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Securities User Manual

1. 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 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 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 25 ORACLE 32 4 3 5 FACR Security Forward Deal P amp L Accrual 32 4 3 6 32 4 3 7 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 ACRD Accrual of Security Discount Earned
2. Rate Type Rate Type Description Interest Rate hs Fields Input By Authorized By Modification Date Time Date Time Number Wi Authorized E 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 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 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 alt ORACLE 4 5 1 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 marke
3. Clearing Network Message Details Sender to Receiver Information Network Code V Cover Required information 1 Cover By Clearing Message information 2 information 3 information 4 information 5 information 6 Details of Payment V RTGS Payment GS Network Details of Payment 1 Details of Payment 2 Details of Payment 3 Details of Payment 4 Transfer Type Bank Transfer v Banking Priority Highly Urgent Pay v 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 aaga ORACLE 22 6 4 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 f
4. Error Code Message CS CF0011 Unhandled exception in fn_upd_amt_due CS CF0012 Unhandled exception in fn_upd_amt_paid CS CF0013 Unhandled exception in fn_backup_cash_flow SE CF0001 Unhandled exception in fn_cash_flow_redemption SE CF0002 Unhandled exception in fn_cash_flow_dividends SE CF0003 Unhandled exception in fn_cash_flow_coupons SE CF0004 Unhandled exception in fn_populate_amt_due SE CF0005 Unhandled exception in fn_get_sett_acc SE BODO01 Unhandled exception in function sepkss_security_batch fn_process_se curity_batch wile processing security 1 SE BODO02 Unhandled exception in function sepkss_security_batch fn_process_se curity_batch SE BODO03 Unhandled exception in function fn_update of sepkss_security_batch SE BOD040 Failed to update setb_caevent_tearoff_log SE BOD041 Failed to lock cstb_contract SE BOD042 Failed to update setm_corp_actions_due with auto deal reference SE BOD043 When Others of fn_right_tearoff SE BOD044 Error while selecting product for building auto deal SE BOD045 When Others of fn_right_pfolio_processing SE BOD046 No data found in setm_combination_product SE BOD047 Failed to insert into setb_unrel_unmatch SE BOD048 Unhandled exception in fn_deal_detail SE BOD049 Unhandled exception in fn_deal_master SE BODO050 Failed to update setb_caevent_expiry_log SE BOD051
5. 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 compo nent 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 Pur chase Interest In subsequent 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 Discount Earned Note You should not use the memo GLs if you accrue premium discount directly into your in come 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 oa ORACLE 32 4 2 List 2 Acct Roles for a Customer Buy Sell Type of Produc
6. Error Code Message SE DO0151 Number of units entered is not in multiples of minimum tradable security units SE DO0152 DSTL date is earlier than start of trading date for the security SE DO0153 DSTL date is not earlier than the security redemption date SE DO0154 Settlement SKL is mandatory SE DO0155 Payment Currency Security Currency ratio is mandatory SE DO0156 Failed to authorize the contract SE DO0157 Failed to validate the rekey fields SE DO158 input quantity has exceeded maximum limit SE DO0159 Failed to default the product details SE DO0160 Spot date should be less than Deal Settlement date SE DO0161 Failed to default price components SE DO0162 Deal is already settled Can not continue SE DO0163 Failed to save the contract SE DO0164 Failed to reserve record for liquidation SE DO0165 Zero units are available for release SE DO0166 Failed to maintain the template SE DO0167 Contract reference number can not be null Please contact support SE DO0168 Failed to get the counter product details for deal product SE DO0169 Please input rights exercise details before proceeding further SE DO0170 Please enter the Parties details for leg with reference number 1 SE DO0171 Failed to initialize the parameters SE DO0172 Failed in Holiday checks SE DO0173 Failed to get the resultant security code SE DO0174 Deal quantity can not exceed the
7. Delivery Date 22 FEB 1998 Next Coupon Due 30 JUN 1998 Date 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 Securities Rosedale Brokers Group Toronto 27 18 ORACLE 27 2 9 Securities Deliverer s Reference 56243 Beneficiary of Securi ties 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 num bers 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 Securities 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 Settle ment Amount 5 550 000 00 CAD Own Charges 500 CAD Net Proceeds 5 550 500 00 CAD Value Date of Pay me
8. Error Code Message SE DATE 055 Could not convert the date to the correct format SE DATE 056 Failed in check for leap year SE DATE 057 Failed in getting the date in the correct format SE DATE 058 Could not convert the date to the correct format SE DPOP 001 Failed in populating Dividend for branches SE DPOP 002 Failed in inserting Dividend record SE DPOP 003 Account currency is not the same as Issuer payment currency SE DPOP 004 Failed in Tax processing for dividend SE DPOP 005 Failed in Charge processing for dividend SE DPOP 006 Failed in Transaction Tax processing for dividend SE DPOP 007 Failed in Settlements processing for dividend SE DPOP 008 Failed in insert of dividend record SE DPOP 009 Failed in logging exception when populating dividend SE DPOP 010 Failed in populating Dividend for branches SE DPOP 021 Failed to get next working date when dividend population SE DPOP 022 SE DPOP 023 Incorrect number of records returned during dividend population SE DPOP 024 Receive Account could not be got when populating dividend SE DPOP 025 Pay Account could not be got when populating dividend SE DPOP 026 Account currency is not the same as Issuer payment currency SE DPOP 027 Pay Account could not be got when populating dividend SE DPOP 028 SE DPRC 001 Failed in processing dividend for branches SE DPRC 002_ Failed in processing dividend event SE DPRC 003 Failed to set subsystem flags during dividend processing
9. 11 2 13 11 2 14 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 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 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 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 preferences that you specified here If the statemen
10. A customer can offer you securities as collateral against a 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 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 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 cor
11. Note If you indicate that revaluation should be performed at the Holdings level you have the option of selecting between Deal level revaluation and Position level revaluation while de fining a portfolio See the Maintaining a Portfolio Preference class chapter of this User Manual for more details 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 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 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
12. Note 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 e Maturity Date Extension If you have chosen to accrue premium or discount you need to specify the following accrual preferences also e Accrual method e Accrual frequency e Accrual start day e Accrual start month 11713 ORACLE 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 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 e 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 The frequency can be one of the following e Daily
13. 32 4 3 3 SPSP Security Purchase from Short Position Accounting Entries 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 SE_FX_INT_PUCM Credit SE_FX_INT_RCPY SE_FX_INT_PUCM Debit SEC BRIDGE GL SE_FX_INT_PUEX Debit 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 32 24 ORACLE Advices No advices allowed for this event 32 4 3 4 SSSP Security Sale from Short Position Accounting Entries
14. 34 21 Body of the Report This report contains details of Branch Code Specifies branch code Portfolio ID Specifies the portfolio ID Portfolio Description Briefly describes portfolio Portfolio ID Specifies the portfolio ID Portfolio Description Briefly describes portfolio Statement of Holdings Report The Statement of Holdings Report gives the details of the statement of holdings To generate the Statement of Holdings report invoke the related screen by typing SDRPHOLD in the field at the top right corner of the Application tool bar and then clicking on the adjoining arrow button Statement Of Holdings Report wae Enter Statement Date Al Report Format PDF Printer At Client x Report Output Print x Printer Specify the Enter Statement Date from the adjoining option list 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 name branch code branch date the Run 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 Safekeeping Location Indicates the safe keeping location Safekeeping Location Indicates the safe keeping location account Account Sey ORACLE SWIFT Message Reference Indicates the SWIFT message ref
15. Quantity of Financial Instrument Con firmed 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 Holland Step in Broker Name Brown Brothers Harriman Address Sheraton House 27 5 ORACLE 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 Heldring en Pierson Address 45 28 Hanover House Coopers Avenue Amsterdam Holland Safekeeping Account 90568 32 Cash Account 386098 24 Receiver s Custodian Name Dresdner Bank AG Frankfurt Address DRESDEFF Deliverer s Custodian Name Deutsche Bank AB Frankfurt Address DEUTDEFF Other Information 27 6 ORACLE 27 2 2 In cas
16. est Offset GL Amount Interest Accrued 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 contri bution INTCOMP_ Interest Income INTCOMP_TIAC_PY Interest Credit Accrued Previous Year s contri bution INTCOMP_IMEM Interest Income INTCOMP_TIAC_CY Interest Debit Memo GL Accrued Current Year s contribu tion INTCOMP_ Interest Income INTCOMP_TIAC_CY Interest Credit Accrued Current Year s contribu tion When Wipe Deal Purchase Interest is set to Sale the accounting entries pertaining to Purchase Interest are as follows eae eens Dr Cr Accounting Role and Description Amount Tag and Description Indicator SEC COUPON PAY SE Coupon INTCOMP_PUCMA Pur Debit Payable GL chased 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 Receiv INTCOMP_TIAC Credit able Payable INTCOMP_IMEM Interest Income INTCOMP_TIAC Interest Debit Memo Accrued SADA ORACLE INTCOMP_ Interest Income INTCOMP_TIAC Credit Advices Nil 32 4 3 26 BRVL Securities Revaluati
17. 22 9 e The checkbox is unchecked if the booking method is other than Advance e If the 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 Note If you invoke the Contract Brokerage Details screen for operations like delete change au thorise liquidate and detailed view this screen will only display brokerage details You can change brokerage details for a deal only if you have clicked the Modify option from the Ac tions Menu Click Exit button to delete the details and return to the Securities Deal details screen 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 When you upload a new deal the Reference Number will be displayed in the User Reference
18. Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC DISC EARNED SEC_DISC_ACCR Credit SEC DISC TBACRD SEC_DISC_ACCR Debit Given below is the sample accounting entries that will be posted if you use the alternative accounting roles for this event Accountina Roles Standard Amount Standard Dr Cr g Alternative Tags Alternative Indicator Discount Accrued Standard SEC_DIS Standard Debit Discount TBACRD can C_ACCR be us Accrual of Disct Inc Alternative SEC_DIS Standard Credit Memo C_ACCR Advices No advices allowed for this event ACRP Accrual of Security Premium Paid Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC PREM PAID SEC_PREM_ACCR Debit SEC PREM TBACRD SEC_PREM_ACCR Credit 32 26 ORACLE Given below is the sample accounting entries that will be posted if you use the alternative accounting roles for this event Standard Standard Dr Cr Accounting Roles Alternative Amount Tags 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 4 3 8 ACRR Accrual of Redemption Premium Earned Accounting Entries Accounting Role Amount Tag Dr C
19. Narrative Exchange Rate Maker Date Time Checker Date Time Mod No Record Status Authorization Status 20 18 ORACLE 20 9 1 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 To amend the details of an existing coupon click on unlock icon in the toolbar or choose Unlock from the Actions Menu Note You are allowed only to amend the details of future dated records that are not yet con firmed 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 Exchange Rate and 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 Linking Interest Component to Tax Component An interest component can be the basis amou
20. Positions and holdings are updated for rights once the event is completed 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 dates 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 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 ae ORACLE 20 6 1 You can invoke the Securities Corporate Action Maintenance Redemption screen by typing SEDXREDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Corporate Action Maintena
21. Price Quote Price Input Price Price In Local Currency Absolute Price Securities From Leg Product Portfolio Counterparty Safe Keeping Location Safe Keeping Account Securities To Leg Product Portfolio Counterparty Safe Keeping Location Safe Keeping Account Source Deal Reference Security Description Market Description Trade Date DSTL Date Local Currency Quantity Original DSTL Date Deal Input Time Yield Leg Product Description Accommodate Lodge Auto MSTL Description Description Leg Product Description Accompany Withdraw Auto MSTL Description Nescrintion Version Block Deal Reference Reversed Contract Ref No Option Type Interest Deliver Interest Date Receive Maturity Date Transaction Date Quote By Leg Reference User Reference Broker Id Money Settlement Date Actual MSTL Date Leg Reference User Reference Broker Id Money Settlement Date Actual MSTL Date a Certificates OtherDetails Advice DealMatch Limits Parties Brokerage Events MIS Details Settlements Charges Walk inFrom Net Consideration Tax LimitsTo Walk in To Maker Id Date Time Checker Id Authorization Status Status Checker Stamp 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 de
22. RP Redemption Price Vda Redemption 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 in the security definition screen If the annualizing method selected is Simple the formula used for computing the periodic YTM for the deal is If you select Compound as the annualizing method the formula used for computing the annual YTM for the deal will be y 0 1 Where 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 20 9 ORACLE 26 3 3 If Quantity Quotation Method is Nominal the formula used to compute the Revaluation profit loss is N R MP _ NPV FV Where Ry 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 n FV Face Value of the security The following
