccrued Credit GL Premium Amount 32 20 ORACLE Accounting Role Amount Tag Debit Credit Indicator SEC PREM TBACRD Sec Deal SEC_PREM_TOTAC
572. t Consideration The sum of all the components of a deal is the net value of the deal While processing a leg of a securities deal you can view the net consideration of the deal aoe ORACLE Click Netcons button from the Securities Deal Input screen The deal net consideration screen is displayed 7 Deal Net Consideration Web Page Dialog xi BI Leg Reference No CHODLCS001850012 Leg Description cust sell Cum x Coupon CUM Interest Days 1 sa FEE O Component Description Currency Amount In Currency Payment Currency Rate Amount In Payme B T DEAL_NOMINALAMT USD 1 000 00 USD 1 00 D INT_FLOTIN USD 1 00 EE TE EJ Total Amount In Payment Currency 1 000 41 Interest Details F EE O Component Description Currency Amount In Currency Payment Currency Rate Amount In peal I INT_FLOTIN USD 0 41 USD 1 00 From this screen you can choose to view either the e Interest e Net consideration of the deal Viewing the Net consideration The sum of the different components of a deal determines the net value of the deal To recall while defining a charge or tax transaction and issuer component you can indicate whether the charge or tax component should be taken into account when determining the net value of a deal All other components of the deal like the interest premium discount forward profit or loss etc will be included in the net consideration of the deal The sc
573. t Date DO0084 SE Trade Date is earlier than Today s System Date DO0085 SE Settlement Date is earlier than Today s System Date DO0086 SE Deal input price exceeds market price by 1 Continue DO0087 SE Deal input price exceeds market price by 1 variance Exception limit DOO088 exceeded SE Deal is already settled Settlement date can not be extended DO0089 SE Portfolio Id for Buy leg and that for sell leg should not be same DOO090 SE Counterparty for Buy leg and that for sell leg should not be same DOO091 SE Money Settlement for is already completed DOO0092 SE Failed in event processing 1 failed DO0093 SE Checker ID can not be same as the Maker ID DOO0094 SE Contract saved as TEMPLATE DOO0095 SE Contract saved DOO096 SE Matched units can not be null DO0097 SE Contract already liquidated DO0098 SE Deal Successfully Saved DO0100 SE Failed to get the price components DO0131 31 54 ORACLE Error Message Code SE Spot date can not be earlier than Trade date D00132 SE Money settlement is already done D00133 SE Deal settlement is already done D00134 SE Could not retrieve spot price for the given face value please input spot D00135 price SE Limits are not maintained D00136 SE Combination of the entered details is not valid D00137 SE Please enter the mandatory fields D00138 SE Money Settle
574. t can not be processed Redemption Due is zero SE MA0452 Event can not be processed Redemption Due is Negative SE MA0453 There are no Interest Components associated with the Security SE MA0454 There are no Issuer Tax Components associated with the Security SE MA0455 Failed to Reverse the Event SE MA0456 Event Successfully Reversed SE MA0460 Select the Portfolio Id to start Printing from SE MA0461 Select the to Portfolio Id to Print SE MA0462 The From Portfolio Id should be less than the To Portfolio Id SE MA0463 Select the From Customer Id SE MA0464 Select the To Customer Id 31 17 ORACLE Error Code Message SE MA0465 The From Customer should be less than the To Customer SE MA0466 The Processing Date cannot be null SE MA0467 Select the From Security Id SE MA0468 Select the To Security Id SE MA0469 The From Security Id should be less than the To Security Id SE MA0470 The redemption type does not match with the redemption type of Security Definition SE MA0471 An open bullet redemption record already exists Cannot have another record SE MA0472 Active Deals exist that are due to settle on or after the record date of redemption Cannot save SE MA0473 Active Deals exist using this series that are due to settle on or after the record date of redemption Cannot save SE MA0474 Start Date cannot be greater than Branc
575. t declaration Enter the Id associated with the event to uniquely identify it Security Identification Specify the security Id of the equity type for which the cash dividend event is to be defined The description associated with the specified code will be displayed in the adjacent field Security Issuer Reference Indicate the issuer reference for the cash dividend event Announcement Date This is the date on which the issuer would have declared the cash dividend event eee ORACLE Enter the announcement date of the event Event Date Enter the date on which the cash payment will be made by the issuer Record Date Enter the date on which the issuer determines the beneficiary eligible for the dividend based on the registered owner of the securities The Record Date is computed from the ex days set up defined for the local market of issue Dividend Type You can indicate the type in which the dividend amount should be declared It could be a percentage of the face value of the security or it could be the amount per unit of the security Dividend Amount This field indicates the amount per unit Specify the amount per unit to be used in calculating the cash dividend Dividend Rate This field indicates the rate as a percentage of the face value Enter a percentage of the face value to be used in calculating the cash dividend Issuer Payment Currency Indicate the currency in which the issuer will make the cash payment C
576. t is the act of recording the price or value of a security portfolio or account to reflect its current market value rather than its book value LOCOM It stands for Lower of Cost or Market It is an accounting method used to establish the dollar amount at which assets are recorded on a savings association s books The amount established is the lower of the cost of the asset or the current market value Under this method assets must be written down if the market value falls below the cost They may also be written up but not above their amortized cost Intrinsic Value It stands for a measure of the value of an option or a warrant if immediately exercised that is the extent to which it is in the money The amount by which the current price for the underlying commodity or futures contract is above the strike price of a call option or below the strike price of a put option for the commodity or futures contract ae ORACLE Renounceable Right It is an offer issued by a corporation to shareholders to purchase more shares of the corporation s stock usually at a discount Renounceable rights have a value and can be traded e ORACLE Restricted Restricted stock also known as letter stock or restricted securities refers to stock of a company that is not fully transferable until certain conditions have been met Upon satisfaction of those conditions the stock becomes transferable by the person holding the award Convertible It stan
577. t is the exposure line Specify the criteria in the query screen according to the procedure mentioned This has been described in a later section of this chapter 28 1 1 Querying Details of Securities Safe keeping Movements You may want to query on the details of security movements from one SK location to another You can do so through the Securities Safe Keeping Movements Summary screen You can invoke the Securities Safe Keeping Movements Summary screen by typing SESSKMOV in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button To invoke this screen highlight Securities Queries and the SKL Sec Movements option in the Application browser The Securities Safe Keeping Movements Summary screen is displayed Click Query button ee ORACLE To view the movement of securities from one SK location to another based on more than one criterion specify all the relevant criteria For example you may want to view details of movement for all securities with the security currency USD having a Value date 31 JAN 2000 for the SK account ACBNK4 To make such a query choose SCY under Fields Equal To under Operator and USD under Value Click Accept button Then click on the Add button Repeat the procedure with the criteria value date and SK account number clicking on Accept button and And button after specifying the value date and account number respectively Th
578. t serein enii e ni e tes e E r E a E a a i E ea 11 12 11 2 12 Holdings St tement isien i i E E E R 11 15 11 2 13 Transaction Statement ceeececesecesnceensecesnceessecesceecssecesacecssecseceecsaeceeaeecsseceeaeecsaeceeaeecnseeeeaeecnaeeeaaes 11 15 11 2 14 CONTA TL OIAING rge E A E EE E ESA E E E E R 11 16 11 3 SPECIFYING DETAILED PREFERENCES siesicscisvecsecsevsossnesnsoncesevscaviescsocereedscssescnuscsucevcensdbecuaseneevedaeescoseverbuts 11 18 11 5 1 Premium Discount ACCrULI ccccccsccescceesseceseceesecesceesaseceseeeessecsceeeaaecesceesaeeceeeeeaaeceeeeeaaesneeeeeneens 11 19 TL32 Limit Tracking soree e a ea oe n a e estes 11 21 11 3 3 Forward Profit and Loss Accru l idiseireseninrtiisi ienaiiino o 11 23 11 3 4 Redemption Premium Accrudl snorris aioi ioi E E EER 11 26 LIB REVALUATION of Positions sessicssccsessescnesinnionvesenstansasnssusessedionssonssoneasndeasesunantebaoedsaosioaeascdseasavedvegenstsnos 11 28 11 3 6 Interest Accrual PreferenCes csccecccccceesceesceescesecesecsecaceeaceasecscecsceseeseeseneeeaeenaeceaeceaeceaecneeeeeeaeees 11 35 11 3 7 Revaluation Exchange Rate COde csccscesssssesscsvscssesecnseesceseesssecseesecaeesecsaeesesaeeasesesaeeeesneteeseaeenes 11 36 11 4 YIELD ACCRUAL FOR DEALS BOUGHT ON PAR s ssssssssesesssssesrsrerssssssesterenrnsenesentenrnesensenrneneenrnenseseneeeren 11 37 12 DEFINING A DEAL PREFERENCE CLASS e sesesesseesserseseseecceerosoeseeecoerosoesesesosoeseseseecesoroeseseeceoesosoesee 1
579. t tings 5tsah2iay te T5805 a diag ide tsd ung capdesegelytadbenen a tabedeaesseadeeiet 13 4 13 23 Security ACCESS i aian a T A the teediacteslagd ueededuioeasedied 13 5 14 MAINTAINING PORTFOLIO RESTRICTION CLASSES sesesseseseeeccesosoesesesoecesoroeseseecesesosoecesesosoesee 14 1 D4 INTRODUCTIONS sossiech EE EE A E r A 14 1 14 2 SPECIFYING THE PORTFOLIO RESTRICTION CLASSES cccccsccssesscssesscseeseesseseeesecoeesecseseeesseeeaesesssensenenene 14 1 ORACLE 14241 POrtfolO ACCESS oiia E esd casts E E A eas a a a E E N 14 4 15 DEFINING ATTRIBUTES OF A SECURITIES PRODUCT sesseseserescesosoesesesoccesosoeseseeceoesosceseeesoeeesoe 15 1 15 1 INTRODUCTION iisisecs svbck aad ceck iisa an E EE ESEE E EE a E aT a aa a EES S EEE E IE EE 15 1 T5 1 1 Produet Type seinci eenei a eiei R AEEA S coud N EKAR Ae EEE E 15 2 13 1 2 Exchange Rate Variance itene R a 15 2 15 2 SPECIFYING PREFERENCES FOR A PRODUCT ccccscsssssssssssensssssesssseessesssssesessesesesesessessssenesssesseseseseesanas 15 3 15 3 COUPON PROCESSING renie beee ar Anena A ae EEN rE aaia KEE ra ES A E RAEE AAEE 15 4 15 4 CAPTURING INTEREST DETAILS 5 6 c 0 esssssietesebedeccdoasisnoouretevssessoebenavadeussdssn spoaesadevscsssbebodnyosonespsevevacnsseecesvecs 15 5 16 DEFINING ATTRIBUTES OF A PORTFOLIO PRODUCT ssesseseseeecsesosoesesesoccesosoeseseecesesosoeseeecoecesee 16 1 TG 1 INTRODUCTION PEP E EE E 16 1 16 1 1 Exchange Rate VAridnce ccccccesccssssecsesscss
580. tails of the security that are specific to the deal you are processing Indicating the deal type Using the Securities module of Oracle FLEXCUBE you can enter spot or forward deals A spot deal is one that settles on the spot date of the market A forward deal is one that settles on a date after the spot date of the deal You have the option to change the settlement date even for spot deals It is mandatory for you to specify the spot price for forward deals The deal will settle at spot price and the difference between the deal price and the spot price is take to be the forward profit or loss Deal Quantity Indicate the quantity of the security that is traded The quantity that you specify depends on the method in which the security is quoted units or nominal If the security is quoted in units you should indicate the number of units of the security that was traded If it is quoted as Nominal indicate the sum of the face value for which it is purchased Example You have bought 100 units of a security of face value USD 100 eon ORACLE If the security quotation method is units then while indicating the deal quantity you should indicate 100 If the quotation method is nominal you should indicate USD 10000 USD 100 x 100 Units at the deal quantity prompt Trade Date The trade date is the date on which the deal is transacted It is also referred to as the deal date The date that you enter can be either today s date or a dat