23. 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 Safekeep ing Account with Receiver of Securi ties 284564 Securities Registration Details Securities Delivered are to be registered in favour of Mag nus P Taylor Securities Receipt Decla ration Details Bond Certificates with numbers as shown above are to be 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 always quote Our Reference in all further correspondence regarding the above instruction Thanking you For Merrill Lynch New York USA Securities Deliver Against Payment Instruction HSB 85652 25 MAR 1998 aria ORACLE Hang Seng Bank 765 Copper Arch Charles Avenue Hong Kong ZIP 7890 542 02 London U K Sub Our Instruction to Deliver Securities Against Payment Kind Attention Ms Cheng Wen Lee Custody Services Officer Securities Department
24. a ORACLE 6 1 6 Maintaining Market Price Codes 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 SEDXMPCD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Securities Market Price Code E New amp Enter Query Market Price Code Price Code Description Maker Date Time Checker Date Time Mod No Record Status Authorization Status If you are maintaining details of a new market price code click on new 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 on ORACLE 7 1 7 Maintaining Safe Keeping Locations Introduction As a part of the maintenance function you can define the various Safe K
25. 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 5 Jan to 10 Jan for the buy deals D1 and D2 D1 60 USD 10 units 1 USD 6 days D2 12 USD 2 units 1 USD 6 days Subsequently interest accrual will continue for deals D1 and D2 till redemption CPLQ sa ORACLE The accrual process will be zero based i e at deal level the accrual process will do the following 5 Identify all the BUY deals 6 Determine the current quantity buy quantity the sold quantity 7 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 8 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 9 Pass the accrual entry for A1 A2 Note 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 in terest accrual the IACR Interest Accrual event and the associated accounting entries will continue
26. 26 3 1 Based on one or more of the following criteria you can search for the transactions within the current branch that failed during EOD or BOD operations MSTL Date If you wish to filter the search results based on the MSTL date specify the date here The system will show all the transactions which are not processed till this date Customer If you wish to filter the search results based on the customers specify customer number whose details will be displayed The system will show all the transactions of a respective customer for those MTSL that failed Portfolio You can choose to search the deals of a particular portfolio Specify the portfolio ID Security ID You can choose to search the deals of a security code and process the code of MSTL based on this Deal Reference You can choose to search the deals based on deal reference number and process the MSTL for a single deal Once you click Search button the system displays the list of deals that match the selection criteria Click Process MSTL button to manually process MSTL for the selected deals You can process the records based on the filter criteria However you cannot process selective records EOD Processing for Unrealized Revaluation Details of EOD processing for Unrealized Revaluation are explained below Unrealized Revaluation for Unsettled Buy and Sell Deals If the revaluation method for unrealized revaluation is set to MTM EIM t
27. 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 IACR 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 adjustment 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 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 1t 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 4th January as all the 10 units are sold out on 5th January Coupon Accrued on D2 till 4t January 45 USD 15 units 1 USD 3 days After 4t January for D2 accrual will happen only for the remaining 13 units 15 2 units sold
28. 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 20 ORACLE 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 SRDTRONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button e Securities Repo Contract Online E New amp Enter Query Product Code Version Number 4 Of S p ji a Contract Reference Number i 7 User Reference Number Source External Reference Number Dealer Reversal reference Number Broker Outstanding Amount ites schedules Rollover Preferences Interest Period Basis Include From Date Customer Number Payment Method f _ Customer Name SeHBALISTIBE Currency Yp Tax Scheme eli Contract Derived Status Local Currency Amount a F Remarks Line Settlement Details CAESA
29. Last Go Branch Status Event Sequence Number Error Code Reason Start Time End time Status S Flag N B Beginn 26 2 Triggering Securities MSTL Batch In case of authorized security deals Oracle FLEXCUBE automatically initiates MSTL money settlement of securities deal during BOD operation If MSTL event fails during BOD you can manually process the event during the day using Securities MSTL Batch screen For example if the customer bank account does not have sufficient balance for settlement on the MSTL date and the bank account does not offer an overdraft facility the MSTL event fails during BOD operations In that case the system will again attempt it during EOD operations If sufficient balance is available in the account during EOD operations the MSTL event will be triggered thus debiting the settlement amount against the buy transaction If the account has sufficient balance during the day you can manually process MSTL using Securities MSTL Batch screen To invoke this screen type SEDINTBT in the field at the top right corner of the application toolbar and click the adjoining arrow button Securities MSTL Batch Deal Reference Portfolio Id Security Id az MSTL Date Customer 10f1 Go Deal Reference Leg Reference Number TradeDate Customer Portfoliold MSTLDate ODSTLDate Securityld DealCurrency Security Currency Process MSTL 20 8 ORACLE 26 3
30. Maker Date Time Checker Date Time Mod No Record Status Authorization Status If you are defining details of a new right or warrant click on new icon from the tool bar The Rights and Warrants Corporate Action maintenance detailed screen will be displayed without any details 20 2 ORACLE 20 2 1 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 Indicating Rights Ratio and Rounding Fractions 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 entitl
31. Message SE SO0068 Redemption Expiry Date is Mandatory SE S0O0069 Start of Interest Date is earlier than Issue Tearoff Date Proceed SE SO0070 Start of Trading Date must be later than Issue Tearoff Date SE SO0071 Start of Trading Date must be later than Start of Interest Date SE SO0072 Redemption Expiry Date must be later than Issue Tearoff Date SE SO0073 Redemption Expiry Date must be later than Start of Interest Date SE S00074 Redemption Expiry Date must be later than Start of Trading Date SE SO0075 Initial Face Value is Mandatory SE SO0076 Issue Price is Mandatory SE SO0077 Redemption Price is Mandatory SE SO00078 Issue Price must be lesser than Initial Face Value SE SO0079 Redemption Price must be greater than or equal to Initial Face Value SE SO0080 Quantity Quotation must be UNITS SE SO0081 Lot Size must be a multiple of Initial Face Value SE SO0101 Coupon Frequency is Mandatory SE SO0102 Coupon Weekday is Mandatory SE SO0103 Revision Frequency is Mandatory SE SO0104 Revision Weekday is Mandatory SE SO0105 Rounding Basis is Mandatory SE SO0106 Rate Basis is Mandatory SE SO0107 Accrual Numerator Method is Mandatory SE SO0108 Accrual Denominator Method is Mandatory SE SO0109 Accrual Denominator Basis is Mandatory SE SO0110 Liquidation Numerator Method is Mandatory SE SO0111 Liquidation Denominator M
32. 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 Specifying Back dated Redemption Schedules You can insert 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
33. Party Details 1 Of 1 Party Type Description Address1 Address2 Address3 Address 4 a BE You can specify the following for each of the parties involved in a leg of the deal e The party type beneficiary advising bank issuing bank reimbursing bank etc e The CIF ID assigned to the party if the party is defined as a customer in Oracle FLEXCUBE e The country to which the party belongs e The party s mail address e The media type through which the advises should be routed and the respective address es 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 eee ORACLE 22 6 22 6 1 e MT 540 e MT 541 e MT 542 e MT 543 Note Note the following Ifyou have specified the party type DEAG in the Party and Party Narratives screen it is mandatory to specify PSET The party details should not begin or end with and should not have two consecu tive 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 Addresses 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 med
34. Rate Details Default Rate Code Rate Code Description Default Rate Source Rate Source Description Default Tenor Tenor Description Other Details Default Waiver Allow Rate Type Amend After Association 5 Amendment C Allow Rate Amend C Allow Rate Code Amendment Specifying Interest Type Details While building an Interest Component you can define e Primary Interest Applicable only for Securities Module e Coupon Applicable only for Securities Module 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 159 ORACLE 15 4 2 1 The basis on which an interest is calculated is referred to as the Basis Amount For instance a coupon 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
35. 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 Specifying 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 134 ORACLE 15 3 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 Default From Class Security Type Holiday Check Required Interest Type Market of Issue Call Option Restricted Market Description Put Option Renounceable Fractional Quantity Allowed Minimum Tradable Voting Rights Decimals Quantity Bankers Acceptance Lot Size Tenor Unit Quantity Quotation Registered Bearer Registered ty Nominal Covered Redemption Type Quantity Convertible Minimum Form Type Scrip Based v Maximum Collateral Type Price Code Auto Initiation of Corporate Price Code Description Action Price Quotation Deal Price Interest Quotation Coupon Processing Actual Value Date Forward v Coupon Plotting Forward Coupon Date Amendment Limit Floating Rate Fixing Limits When defining a p
36. The settlement of securities in Oracle FLEXCUBE is automatic While 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 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 co
37. chapter in the Deposits User Manual 8 ORACLE 29 4 Uploading 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 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 tr
38. 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 129 ORACLE 13 1 13 2 13 Security Restriction Classes Introduction From the head office of your bank you can establish certain controls over the securities that 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 securit
39. After authorization of the securities deal the loan MM contract and the securities contract follows their respective life cycles 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 dis play field to call up the Loan MM contract screen corresponding to this Reference Num ber Setting up a BA deal The steps involved in setting up a BA deal are listed below Define a security product with the Banker s Acceptance option enabled and with the product type as Zero Coupon Bond Define a security under the above product Keep the Banker s Acceptance option enabled and quantity quotation as Nominal Define an SK Location with the Banker s Acceptance option enabled Specify a GL as the settlement destination for the above SK location customer Define a portfolio product of type Issuer with the Banker s Acceptance option enabled Define a bank portfolio Map this portfolio to the same SK location as mentioned above Define a portfolio under the above portfolio product and keep the Banker s Acceptance option enabled Map this portfolio to an SK location for which you have allowed Banker s Acceptance Define a Loan MM placement product in the Securities Bank Parameters maintenance Define a Bank Sell type of deal product with the Banker s Acceptance option enabled Define a combination Bank Se
40. Current Holding Unauthorized Holding values not available for this Posi tion 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 Siig ORACLE Error Code Message 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 already 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_ Valu
41. Dear Sir Madam 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 Carr Hong Kong Beneficiary of Securities Eastern Securities Hong Kong Beneficiary s Safekeep ing Account with Receiver of Securi ties 987056 Securities Registration Details Securities delivered are to be registered in favour of Eastern Securities Hong Kong aria ORACLE 27 2 7 Securities Receipt Decla Share Certificates with numbers as shown above are to be ration Details 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 599 350 00 HKD Amount Other Information Please confirm the delivery and receipt of payment for above securi
42. Leg Events Accounting Entries amp Overrides Reference Number Security ld Portfolio Id Events Serial Number Event Event Date Maker Id Maker Date Checker Id Checker Date E B El 4 Accounting Entries Branch Account Dr Cr Amount Tag Code Date Value Date BL T LI 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 alig ORACLE 21 7 21 7 1 e Amount in deal currency 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 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 restrictions mai
43. Note 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 oe ORACLE 8 2 2 8 3 8 3 1 For example suppose that 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 to 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 Maintaining Currency Restrictions A currency restriction identifies a unique list of allowed or disallowed currencies When
44. Revision Rate Event Date MIS Rate Effective Date Automatic Auto Manual Confirmed Confirmation Date History Narrative Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status To enter interest rate remission details click new icon 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 Issuer Reference Indicate the issuer reference for the interest rate revision event 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 20 18 ORACLE 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 Co
45. Unable to lock record from 1 for record 2 SE BA0110 Unhandled exception in function fn_settlements SE BA0111 Error updating processed flag in setbs_caevent_log to W work in pro gress for Action ID gt gt 1 31 27 ORACLE Error Code Message SE BA0112 Collection cannot be processed before initiation for internal Action ID 1 and position reference 2 SE BA0113 Liquidation cannot be processed before initiation collection for internal Action ID 1 and position reference 2 SE BA0114 Unhandled exception when others for internal Action ID 1 and position reference 2 SE BA0115 Error updating processed flag in setbs_caevent_log to Y Processed for Action ID gt gt 1 SE BA0116 Unhandled exception when others in function fn_dividend_auto SE BA0117 Error selecting corporate actions record for internal Action ID 1 and posi tion reference 2 SE BA0118 Unhandled exception when others in function fn_dividend_manual SE BA0119 Unable to lock record in setbms_corp_actions_due for internal Action ID 1 and position reference 2 SE BA0120 Error selecting corporate actions record for update SE BA0121 vi selecting portfolio product and Portfolio Ref No for Portfolio ID gt gt 1 SE BA0122 Unhandled exception in function fn_process_ event SE BA0123 Function sepkss_utils fn_lock_cstb_contract retu
46. 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 e Actual 364 Redemption Premium Specify the following details 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 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 e Actual 364 Note 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 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 aly ORACLE The entries passed for deal
47. 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 Tae ORACLE 11 3 2 For example you have selected the half yearly option and specified the start date as 31 and the start month as June The system will do the first 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 J
48. 20 18 ORACLE 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 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 Date 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 Entitlem
49. 365 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 29 11 ORACLE 29 5 For further information refer the section Specifying Interest Details in the Capturing Details of Deposit chapter in the Deposits User Manual 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 Repo Block Contract Reference Repo Details 1 Of1 Input Price Contr E Portfolio Id Securityld SK Location SKAccount Security Form Quantity Units Currency 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 Note 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 auia ORACLE 30 Printing Subsidiary General Ledger Form Repo 30 1 30 1 1 and Reverse Repo Deals Introduction 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 generate
50. 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 EOTF 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 Specifying 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 Description Module SP E Module description Securities Portf
51. Defining POrtOlioS sic occ Societies eek a E E a aa E 21 1 20 1 Introduction osoren e a a e a r teed ee te 21 1 21 2 Specifying Portfolio Definition Details eceeeeeenneeeeeeeeteeeeeeettaeeeeeeeaaes 21 1 21 3 Entering the Details of a Portfolio 00 0 2 eee eece eee eeenne treet eecaeeeeeeeeaeeeeeeenateeeeeseaaes 21 2 21 3 1 Identifying a POrttONO arisera OaE i AEE EE E a 21 2 21 4 Defining Preferences for a Portfolio esssseeeessssserneeeerreserrrrsstrrrssrerrnsssrtrnnssrenn 21 6 21 5 Specifying the Advices to be Generated ssseisssserirssserrrsssttrrsssttnrnsstrrnnsssrns 21 14 21 6 Viewing Event Details 2 000 eee cece eee eeeeeeeeeeeeeeeeeeeteeeeeeeeseeeeeeeeeseeaaeeeteeeaaeees 21 16 21 7 Maintaining Security Restrictions for a Portfolio ec eeeeeeeeeeeeeeeeeeeteneeeeeee 21 17 21 7 1 Features Of the SCIOCN 1 c ccscecccccecensenccecessencnecesennencetecsanneesseneaaneeeteeannneese 21 17 21 8 Mapping Accounts to a Safe Keeping Location c ceeeeeeeeeeeeeeeeeeeeeeeeeeeteees 21 18 21 9 Specifying Accounting Role to Head Mapping Preferences cceeeeeeeeeeees 21 20 21 10 Maintaining Security Revaluation Prices for a Portfolio c ec ceeeeeeeeeeereeeees 21 21 21 11 Maintaining Risk Profile sisenes nnair ia iiia iai esadi 21 21 21 12 Viewing Safe Keeping Location Portfolio Balances 21 22 Processing a Securities Deal ccceseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneeeeneeees 22 1 22 1 TO
52. ISIN Shares 10 25 12 300 00 1 75 21 525 00 SG0000698791 SGD SGD USD Tawdry Textiles and Fashion Corporation Lim ited 27 30 ORACLE 27 2 18 Total Value of 739 293 75 1 293 764 06 Securities SGD USD Other Information 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 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 Statement 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 Statement Preparation 08 APR 1998 Date er ORACLE er ISIN FRO000771617 Identification of Securities ELF AQUITAINE Shares Security Currency FFR Security Denomination Units Posti Securities i Vout ng Transaction Our Reference Quant
53. 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 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 228 ORACLE 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
54. 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 you have selected earlier The values are e Bank B e Customer C e Issuer l Portfolio Description Enter a brief description of the portfoli
55. 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 Building Interest 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 oe ORACLE 3 4 4 3 4 5 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 prod
56. N NPV oZ h _ SAT iaf REN in p H 1 y 1 y Where NPV Net Present Value of the deal Total number of Coupon cash flows between the deal settlement date and the N 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 ith coupon Yo Periodic Deal YTM Vd Coupon Date Revaluation Date P Reinvestment Period 20 5 ORACLE Po Forward Flat Purchase Price Vdn 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 y Yo av If you select Compound as the annualizing method the annual YTM for the deal is computed using the following formula y 1 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 sel
57. 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 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 e200 ORACLE 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
58. Record has to be authorized atleast once for unlocking SE MA0164_ Units Nominal Current cannot be more than Current ORACLE Error Code Message Holdings SE MA0165_ Reinvested Bonus cannot be more than Initial Bonus Due SE MA0166_ Reinvested Dividend cannot be more than Initial Dividend Amount Due SE MA0167 Block product Cannot be NULL for a Repo Product SE MA0169 Cannot Unlock The record has already been processed SE MA0170 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 prod ucts 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
59. 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 M124 ORACLE 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 f 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 If a portfolio product uses a preference class for which this specification has been made the specification is defaulted from the class you can change the default If you do so your specificatio
60. SE CPOP 022 not confirmed SE CPOP 023 Incorrect number of records returned during coupon population SE CPOP 024 Receive Account could not be got SE CPOP 025 Pay Account could not be got SE CPOP 026 Account currency is not the same as Issuer payment currency SE CPOP 027 Portfolio Account details could not be got SE CPOP 028 SE CPRC 001 Could not process coupon for branches SE CPRC 002 Could not process Coupon event SE CPRC 003 Could not get sub system flags during coupon processing SE CPRC 004 Error while processing coupon SE CPRC 005 Failed while processing Tax SE CPRC 006 Failed while processing charge SE CPRC 007 Failed while processing Transaction level tax SE CPRC 008 Failed in Settlements processing SE DATE 001 Failed in computing day count SE DATE 002 Failed in getting denominator SE DATE 003 Failed in computing the number of days SE DATE 004 Failed to get next leap date SE DATE 005 Failed to get next periodic date SE DATE 006 Failed in add months function SE DATE 007 Failed in add months function SE DATE 008 Failed in calculating the months between two dates SE DATE 051 Failed in getting the date in the correct format SE DATE 052 Could not convert the date to the correct format SE DATE 053 Failed in check for leap year SE DATE 054 Failed in getting the date in the correct format 31 53 ORACLE
61. SE DPRC 004 Failed in processing amount due during dividend processing SE DPRC 005 Failed in Tax processing for dividend SE DPRC 006 Failed in Charge processing for dividend SE DPRC 007 Failed in Transaction Tax processing for dividend SE DPRC 008 Failed in Settlements processing for dividend 31 54 ORACLE Error Code Message SE DSRV 001 SE IACO 001 Could not build queue array during interest accrual SE IAC0 002 Failed to get periodic accrual date SE IACO0 003 Failed in adjustment of accrual SE IAC0 004 Failed in period accrual function SE IAC0 005 Failed in coupon date accrual SE IAC0 006 Failed in deleting accrual queues SE IAC1 001 Failed in accrual for a position SE IAC 1 002 Failed in computing quantity for accrual SE IAC 1 003 Failed in computing interest balances SE IAC 1 004 Failed in obtaining interest history SE IAC 1 005 Failed in computing interest amounts SE IAC 1 006 Failed in computing tax balances SE IAC 1 007 Failed in obtaining tax history SE IAC 1 008 Failed in computing tax amounts SE IAC 1 009 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 interes
62. 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 TELERATE TELERATE SWAP RATE ORACLE 4 4 2 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 and clicking the adjoining arrow button Rate Type Definition EE New E Enter Query Rate Type Rate Type Description Input By Authorized By Modification Date Time Date Time Number WB Authorized 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 a6 ORACLE 4 4 3 4 5 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 E New E Enter Query Rate Code Tenor Code Rate Code Description Tenor Code Description Rate Source Currency Code Rate Source Description Currency Code Description Effective Date
63. Security name and portfolio to which the deal Security Name belongs to Portfolio Deal Type The type of deal and price of deal Deal Price Customer Customer of the deal Security Currency Currency in which the security is issued Deal Reference Reference number of the deal Interest Amount Interest amount applicable on the deal Nominal The nominal Confirmation Indicator Whether the deal is confirmed or not 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 DSTL Date Repot Format PDF Printer At Client Report Output Print v Printer Specify the following details Deal Settlement Date Specify the settlement date for the deal from the adjoining calendar Felg ORACLE 34 9 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 Number Reference number of the deal Leg Ref
64. Source You have to indicate the source from which contracts have to be uploaded If this value is left null then you will not be able to amend the contract Amendment for the contract can be uploaded only through the same source as that used for creation 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 e Actual Actual e 30 Euro 364 e 30 US 364 e Actual 364 The value of interest basis maintained here is used for calculat
65. Unhandled exception in fn_rights_expiry SE BOD052 Are you sure you want start Corp Action Batch processing SE BOD053 Unhandled exception encountered while running Batch program SE BODO074 When Others of fn_populate_coupon_eod SE BODO075 When Others of fn_populate_cash_dvnd_eod 31 34 ORACLE 31 4 Error Codes and Messages for Deal Input Error Code Message SE DOO0000 For Securities Deal On line error code format is SE DONNNN where NNNN is a running four digit number with left padded zeros Please insert the Error Codes you want and reserve it The Error Message can not be greater than 255 characters Please do not use SE DO0000 as a Error Code SE DOO0001 Product code should be entered SE DO0002 Unable to generate reference number SE DO0003 Trade date cannot be after today SE DO0004 Trade date cannot be after interest date SE DO0005 Interest date cannot be after delivery settlement date SE DOO0006 Delivery settlement date cannot be before trade date SE DO0007 Security code should be entered SE DO0008 Market code should be entered SE DOO0009 Deal quantity should be entered SE DO0010 Input price should be entered SE DO0011 Trade date should be entered SE DO0012 Delivery settlement date should be entered SE DO0013 Interest date should be entered SE DO0014 Trade date should be entered SE DO0015 Broker code should be
66. 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 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 Specifying the Customer Category Restrictions Class You can group your 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 The Customer Category Restrictions Class screen You
67. face at maturity The difference between what is paid at the time of purchase and what is received at maturity represents the interest earned 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 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 an ORACLE 2 1 8 6 2 1 8 7 2 1 8 8 2 1 9 1 2 1 9 2 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 o
68. in the Accounting field in the Holiday Treatment Move Across Months area 1 ORACLE 4 3 5 If the coupon plotting date itself has moved to a working day then this field becomes irrelevant Note For both Coupon Details and Accounting Value Date if movement across months is al lowed then such movement takes place subject to necessity and as per other preferenc es maintained even if this entails a movement across accounting periods or across financial years 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 Lastin 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 Consider the following example The following buy
69. 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 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 the 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 sa ORACLE 22 2 3 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
70. 17 WRLL Warrants Security Tear Off Processing Accounting Entries 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 32 29 ORACLE 32 4 3 18 WROL Warrant Detachment from Parent Security Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC ASSET GL WARR_INTR_VALUE Credit SEC BRIDGE GL WARR_INTR_VALUE Debit Advices No advices allowed for this event 32 4 3 19 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 4 3 20 WENL Exercise of Warrants for New Equity Accounting Entries 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 ad
71. 20 7 1 Redemption Processing based on Quotation Type sseessseseeeeeseneeena 20 12 20 7 2 End of Trading PrOC SSING ecnasineiranidiiaisiaaii ia iA 20 12 20 8 Processing of Amendment on Redemption Schedules cccceeeeeeeeeees 20 13 20 9 Maintaining Interest Coupon Details seeeeseeeeeeeeeeeeneeeeerresseeerretterrssteerrnssrennn 20 13 20 9 1 Linking Interest Component to Tax COMPONENE 2 ccccceeeeeeeeeteetteees 20 14 20 9 2 Specifying Event Narrative cccccccceceeeeeeeeeeeeeeeeeteeeeeeeeeeeeeaeeeetenaaeeees 20 15 21 22 20 10 Processing Interest COUPONS cceeecceeeeeeeeeteeeee eee ttneeee ee taeeeeeeetaeeeeeetiaeeeeeeneaa 20 15 20 11 Maintaining Interest Rate Revision Details ccecieeeeeeeeeeeteeeeeeeteeeeeeeeea 20 16 20 12 Maintaining Stock Dividend Details 00 0 eee eeeeeeeeeeenneeeeeeeeneeeeeeeenaeeeeeeeaas 20 17 20 13 Maintaining Cash Dividend Details eee ccceeeeeceeeeeeeeeeneeeeeeeeeaeeeeeeenaeeeeeeeaas 20 20 20 14 Processing dividends nisinsin at ieii ea A E A EE 20 22 20 15 Maintaining Bonus to Cash Conversion Details 0 iccccceeeeeeeneeeeeeetnteeeeeeenaas 20 23 20 16 Processing Bonus to Cash Conversions seesssssseirsseserrsssrerrrsstrrrrsssrrirrsssreen 20 25 20 17 Manually Processing Corporate Action Events 0 ccccccceeeeesteeeeeeeentneeeeeeeaas 20 25 20 18 Moving on to Other Screens neiere ari R RAEE TEATER RER 20 26