581. taining Price Details 5 1 Introduction From time to time you need to update the current market price of various securities maintained in the system Through the Market Price Definition screen you can update the market price of the securities that you maintain On selecting a market code for the security being defined the price code details maintained in this screen will be picked up and defaulted to the Security Definition screen You have the option of changing these details at the security definition level Thus at the time of entering a deal all you need to do is select the code assigned to the security All other details such as the market to which it belongs the interest quotation method and the price quote will be automatically picked up from the Security Definition screen You can invoke the Securities Price Definition Maintenance screen by typing SEDMKRAT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Price Definition Maintenance Security Code Market Price Details Value Date Price Quotation Interest Quotation ol esl z I Input By Authorized By Modification Authorized exit Date Time Date Time Number Open If you are maintaining details of the market price for a new security click on from the tool bar The Market Definition detailed screen will be displayed without any details To modify or
582. tation c ccccccccccesscessceseceecnseesessecsecaeeeseeeseeeseeseeeeeeeaees 4 4 4 3 DEFINING BRANCH PARAMETERS 5 sc sisiccsscoacestossadectsvssescessbacessecasascescescesassteusesateucesceteouesutevacesceveosesiacuneecenes 4 5 4 3 1 Specifying the Batch Processing PATAMEteY cccccccescete cess cee cuseesseessessecaeeeseesseeseeeneceeeseaeseaesaeeaas 4 5 4 3 2 Specifying Revaluation Level cesccesccssecssscssenseesseescesseesecesecssecssecsaecsaecoasenaesascnasenssensesseesseesaeeneesnes 4 6 4 3 3 Specifying whether Coupon Dates can Move across Months s ssssssessessesesesereesesreeresrreresrsrreseerees 4 7 4 3 4 Specifying whether Accounting Value Date can Move across Months o ssoseseseeeeeeeeseeeseesse 4 7 4 3 5 Specifying Interest Accrual LEVEL issii E RR E EEES 4 8 AA DEPINING FLOATING RATE CODES ui s sicsscsnccscoses saveccuseecceseaced se NE EES a saen OE dat icesaavvouesadsbaceceavebsesdscuneecen 4 13 45 MAINTAINING MARKET DETAILS 0 2 sncconssesevsorsatevseecberentestesncsnedecsued spe veokeesevaeeeanerenseonevsayiseorentystesssyees 4 22 ORACLE 4 5 1 Specifying Main details ossaa pinnaa epia a aae aa Soa EERS 4 23 4 5 2 EIM for Treasury Bills and Security BONS 0 cccccesccesccesscesecesecusecseeseeeseesseesseeseeeeeeeecnseseaeenaeeaes 4 25 4 5 3 Specifying Interest Details sisirin ia E eA Ei S EEE E e E 4 30 4 6 INTEREST METHOD FOR COMPUTING COUPON INTEREST s s ssssssssesstseseteisssssstsirr
583. te The money settlement indicates the date by which the buyer should pay for the securities bought The settlement date should be later than or the same as the Trade date and earlier than the maturity date of the security For forward deals the settlement date should be later than the default Spot date For spot deals in the primary or secondary market the settlement date should not be a holiday in any of the payment currencies An override will be sought if the money settlement date is a holiday in any of the currencies involved in the deal 23 2 4 Specifying Details of the Multiple Leg of the Deal In this section we will discuss the details that you should specify for the leg that involves multiple parties For each portfolio involved in the multiple leg of the deal you can specify the following details e The Portfolio from which you are buying selling securities e The counterparty the holder of the portfolios into which you are buying selling securities e The safe keeping location to which securities need to be delivered e The account at the sake keeping location to which the traded securities are to be transferred e The quantity of securities that has been bought or sold from the portfolio e Pay account branch ARI ORACLE e Pay account e The Broker involved in the deal e Yield e MSTL Date 23 3 Entering additional Details of a Deal In the Additional Details screen you can define details like the spot price cur
584. te Action Input By Authorized By Modification Authorized Date Time Date Time Number Open Class Code You can identify a security preference class that you build with a unique ten character Class Code You can follow your own convention for devising the code Description You can briefly describe the Security Preference Class that you are defining The description that you specify is for information purposes only and will not be printed on any customer correspondence 10 2 1 The Market of Issue For a Securities Preference class you can identify a Market of Issue Only a market maintained in the Markets Maintenance screen can be specified Your specification here will default to the security products associated with the class However when defining a product while retaining the other preferences that default from the associated class you can change the default market All securities maintained under a product by default will also be associated with the market specified for the product However when maintaining securities under a product in the Securities Definition screen you can identify different markets is ORACLE Security Type The first preference defined for a class is the Security Type Securities can be broadly classified into the following types e Bonds e Zero Coupon Bonds e Equities e Rights e Warrants By indicating the security type you restrict the application of a class on the
585. te can be the date of the coupon rate revision date or the DSTL date of the re computed sell deal 4 3 Defining Branch Parameters A set of rules that governs the processing of securities in a particular branch of your bank is defined in the Branch Parameters screen You can invoke the Securities Branch Parameters screen by typing SEDBRNPM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Branch Parameters Branch Details Branch Code Branch Name Batch Processing Coupon Processing For Holidays Move Across Months Process Till Next Working Accounting Value Date Revaluation Level i ere Holding Interest Accrual Level Deal Position Accrual Level Portfolio Holding Maker Date Time Mod No Checker Date Time Record Status Authorization Status The events for which you had indicated automatic processing are triggered off during the Batch Process You can specify preferences for the automatic events that fall on a holiday in the Branch Parameters screen 4 3 1 Specifying the Batch Processing Parameter You have the option to specify when the batch process should process automatic events falling due on a holiday It could be either e As part of the EOD on the last working date before the holiday e As part of the BOD process on the next working day after the holiday Example Assume today is 15 November 1999 16 November 1999 and 17 Nove
586. terest methods for accrual and liquidation Discounted instruments Treasury Bills Zero Coupon Bonds and Commercial Papers Equities Rights Warrants Corporate Actions processing supported Bonds Collection and disbursement of coupons for long and short holdings collected disbursed by batch from safe keeping location of holding for each portfolio Redemption processed by batch as an auto sell type deal The types of redemption supported are gt Bullet at premium or face value gt Quantity percent of original face value at a user defined redemption price for each intermediate redemption gt Series with user defined series and redemption date and price Warrant events are processed as appropriate auto buy or sell deals between the portfolio and the SK location of the holding oe ORACLE Equities Cash Dividend as rate per face value or value per unit collected and disbursed by batch from the safe keeping location of the holding for each portfolio Stock Dividend Bonus with user defined resultant security processed by batch as a buy deal from the location of holding of the parent security for each portfolio Partial or full cash conversion at user defined encashment price collected by batch from the safe keeping location of the holding for each portfolio Rights events are processed as appropriate auto buy or sell deals between the portfolio and the SK location of the holding Right
587. terest quotation method only if the deal you are processing involves the buying or selling of interest bearing bonds Select an interest quotation method from the option list It could be e Flat e Plus accrued Indicate flat if the price at which the security is quoted includes accrued interest The flat price is also called the Dirty Price Indicate plus accrued to indicate that the price at which the security is quoted excludes accrued interest This price is also referred to as the Clean Price oe ORACLE 23 2 3 Specifying Details of the Single and Multiple Legs of a Deal While entering the details of a block deal you can indicate which leg buy or sell of the deal involves multiple parties Depending on this products associated with the combination product will be made applicable to the appropriate legs of the deal If your branch is a fund branch then customer portfolios cannot be involved in either the buy or sell legs of the Block deal 23 2 3 1 Specifying Details of the Single Leg of the Deal You can specify the following details for the single leg of the deal e The Portfolio involved with the leg of the transaction e The counterparty the holder of the portfolio from which you are buying selling securities e The safe keeping location and account from or to which securities need to be collected or lodged e The broker that brokered the deal e The money settlement date A note on the settlement da
588. th an example Consider the following facts A security purchased for 10 million at a rate of 5 p a with the coupon date of 15 January Case 1 Assume the following parameters are maintained for a yearly coupon Nominal 10 000 000 Interest Rate 5 per Annum Coupon Frequency Annual Previous Coupon Date 15 01 1999 Next Coupon Date 15 01 2000 Numerator Method ACTUAL Denominator Method ACTUAL aoe ORACLE Denominator Basis Per Annum In case 366 basis is Leap Year The interest is calculated based on the day count derived for each of the two years in which the coupon date fall and the formula applied is 10 000 000 x 5 100 x 350 365 10 000 000 x 5 100 x 15 366 In case 366 basis is Leap Date Here the system will apply ACT ACT FRF interest method to compute the coupon interest Since this period does not include 29 February the denominator for interest calculation will be 365 and the formula will be 10 000 000 x 5 100 x 365 365 Case 2 Assume the following parameters are maintained for a half yearly coupon e Nominal 10 000 000 e Interest Rate 5 per Annum e Coupon Frequency Half yearly e Previous Coupon Date 15 01 2000 PCD 15 07 1999 e Next Coupon Date 15 07 2000 PCD 15 01 2000 e Numerator Method ACTUAL e Denominator Method ACTUAL Denominator Basis Per Annum In case 366 basis is Leap Year The interest is calculated based on the day c
589. the Contract Tax Details screen by clicking Tax button from the applicable leg of the deal x Reference No CHODLCS001850009 Transaction Level Tax Issuer Tax Association F i EJ O Creation ESN Component Rule Waiver EJ Application 0 Creation ESN Component Tag Currency Tag Amount Tax Currency Tax Amount Waiver Liquidated EJ EJ Liquidation EJ m Component Tax Currency Tax Amount 22 6 1 Features of the Tax Details Screen The reference number of the deal leg for which you are defining transaction tax details are displayed The screen will contain a list of all the tax components applicable to the deal leg Associating a tax component to a deal leg All the transaction tax components applicable to the deal leg you are processing will be displayed together with the rule that was linked to the component In this section of the screen you can e Change the tax rule linked to the component e Disassociate a tax component from the deal leg ais ORACLE Changing the tax rule linked to a component The rule that is linked to a tax component is displayed next to the component To link a new rule to the component A list of all the tax rules maintained will be displayed Select the appropriate rule from the picklist The new rule will be made applicable to the component Disassociating a tax component from the deal leg You can disassociate a tax component from the deal leg In