72. 23 4 23 2 2 Indicating Deal Details 0 0 cccccceeeeeeeeteee eee AEA EE ORE EERS 23 5 23 2 3 Specifying Details of the Single and Multiple Legs of a Deal 0 23 8 23 2 4 Specifying Details of the Multiple Leg of the Deal eeceecceetseeeeeeeenees 23 9 23 3 Entering Additional Details of a Deal ec cceceeee eee eetneeeeeetieeeeeeeaeeeeerenee 23 9 23 3 1 Specifying Additional Details for the D al cccccceceecettteeeetetnneeeeees 23 10 23 4 Uploading the Details of a Block Deal 0 0 00 ec eeeeeeeeeeeeceeeeeeeeteeeeeeetneeeeeeeeea 23 11 Transferring Securities across Locations ssseeeeeeeeeeeeeeeeees 24 1 24 1 INtrOdUCtON oeie ea aAa EE AER eee en dn A eee 24 1 24 1 1 Specifying the SK locations ANd ACCOUNIS cccccceeeeeeetnteeeeeetnneeeeeeteae 24 3 24 2 Moving on to the Other SCreens eee eececeeeeeneeeeeeeeeneeeeeeeeenaeeeeeeeenaeeeeeesnaeeeeeenenaes 24 4 Maintaining Block Security Details cccceeeeeeeeeeeeeeeeeeeeeeeeeeeeneees 25 1 29 1 Introduction iid ed einen didi ieee ia endian 25 1 Batch ProCeSsSe S usec foccccs duds scceazetennakcndeecasecacettuceausssetececcapaveseextasesdzetecbes 26 1 2621 Introductions acca ake tie EE EA A mat AE EE OT ena 26 1 26 1 1 Beginning of Day Processing eetenemessesiersiiinirerini tie aE EEn EA 26 1 26 1 2 Processing Daily Eve Seimei er E E a 26 1 26 1 3 Invoking the Automatic Daily Program ssseeeeesneeeeeenn
73. 32 4 4 1 BOOK Booking of securities deal 32 4 4 2 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 Note For Brokerage marked as Consider as Discount and denominated in a brokerage curren cy 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 Note 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 AMND Amendment of securities deal Accou
74. 34 15 34 11 1 Selection Criteria vio vocs civic caves ieee ese dates dees Sayed inne ennen 34 15 34 11 2 Contents of Rep O e aa el aa hee sa eet 34 15 34 12 Portfolio To Portfolio Deals Report cceccecceececceeceeeeeeeeeeeeeeeeenceceeeeeeeeeenenes 34 16 34 12 21 Contents OF REPOME nieee e a a a e died 34 17 34 13 Matched Unmatched Confirmation Message Report eeessseeeeeseeerresererreeseens 34 17 34 14 Forward Profit and Loss PnL Accrual Report eeeessseeeeeesseerrssserrressererressreens 34 19 34 14 1 Selection Options 2 ccccccsccccccccecceeececseenecaeeaeeeeeeeseeseseseeseasasaneeseeseeeneaes 34 19 34 14 2 Contents of Report 20 2 ccccccccccceeececnneaeceeeeceeeneeeteteeeseauenaneseeeseeereestees 34 19 34 15 Securities Maturity Report esssssseessrrreesesnnessssnneeennnnnesstennsssnennnestnanneennnnaenntennn 34 20 34 15 1 Selection Option S 2 ccccccccccccccecceeececseenecaaececeeeeeseeeeceseesasananeneeeseeeteass 34 20 34 15 2 Contents Of Report 0 1 cccccccccceeeeceecneneneceeceseeeeeceseetecseeseecaseeseeeeeeeeettees 34 21 34 16 Securities Contracts Overrides Report ccceccecceeeeeeeeeeeeeeeeeecnceeeeeeeeeeeeees 34 22 34 16 1 Contents Of Repott 20 0 ccccccccccceeeeceeenneeeeceeeeeeeeeeeeseetecneeneeaaeeeseeeeeeeeettees 34 22 34 17 Securities Exception Report cccecceeceeeeeceececeeceeeeeeeee cease ceeceaeeaeeeeeeeeeeeeneeees 34 23 34 17 1 Selection OPIO S a
75. 51002 Trading Cor Failedas 4 poration Funds Shares were not delivered 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 BERA ORACLE 28 1 28 1 1 28 Making Queries 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 what 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 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 scr
76. 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 119 ORACLE 11 2 11 11 2 12 For 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 the accruals are done as per your holiday handling specifications in the Branch Parameters screen 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 interest 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 coup
77. By button The screen clears and you can specify a new order aeg ORACLE 28 2 Viewing Portfolio Securities Movements You can view the portfolio securities movements in the Portfolio Securities Movements Summary screen You can invoke this screen by typing SESXPFMV in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Portfolio Securities Movements Summary S Search t Advanced Search 9 Reset D Clear All Case Sensitive Portfolio Id Value Date Portfolio Reference Records per page 15 v 10f1 Branch Code Portfolio Id Portfolio Description Portfolio Type Securityld Security Description SecurityCcy In the above screen you can base your queries on any or all of the following parameters and fetch records e Value Date e Portfolio Id e Portfolio Reference Select any or all of the above parameters for a query and click Search button The records meeting the selected criteria are displayed If you are allowed to query then system displays the following details pertaining to the fetched records e Branch Code e Portfolio Id e Portfolio Description e Portfolio Type e Security Id e Security Description e Security Currency e Value Date e Portfolio Reference 20 8 ORACLE e Opening Balance e Closing Sec Balance e Movements As Of Today Note For more information on the Query option please refer to the chapter o
78. 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 For 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 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 Note 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 Entering Additional Details of a Deal To recall in the Main details screen you have captured details regarding the deal In the Additional Details screen you can define details like the spot price details the settlement a213 ORACLE 22 2 4 1 currency the settlement SKL exchange rates for deals in a foreign currency and other such details Securities Deal input EX New Enter Query Product User Reference External Reference Number Product Description Main Additional Spot Price Price Quote Interest Quote
79. Click Advices to define the advices that you would like to print at an event Class Code Class Description Event Code Event Description Event Advice Class Advice Name Description Generation Time Suppress Authorize v No v 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 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 a ORACLE 10 1 10 2 10 Defining Security Preference Classes 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 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 If you 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 f you would like
80. Code Message SE BA0170 Improper Internal Action ID SE BA0171 Insert to setbs_caevent_tearoff_log failed SE BA0172 Unhandled exception in sepks_utils fn_populate_caevent_tear_log SE BA0173 Unhandled exception in sepks_utils fn_delete_caevent_tear_log SE BA0174 Insert to setbs_caevent_expiry_log failed SE BA0175 Securities with only Quantity type of redemption can be processed for rebuild SE BA0176_ Insert to setbs_securty_face_value failed SE BA0177 Redeemed Value of Security cannot be less than Zero SE BA0178 Select from setms_redemption failed SE BAO179 Failed to round the redemption value SE BA0180 Unhandled exception in sepkss_security_rebuild fn_rebuild_for_a_secu rity SE BA0181 Position goes negative for 1 SE BA0182_ Position goes positive for 1 SE BA0183 Amount round failed for 1 SE BA0184 Unhandled exception in 1 SE BA0185 Failed to read deal for 1 SE BA0186_ Failed to insert into cstb_contract_exception SE BA0187 Unhandled exception in fn_rebuild_slabs SE BA0188 Unable to select from setms_portfolio_master SE BA0189 Unable to select from setb_dprp_accr_calc SE BA0190 Unable to lock position 1 SE BA0191 Unable to select from setm_redemption SE BA0192 Unable to select from setm_security_master SE BA0193 Unable to update setb_bep SE BAO194 Unable to insert update setb
81. 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 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 For example suppose that 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 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 da
82. 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 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 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 20 22 ORACLE 20 15 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 Maintaining Bonus to Cash Conversion Details When you specify that stock is to be converte
83. ISMA Interest Method and ACT ACT FRF Interest Method ACT ACT ISMA Interest Method The ACT ACT FRF 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 19 20 ORACLE 19 4 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 values of Denominator Method maintained in Securities Instrument Definition screen are used for accrual and liquidation Interest amount calculation for Bonds for a given security 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 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 e Leap Date D Indicates that the system will use the ACT ACT FRF Interest Method to compute the interest Note This field is enabled
84. MTM It stands for Mark to Market It 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 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 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 Converti
85. Money Settlement for is already completed SE DO0093 Failed in event processing 1 failed SE DO0094 Checker ID can not be same as the Maker ID SE DO0095 Contract saved as TEMPLATE SE DO0096 Contract saved SE DO0097 Matched units can not be null SE DO0098 Contract already liquidated SE DO0100 Deal Successfully Saved SE DO0131 Failed to get the price components SE DO0132 Spot date can not be earlier than Trade date SE DO0133 Money settlement is already done SE DO0134 Deal settlement is already done SE DO0135 Could not retrieve spot price for the given face value please input spot price SE DO0136 Limits are not maintained SE DO0137 Combination of the entered details is not valid SE DO0138 Please enter the mandatory fields SE DO0139 Money Settlement date is earlier than today SE DO0140 New Deal Settlement Date is greater than one of the sell leg Deal Settle ment Dates matched to 1 SE DO0141 New Deal Settlement Date is earlier than one of the buy leg Deal Settle ment Dates matched to 1 SE DO0142 Failed to compare Deal settlement dates for matched deals SE DO0143 Failed in 1 pickup SE DO0144 Please enter the narrative type SE DO0145 Failed to generate Position Reference Number SE DO0146 Contract reversed SE DO0147 Do you want to reverse the contract SE DO0148 Failed to select the record SE DO0149 Selected record has changed please reselect SE DO0150 Do you want to re pickup the subsystems Irap ORACLE
86. ORACLE 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 3 3 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 Revaluation Date USD 4 11 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 considered during revaluation for the deal
87. Portfolios of different costing methods can be involved in the multi leg of the block deal e Details 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 e 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 e 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 Unlock the block deal Goto the relevant sub deal Unlock the sub deal Make the required changes 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 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
88. 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 a ORACLE e The Detail preferences screen Portfolio Preferences Product Code Product Description Class Code ia Default From Class Description ome Processing Treasury Bill Accrual Holdings Statement Auto Liquidate For Accrue Discount For Statement of Holdings Corporate Actions Treasury Bills Required F Corpus Account Accrual Frequency X Holding Frequency X F Short Position Allowed Accrual Stat Day _ Holding Start Day Accrue Withholding Tax For Accrual Start Month X Holding Start Month X Coupons F pns ana Tax For fikara Aulda F Bankers Acceptance Issue ae Required Yes F Repo On Today s Projected Purchase Interest e Holdings No Wipe Deal Purchase Book Discount Premium Interest Rekey Fields Accounting Basis Costing Method E Portfolio Id Costing Method F i Corporate Action Notice amg Portfolio Customer E Corporate Notice Action Transaction Statement Portfolio Currency Rogon E Statement of Transaction Book Intrinsic Value Notice Day Required Notice Day Type oa Transaction Frequency m Warrants Portfolio Type Transaction Month X Rights
89. SO0509 Unable to Commit in Security Definition Function SE SO0510 Security Definition Saved Successfully SE SO0511 Unhandled Exception in Security Definition Function SE SO00512 Unable to Commit in Security Definition Function SE SO00513 Security Definition Deleted Successfully SE S00514 Unhandled Exception in Security Definition Function SE SO0515 Unable to Commit in Security Definition Function SE SO00516 Unhandled Exception in Security Definition Function SE SO00517 Security Definition is not yet Authorized Once SE SO00518 Security Definition is Closed Already SE SO0519 Deals have already been struck for the Security SE S00520 Unable to Post in Security Definition Function SE SO00521 Unable to Commit in Security Definition Function SE S00522 Security Definition Closed Successfully SE S00523 Unhandled Exception in Security Definition Function SE S00524 Security Definition is Open Already SE S00525 Unable to Post in Security Definition Function SE SO00526 Unable to Commit in Security Definition Function SE SO0527 Security Definition Reopened Successfully SE S00528 Unhandled Exception in Security Definition Function SE SO0551 Product is Unavailable in the Current List SE S00552 Market of Issue is Unavailable in the Current List SE S00553 Issuer ID is Unavailable in the Current List SE SO0554 Security Currency is Unavailable in the Current List SE SO0555 Payment Currency is Unavailable in the Current List SE SO0556 Co
90. Security Ccy not maintained for Internal Security Id SE BA0062 Latest ESN not maintained for Contract Reference SE BA0063 Updation of setbs_deal_master bombed SE BA0064 Updation of setbs_deal_detail bombed SE BA0065 Select from setbs_mm_repo_linkage failed SE BAOO66 Insert to setws_tmp_repo exposure bombed SE BAO067 Unhandled Exception in fn_calculate_repo_exposure SE BA0068 Unhandled Exception in sepkss_copy fn_secopy_adeal SE BA0069 Insert to Cstb Contract Failed SE BA0070 Unhandled Exception in fn_cstb_contract_insert SE BAO0071 Updation Of Cstb Contract Failed SE BA0072 Unhandled Exception in fn_cstb_contract_update SE BA0073 Insert to setbs_deal_master Failed SE BA0074 Unhandled Exception in fn_deal_master_insert SE BA0075 Insert to setbs_deal_detail Failed SE BA0076 Unhandled Exception in fn_deal_detail_insert SE BAO0077 Insert to setbs_deal_parties Failed SE BA0078 Unhandled Exception in fn_deal_parties_insert SE BA0079 Insert to setbs_deal_parties_narrative Failed 31 26 ORACLE Error Code Message SE BAO0080 Unhandled Exception in fn_deal_narrative_insert SE BA0081_ Inserting into exception for reference number 1 failed SE BA0082 Unhandled exception in getting all legs to be processed for MSTL SE BA0083 Insert into event log bombed for leg 1 SE BA0084_ Unhandled excepti
91. 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 Quantity e Bullet For bonds with the Redemption Type defined as Series you can specify the Series details in the Security Definition Series screen we ORACLE This screen is invoked by clicking Series button Series Security Series 101 E Series The actual series redemption dates can be specified in the Security Definition Redemption Schedules screen 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 1 Of 1 EventDate Redemption Quantity Redemption Price Disposition of Fractions Callindicator Series Specify the date s of redemption in t
92. This rate code already exists SE MA0217 For CURRENCY HOLIDAY as the holiday type HOLIDAY CURRENCY is mandatory SE PRDOO01 Input to Product Description is Mandatory cannot be NULL SE PRDO02 Record is Unauthorized Closure Not Allowed SE PRDOO3 Are you sure you want to Close the record SE PRDO004 Record Successfully Saved SE PRDO05 A combination product with this product as a leg is open Closure NOT Allowed SE PRDO06 Override Limit CANNOT be greater than Stop Limit SE PRDOO7 Are you sure this is a Back Valued Product SE PRDOO8 Product Start Date CANNOT be greater than Product End Date SE PRDOOY Product end Date CANNOT be before Today SE PREFO1 Are you sure you want to redefault the Class SE PRDO10 Deal Product Copy Failed SE PRD011 Deal Product Delete Failed SE PRD012 Security Product Copy Failed SE PRD013 Security Product Delete Failed SE PRD014 Charges have not been defined for the Product ORACLE Error Code Message SE PRD015 Security Restrictions have not been defined for the Product SE PRDO16_ Portfolio Restrictions have not been defined for the Product SE PRDO017 Tax Components have not been defined for the Product SE PRDO018 Interest Components have not been defined for the Product SE PRDO19 Input to Product Start Date is Mandatory cannot be NULL SE PRDO20 Input to Product De
93. 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 Ignore Holidays C Currency Value Date Contract Amount Maturity Date Accrual Frequency Monthly Start Month Start Date Minimum Default Maximum Unit Rate Variance Normal Rate Variance Maximum Rate Variance Product Description Holiday Treatment Preferences Schedule Movement Securities Block Deal Block Product Cascade Schedules Move Across Month Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days Choosing a deal 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 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 Note EIM features are also supported in Repo and Reverse Repo products For a detailed discussion of products please refer the Money Market user manual Specifying Interest Details for Product You can link an interest rule to a
94. Type The type of security Security ID The security ID and description Security Description SK Location The SK location and SK account SK Account Issuer Currency The issuer and security currency Security Currency Basis Quantity The basic quantity Record Date The record date and the corporate action date Corporate Action Date Dividend Rate The rate of the dividend Dividend Amount The dividend amount Resultant Security ae ORACLE 34 7 34 7 1 Corporate Action Pending 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 Actions Pending Corporate Actions Event Pending Select Event Select Branch Corporate Action Type Coupons Others Report As On Report Format Printer At Client Report Output i Printer 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 Contents of the Report The contents of corporate acti
95. 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 te ORACLE 18 1 18 2 18 Defining a Product Combination 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 Note You can create a product combination only after you have created buy and sell deal prod ucts Creating a Combination Product The Securities Combination Product Maintenance screen is invoked from the Application Browser To enter the details of a new deal click new icon from the tool bar You can invoke the Securities Combination Product Maintenance screen by typing SEDXCMBP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are calling
96. adhere to Month Ends The implication of this option is explained in the following example 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 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 10 4 ORACLE 10 2 4 10 2 5 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
97. 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 001 Failed in computing market spot date SE MRKT 002_ Failed in computing market Ex date SE MRKT 051 Failed to get market details while computing spot date SE MRKT 052_ Market Record is not authorized SE MRKT 053 Failed to get the next working day while computing spot date SE MRKT 054 Failed in holiday check while computing spot date SE MRKT 055_ Failed in holiday check while computing spot date SE MRKT 056 SE MRKT 057 SE MRKT 058 No record found for market spot date SE MRKT 059 Error during getting market spot date 31 56 ORACLE Error Code Message SE MRKT 060 Zero days got when computing the days in a month SE MRKT 061 Failed in setting the date to the correct format while computing spot date SE MRKT 062_ Failed to set the date to the correct format SE MRKT 063 Failed in holiday check while computing spot date SE MRKT 064 Failed in holiday check while computing spot date SE MRKT 065 Failed to get next working date while computing spot date SE MRKT 066 Failed to get spot date SE MRKT 067 Failed to get market details while computing ex date SE MRKT 068 Market Record i
98. 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 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 marked with this revaluation method will be revalued only if they register a loss
99. 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 triggered 20 1 ORACLE 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 b
100. are discounted to the revaluation date Therefore the effective coupon 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 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 Revaluation Profit Loss 10174 29 102 100 25 71 aola ORACLE Revaluation Loss USD 25 71 26 3 3 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 01 USD 26 03 Mar 2003 to 20 Mar 2003 Market Price as of Revaluation
101. 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 a219 ORACLE 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 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 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 Yo
102. 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 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 For example 70 10 0 0545 1000 1200 2 The yield to maturity is 5 45 Certain bonds like Zero coupon bonds trade with the price being quoted as Yi
103. by double clicking it 23 1 ORACLE You can invoke the Securities Bulk Deal Input screen by typing SEDXBLDL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Block Deal E New enter Query Product Deal Reference User Reference Main Additional Security Transaction Date Security Code Deal Type Quote By Market Code Trade Date Interest Deal Quantity Delivery Settlement Date Interest Date Deliver Receive Absolute Price PrceQute Yield Input Price Single Leg BuyiSell Buy MSTL Date Sell Leg Description f Auto MSTL Leg Product Pay Account Branch Portfolio Payment Accounts Counterparty Broker SK Location SK Account Multiple Leg Deal Reference Leg Description Leg Product Multiple Leg 1 0f1 E lf Deal Reference Portfolio Counterparty SKLocation SK Location Description SK Account Deal Quantity DeallnputPrice PayAccountBranch Maker Id Checker Id Deal Status Date Time Date Time Authorization Status 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 concern
104. by the following maintenance features The maintenance functions can be broken into the following categories 1 2 3 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 Building classes Defining products Building Classes In Oracle FLEXCUBE a Class embodies a generic set of attributes A class could represent A set of restrictions branch currency customer security restrictions or portfolio restrictions A set of preferences security preferences portfolio preferences or deal preferences A set of events and the corresponding accounting roles and heads account types and the GLs involved or A component tax interest or charge ORACLE 3 4 2 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
105. calling a Portfolio Restriction Class record that has already been defined choose the Portfolio Restriction Class Maintenance Summary screen oa ORACLE From the Summary screen double click a class to open it Securities Deal Portfolio Restrictions Class Maintenance E New E enter Query Class Code Class Code Description Module SD Module Description Securities Deal Module Portfolio Restriction Restriction Type Allowed 1 Of 1 Disallowed Product Code Product Code Description Portfolio Access 1 0f1 E Portfoliold Product Product Description Restriction Type Maker Date Time Checker Date Time Mod No Record Status Authorization Status 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 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 ano
106. 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 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 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 amendment 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 buil
107. 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 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 22718 ORACLE 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 5 4 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 b
108. 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 ay ORACLE 19 2 11 19 2 12 19 2 13 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 Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances 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 are maintaining pays corporate actions such as Coupon Payment The currencies can be selected from the picklists available 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
109. 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 Specifying 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 We ORACLE 17 2 1 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 Dafauli Fram Class 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 Tracki Pre Settlement Risks Lir Free Pay Free Tracking Spot
110. deals for 1year EURODOLLAR Bonds S1 have been struck for the Trading Portfolio P1 Leg Ref No Purchase date Deal No of units Deal 2 D2 Buy 15 2nd January Deal 3 D3 Sell 12 5th January 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 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 o ORACLE 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 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
111. details are displayed Deal Reference Reference number of the deal Number Security Id The security Id Security Description Description of the security Interest Amount Interest applicable on the deal Face Value of Deal Face value of the deal Leg Reference Num Reference number of the transaction leg ber Leg Type Type of transaction buy or sell one ORACLE Counterparty The deal counterparty Counterparty Name Name of the deal counterparty Portfolio Id The portfolio ID Portfolio Description Description of the portfolio Leg Reference Num Reference number of the transaction leg ber 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 Description of the portfolio 34 11 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 Report Format PDF Report Output Print 34 11 1 Selection Criteria Printer At Client Print
112. 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 During batch handoff for security instrument only the Local Security Instrument will be handed off and not the Foreign Market Instrument 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 22 ORACLE 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 instrument Definition scr
113. 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 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 19 47 ORACLE If the Annualizing method is Compound the relationship between the periodic YTM and the deal YTM is computed as follows Yo x 1 If the Annualizing method is Simple it is computed as follows B A Yo Yo P Where e gis the Periodic YTM e Yois the Deal YTM e Ais the Day Count Method Denominator 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 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 Co
114. entered SE DO0016 Security series should be entered SE DO0017 Payment date should be entered SE DO0018 Spot date should be entered SE DO0019 Spot price should be entered SE DO0020 Payment Currency should be entered SE DO0021 Interest days should be entered SE DO0022 Counterparty should be entered SE DO0023 SK location should be entered SE DO0024 Portfolio should be entered SE DO0025 User reference should be entered SE DO0026 Dealer code should be entered ate ORACLE Error Code Message SE DO0027 Money settlement date should be entered SE DO0028 SK Account should be entered SE DO0029 Actual money settlement date should be entered SE DO0030 Overrides need to be confirmed for Authorization SE DO0031 Do you want to undo the changes you have made SE DO0032 Do you want to delete the contract SE DO0033 Do you want to undo the last unauthorized changes SE DO0034 Authorized contract can not be deleted SE DO0035 Contract successfully deleted SE DO0036 User Reference Number should be unique SE DO0037 Liquidate Failed SE DO0038 Rollover Failed SE DO0039 Failed to generate new version Reversal of contract Failed SE DO0040 Failed to copy the contract SE DO0041 Failed to delete the contract SE DO0042 Contract successfully deleted SE DO0043 Do you want to close the contract SE DO0044 Contract successfully closed SE D
115. examples illustrates the computation of revaluation profit loss using the formula mentioned above Illustrations 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 Coupon Event Date Coupon 01 Jan 2003 USD 0 42 01 Feb 2003 USD 0 42 26 10 ORACLE 26 3 3 1 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 Deal Price USD 99 95 Annual YTM 21 351 Periodic YTM 21 351 Accrued Interest as of Revaluation date from previous cou USD 19 18 pon 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 ef
116. for the module SE MA0O200 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 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 propa gated 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 maintained 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
117. 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 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 e Pay account e The Broker involved in the deal e Yield e MSTL Date Entering Additional Details of a Deal In the Additional Details screen you can define details like the spot price currency the trade details Click on the tab titled Additional to invoke this screen 77 ORACLE 23 3 1 Specifying Additional Details for the Deal For forward deals you should also indicate spot price details The spot price detai
118. html Coupon It is the interest rate on a fixed income 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 Z rich 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