590. the Decimals field Deals entered in fractional units of the security will be validated against the decimal value that you specify ae ORACLE 19 2 8 Specifying Type of Price Quotation The method in which price is quoted is a feature of the market where a security is traded Each market may use a particular price quotation method The price of a security can be quoted in the following ways Price in this method the total price of the security is quoted The total price can be expressed as Face Value Premium or Discount Accrued Interest if the interest quotation method is Flat Price the price is quoted as a percentage as follows Price Market price Face value x 100 Discount in this case the price is quoted based on the discount percentage at which the security is bought or sold Premium in this case the price is quoted on the basis of the premium percentage at which the security is bought or sold Premium here the price is quoted on the basis of the premium at which the security is bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold Discount the price is quoted on the basis of the discount at which the security is bought or sold That is the differential between the face value of the bond and the price at which it is bought or sold YTM the price is quoted based on its yield to maturity The yield on a discounted i
591. the Redemption price igi ORACLE Current Face Value This is a system generated value giving the current Face value of the security This is same as the Initial Face Value but may differ in case of split or reduction of face value by the issuer to increase the capital base When viewing the details of bonds defined with quantity redemption you can view the face value as of the current system date Redemption Price The price at which an issuer redeems a security is referred to in Oracle FLEXCUBE as the Redemption Price Enter the Redemption Price of the security when defining it in this screen 19 2 14 Entering Interest Details fora Bond When maintaining a bond you must define its interest details The Interest Quotation Method The Interest Quotation Method for a bond can be e Flat e Plus Accrued When the interest component is included in the market price of a security the quotation method is referred to as Flat A flat price of a security is also referred to as the Dirty Price When the interest component is excluded from the market price of a security the quotation method is referred to as Plus Accrued Specifying the Coupon Frequency You can indicate if the coupons due for a bond are periodic Choose the Periodic option to indicate that the coupon is periodic Coupons for a bond will be calculated according to the periodicity that you specify For an interest bearing bond with a periodic coupon you must ind
592. the batch To exit the screen without running the batch click on the Exit button Once you have run the batch the system will prompt you to verify the status of the activity from the monitor screen The screen displays the details as shown oe ORACLE a AEOD Monitor Web Page Dialog Branch FXB laz Status All EOC Status EOC process completed s laz w Advanced Reset Query Il Refresh Rosultm Branch Process Status Event Sequence Number Error Code Reason FXB FXB FXB FXB FXB FXB FXB FXB O E E Oo E E E O BOD S 1 DateChg S MarkEod S MarkEofi 3 MarkEoti S MarkTI S SEAUTDLY S SRAUTDLY S Process Event Sequence Number Start Time 2008 01 31 15 08 39 2008 01 31 15 08 37 2008 01 31 15 06 26 2008 01 31 15 06 21 2008 01 31 14 50 06 2008 01 31 15 08 39 2008 01 31 14 50 11 2008 01 31 14 50 11 End time 2008 01 31 15 08 39 2008 01 31 15 08 38 2008 01 31 15 08 37 2008 01 31 15 06 26 2008 01 31 14 50 10 2008 01 31 15 08 39 2008 01 31 14 50 11 2008 01 31 14 56 35 Flag B B E F T N T T 26 2 EOD processing for Unrealized Revaluation Details of EOD processing for Unrealized Revaluation are explained below 26 2 1 Unrealized Revaluation for Unsettled Buy and Sell Deals If the revaluation method for unrealized revaluation is set to MTM EIM the unrealized revaluation for the unsettled buy and sell deals will be done as of the revaluation date The
593. the flat NPV obtained against the flat market price using the formula mentioned above Revaluation Profit Loss 102 100 10077 15 122 85 Revaluation Profit USD 122 85 26 2 2 5 Settled EX Deal Revaluation Date and Settlement Date are in Different Periods Deal Settlement Date 27 Jan 2003 Record Date 25 Jan 2003 Revaluation Date 10 Feb 2003 Deal Quantity 100 Deal Price USD 99 30 Annual YTM 19 72949 Periodic YTM 19 72949 Accrued Interest as of Revaluation date from USD 12 33 previous coupon date 01 Feb 2003 to 10 Feb 2003 Market Price as of Revaluation Date USD 102 26 16 ORACLE During revaluation of settled ex deals revaluation date and settlement date are from different coupon periods all the coupons between the revaluation date and the redemption date are discounted to the revaluation date Therefore the effective coupon cash flow that considered during revaluation for the deal is as follows Coupon Event Date Coupon 01 Mar 2003 USD 38 36 01 Apr 2003 USD 42 47 01 May 2003 USD 41 10 01 Jun 2003 USD 42 47 01 Jul 2003 USD 41 10 The computation of the NPV for the deal is done as shown in the table below Date Ci Vd 1 yo vd P 1 yo Vd P Disc C 01 Mar 03 38 36 19 1 19729 0 052055 1 009417 38 00 01 Apr 03 42 47 50 1 19729 0 136986 1 024973 41 43 01 May 03 41
594. the list of categories that you allow Exempting specific securities from an allowed or disallowed list You can exempt specific securities from the restriction specified for the product to which they belong Click add icon and select a security code from the picklist You can choose to Allow or Disallow the security that you have selected by choosing the appropriate option under Restriction Type Click delete icon to remove a security from the list For example You have maintained the following security products in Oracle FLEXCUBE Product Code Products linked to it SECA EQ 1 EQ2 EQ3 SECB BD1 BD2 BD3 You are maintaining security restrictions for a portfolio You have indicated the restriction type as Allowed For this portfolio you have moved the Security product SECA to the allowed list This in effect means that you have Allowed SECA for the portfolio rag ORACLE Disallowed SECB for the portfolio You want disallow security EQ 3 and allow security BD 1 In Oracle FLEXCUBE this is achieved thus Follow the same procedure for the security ID BD1 and indicate that it is allowed for the portfolio Thus you have allowed the securities EQ 1 EQ 2 and BD 1 for the portfolio Confirming your specifications After you have defined restrictions click Exit to delete your specifications You will be returned to the Portfolio Definition screen 21 8Mapping Accounts to a Safe Keeping Location
595. the processing of securities for a branch Chapter 9 Building Restrictions Classes describes how to define Branch and Currency and Customer Restrictions as Classes Chapter 10 The Accounting Role to Head Mapping Class discusses the concept of Accounting Roles and Accounting Heads Also described is the building of Accounting Role to Head Mapping Classes Chapter 11 Defining Security Preference Classes Preferences are the options available for defining the attributes of a security This chapter explains the building of a Security Preference Class Chapter 12 Maintaining a Portfolio Preference Class explains the building of a Portfolio Preference Class Chapter 13 Defining a Deal Preference Class explains the building of a Deal Preference Class Chapter 14 Security Restriction Classes details the concept of a Security Restrictions Class and the procedure of building one Chapter 15 Maintaining Portfolio Restriction Classes discusses the concept of a Portfolio Restrictions Class and the procedure involved in building one Chapter 16 Defining Attributes of a Securities Product describes the concept of a product and the building of a Securities Product in Oracle FLEXCUBE Chapter 17 Defining Attributes of a Portfolio Product explains how you can build a Portfolio Product Chapter 18 Defining Attributes of a Deal Product explained in this chapter is the procedure of building a Deal Product Chapter 19 Defining a Product Combinati
596. the stock goes ex dividend Investors who purchase shares between the ex dividend date sometimes just called the ex date and the pay date are not entitled to the dividend Instead it is paid to the previous shareholder When a stock goes ex dividend its price usually drops by the after tax amount of the anticipated payment 2 1 12 2 Stock dividend Corporation reward the investors by declaring additional free shares to the investors based upon the proportion of holdings of the investors as of the record date Whenever the board of directors feels that the money lying in the Reserve account as explained above is more than adequate they would convert a portion of the reserve into Capital by issuing stock dividends Issuance of stock dividends does not entail any additional cost to the investor If the company issues a stock dividend of 1 2 Investors would get an additional share for every two shares held by them the outstanding units of the company increase by 50 over the existing outstanding units The market value of the stock usually comes down after a stock dividend 2 1 12 3 Interest on Fixed Income securities The interest paid on the fixed income securities bonds is same as the Nominal yield as explained above Interest is normally paid on these securities on a pre defined frequency Companies pay interest on the earnings earned by them prior to payment of tax or cash dividend on both preference equity stocks 2 1 12 4 Redemp
597. ties module Once the event is authorized you can generate various types of advices You can specify the media through which these advices can be sent The options available are e Mail e SWIFT The advices generated in the Securities module can be classified as e Deal related advices e Corporate Action related advices e Statement related advices To generate an advice go to the Outgoing Messages Browser screen of the Messaging module Select the advice you want to generate and click on Generate The format and contents of the mail advices can be configured for your requirements However the default advice formats are available when Oracle FLEXCUBE is shipped to you For all the advices discussed in this chapter the samples are provided below 27 1 1 Deal Related Advices N ORACLE Deal related advices are generated to intimate the customer of the following Trade confirmation When you receive affirmatim of a trade confirmation you can generate and send a trade confirmation affirmatim message to your customer Market side securities trade confirmation At the securities deal level you can specify whether a trade confirmation message for the trade counterparty is required or not If you indicate that the trade confirmation message is required then it will be generated for all securities deals where your bank is one of the trade parties either as the principal or on behalf of one of your customers Receive free When yo
598. tion date as part of the automatic processes run as part of beginning of day BOD or End of day EOD Corpus Account This field is meant for future use Short Positions Allowed If the contra holdings box is unchecked you can select whether the system should validate the holdings during Save online or at the end of the day EOTI If the contra holdings box is checked then Online and EOTI options are not available as the system will anyways allow a short position in the PF Accrue Withholding Tax The withholding tax levied on transactions involving a portfolio can be accrued over the tenure of the security that is traded Check against this field to indicate that withholding tax should be accrued Leave it unchecked to indicate otherwise Bankers Acceptance Check this box if you intend the portfolio to be used for a Banker s Acceptance deal The value for this field defaults based on your specification in the Portfolio Product Preference screen If the default value is Yes you can change it to No but not the other way round Only those SK locations can be chosen for this portfolio which have the Banker s Acceptance option enabled Contra Holding Allowed Check this box to indicate that the checks during save of securities deal should be based on Project Settlement Dated holdings and not on Trade Dated positions 21 4Defining Preferences for a Portfolio While defining a portfolio you can indicate prefe