119. 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 Click on this button to enter the settlement message details You can spec ify details such as The accounts to be debited for charges Settlement 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 mes sage Details about the parties involved in the transfer MIS Click on this button to enter the transaction MIS details Click on this button to enter the leg advices You can view suppress and Advices prioritise the advices that are to be generated for each leg of the deal 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 ICCF application Click on this button to view the transaction tax details In addition to chang Tax ing the tax amount you can also waive the application Parties Click on this button to enter details of parties and party narratives ane ORACLE 25 1 25 Maintaining Block Security Details Introduction A specified quantity of securities can be stopped from being traded in the market This is done by specifyi
120. iieeit ladle cchesaed cigeus ad gagchetandd igokes lat teed badnte A EAE 32 1 32 2 1 Portfolio Type Of PrOQUCES iriri eer AAEE EESE 32 2 32 2 2 Customer Buy Sell Type Of Product ccccccccccesteeeteeeteeeeeteseeeeeeseeaaees 32 3 S223 AMOUNT AGS EA AA AA E ARAI O NE Aa 32 3 324 Accounting Roles eiii i a i a AE ARAN N ATE 32 7 32 4 1 List I Acct Roles for a Portfolio Type of PrOQUCEt ccctceeteeettsteeeeeees 32 8 32 4 2 List 2 Acct Roles for a Customer Buy Sell Type of Product 32 10 32 4 3 SS Deal with a Portfolio Type Of Product Bank Portfolio 22 0202 32 13 32 4 4 SS deal with a Customer Buy Sell type Of PrOdUuCt cccceeeeeteereees 32 36 x ey oC Sea oe ees ee ee eon nae 33 1 BO 1 COSCUPILIEOS GRIMS wie c4cre cet ones ccc tescteceet E A ahaa mere AE Gt ee aa 33 1 DAs FREPOTES EAEE A hotest tn EE E oo ceed nck E AE 34 1 B41 NNMOGUCHON 2 ascteec cas batees tid sitate lat anecetaadd E E E T 34 1 34 2 Corporate Action Tracking Coupon EXDATE ccceeeeeeeeeeeeeeteeeeeeeenteeeeeeenaaees 34 2 34 2 1 Contents Of Repot 2222 cc cccccceccecceceeeeeeseceneananaeceneeceeeeesesecneeninaeeeseeesees 34 2 34 3 COUPON Flipping aneda er a naar a sia aea adea e taaa aa ee eee 34 3 343 T REPO OPO Saa a aaa e Eai aa 34 4 34 3 2 Contents Of Repo e a niece sas elated ose tie eee 34 4 34 4 Securities Activity RePort ccscccccecedescecaeeeeeceeaeeersndeeenneesececsesede
121. instructions e Location of parties e The banking regulations of a country 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 aada ORACLE You can invoke the Contract Tax Details screen by clicking Tax button from the applicable leg of the deal Tax Details Reference Number EJ o Transaction Level Tax Issuer Tax Association Creation ESN Component Creation ESN Component Tag Currency TagAmount Tax Currency TaxAmount Waiver Liquidated i Component Tax Currency Tax Amount 22 7 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 e208 ORACLE 22 8 Changing the tax rule linked to a component The rule that is linked t
122. interest details specific to the security that you are Interest One 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 attribute can be captured on the screen These buttons are briefly described below Click on this icon to invoke the Series details screen If the redemption Series type of a bond is Series you can enter the series details in this screen Click on this icon to indicate the coupon details for the bond that you are ponpon maintaining For bonds defined with floating interest and an asynchronous periodic Revision 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 Quan Schedule tity Redemption that you are maintaining This button invokes the Interest service of Oracle FLEXCUBE You can Interest naar R 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 Entering the Details of a Security A security can be maintained in the Security Definition screen which is invoke
123. 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 16 ORACLE 19 2 9 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 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 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 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 Capturing Information Specific to the
124. is the Coupon Date Value Date Adj is 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 Fy KPF Ad 1 y P Where Po is the Purchase price of the T Bill R P is the Redemption Price Yo is the Periodic YTM Ad is the Redemption Date Value Date A is the Day Count Method Denominator 1913 ORACLE 19 3 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 Annualizing Method Simple Applying the formula the periodic YTM is calculated as follows 90 100 1 y9 30 June 2003 31 Jan 2003 183 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 Interest Method for Computing Coupon Interest Apart from the above mentioned method for calculating the interest you can also use the ACT ACT
125. is to be discounted in this field Amount Paid Enter the amount being paid for a particular component This must be less than or equal to the total amount due for the component LCY Equivalent Specify the local currency equivalent for the total paid amount The local currency equivalent is calculated using the standard rate in case of cross currency transactions Amount Prepaid Specify the prepaid amount ous ORACLE LCY Equivalent Specify the local currency equivalent for the total prepaid amount The local currency equivalent is calculated using the standard rate in case of cross currency transactions Limit Amount For a liability code and revolving credit line combination you can define limit schedules and indicate the limit that is applicable for the period You can enter a negative limit amount The limits maintained for a tenor are for information purposes The limit does not become automatically effective to the line liability combination when the tenor begins LCY Equivalent Specify the local currency equivalent for the limit amount The local currency equivalent is calculated using the standard rate in case of cross currency transactions Liquidated Nominal Specify the Liquidated Nominal amount which is the amount that you would receive when you redeem a T Bill on the maturity date This is also known as the face value of the T Bill The discount rate is used to calculate the Net Present Value NPV of a T Bill
126. level revaluation at the event BRVL Securities Revaluation of Positions Deals are rial Accounting Role and Description Amount Tag and Description Debit MTM_EXP Expense GL for Revalua MTM_EXP Revaluation Expense tion 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 Revalua for Revaluation LOCOM Method tion Expense LOCOM Method Credit LOCOM_REVAL_LBY Liability GL for LOCOM_REVAL_EXP Revalua Revaluation LOCOM Method tion Expense LOCOM Method A note 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 Where N pi 2 at E y i e Pois the Purchase price of the Bond e Nis the Total number of coupons e Ciis the Coupon payment for coupon i e Ygis the Deal YTM Periodic e Yois the Deal YTM e Ais the Day Count Method Denominator e nis the Coupons in a Year yo e Ad N e P isthe Period of Reinvestment If Null defaulted to A n e R P is the Redemptio
127. long term bond yield expressed as an annual rate 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 ORACLE 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
128. maturity if they want to under set conditions e Convertible Usually this convertible feature allows the bond to be converted into equity thereby reducing the corporate debt 24 ORACLE 2 1 8 2 2 1 8 3 2 1 8 4 2 1 8 5 e 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 e Zero coupon bonds These are discounted instruments offered below the face amount paying par or face value amount at maturity The difference is the interest earned e 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 e Series bonds Corporations may issue bonds in series say I II 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
129. maximum allowed quantity for exer cise SE DO0175 Trade Date validations failed SE DO0176 Trade date is not between start of exercise date and the end of exercise date SE DO0177 Deal settlement date can not be greater than the redemption date expiry date of security SE DO0178 Failed to validate the DSTL date 31 39 ORACLE Error Code Message SE DO0179 Failed to update rows for the deal SE DO0180 Failed in rights exercise processing SE DO0181 Deal quantity should be greater than 0 SE DO0182 From leg position can not be same as the to leg position SE DO0183 This position has 1 balance SE DO0184 Failed to validate the deal SE DO0185 Error codes could not be retrieved correctly SE DO0186 1 2 3 is 4 holiday Continue SE DO0187 Failed to duplicate the overrides SE DO0188 Reversed contract can not be unlocked SE DO0189 Money Settlement can not be done for bank leg SE DO0190 Interest Value Date should be between 1 and 2 SE DO0191 Variance is not maintained for the security product in security currency SE DO0192 MIS maintenance is not done for security portfolio SE DO0193 Failed to get security trading dates SE DO0194 Incorrect format for SWIFT address SE DO0195 First line of address is mandatory SE DO0196 Medium is mandatory for walk in customer SE DO0197 Deal quantity should be greater than the minimum allowed
130. net result is always the same 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 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 10 6 ORACLE 10 2 7 10 2 8 10 2 9 10 2 10 10 2 11 a security under a product in the Securities Definition screen you could choose to retain the defaulted Registered Bearer indicator 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 Indicating the Collateral Type
131. 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 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 Rate Effective Date with periodic rate revision When the redemption definition is changed Event Date To view details of changes in YTM click D button The Yield to Maturity details screen is displayed Yield To Maturity Details Payment Account Deal Reference Yield To Maturity I Effective Date Yield To Maturity Bl Loo 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 228 ORACLE 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 ac
132. of back dated schedule the redemption processing is done during Beginning Of Day BOD processing of the next working day Note that back dated amendment or insertion of redemption schedules cannot be done beyond the last coupon date For example if the system date is January 18 2003 and the last coupon payment happened on January 01 2003 then 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 For example suppose that a security has a coupon period from January 01 2003 to July 01 2003 The system date is June 15 2003 and the redemption schedule was inserted on March 31 2003 20 10 ORACLE 20 7 The 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 Note 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
133. of the following radio button e All Messages e Selected Messages 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 ote ORACLE Body of the Report Swift Message Type The swift message type Leg Reference Number The leg reference number Deal Reference Number The deal reference number Message Reference The message reference 34 14 Forward Profit and Loss PnL Accrual Report 34 14 1 34 14 2 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 tool bar and click the adjoining arrow button amp Forward Profit amp Loss Accrual Report Memo Accrual Memo Accrual Accrual Processing Date ReportFormat PDF Printer At Client Report Output Print Printer 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 Accrual Processing Date Select the accrual processing date Contents of Report The contents of this re
134. 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 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 e The account at the sake keeping location from which the traded securities need to be transferred e Details of the 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 s
135. 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 the price at which they can be redeemed 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 Th
136. portfolio which is doing the exercise and the buy leg to the buying of rights from the SK location of the holding For example suppose that 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 Tes ORACLE 19 1 19 1 1 19 Maintaining a Security 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 You can invoke the Securities Instrument Definition screen by typing SEDTRONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Security Defin
137. position of the security as of the date Current Holding The holding of the security as of the date srel ORACLE 34 16 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 ReportFormat PDF Printer At Client Report Output Print Printer Refer the Reports User Manual for details about fields on this screen 34 16 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 Body of the Report The following details are displayed Leg Reference Number The reference number of the transaction 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
138. 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 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 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 Th
139. reference number for the deal A deal will be identified by this 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 230 ORACLE 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 Note 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 maintai
140. 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 T Bills Issued on Behalf of the Government Treasury bills are short term instruments 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 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 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
141. securities maintained 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 10 8 ORACLE 10 2 6 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 Mar
142. 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 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 di ORACLE 27 2 27 2 1 Statement of pending transactions You can inform the customer about the pending tran
143. 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 Flator 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 interest is quoted separately i e the price quoted is exclusive of the interest component This is also referred to as the clean price 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 add button 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 delete 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
144. 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 Note 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 Associating Scheme with Issuer Tax To associate a tax scheme with an issuer 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 unlock button in the toolbar 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 Sete ORACLE S
145. the 5 units at a daily frequency for 4 days Dr IntComp_Rcpy Interest Receivable 5 Cr IntComp_Rcpy 5 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 Cr IntComp_Rcpy 600 Therefore at the end of the Coupon Liquidation the net balance in the IntComp_Rcpy head will become zero 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 E New Enter Query Rate Code Description Holiday Currency az V Propagate Across Branches Tenor Code Details L Tenor Code Tenor Code Description Input By Authorized By Modification Date Time Date Time Number Wi Authorized W 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 ot ORACLE Description Enter a brief description to
146. 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 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 Indicating a Revaluation Price 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 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 categ