599. tion in fn_project_balance BA0021 SE Unhandled exception in fn_get_pfolio_balance 31 31 ORACLE Error Message Code BA0022 SE Unhandled exception in fn_get_balances BA0023 SE Unable to insert into setb_pfolio_vdated_movmnts BA0024 SE Unable to insert into setb_pfolio_skacbalances BA0025 SE Unable to get record from setb_pfolio_skacbalances BA0026 SE Unhandled exception in fn_upd_vbal_opening BA0027 SE Failed to get the commit frequency BA0028 SE Unable to get record from sevw_pfolio_skacbalances BA0029 SE Cannot settle Sell deal 1 Deal quantity 2 is greater than Available BA0030 balance 3 SE Unable to get record from sevw_pfolio_skacbalances BA0031 SE Failed to get the Next Processing Date BA0032 SE Unable to insert record into setb_event_log BA0033 SE Unable to lock record 1 BA0034 SE Failed to insert into 1 BA0035 SE Unable to read from setb_event_log BA0036 SE Unhandled exception in fn_rights_RXLL BA0037 SE Unhandled exception in fn_build_event_advice BA0038 SE Unhandled exception in fn_populate_vdbals 31 32 ORACLE Error Message Code BA0039 SE Failed to do FPL accrual for 1 BA0040 SE No data found in setm_security_master BA0041 SE No data found in setm_cash_dividend BA0042 SE No data found in setm_portfolio_ma
600. tion on Fixed Income securities Fixed income securities bonds has a pre defined life of 7 10 years Conceptually the company is indebted to all its borrowers who have funded the bonds The companies would normally redeem its debts and thus there is a fixed maturity period for all the fixed income securities The customers are usually paid back the face value of the bond or the face value and a small premium on the bond at the time of maturity For example if the face value of the bond is 100 the company would repay 100 or 105 Face value premium of 5 at the time of redemption oi ORACLE 2 1 12 5 Rights Warrants Rights offerings give existing shareholders an opportunity to purchase or subscribe to additional shares of stock at a discount from the public offering price when the company prepares to issue new shares These shares which are also called subscription rights are transferable securities The existing investors have the option to allow the rights to expire renounce where they sell the rights offer to another person or exercise the options A warrant attached to another security entitles the holder to convert the security into common stock or some other instrument at a set price during a specified period of time The price set in the warrant is usually lower than the current market value of the common stock These offerings give existing shareholders another opportunity to purchase additional shares at a discount
601. tity e Bullet For bonds with the Redemption Type defined as Series you can specify the Series details in the Security Definition Series screen This screen is invoked by clicking Series button Security Series The actual series redemption dates can be specified in the Security Definition Redemption Schedules screen DA ORACLE For bonds with the Redemption Type defined as Quantity and Series you can specify the redemption details in the Security Definition Redemption Schedules screen This screen is invoked by clicking on the Redemption Schedule button Redemption Schedule Redemption Schedule ol lel a Specify the date s of redemption in the Event Date field and the quantity of redemption in terms of a percentage fraction actual cashflow If the redemption mode is series specify the series that should be redeemed on an Event Date If the redemption quotation is Cashflow you should ensure that the quantity is not less than the interest for the period Redemption price will be derived based on redemption quotation type If the Redemption quotation is Factor then the redemption price will be derived as follows RP Ena Fn FVo Where e Fn Redemption factor of the nth redemption schedule e Fan Redemption factor of n 1 redemption schedule This value will be 1 for the first redemption schedule e RP Redemption price of the n
602. tled positions or settled and unsettled positions in a portfolio You will not be allowed to specify revaluation of only the unsettled positions in a portfolio Revaluation of settled positions in a portfolio can be of two types e Realized e Unrealized In the case of realized revaluation the profit or loss entries passed after the revaluation would be posted to the relevant GL The next revaluation will pass entries based on the market price as of the last time the revaluation was done In the case of unrealized revaluation the profit and loss entries passed after the revaluation will also be posted to the relevant GLs The only difference is that when the next revaluation entries are passed profit or loss entries are based on the original value of the portfolio Example Let us take the example of a portfolio with a holding of 100 units of a security Each unit was bought at the rate of USD 10 on 1 January 2000 The value of the holding in the portfolio is USD 1000 The portfolio is defined with realized revaluation of settled positions We will examine a case where the revaluation for the portfolio is done daily Unrealized revaluation On 2 January the value a unit of the security falls to USD 9 Consequently the value of the portfolio is reduced to USD 900 The revaluation will post a loss to the tune of USD 100 to the relevant profit and loss GLs On 3 January the value of a unit of the security increases to USD 11 The valu
603. tomer portfolio Additional securities may be derived from securities held in custody securities being traded in securities that have been traded in or securities in which trading is yet to take place In the Securities module of Oracle FLEXCUBE this advice is generated when the Rights event record is processed for each customer portfolio and when the Rights securities have been lodged for each portfolio Advice of redemption After redemption of a security has been completed and the money has been settled and credited as per the instructions of the customer portfolio you can generate this advice You can also generate this advice to send the custody customer details of a forthcoming redemption 27 1 3 Statement related advices Statement related advices are generated to intimate the customer of the following Request for statements You can generate a statement of holdings in a particular portfolio either for yourself or on behalf of your custody customer Statement of holdings For a specific period you can generate this advice to notify the customer about the quantity and identification of securities for each of the customer portfolios Statement of transactions To inform your customers about the increase or decrease of holdings in the customer portfolio for a specific period you can generate the statement of transactions The advice can be generated for all or selected securities in all or selected SK location accounts
604. tries Accounting Role Amount Tag Dr Cr Indicator SEC DIVDND PAY SEC_CASH_DIVDND Debit SEC SETTLEMENT SEC_CASH_DIVDND Credit Advices Nil i ORACLE 32 4 3 12 RGLL Rights Security Tear Off Processing Accounting Entries Accounting Role Amount Tag Dr Cr Indicator RIGHTS ASSET GL RGHT_INTR_VALUE Debit SEC BRIDGE GL RGHT_INTR_VALUE Credit Advices No advices allowed for this event 32 4 3 13 RGOL Rights Detachment from Parent Security Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC ASSET GL RGHT_INTR_VALUE Credit SEC BRIDGE GL RGHT_INTR_VALUE Debit Advices No advices allowed for this event 32 4 3 14 RELL Exercise of Rights for New Equity Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL SEC BRIDGE GL Credit SEC DISC TBACRD DEAL_DISCNT_AMT Debit RIGHTS ASSET GL DEAL_NOMINALAMT Credit SEC BRIDGE GL DEAL_NOMINALAMT Debit SEC BRIDGE GL DEAL_PREMIUMAMT Debit SEC PREM TBACRD DEAL_PREMIUMAMT Credit RES SEC ASSET RGHT_INTR_VALUE Debit RIGHTS ASSET GL RGHT_INTR_VALUE Credit Advices No advices allowed for this event 32 29 ORACLE 32 4 3 15 32 4 3 16 32 4 3 17 Accounting Entries RENL Rights Security Exercise Processing Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE
605. ts events table is populated on the record date and is available for maintenance as well as for viewing details of existing events You are allowed to insert after the record date those deals that were settled earlier to this date As and when you insert back dated deals the opening balance of rights warrants due as of the record date is altered This change will be reflected every day at EOD The record date is picked up and defaulted as the processing date If required you can change the processing date Although the processing date can be changed no change can be done to an existing record as of the event date 20 4 Processing Rights Processing for rights takes place for three events e Rights Tear off e Rights Exercise e Rights Expiry Each of the above is processed in stages Initiation Collection and Liquidation depending on the stage that is applicable to the event being processed For instance there is no collection involved in case of tear off events If the automatic processing of events fails due to some then the same events can be force run manually A ORACLE 20 4 1 Rights Tear Off The Events table is as of the record date and is updated when backdated deals are inserted On the initiation processing date a holding in the rights security is created for the portfolio This process is automatically for all equities marked for auto initiation of corporate actions For equities marked for manual corporate action t
606. ts of the report are determined by the preferences that you specify Matched Unmatched Confirmation Messages Matching Type Matched Unmatched Messages Filter All Messages Selected Messages Report H Selected Messages ol z You can specify the following preferences for the report Date Select the date from the option list provided Matching Type You can select any one of the following radio buttons e Matched e Unmatched Messages Filter You can filter the messages selecting any one of the following radio button 34 29 ORACLE e All Messages e Selected Messages 34 30 ORACLE Contents of the Report The contents of this report have been discussed under the following heads Header The Header carries the branch details information on the branch date the ID of the user who generated the report the date and time at which it was generated the modules covered in the report and deal settlement date Body of the Report Branch The branch Userld This is the login user id details Branch Date This gives the branch date Date amp Time Date and Time 34 17 Forward Profit and Loss PnL Accrual Report You can generate forward profit and loss accrual report by using the Forward Profit And Loss Accrual Report screen To invoke the screen type SERFWPNL in the field at the top right corner of the Application to
607. tton in the SRDVAMND screen Main View Details Grace Period Contract Reference Interest Component Currency Event Rate Type Max Rate Minimum Rate Customer Margin Grace Period IP Address Fixed Rate Rate Code Description Description Floating Rate Details Reset Tenor Borrow Lend Indicator Rate Cycle Type C Waiver vi eee vv Consider as Discount Specify the following details Interest Basis Interest Amount Spread Acquired Interest Denominator Basis 366 Basis Minimum Spread Maximum Spread Margin Effective Profit Rate Interest Basis Rate Code Usage M Accrual Required a he 30 Euro 360 v x Lda abit The method in which the number of days are to be calculated for interest charge commission or fee components and whether their application is tenor based is displayed here based on the specification you made at the product level You can choose to change it The following are the options available e 30 Euro 360 30 US 360 Actual 360 30 Euro 365 30 US 365 29 12 ORACLE e Actual 365 e 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 e 30 US 364 e Actual 364 For further information refer the section Specifying Interest Details in the Capturing Details of Deposit chapter in the Deposits User Manua
608. ty Code Indicate the code of the security involving the product which you want to stop from trading Click the adjoining option list for a list of valid security codes The security codes maintained in the Security Definition screen are picked up and displayed in the picklist available for this screen Once you specify the security code the description of the code will be picked up and displayed in the adjacent field pee ORACLE Description This is the description of the security code selected This is defaulted from the instrument definition Form Type Securities that have to be stopped from being traded can be either of the following e Script based e Immobilized e Dematerialized You have to indicate the form type of the security for which trading has to be stopped for a specificed period Security Series If it is security of bond type with series you are required to indicate the series for which trading is to be stopped for a specified period Click the adjoining option list and select the series for which trading is to be stopped Block Date This is the date with effect from which securities should be blocked The system defaults the Block date and the Trade Date and the dates cannot be changed Release Date This is the date on which the blocked securities will be released and will be available for further trading or transfer On entering the product code the System date will be defaulted as the Transaction
609. ty Definition 00501 Function SE Unhandled Exception in Security Definition Function 00502 SE Unable to Update Maintenance Stamp in Security Definition 00503 Function SE Unhandled Exception in Security Definition Function SO00504 31 25 ORACLE Error Message Code SE Unable to Update Current Block Items in Security Definition 00505 Function SE Unable to Update Maintenance Stamp in Security Definition SO0506 Function SE Unhandled Exception in Security Definition Function S00507 SE Unhandled Exception in Security Definition Function 00508 SE Unable to Commit in Security Definition Function SO00509 SE Security Definition Saved Successfully 00510 SE Unhandled Exception in Security Definition Function 0051 1 SE Unable to Commit in Security Definition Function 00512 SE Security Definition Deleted Successfully 00513 SE Unhandled Exception in Security Definition Function 00514 SE Unable to Commit in Security Definition Function 00515 SE Unhandled Exception in Security Definition Function 00516 SE Security Definition is not yet Authorized Once 00517 SE Security Definition is Closed Already 00518 SE Deals have already been struck for the Security 00519 SE Unable to Post in Security Definition Function 00520 SE Unable to Commit in Security Definition Function 00521 31 26 ORACLE
610. type should be Discounted e The Loan MM product can have only one interest component attached Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances 4 2 2 Maintaining Nominal Based Yield Computation For your bank you can specify whether the yield computation for securities should be based on Nominal Cash Flows or Face value per unit You can maintain this parameter in the CSTB_PARAM Bank Level Parameters table Maintain the parameter COMMON_YLD_ACCR as Y Once this parameter is maintained as Y the system will compute the yield and NPV for Bonds and T Bills using Nominal based cash flows Subsequently the system triggers the Yield accrual event YACR The value passed for the event YACR is inclusive of the discount premium accrual for the deal and the events ACRD and ACRP will not be passed separately To compute yield using nominal based cash flows the following validations are performed in the system e Coupon Rate Revision If you have specified the bank parameter COMMON_YLD_ACCR as Y then gt The system does not allow a coupon rate revision prior to an existing IRR effective date The IRR record can be a result of a sell deal or an earlier coupon rate change gt Ifthe revision date is less than the application date the coupon rate revision is populated with the future revision details on confirmation of the coupon rate revision e Buy Deal I
611. u can change the attributes of classes on association with a product to suit a specific security portfolio or deal The module also offers you the flexibility to define portfolios based on your requirements If you are an issuer of securities you can maintain issuer portfolios for the coupon and discounted instruments you issue On these instruments you can automatically track coupon events accruals and redemption till maturity You can define your trading and investment portfolios and choose the costing method LIFO FIFO WAC etc the interest and discount premium accrual frequencies and the revaluation method that you would like to adopt If you offer customer portfolio management facilities you can define customer portfolios and track all life cycle events from inception to maturity You can levy charges on a variety of bases at deal or portfolio level for your services ORACLE 3 2 A Snapshot of the Module Architecture as Eas bie Portfolio Definition Security Definition Portfolio Definition Market Definition The instruments supported Fixed interest bonds with quantity staggered bullet or series type redemptions and user defined coupon schedules supporting different interest methods for accrual and liquidation Flexible interest bonds with quantity bullet or series type redemptions and user defined coupons with synchronous or asynchronous rate revision schedules supporting different in
612. u input a securities deal where either your bank your custody customer is the trade counterparty and the receipt of securities is free of payment a receive free message is generated You can also send this message when your bank has been instructed to receive a specified amount of securities from a specified party free of payment on behalf of your customer Receive against payment When you input a securities deal where either your bank or your custody customer is the trade counterparty The receipt of securities is done against payment of funds and a receive price message is generated You can send this message to your customer when your bank has been instructed to receive a specified amount of securities from a specified party against payment of funds on behalf of your customer Deliver free When you input a securities deal where either your bank or the custody customer of your bank is the trade counterparty and the delivery of specified securities is done free of payment A delivery free message is generated You can also send this message when your bank has been instructed to deliver a specified amount of securities to a specified party free of payment on behalf of your customer Deliver against payment When you input a securities deal where either your bank or your custody customer is the trade counterparty and the delivery of specified securities is done against payment of funds A delivery against payment message is gener
613. ual details e The Redemption Premium Accrual details e Corporate Action Notice details ie ORACLE All portfolios maintained under a portfolio product will inherit the preferences that you define for the product Click Preferences button to invoke the Portfolio Product Preferences screen In the two tabs titled Main and Details in this screen you can define preferences for the product that you are creating The preferences that you can specify are spread over two screens e The Main preference screen e The Detail preferences screen Portfolio Preferences Product Code Class Code Description Main Other Processing Book Discount Premium Accounting Basis Corporate Action Notice Notice Day Notice Day Type Auto Liquidate For Corporate Actions Corpus Account Short Position Allowed Accrue Withholding Tax For Coupons Bankers Acceptance Issue Corporate Notice Action Required Portfolio Type Portfolio Type Contra Holding Validate When Contra Holding Allowed Costing Method Product Description Treasury Bill Accrual Accrual Frequency Accrual Start Day Accrual Start Month Purchase Interest Wipe Deal Purchase Interest Holdings Statement Accrue Discount For Treasury Bills Accrue Withholding Tax For T Bill Disc h Rekey Fields Costing Method Transaction Statement Transaction Frequency Transaction Month Transaction
614. ual is done at the time of defining the security Only those securities for which the auto collect option is checked will be picked up for redemption collection Other events would have to be triggered manually Those events with the collection date less than or equal to today and for which collection has not yet been done are selected for processing The Redemption Collection for short position RDSC or the Redemption Collection for long position RDLC is triggered depending on whether the position is short or long respectively The collection event collects the redemption amount from the safe keeping location and updates the Events table to indicate that collection is complete for the event After the updation of the Events table the events for which liquidation is due and the liquidation date is less than or equal to today are picked up for liquidation The Redemption Disbursement or liquidation for short position RDSL and Redemption Disbursement or liquidation for long position is triggered depending on whether the position is short or long respectively The Events table gets updated after liquidation is complete In case accruals is due then the accrual of interest premium discount and redemption premium are consolidated by running the ACIN and ACPD events The liquidation events RDSL and RDLL are run only after that Once you run the accrual event the tax and ICCF details will also get updated The initiation collection and
615. uct or a product combination that has already been created to enter the details of a block deal Based on the nature of the deal you are entering you can select a product combination from the picklist available at the Product field A block deal will inherit all the attributes defined for the preferred leg of the product combination to which it is associated You can further add to or change the details that are defaulted from the product to suit the deal you are processing Deal Reference No In Oracle FLEXCUBE identification references are generated automatically and sequentially This unique number tag is used to identify the block deal you are entering it is also used in all the accounting entries and transactions related to the deal The deal reference is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD eae ORACLE 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 January 31 1998 translates into the Julian date 98031 Similarly February 5 1998 becomes 98136 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those elapsed in February 31 5 36 User Reference You can enter an identification reference number for the deal A deal will be identified by thi
616. uction Before beginning operations on the Securities module you need to maintain certain basic information The information that needs to be maintained includes e Bank and Branch parameter details e Floating interest rate details e Market definition details e Safe Keeping location details e Tax details The procedure for maintaining these details is discussed in the following sections The basic information necessary for the successful operation of the securities module should be periodically reviewed and updated to reflect the latest changes i ORACLE 4 2 Maintaining Bank Parameters In the Securities Bank Parameters screen you maintain certain basic information regarding the processing of Auto Deals You can invoke the Securities Bank Parameters screen by typing SEDBNKPM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Bank Parameter Maintenance Bank Code Exposure Tracking Undelivered Exposure Total Exposure Security MIS Parameter Yield to Maturity Display Decimals Propagate Market Price Across Branches Rights amp Bonus Warrants amp Redemption Deal Products Rights Exercise Product Bank Portfolio Customer Portfolio Rights Expiry Product Bank Portfolio Customer Portfolio Rights Tear off Product Bank Portfolio Customer Portfolio Bonus Product B
617. uding to the next coupon date excluding The interest might need to be received or paid depending on whether the deal is a buy or a sell Yield You can enter the equivalent yield of the bond for the price that you input It is important to note that no processing is done based on the yield that you enter It is only for reporting purposes Input Price Enter the price at which the deal is transacted You can enter the price of the security as a price or a percentage of the price depending on the price quotation method that you specified earlier You can enter T or M to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million The deal price would include or exclude the purchased or sold interest depending on whether the security being dealt in is quoted flat or plus accrued For a spot deal if the deal price varies from the market price by more that the sensitivity range specified for the security you will be prompted for an override or will not be allowed to process the deal Note the Following e The price that you enter is taken to be in the currency of the security that is traded e The entries made in this field can be amended before the deal is authorised However if amendment is required after authorisation you should reverse the deal and enter it again Interest Indicate whether the price at which the security is quoted includes accrued interest You can specify an in