147. 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 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 11 24 ORACLE 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 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
148. 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 e Other identification codes for example account number Settlement Details Reference Number Component sd Account Details Message Details Parties Parties Cover Parties Other Details Clearing Details Local Clearing Ordering Institution Beneficiary Institution e Beneficiary Institution 1 Ordering Institution 1 Ordering Institution 2 Ordering Institution 3 Ordering Institution 4 Ordering Institution 5 Ordering Customer Ordering Customer 1 Ordering Customer 2 Ordering Customer 3 Ordering Customer 4 P P P P Beneficiary Institution 2 Beneficiary Institution 3 Beneficiary Institution 4 Beneficiary Institution 5 Ultimate Beneficiary Ultimate Beneficiary 1 Ultimate Beneficiary 2 Ultimate Beneficiary 3 Ultimate Beneficiary 4 Eee e L EA Ordering Customer 5 Ultimate Beneficiary 5 BAAARA T 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 In this field you can enter one of the following e The ISO Bank Identifi
149. 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 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 10 2 ORACLE 10 2 2 By indicating the security type you restrict the application of a class on the 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 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 th
150. the portfolio is always short in the issued security e Independent option for accruing interest and discount on zero coupon bonds issued by the portfolio at a user defined frequency e Flexible user defined accounting entries and advices for each event Customer Portfolio e 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 e Can specify the notices to be generated for the various corporate actions due ona security in the portfolio Deal Product Types The following deal types are supported e Buy and sell deals of type bank to customer bank to bank and customer to customer e Rights and warrants exercise type deals for bank and customer portfolios e Lodge and withdraw type deals for customer portfolios e Block and Release Block type deals for bank and customer portfolios e Transfer from one SK location to another Activities Supported through Deal Online e Purchase and sale of securities between bank and customer portfolios bank and standalone customers bank and bank and customer and customer e 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 ORACLE 3 3 3 4 3 4 1 Money settlement on auto or manual basis a
151. 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 Note 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 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 allowed to manually process an event which was earlier marked for auto processing 20 28 ORACLE You can invoke the Corporate Action Manual Processing screen by typing SEDXCAMN in the field at t
152. 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 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 Prev 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 Next Coupon Prev 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 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 ot ORACLE 34 4 1 The system will display Print Options screen Set your preferences as to printing the report and click OK button Security Activity Report ReportFormat PDF Printer At Client Report Output Print Printer For field wise explanation of the Print Options screen please refe
153. 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 attributes to suit specific security product Specifying Security Product Preference Classes Security preference classes are maintained in the Security Product Preference Class Definition screen which is invoked from the Application Browser 10 1 ORACLE 10 2 1 You can invoke the Security Product preference Class Definition screen by typing SEDXSECL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Security Product Preference Class Definition E New amp Enter query Class Code Description Module SS Module description Securities Security Module Security Type Bond X Equity Type Rate X Market Of Issue C Restricted Renouncable Red bi Covered Fractional Quantity Allowed SO
154. 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 For the Events SSLP amp SSSP Accounting Roles Amount Tags Debit Credit Indicator SEC BRIDGE GL iccfcomp01_SOCM Dr iccfcomp01_RCPY iccfcomp01_SOCM Cr iccfcomp01_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 ORACLE 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 iccfecomp01_RCPY would be zero The following example will illustrate this The following deal details are available e Coupon Period 1 January 2003 to 30 Jan 2003 e Previous Coupon Date PCD 15t January 2003 e Next Coupon Date NCD 30t 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 Rec
155. 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 Repo on Today s Projected Holdings Check this box to enable Repo on projected holdings for the day If you check this the system will allow you to create a Repo deal based on the projected holdings for the day This option does not allow you to create a Repo deal based on future dated projected holdings If you check this box then Short Positions allowed cannot be checked Defining Preferences for a Portfolio While defining a portfolio you can indicate preferences 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 ae ORACLE e The Detail preferences scree
156. 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 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 154 ORACLE 15 4 15 4 1 15 4 2 Capturing Interest Details Click Interest button and invoke the following screen interest Details Product Code Product Description Component Details Default From Class C Stop Association Component Component Description Interest Details Leg Type X C Accrual Required C Primary Interest C Coupon Event Details Rate Type Fixed v Event For Association Floating Rate Type v L Event Description C Flat Amount Per Unit Basic Amount Tag Description Amount Category Overdue
157. 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 eee ORACLE 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 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 26 17 ORACLE 27 1 27 1 1 27 Customer Correspondence Introduction This chapter explains the advices generated at each stage for the Securities module Once the event is authorized you can generate various types of advices You can specify the media thro
158. with which you associate the class can be sold from a short position 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 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 E Currency Positive Override Negative Override Negative Exception 108 ORACLE 10 4 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 Negative Override This indicates the lower override limit With respect to the market price if the
159. with a role The Event Class A deal goes through different stages in its life cycle such as e Deal Booking e Money Settlement of Securities Deal sa ORACLE 9 4 1 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 post 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 toa product or a portfolio the appropriate entries will be passed Advices will be generated as defined for the associated events class 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 eve
160. with a value date of the following Tuesday which is 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 Holiday Currency Holiday Currency E Security 1d Holiday Currency 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 to determine the common working days For example suppose that 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 ac
161. working days For 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 118 ORACLE 11 2 10 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 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 For 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 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 freque
162. you can select from the following options e Forward e Backward e Ignore 153 ORACLE 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 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
163. 0 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 17 ORACLE 11 3 4 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 specify the date as 31 and indicate the frequency If you indica
164. 00 2 83 651 3 651 1 846 2 000 3 85 539 5 539 1 888 2 000 n1 Value of Value of Bond in excess Discount Accrual by Discount Accrual by Bond of Purchase Price exponential method straight line method 4 87 469 7 469 1 930 2 000 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 Specifying 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 aleia ORACLE From the Portfolio definition screen click Advices button The advices screen is displayed Leg Advices Portfolio Id Description Event Details E Esn Event Code Description Security Id 4 Advice Details Advice Code Suppress Priority Party Id Party Name Advice Description A
165. 01 to NW 25410 10 x 100 000 NZD worth Bond Certificates Receiver of Securities Westpac Banking Corporation Wellington 27 20 ORACLE Beneficiary of Securi Magnus P Taylor ties Beneficiary s Safekeep 284564 ing Account with Receiver of Secu rities Securities Registration Securities Delivered have been registered in favour of Mag Details nus P Taylor Securities Receipt Dec Bond Certificates with numbers as per your instruction have laration Details been delivered physically to the Receiver of Securities Other Information Please always quote Our Reference in all further correspondence regarding the above instruction 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 Securities 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 etre ORACLE Securities Identification ISIN HK0043762191 HKD 1 SWIRE Properties Ordinary Registered Trade D
166. 0141 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 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 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
167. 0243 Unable to select from setb_position_ref SE BA0244 Failed in function fn_build_event_advice SE BA0245 Unable to get the deal details for 1 SE BA0246 Unhandled exception in fn_rights_exercise_ RELL SE BA0247 Error while calculating P amp L for Rights exercise SE BA0248 Unable to insert into setb_event_log SE BA0249 Unable to insert into setb_dstl_ details SE BA0250 Unable to insert into cstb_contract_event_advice SE BA0251 Failed in function fn_msg_handoff SE BA0252 Error while calculating P amp L for Rights expiry SE BA0253 Unhandled exception in fn_rights_expiry_RXLL SE BA0254 Failed in function fn_build_event_advice SE BA0255_ Unhandled exception in fn_bonus_settlements SE BA0256 ALPL is already running in the current branch SE BA0257 Unhandled exception in Event Selection and Processing and ALPL func tion SE BAO258 Unhandled exception in fn_SSSP_settlements ote ORACLE Error Code Message SE BA0259 Unhandled exception in fn_do_matching SE BA0260 Closing sec balance not equal to settled quantity SE BA0261 Insert to setbs_interest rate failed SE BA0262 Unhandled exception in sepkss_security_rebuild fn_rebuild_interest SE BA0263 Security being traded has already expired SE BA0264 Updation of setws_repo_rrepo_blocks failed SE BA0265 Select from setws_repo_rrepo_blocks f
168. 04 Periodic YTM 15 54504 Accrued Interest as of Revaluation date from previous coupon date USD 34 25 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 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 2071S ORACLE 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 the f
169. 1 A description of the Security Instrument Definition Screen 00 19 1 19 2 Entering the Details of a Security eee ceeceeeeee eee teteeee eee eeeeeeeeeeteeeaaeeeeteeaeeees 19 2 19 2 1 Identifying SOCUMILY iene rT Ene E E EER EE 19 2 20 19 2 2 Entering the Main Details 0 cccccccscecceeeceeeeeteeeceeeeseeeeeeeeteseeeeeeteeaaeees 19 4 19 2 3 Identifying the Market and the ISSUED ccccceeceeceteettteeeeteeeneeeeeeteeaaeeees 19 5 19 2 4 Specifying the material Of a security ecetecceeecesteeeeteetteteeteeneeeeetennateees 19 5 19 2 5 Specifying Redemption Quotation Method ccccccceeseceteesteeeeteenteetees 19 5 19 2 6 Indicating Corporate Action Preference ecccccceceteeeeeetnnneeeettnteeeeenens 19 6 19 2 7 Capturing Trade Related Information cccesseceeeseeeeeeeeeneeeeeeeneneees 19 6 19 2 8 Specifying Type of Price Quotation 000 eeceeetteteeette eee teenee eee teeneneeeeteeenaeeees 19 6 19 2 9 Capturing Information Specific to the Security TYP ccceeseeeeteeees 19 7 19 2 10 Indicating Banker s Acceptance 0 cseceeeeeeeeenteeeeeetnnneeeeeetnnaeeeeetetnaeeeeenens 19 9 19 2 11 Specifying CUrrenCieS cscccccccseeecceceteesnceeteetenenaeseetesaaesseteeaaesaeteeeaaees 19 10 19 2 12 Specifying Relevant Dates wc cece eee ceeenteeeeeeeeneeeeeeeeseeeeeseaees 19 10 19 2 13 Specifying Price Details cccccccccssecceeeneeeeeeeeeeeeeeeteeeeeeeeteeeaeeeeteeenaees 19 10 19 2 14 Enter
170. 1980380054 Securities Identification ISINCADBONDNWC01 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 Securi ties Zerus Dynamic Fund Corporation Securities Registration Details Securities received have to be registered in the name of the Zerus Dynamic Fund Corporation Securities Receipt Dec laration Details Certificate Numbers of Bonds delivered should match with the numbers as shown above and the Certificates should be ina good condition Account for 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 Accrued Interest Days 51 Days Taxes Added 85 000 00 CAD 27 12 ORACLE 27 2 5 Taxes Description Stock Exchange Tax on Bonds Purchased Broker s Commission 12 500 00 CAD Other Charge
171. 20 3 20 2 2 Specifying Event Narrative sesisneesinnnneerrnnnnnrrrnnnrennnnnenrnnnnrernnnnnnrenent 20 4 20 2 3 Saving Rights Warrants Record u csesccecenteeeeeenneeteeteeaaeteeeesaaeeeenenaas 20 4 20 3 Processing Rights And Warrants cccccceececeeeeeeeeeeneeeeeeeeaeeeeeetiaeeeeeetneeeeeeenaa 20 5 204 Processing RIME iatiteh ede eae Net ee enh Aa Nk R 20 5 20 4 4 ROR Tea Of e ze inet tie di a aes Ap sehen ee a 20 5 20 4 2 Rights EXCV CISC mieg sreidi eane iann irinae A EAA EE FUA EPLE EENE EAN Er EEE eai 20 5 204 3 Warrants Toar OT aiban a ee 20 6 20 4 4 Warrants Exercise ciccececcccccicecccctictetcaceceteneccecevuntbacetiventansteteenbacseteureaseteeueh 20 6 20 5 Maintaining Rights and Warrants Expiry Details 2 0 0 0 ee ceecceeeeeeeeeeeeeeenneeeeeeeeaes 20 6 20 5 1 Specifying End of Trading Date s eessseeessrnrenerrrennrrrnnnnreerrnnrrrennnneernnae 20 7 20 9 2 Event Narrative iia A A ET ET 20 7 20 5 3 Processing a Rights Expiry Event ssssnsssrrnnensrrnnnnnrnnnnnnnrrrnnrennnnennnnnna 20 8 20 5 4 Processing a Warrants Expiry Event sessisseeennnneernnnnernnnseeernnnneeeenn 20 8 20 6 Maintaining Security Redemption Details 0 0c ceceeeeeeeeeeeeeeeteneeeeeeeeeeeereee 20 8 20 6 1 Specifying Redemption SCHEQUICS cccccccceceeeetiteeeeeeetntteeeetetneeeeenetae 20 9 20 7 Processing for Security Redemptions assssseessssescseerssesrrrrnessrrnneeetsinnnseeenneentennn 20 11