618. ue scenario bonds are bought at face value These bonds are normally traded at a discount on the face value The investors then hold on these bonds to maturity at which time the face value of the security is recovered from the issuer In the bond market three types of yield are typically encountered e Nominal Yield e Current Yield e Yield to maturity Nominal Yield This is the percentage of interest paid on the face value of the instrument For instance a 1000 bond with an interest obligation of 7 has a nominal yield of 7 07 x 1000 It pays 70 interest per year on each 1000 bond Current Yield Bonds pay interest based on the face value The interest or coupon rate remains the same regardless of fluctuations in the market price of the bond The investor is concerned with the return or the amount of interest received on the amount of money paid Current yield tells the investor what the return is given the price of the bond For example the bond in the previous example is selling for 120 that is the bond costs the investor 1200 to acquire It still pays only 70 in interest 7 on the face value of 1000 Although as the bond s owner investor receives 70 the return is based on a cost of 1200 The current yield is therefore only 5 83 70 1200 Yield to Maturity This type of yield takes into account the net dollar amount that an investor can expect if the bond is held to its maturity date For instance a
619. uer Reference Indicate the issuer reference for the interest rate revision event Sen ORACLE Announcement Date Enter the date on which the issuer would have declared the interest revision event Event Date Each Rate Revision defined is having a event date from when it will be applicable From this date the interest revision rate will be effective MIS Rate For the Securities module you only have the option of maintaining a fixed rate for MIS refinancing Enter the MIS refinance rate in this field Confirmed Check this box to indicate if the occurrence of the event is confirmed Confirmation Date When you select the check box and save the record the confirmation date will be defaulted with the current date Parent Security Identification You have to indicate the code or ID of the bond type for which you are defining the interest revision rate The Security ID or Code is picked up from the Security Definition screen This short description of the security is for information purposes only and will not be printed on any customer correspondence Interest Component You can specify the component of the security for which you are defining the interest revision rate At the time of defining a security you can maintain different interest components for the security The interest component s maintained will be reflected in the picklist available for this field Effective Date Each rate that is defined for a Securit
620. umber 05 Financial Instrument Narrative Siemens Semi Annual Interest Bearing Five 27 9 ORACLE Our Reference 000SSPT980070021 Year Bonds Confirmation Details Trade Date 01 MAR 1998 Place of Trade New York Stock Exchange Settlement Date 05 APR 1998 Deal Price 102 5 PCT Number of Days Accrued 59 Settlement Amount 1 032 750 00 DEM Quantity of Financial Instrument Confirmed 1 000 000 00 Face Amount Trade Priority Indicator Normal Trade Transaction Type Cum Coupon Payment Mode Against Payment Trade Settlement conditions Unexposed Delivery Partial Settlement of Securities is not allowed Confirmation Parties Buyer Name Goldman Sachs amp Company Address 602 South End Towers JFK Avenue New York U S A Seller Name Pierson Heldring en Pierson Address 45 28 Hanover House Coopers Avenue Amsterdam ei ORACLE Our Reference 000SSPT980070021 Holland Step in Broker Name Brown Brothers Harriman Address Sheraton House Jefferson Avenue New York USA Settlement Parties Buyer Receiver Name Goldman Sachs amp Company Address 602 South End Towers JFK Avenue New York U S A Safekeeping Account 4820 2180 Cash Account 728412 Seller Deliverer Name Pierson
621. und If the Annualizing method is Compound the Annual YTM is computed as follows Yor 0 1 If the Annualizing method is Simple the annual YTM is computed as follows PE Where e yo is the Periodic YTM e Ypois the Annual Deal YTM e Ais the Day Count Method Denominator this is picked up from your maintenance in the Security Definition screen e P is the Period of Reinvestment If Null defaulted to A n Apart from these details you need to specify the Day Count Denominator and Numerator methods for all Bonds and T Bills ae ORACLE 4 5 2 EIM for Treasury Bills and Security Bonds Oracle FLEXCUBE also supports yield computation using nominal based cash flows This is applicable for bonds and treasury bills for both WAC and non WAC based portfolio cash flows 4 5 2 1 Processing for Bonds If the parameter COMMON_YLD_ACCR is set to Y the initial cash flow for yield computation will be based on the net considerations of the deal Yield will be calculated based on the actual cash flows instead of the face value The formula used for computation of YTM for Bonds is the same N C R P a Al y 1 y n Where A Y ja y 1 Annualizing Method is COMPOUND in this case Notation Po Purchase price of the Bond N Total number of coupons Ci Coupon payment for coupon i Yo Periodic YTM Yo Annualized Deal YTM ADay Count Method Denominator nNumber of coup
622. unsettled cum deals all the coupons between the deal settlement date and the revaluation date first coupon from settlement date are ignored while constructing the cash flows are discounted to the revaluation date Therefore the effective coupon cash flow considered during revaluation for the deal are Coupon Event Date Coupon 01 Mar 2003 USD 38 36 The computation of the net present value for the deal is done as shown in the table below Date Ci Vd 1 Yo vd P 1 yo Vd P Disc C 01 Mar 03 38 36 19 1 19729 0 052055 0 990671 38 72 27 Jan 03 9930 52 1 19729 0 142466 0 974673 10188 03 10149 31 The accrued interest as of the revaluation date is excluded from the NPV computed and Flat NPV as of the revaluation date is derived 26 14 ORACLE Flat NPV NPV Al 10149 31 26 03 10123 29 Revaluation profit or loss is computed by marking the flat NPV obtained against the flat market price using the formula mentioned above Revaluation Profit Loss 10123 29 102 100 76 71 Revaluation Loss USD 76 71 26 2 2 4 Settled CUM Deal Revaluation Date in the same Coupon Period as of the Settlement Date Deal Settlement Date 15 Jan 2003 Record Date 25 Jan 2003 Revaluation Date 26 Jan 2003 Deal Quantity 100 Deal Price USD 100 25 Annual YTM 15 54504 Periodic YTM 15 54504 Accrued Inte
623. unting Roles At an event in the life cycle of a deal involving a product to which you associate the class the appropriate entries will be passed under the specified Accounting Roles Specifying the Amount Tag The amount i e the principal the brokerage the charge amount etc that is to be posted for an event is referred to as the Amount Item The tag associated with an Amount Item is the Amount Tag Invoke a list of the amount tags that are maintained in the Amount Tag field You can choose a tag by double clicking on it Indicating if a debit or credit You have already specified the type of account to which an entry should be passed and the tag which identifies the amount principal brokerage charge amount etc that should be passed In this field you must indicate if the amount is to be debited from credited to the specified account Choose the Debit or Credit indicator Transaction Codes Every accounting entry in Oracle FLEXCUBE involves a Transaction Code that describes the nature of the entry This code and its description are available whenever you retrieve contract information in reports such as the Transaction Journal The transaction code must be indicated in this field Click the adjoining option list icon to invoke a list of the transaction codes that are maintained Double click on the Code that you would like to enter in this field The Transaction Code for both legs of the transaction would be the same
624. upon can be on the basis of the current face value of a security When building an interest class you have to specify the tag associated with the Basis Amount Accrual Required You can choose to accrue the interests due on a contract To accrue the interest payable on a contract choose the Accrual Required option Rate Type The interests paid on contracts can be at a Fixed Rate or on the basis of a Floating Rate If you indicate that interests should be calculated on the basis of a Floating Rate you must specify the Periodic Floating Rate Type For all contracts maintained under products associated with a class the interest will be by default calculated using the specified Rate type 15 4 1 3 Specifying Rate Details Default Rate Code Interest payable on contracts would be calculated at specific rates When building an interest component you have to specify the rate at which the interest should be computed When associating a rate code that you have maintained in the Rate Codes Maintenance screen with the interest component that you are building the rates corresponding to the code will be used to compute interest When maintaining a contract you can choose to waive the rate code altogether or amend the properties of the code to suit the security i ORACLE If you allow amendment of a rate code you can specify if you would like to allow rate code amendment after the association event You can also allow the a
625. ur bank you can select an option from the picklist The costing methods that you can use includes e Weighted Average Cost WAC e Lastin first out LIFO e First in first out FIFO e Deal matching For an Issuer type of portfolio the Weighted Average Cost WAC method will be applicable The costing method preference does not apply to a customer portfolio as you merely perform a custodial function and are not involved with maintaining a book of accounts for the customer Example To understand the accounting methods mentioned above we will examine an example and apply all the costing methods to it ORACLE The following deals have been struck for a bank portfolio Sequence Purchase Deal Asset Number of Proceeds date cost units A 1 January Buy 95 100 9500 B 1 January Buy 96 100 9600 Cc 15 January Buy 96 5 100 9650 D 1 February Sell 97 150 14550 Weighted Average Cost WAC The acquired cost of each security in a portfolio is maintained as an average cost So the realised profit in this case would be computed as follows Total Cost of the securities 28750 for 300 units Average cost 95 83 Total cost price of the securities sold 14374 5 for 150 units Total sale proceeds 14550 for 150 units Realised profit 175 5 The remaining 150 securities would be held at an average cost of 95 83 Last in first out
626. urce 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 Ext Ref No 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 Reversed FCC Ref The reference number of the contract that is being reversed and rebooked is displayed here To enable amendment of SR 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 Interest Basis The method in which the number of days are to be calculated for interest charge commission or fee components and whether their application is tenor based is displayed here based on the specification you made at the product level You can choose to change it The following are the options available e 30 Euro 360 e 30 US 360 e Actual 360 e 30 Euro 365 e 30 US 365 e Actual 365 e 30 Euro Actual e 30 US Actual 29 8 ORACLE e Actual Actual e 30 Euro 364 e 30 US 364 e Actual 364 The value of interest basis maintained here is used for calculating interest for
627. urities Deal Amount 5 200 000 00 CAD Accrued Interest Amount 250 000 00 CAD Accrued Interest Days 51 Days Taxes Added 85 000 00 CAD Taxes Description Stock Exchange Tax on Bonds Purchased Broker s Commission 12 500 00 CAD Other Charges Fees 2 500 00 CAD Securities Deal Settlement Amount 5 550 000 00 CAD Own Charges 500 CAD Net Proceeds 5 550 500 00 CAD Value Date of Payment 22 FEB 1998 27 24 ORACLE Other Information Our Charges for the above transaction carried out as per your earlier instruction is 500 CAD and has been debited to your payment account with us value 22 FEB 98 Please always quote Our Reference in all further correspondence regarding the above instruction Thanking you For Citibank N A Toronto Canada 27 2 9 Securities Deliver Free Confirmation ML 450822 10 JAN 1998 Merrill Lynch Wellington 842 32 Barton Towers NEW ZEALAND Wall Street New York U S A Sub Confirmation of Securities Delivered Free of Payment Kind Attention Mr Hugh Stevens Settlements Officer Securities Department Dear Sir Madam We hereby confirm that as per your instructions to us we have delivered the following securities free of payment as per the details shown below Your Reference 432765 Our Reference 000SEB7980040002 Securities ISIN NZDBONDWRP04 Identification mes O
628. urity Description Product Code F Security Type Main Interest Others Market Of Issue Issuer ID Registered Bearer Form Type Redemption Type Redemption Quotation Issue Size gt w ISIN Identifier az Security Reference Number Quantity Quotation Price Quotation Interest Quotation Confirm Corp Action lssue Tearoff Date j a Series Coupon Revision Redemption Schedule Interest Tax z a Fields Renouncable Call Option Put Option 19 2 Security Status Trading Status interest Type Decimals Security Currency Payment Currency Initial Face Value Fractional Quantity Equated Redemption R Cancel ORACLE 19 1 1 A description of the Security Instrument Definition Screen The Securities Definition screen contains a header a footer and a body of fields that capture information specific to the security that you are defining The body of fields in this screen is divided into three tabs The three tabs are Main Click this tab to enter the essential attributes of a security Interest Click this tab to enter the interest details specific to the security that you are maintaining Others Click this tab to enter additional information relating to the security that you are maintaining Also displayed on the screen is an array of icons Clicking on an icon launches its screen Details specific to an attri
629. utedenves 34 35 34 20 SECURITIES EXCEPTION REPORT ccccececececececececececececececececececececececececececececececececececececececececececececesess 34 36 34 20 1 Selection OPUONS saeia nea aa n AET A aI es OE ENE SE EiS RT 34 36 34 20 2 Contents Of Report sa ssviice sescisecenvonsoisanednncenteaiedsanedeodnvseuceds eeSondousenssdceosSroeneounsosneoedeeseaseaseseaisivocens 34 36 35 SCREEN GLOSSARY wssssisissssssicsscscssscssiscsscesssssiscsssesssvessasseessseteecssessdsscssesesssascebescasesessssessdsiassedesasesssseasses 35 1 35L JUNCTION DLKT n Giciiess cetuve ve euisnwabdendueasesnsnsavseudueass du sheaubensuwausouspedubaudyunus REE OENES EENE CONE HES 35 1 ORACLE 1 About this Manual 1 1 Introduction This manual is designed to help acquaint you with the Securities Module of Oracle FLEXCUBE It provides an overview to the module and takes you through the various steps involved in maintaining securities portfolios and deals It also covers all the corporate actions that can be performed on Securities Information specific to a particular field can be obtained by placing the cursor on the relevant field and striking the lt F1 gt key on the keyboard 1 2 Audience This manual is intended for the following User User Roles Role Function Back office data entry Clerks Input functions for deals queries Back office Managers Officers Authorization functions queries Product Managers Product definition
630. ve already been liquidated e The amount that was liquidated E ORACLE e The currency in which it was liquidated 22 2 6 5 Specifying Deal Matching Preferences If the portfolio from which you are buying or selling involves deal matching you should indicate against which of the earlier buy deals the sell deal is to be matched Click Deal Match _ from the Securities Deal Input screen to match the sell leg of a deal to the buy leg Click this button from the buy leg section of the screen to indicate the matching preferences and from the sell leg section to view the matched details For the sell leg If you are processing the sell leg of securities deal and if the portfolio from which you are selling involves the deal matching costing method you should also match the sell leg to previous buys in the portfolio 7 Deal Matching Web Page Dialog xj EJ Leg Reference No CHODLCS001850012 Leg Description cust sell Leg Reference F k C Match Leg Reference Settlement Date Match Quantity E zi Total Matched 0 Total Required 1000 Total Remaining 1000 z a c Procedure Indicate the reference number of the buy deal which you have selected for deal matching In other words indicate the buy deals done in the same security and portfolio to be matched with the sell leg of the deal You can select a leg reference number from the picklist available On indicating the match leg reference you should also indicate th
631. veevesusvwevedeevbeds 21 21 21 7 MAINTAINING SECURITY RESTRICTIONS FOR A PORTFOLIO ccccccececececececececececececececececeeeeeceeeeeeeeeeeess 21 22 2171 Features of th SCCM siisii iein EEEE EEEN 21 23 21 8 MAPPING ACCOUNTS TO A SAFE KEEPING LOCATION ccccccececececececececececececececececececececececececececeeeeeeeess 21 24 21 9 SPECIFYING ACCOUNTING ROLE TO HEAD MAPPING PREFERENCES sccecesececececececececececececececeeeeeeeeese 21 25 21 10 MAINTAINING SECURITY REVALUATION PRICES FOR A PORTFOLIO 0ssesseesssssssssssesssesssesssessseees 21 27 22 PROCESSING A SECURITIES DEAL uuu cccssscsssceecesssccccesseccscssccccssssscccsssccccsscescessecsccssnecescssseees 22 27 221i TIN TRODUCTION sssi2eci6 a a a a a AE ieee eine 22 27 22 1 1 Invoking the Securities Deal Input SCree M esccesccesceseceseeneenseeeeeeeeeseeeeeeeeceaecusecsecuaecaaeeaseeseesaeeas 22 2 22 1 2 A description of the Securities Deal Input Screen 1 esccsseseeesseeseenseeneeeseeseeeeeeesecnseeesecesecnaecnaeesaeeas 22 3 ORACLE 22 2 ENTERING THE DETAILS OF A DEAL 0 ccccececececececececececececececececececececececececececececececececececececececececececececececess 22 5 2221 SPIOAUCE sir a e E EE E E tun taaseudeegtasccousems taacg aces ueeduniieustieads E ER SA aN 22 5 22 2 2 Using a Template to Enter A Ded cccesccesccescceseesseeseeeceeseeaeeeaeeeseeeeceseeeeeesseeesecaecaecaaecaaecnaseaeeeaeees 22 7 22 2 3 Indicating details of the secu
632. w This represents the amount per face value that will be received on the redemption date The cashflow includes the coupon and the redemption amount The Redemption Quotation types Factor and Cashflow are applicable only for the quantity redemption type securities 19 2 6 Indicating Corporate Action Preference The Confirm Corp Action box indicates whether the redemption and coupon schedules should be created as a confirmed corporate action or not By default this checkbox will be checked However you can uncheck it to indicate that all redemption and coupon schedules should be created in the corporate action maintenance as unconfirmed 19 2 7 Capturing Trade Related Information You can define the minimum quantity in which a security should be traded Enter the specification in the Lot Size field Note that the preferences defined for the product under which you maintain the security will default to this screen These default attributes can be changed The Quantity Quotation method Securities can be quoted in terms of e Units 500 units of a security e Nominal securities worth USD 5000 Specify the quantity quotation method for every security you maintain A security maintained under a product acquires the quotation method specified for the product If you choose the Units Quotation option you may also indicate whether the security can be traded in fractional units Specify the fractional units in
633. which the stock to cash conversion option is to be exercised Stock to Cash Action Identification This is a unique event ID which is generated by the system on saving the Stock Dividend Definition record Issuer Pay Currency In case of stock to cash conversion you can indicate the currency in which the issuer should make the cash payments From the picklist available select the payment currency Confirmed Check this box to indicate that the occurrence of the event is confirmed Confirmed Date When you select the check box and save the record the confirmed date will be defaulted with the current date Exchange Rate When the issuer payment currency is different from the security currency the exchange rate between the security currency and the payment currency has to be indicated Specify the exchange rate Exchange Rate Fixing Date This is the date on which the exchange rate will be announced Indicate the exchange rate announcement date You can enter a free format event narrative for the event being defined or leave this field blank If you enter a free format text it will be associated with the event while generating SWIFT messages After entering the relevant details click save icon in the toolbar or Save from the Actions Menu to save the event record 20 13 Maintaining Cash Dividend Details The details of a cash dividend declaration can be captured through the Cash Dividend Definition screen Through this sc
634. which you want to generate the report The options available are e All Branches e Specific Branch Selected Branch If you have selected the Specific Branch option then indicate the branch for which you want to generate the report 34 14 ORACLE Corporate Action Type Indicate the action type The following options are available e Coupons e Others Report As On The date on which the report is generated is displayed here 34 9 1 Contents of the Report The contents of corporate actions report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module date and time at which the report has been generated and the page number of the report Body The following details are displayed Branch Code The branch code Portfolio ID The portfolio ID Portfolio Description The description of the portfolio Security ID The security ID description and the initial component Security Description Int Component C A Date The date of corporate action Counterparty The counterparty details Security Ccy The issuer and security currency Issuer Ccy Days The number of days Nominal The nominal Basic Qty The basic quantity Rate The interest rate 34 15 ORACLE Interest Amount The interest amount Initiation Collection Liquidation The initial collection liquidation 34 16 ORA
635. wing dates e 31 March 2000 e 30 June 2000 e 30 September 2000 e 30 December 2000 The rate revision dates for all securities maintained under the product with which you associate the preference class will be calculated in a similar manner If the interest rates for securities should be revised on a non periodic basis you should leave the Periodic Revision option blank You can capture the revision details for a security with non periodic rate revision in the Security Online Definition screen 10 2 3 Capturing Information Specific to a Security Type Based on the security type the information for a security is captured If the Security Type is Bond If you specified the Security Type for a class as Bond you can indicate if Call and Put options would be available The issuer of a bond may also offer the option of converting the bond into shares or equities Such bonds are referred to as Convertible bonds When defining a Security Preference Class with the Type as Bond you can capture this information by choosing the Convertible option Redemption Type You can also indicate the mode of redemption An issuer can redeem bonds in three ways e Series e Quantity e Bullet The Redemption Mode that you specify for a class will default to the products that you associate with the class When defining the redemption mode for a specific product you can change the default redemption mode If the Security Type is equity
636. x 5 100 x 90 90 x 4 For a leap year the formula is oe ORACLE Amount x 5 100 x 91 91 x 4 For coupon on 15 10 the formula used in this method is Amount x 5 100 x 92 92 x 4 366 Basis You need to specify the whether the system should use leap year or leap date for calculating the interest Leap Year Y Indicates that the system will compute the interest based on the number of calendar days in the year Leap Date D Indicates that the system will use the ACT ACT FRF Interest Method to compute the interest S This field is enabled only if the Denominator Basis value is Per Annum and the Denominator Method is ACTUAL ACT ACT FRF Interest Method In ACT ACT FFF Interest Method the Numerator will be the actual number of days between two coupon dates and the denominator will be 366 under the following cases If 29th February falls between the duration of two coupon dates i e previous coupon date and next coupon date If the previous coupon date and the next coupon date fall in different years annual frequency next coupon dates in immediate subsequent year of previous coupon date If the coupon schedule is not periodic and spreads across multiple years The system will apply 366 as the denominator for all the years for computing the day count even if one instance of 29 February falls in between the coupon dates Let us understand the formula applied for calculating the interest in ACT ACT FRF method wi
637. xample You have selected the half yearly option and specified the start date as 31 and the start month as June The system will do the first accrual on 30 June for the period from January 1 to June 30 and the second one on 31 December for the period from 1 July to 31 December If the accrual date falls on a holiday If the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen 11 3 7 Revaluation Exchange Rate Code The revaluation profit and loss will be in the currency in which the cash flows are denominated Exchange Rate Code You can specify the exchange rate code to be used for converting the profit loss into the local currency ee ORACLE 11 4 Yield Accrual for Deals bought on Par To handle Yield accruals for deals bought on par you need to maintain the event YACR and define the following accounting entries as part of the event Accounting Role Amount Tag Dr Cr Indicator SEC PREM EARNED SEC_PREM_ACCR Debit SEC PREM TBACRD SEC_PREM_ACCR_ Credit SEC INT ADJ REC SEC_INTADJ_ACCR Debit SEC INT ADJ INC SEC_INTADJ_ACCR Credit SEC DISC TBACRD SEC_DISC_ACCR Debit SEC DISC EARNED SEC_DISC_ACCR Credit For sale from a long position you need to maintain the SSLP event and the following accounting roles and amount tags Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL
638. xt coupon dates fall in different years If both coupon dates fall in the same year the denominator will be 365 or 366 respectively depending on whether the current year is a leap year or non leap year For coupon on 15 01 2000 the formula used in is 10 000 000 x 5 100 x 77 365 10 000 000 x 5 100 x 15 366 For coupon on 15 04 2000 the formula applied is 10 000 000 x 5 100 x 91 366 For coupon on 15 07 2000 the formula applied is 10 000 000 x 5 100 x 91 366 For coupon on 15 10 2000 the formula applied is 10 000 000 x 5 100 x 92 366 In case 366 basis is Leap Date For coupon on 15 01 2000 the formula used in ACT ACT FRF method is 10 000 000 x 5 100 x 92 365 This period does not include 29 February For coupon on 15 04 2000 the formula used in this method is mee ORACLE 10 000 000 x 5 100 x 91 365 29 February falls in this period For coupon on 15 07 2000 the formula used in this method is 10 000 000 x 5 100 x 91 365 This period does not include 29 February For coupon on 15 10 2000 the formula used in this method is 10 000 000 x 5 100 x 92 365 This period does not include 29 February 4 6 1 Exempting Interest for the Ex Period For Purchase Deals and Sell Deals booked in the Ex Period you can specify whether you want to calculate the interest for that period If you check this box the system will not apply interest for such deals In addition the system accrues the holdings as of the ex date and will not pass
639. y ID and Interest Component combination should have an Effective Date associated with it This is the date from which the interest revision rate will be effective Once a rate comes into effect it will be applicable till another Effective Date is defined for the same Security ID and interest component combination When you save a record the effective date gets defaulted with the Event Date of Rate Revision eae ORACLE 20 11 1 1 Specifying whether Interest Revision is Auto or Manual While specifying the interest revision rate you can indicate whether the interest revision for the particular security is to be automatic or manual If automatic revision is specified then revised rates will be applied and liquidations made as part of the Beginning of Day process Otherwise revisions will have to be made manually by you Revision Rate The revision rate that you enter here will be effective as of the Value date defined 20 11 1 2 Specifying Event Narrative You can also enter a free format narrative of the interest rate revision event This narrative or message will be used while generating SWIFT messages Click Narrative button the Event Narrative screen is displayed The message entered will be associated with the interest revision event This field can be left blank if necessary 20 12 Maintaining Stock Dividend Details In the Stock Dividend or Bonus Definition screen you can maintain details of the stock dividend declaration event
640. y INTCOMP_PUCMA Sold Interest Debit Bridge GL SALE Interest Accrued INTCOMP_BOT Deal INTCOMP_PUCMA also Credit Purchase Interest Purchased Interest SEC BRIDGE SEL Security INTCOMP_TIAC Interest Debit Bridge GL SALE Accrued INTCOMP_RCPY Interest INTCOMP_TIAC Interest Credit Receivable Payable Accrued INTCOMP_IMEM INTCOMP_TIAC Interest Debit Accrued INTCOMP_ INTCOMP_TIAC Interest Credit 32 23 ORACLE Advices No advices allowed for this event Accounting Entries 32 4 3 3 SPSP Security Purchase from Short Position Accounting Role Amount Tag Dr Cr Indicator SEC BRIDGE GL DEAL_DISCNT_AMT Debit SEC LIABILTY GL DEAL_DISCNT_AMT Credit SEC BRIDGE GL DEAL_NOMINALAMT Credit SEC LIABILTY GL DEAL_NOMINALAMT_ Debit SEC BRIDGE GL DEAL_PREMIUMAMT Credit SEC LIABILTY GL DEAL_PREMIUMAMT Debit SEC BRIDGE GL FWD_DEAL_LOSS Credit SEC LIABILTY GL FWD_DEAL_LOSS Debit SEC BRIDGE GL FWD_DEAL_PROFIT Debit SEC LIABILTY GL FWD_DEAL_PROFIT Credit SEC RLZD LOSS REALIZED_LOSS Debit SEC BRIDGE GL REALIZED_PROFIT Debit SEC RLZD PROFIT REALIZED_PROFIT Credit SEC BRIDGE GL RGHT_INTR_VALUE Debit SEC LIABILTY GL RGHT_INTR_VALUE Credit SEC BRIDGE GL SE_FL_INT_PUCM Credit SE_FL_INT_RCPY SE_FL_INT_PUCM Debit SEC BRIDGE GL SE_FL_INT_PUEX Debit SE_FL_INT_RAPA SE_FL_INT_PUEX Credit SEC BRIDGE GL
641. yed Security ID The security ID Deal Type The type of deal Customer Customer of the deal Security Currency Currency in which the security is issued Deal Reference Reference number of the deal Interest Interest applicable on the deal Nominal The nominal Confirmation Indicator Whether the deal is confirmed or not Security Name Name of the security Deal Price Price of the deal Portfolio Portfolio to which the deal belongs 34 19 ORACLE 34 11 Security Disposition Report You can generate security disposition report by using the Disposition Report screen To invoke the screen type SERDISRP in the field at the top right corner of the Application tool bar and click the adjoining arrow button Disposition Report Deal Settlement Date Specify the following details Deal Settlement Date Specify the settlement date for the deal from the adjoining calendar 34 11 1 Contents of Report The contents of this report have been discussed under the following heads Header The Header carries the title of the report information on the branch code branch date the ID of the user who generated the report the date and time at which it was generated the modules covered in the report and deal settlement date Body The report is sorted by the transaction leg The following details are displayed Deal Reference No Refe
642. you give yourself the flexibility of applying the same restriction classes on several services that you offer You do not have to define restrictions for each service that you offer 8 2 The Branch and Currency Restrictions Class screen You can maintain branch and currency restrictions in the Product Branch and Currency Restrictions Class Maintenance screen invoked from the Application Browser You can invoke the Branch Currency Restrictions Class Maintenance screen by typing CSDCBRCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Branch Currency Restrictions Class Maintenance Class Code Module nz Class Description Module Description Branch Restrictions Allowed Currency Restrictions Allowed Disallowed Disallowed Branch Restrictions Currency Restrictions E m Branch Code L Currency Code Description ta _ l Currency Balances E m curre ode A a Residue Amo Negative Residue Amount Round Up Down Rounding Factor Numerator Method De up w Actual Act Input By Authorized By Modification Authorized Date Time Date Time Number Open A Branch and Currency Restrictions Class is identified by a unique Code and a Description The branch and currency restriction classes that
643. you maintain have to be specific to a module in Oracle FLEXCUBE This is because a class maintained for one module would be unsuitable for another For instance you may choose to allow loan facilities in some branches but disallow these branches from trading in securities m ORACLE 8 2 1 Maintaining Branch Restrictions A branch restriction class identifies a unique list of allowed or disallowed branches At your head office you can associate a product that you propose to offer with any Branch and Currency Restriction Class that you have maintained The branch and currency restrictions defined for the class will apply to the service Please note that any product that your bank offers is available to all branches by default unless you specifically restrict its availability Choosing the List Type You can specify branch restrictions either in the form of an allowed list or in the form of a disallowed list When you associate a restriction class defined as an allowed list with a product those branches that do not figure in the list cannot offer the service If you have maintained a disallowed list for a class branches that do not figure in it can offer the service Example You have a network of twenty branches You would like to exclude six branches from trading in securities You would like all other branches to deal in securities Since there are more branches that can offer the facility than those that cannot you can opt t
644. ype Disallowed Input By Authorized By Modification Authorized exit Date Time Date Time Number Open Class Code In Oracle FLEXCUBE each portfolio restriction class that you maintain is identified by a unique ten character code called a Class Code You can follow your own convention for devising this code however one of the characters of the code should necessarily be a letter of the English alphabet Description You can specify a short description that will enable you to identify the portfolio restriction class easily The short description that you specify is for information purposes only and will not be printed on any customer correspondence pre ORACLE Module A portfolio restriction class that you maintain has to be for specific to a module in Oracle FLEXCUBE This is because a class that is maintained for one module would be unsuited to another For instance you may choose to allow trading in securities in some branches but disallow these branches from loan facilities Restriction Type You can specify portfolio restrictions in the form of an allowed or disallowed list When you associate a restriction class with a product the portfolios that do not figure in the allowed list cannot be traded with If you have maintained a disallowed list portfolios that do not figure in the list can be involved in deals linked to the product You can indicate whether you are maintaining an allowed or a disallowed list
645. zing Method Simple Applying the formula the periodic YTM is calculated as follows 90 100 1 yo 30 June 2008 31 Jan 2003 183 ree ORACLE Yo 100 90 183 30 June 2003 31 Jan 2003 1 Yo 0 1372 or 13 72 Annual YTM is computed using the relationship given above Yo 0 14 365 183 Yo 0 2736 or 27 36 Refer to the Batch Processing Chapter of this manual for detailed information on End of Day processing for Securities with YTM as the as method of accruing Discount or Premium 19 3Interest Method for Computing Coupon Interest Apart from the above mentioned method for calculating the interest you can also use the ACT ACT ISMA Interest Method and ACT ACT FRF Interest Method ACT ACT ISMA Interest Method The ACT ACT FRFF Interest Method is applied for periodic coupons using the following coupon Coupon Interest Nominal x Coupon Rate Number of Coupons x Number of elapsed Days Number of days in coupon period For ACT ACT ISMA you need to maintain the following parameters e Numerator Method Any of the option in the list e Denominator Method Actual e Denominator Basis Per Annum e Rate Denomination Basis Per Coupon Period Specify denominator method for calculating the accrual and liquidation amount as follows Denominator Method Select the denominator method from the adjoining drop down list This list displays the following values e 360 e 365 e 364 The valu

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