172. 22 33 22 Levyn Takona Deal eoor an a IE ee ate 22 35 22 7 1 Features of the Tax Details Screen sseesssseneesrrrnerrrrrrreeerrnerrernnnneenna 22 36 22 8 Processing Brokerage on a Deal eceeeceeeeeteeeeeeeeeceeeeeeeeeneeeeeeetieeeeeetiaeeeeeeenea 22 37 22 8 1 Features of the Contract Brokerage Details SCr N ccccccceeeeeeees 22 38 22 9 Uploading the Deals for Amendment seeeessseseeseesrrrsssernesserrssteterrssteennsssrennn 22 39 22 10 Liquidating a Deala aa ea AA EA Aa aA AE 22 40 22 10 1 Money Settlement rrine ena E EE EEO O ER 22 41 22 10 2 Security settlement risieerierit stirrar eitttteti ritev tetar E EErEE PAARE EANA E EEREN 22 41 23 24 25 26 27 22 11 Reassigning a Deal to another USED 0 ecccceceeeeeeeeeeeenneeeeeeeenaeeeeeeenaeeeeenenaas 22 41 Processing a Block Securities Deal ccccseeeeeeneeeeeeeeeeeeeeeeeeeeeseeeens 23 1 231 MIOU O erreen balobecteeaidd beecaddasd EE iba locked laa AEE NES 23 1 23 1 1 Features of a Block Deal in Oracle FLEXCUBE 0 cc scscceecststeeeeeeeeee 23 1 23 1 2 Invoking the Block Securities Deal SCrCN cccccceececctnttteeeetnnteeeeettee 23 1 23 1 3 A Description of the Block Securities Deal SCreen ccccceeesereeeees 23 2 23 2 Entering the Details of a Block Deal ecececeeeeeetneee eee eenieeeeeetaeeeeeeetneeeeerenea 23 3 23 2 1 Indicating Details of the Security that is Traded cccccsseceecetsteeeeeeeeee
173. 67 For Price Quotation Method as YIELD TO MATURITY Interest Quotation Method has to be null SE MA0268 Fora 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 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 Intermedi ate Security 1 SE MA0279 End of Trading Date has to be today or beyond SPI ORACLE Error Code Message SE MA0280 End of Trading 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
174. ACLE Error Code Message SD LM 00202 Date input is a holiday Do you want to continue SD LM 00203 Customer clean risk exceeds for customer 1 for date 2 for currency 3 The limit is 4 The actual amount is 5 and the difference is 6 SD LM 00204 Liability clean risk exceeds for customer 1 for date 2 for currency 3 The limit is 4 The actual amount is 5 and the difference is 6 SD LM 99998 Limits Node 1 Unavailable Utilization will be updated later SD LM 99999 Limits Service Unexpected Error 1 aio ORACLE 31 5 Error Codes And Messages for Non Securities Error Code Message TA CL002 A class named 1 is already maintained TA CLO003 Class details Saved TA CLO04 Record successfully deleted TA CL005 The Record is already closed TA CL006 Cannot maintain amount tags for this component Cannot authorize TA CL007 Do you want to delink the Tax Component CS CL1001 This class code already exists CS CL1002 Please enter the class code CS CL1003 Do you want to print accounting entries class details for all modules CS CL1004 Module ID does not match with the Class Code CS CL1005 Duplicate Class Code encountered Please enter the class code again CF CLO001 Currency or rate missing CF CL0002 Max values should be lesser or equal to Min values CF CL0003 For Fixed interest rate Defaul
175. Allowed details are incomplete Complete Delete the Branches Allowed details SD LM 00012 The Last Available Date cannot be less than the Line Start Date SD LM 00013 The Customers Allowed details are incomplete Complete Delete the Customers Allowed details SD LM 00014 The Tenor Limit Amount exceeds the Line Limit Amount SD LM 00015 The Sub Line Tenor Limit Amount cannot be greater than the next higher Main Line Tenor Limit Amount 1 2 SD LM 00016 The Sub Line Tenor cannot be greater than Maximum Main Line Tenor 1 Days SD LM 00017 There are no Tenors specified for the Main Line SD LM 00018 The Line Code is Limits Template Details will be copied from template Continue SD LM 00019 The Sub Line Limit cannot exceed the Main Line Limit 1 2 SD LM 00020 The Main Line Limit cannot be less than any of its Sub Line Limit 1 2 SD LM 00021 The Main Line Tenor cannot be Less than the Minimum Tenor of any Sub Lines reporting to it 1 Days SD LM 00022 The Main Line Tenor Limit Amount cannot be less than the next lower Sub Line Tenor Limit Amount 1 2 SD LM 00023 The Limits Copy could not be completed SD LM 00024 Blank spaces cannot be a part of this field SD LM 00025 The Line Code should have a nine characters SD LM 00026 The Tenor Mnemonic is not entered SD LM 00027 The Limit is not entered SD LM 00028 The Collateral Start Date cannot be later than the Collateral Expiry Date SD LM 00029 T
176. Amount Tag pet ete Indicator 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 Con Income Memo GL tribution 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 Con Income Memo GL tribution SEC DISC EARNED SEC_DISC_TOTACCR_CY Total Discount Credit Sec Discount Earned Accrued on Sold Units Current Years Con Income GL tribution For Premium SEC BRIDGE GL UNACCRD_PREMIUM Unaccrued Pre Debit Securities Bridge GL mium Amount Settlement DEAL_PREMIUM UNACCRD_PREMIUM Unaccrued Pre Credit Deal Premium GL mium 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 Premi
177. CCT 004 Failed to lookup product accounting entries SE ACCT 005 Failed to lookup position accounting entries SE ACCT 006 Failed to fetch accounting head SE ACCT 007 Failed to delete for an event SE ACCT 008 Failed to authorize for the event SE ACCT 009 Failed to reverse all the leg entries SE ACCT 010 Failed to reverse all the position entries SE ACCT 011 Failed to reverse entry for an event SE ACCT 051 Class is not open SE ACCT 052 Class is not authorized 31 59 ORACLE Error Code Message SE ACCT 053 GL record status is not open SE ACCT 054 GL is not authorized SE ACCT 055 Class is not open SE ACCT 056 Class is not authorized SE ACCT 057 GL record status is not open SE ACCT 058 GL is not authorized SE ACCT 059 Class is not open SE ACCT 060 Class is not authorized SE ACCT 061 GL record status is not open SE ACCT 062 GL is not authorized SE ACCT 063 GL is not open SE ACCT 064 GL is not authorized SE ACCT 065 Failed to get accounting head 31 60 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
178. CR 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 ud c R P R 2 z 5 AI T A Ay A y Where la Y y l Annualizing Method is COMPOUND in this case Notation Value Description Po Purchase price of the Bond N Total number of coupons Ci Coupon payment for coupon i Yo Periodic YTM Yo Annualized Deal YTM A Day Count Method Denominator n Number of coupons in a year P Period of Reinvestment Defaulted to A n if null 420 ORACLE Value Description Po Purchase price of the Bond R P Redemption Price Aj 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 P Where KP Ad d y bl Annualizing Method is SIMPLE in this case Notation Value Description Po Purchase p
179. Date USD 102 During revaluation of past 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 C Vd 1 yo Vd P 1 yo Vd P Disc Ci 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 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 apia ORACLE 26 3 3 4 Settled CUM Deal Revaluation Date in the same Coupon Period as of the Set tlement 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 15 545
180. 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 refer the following Oracle FLEXCUBE User Manuals 13 1 ORACLE 15 1 1 15 1 2 15 2 e Products e Interest e User Defined Fields e Settlements 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 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 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
181. Details about the rout through which the money settlement should take place The information that is related to the settlement method and route applicable for a transfer is referred to as Settlement Instructions 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 22 30 ORACLE 22 6 2 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 fund 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 maint
182. E 19 2 3 19 2 4 19 2 5 e The Redemption Quotation whether percentage factor or cashflow e The type of redemption whether in quantity series or bullet e Ifyou can trade the security in fractional quantities e The minimum quantity in which the security can be traded Note 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 Identifying the Market and the Issuer For a security you can identify a Market of Issue Only a market 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 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 S
183. E 22 4 e Opening Position e Opening Holding Deal Net 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 Click Netcons button from the Securities Deal Input screen The deal net consideration screen is displayed Deal Net Consideration Leg Reference Leg Description Cum Ex Coupon Interest Days Net Consideration E Component Description Currency Amountin Component Currency Payment Currency Sign Total Amount In Payment Currency Interest Details m m A m a m ro Arn a component Description Currency Amountin Component Currency Payment Currency Rate Sign Total Amount In Payment Currency 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 2226 ORACLE 22 4 0 1 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 screen displays in tabular columns the following details e The
184. E BA0035 Failed to insert into 1 SE BA0036 Unable to read from setb_event_log SE BA0037 Unhandled exception in fn_rights_RXLL SE BA0038 Unhandled exception in fn_build_event_advice SE BA0039 Unhandled exception in fn_populate_vdbals SE BA0040 Failed to do FPL accrual for 1 SE BA0041 No data found in setm_security_master SE BA0042 No data found in setm_cash_dividend SE BA0043 No data found in setm_portfolio_master SE BA0044 No data found in setm_sk_location SE BA0045 Error while updating setm_corp_actions_due SE BA0046 When Others of fn_cash_dvnd_population SE BA0047 No data found in setm_stock_dividend SE BA0048 Error while rounding Rights fraction SE BA0049_ When Others of fn_bonus_population 3128 ORACLE Error Code Message SE BA0050 No data found in setm_rights SE BA0051 When Others of fn_rights_population SE BA0052 No data found in setm_warrants SE BA0053 When Others of fn_warrant_population SE BA0054 No data found in setm_redemption SE BA0055 When Others of fn_redemption_population SE BA0056 Unhandled exception in fn_redemption series SE BAO0057 No data found in setm_coupon SE BA0058 When Others of fn_coupon_population SE BA0059 Unhandled exception in fn_get_sk_for_buysell SE BAO060 Select from SE Master and Detail to Populate Work Table Failed SE BA0061
185. EA ENERE E ENERE AREER AEEA eai 11 5 11 2 5 Book Discount PLOIMIUM a csirek aa ai la a 11 6 11 2 6 Book Intrinsic Valta asssisiscinsiinisiniiniineniiai eiiiai aia 11 7 11 2 7 Rekey for AURONZAO oten eae eSa E EAA AE AORE EA N 11 7 11 2 8 RY FIS ie a E N E 11 7 11 2 9 Corporate Action NOtiC cser einen aa e eaea a A E 11 8 11 2 10 Treasury Bills Actr al seereis eeina ina a ga iita erraia din 11 9 11 2 11 Purchase Interest eonereireiiirnirenias eiii ae Eai a e aE 11 10 11 2 12 Holdings Statement oi nereeuir rnana aiaia ia A e a aaah 11 10 11 2 13 Transaction Statement s erii tirti in AECE An EE ER O EERO EE T 11 11 T214 Comta HOANG re E E AN eed AEN 11 11 11 3 Specifying Detailed Preferences sssssessireesssrreeserrrneeniinnessrnanesstnnanedentananennnna 11 12 11 3 1 Premium Discount Accrual ccccceeceeeeeeeenee eee teeeeeeeeeteeeaeeeetneeeaeeeetneenaees 11 13 119 2 LIMITE TACKING ROATE OAA OE PI EET IEA EEE 11 15 11 3 3 Forward Profit and Loss Accrual cccccccseeceeeeenteeeeeeenteeeeetesneteeseeeaees 11 16 11 3 4 Redemption Premium ACCrual 2 2 cccccceccccceeeceeeeeeetecneensesseeeseeeeeeneees 11 18 11 3 5 Revaluation Of POSIN S eeir a EATE ORRE ETE RERET 11 20 11 3 6 Interest Accrual Preferences esseeeesriieerrrrrrrrerrrnnerrinnnsererrnnrrrnnnnneeena 11 23 11 3 7 Revaluation Exchange Rate Code 0 cececcccccseeseeeeeeeeeeeeteeeneeeetenenaees 11 24 11 4 Yield Accrual for Deals bought ON Pal ccceeeeeeeeee
186. EC BRIDGE GL Securities UNACCRD_DISCNT Unaccrued Credit Bridge GL Settlement Discount Amount DEAL_DISCOUNT Deal SEC_DISC_TOTACCR Total Dis Debit Discount GL count Accrued on Sold Units SEC DISC TBACRD Sec SEC_DISC_TOTACCR Total Dis Credit Deal Discount To Be Accrued count Accrued on Sold Units GL ACCR_DIS_IN_MEM SEC_DISC_TOTACCR Total Dis Debit Accrual of Discount Income count Accrued on Sold Units Memo GL SEC DISC EARNED Sec SEC_DISC_TOTACCR Total Dis Credit Discount Earned Income GL count Accrued on Sold Units For Premium SEC BRIDGE GL Securities UNACCRD_PREMIUM Unaccrued_ Debit Bridge GL Settlement Premium Amount DEAL_PREMIUM Deal Pre UNACCRD_PREMIUM Unaccrued Credit mium GL Premium Amount SEC PREM TBACRD Sec SEC_PREM_TOTACCR Total Pre Debit Deal Premium To Be Accrued mium Accrued on Sold Units GL DEAL_PREMIUM Deal Pre SEC_PREM_TOTACCR Total Pre Credit mium GL mium Accrued on Sold Units SEC PREM PAID Sec Pre SEC_PREM_TOTACCR Total Pre Debit mium Paid Expense GL mium Accrued on Sold Units 32 20 ORACLE Accounting Role Amount Tag Debit Credit Indicator ACCR_PRM_XP_MEM Accrual of Premium Expense Memo GL SEC_PREM_TOTACCR Total Pre mium Accrued on Sold Units Credit Note If Interest discount premium has been accrued during the previous year the entries will hav
187. EC 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 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 32 16 ORACLE 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 32 17 ORACLE SSLP Sale Accounting Standard Amount Tags Standard Dr Cr Roles Alternative g Alternative Indicator Premium Standard SEC_PREM_TOTALACCR Alternative Debit Accrued Deal Premium Alternative SEC_PREM_TOTALACCR Alternative Credit Sec Bridge S_ Alternative UNACCRD_PREMIUM Standard Debit Deal Premium Alternative UNACCRD_PREMIUM Standard Credit Premium Standard SEC_PREM_TOTALACCR Alternative Debit Expense Accrual of Alternative SEC_PREM_TOTALACCR Alternative Credit Prem Exp Memo Deal Discount Alternative SEC_DISC_TOTALACCR Alternative Debit Discount Standard SEC_DISC_TOTALACCR Alternative Credit Accrued Deal Discount Alternative UNACCRD_DISCNT Standard Debit Sec Bridge S Alternative UNACCRD_DISCNT Standard Credit Accrual of A
188. 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 2gth 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 2gth February 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 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 Consider the following example 420 ORACLE 4 6 2 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 Specifying Sp
189. Forward Spot Safe Keeping Location Safe Keeping Account From Leg Safe Keeping Defaults To Leg Safe Keeping Defaults Safe Keeping Location Safe Keeping Location Safe Keeninn Account Safe Keeaninn 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 Note This option is enabled only if you have allowed brokers for the deal 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 Specifying User Defined Fields In the SD Product Definition screen click Fields button to invoke
190. GU UO a A ERA T EOE E EO A 22 1 22 1 1 Invoking the Securities Deal Input SCIe N c cece teeeeeetnteeeeeeeeee 22 2 22 1 2 A Description of the Securities Deal Input SCr N cccccceeeeeees 22 2 22 2 Entering the Details of a Deal ccc ee enteeeeeeeenneeee ee eaaeeeeeeeeaeeeeetenaeeeeeeneaes 22 4 222A PIOMUCE E ON EA AEE 22 4 22 2 2 Indicating details of the security that iS traded ccccceeeeeteteeteeeeeeeee 22 5 22 2 3 Indicating Deal Detallls rres rriei a Eer E aE ONE A 22 6 22 2 4 Entering Additional Details of a D l cccctceecectenteeeeeeetnneeeeeetnteeeeetes 22 13 22 2 5 Price Details Of the DOA cccccceeeeeeeeeeete eee eeneeeeeeeteneeaeeeeteeeeaeeeeteesaneees 22 15 22 3 Viewing Safe Keeping Location Balances cccicecceeeeeeeeeeeeeetitteeeeeetieeeeeeeea 22 25 22 4 Deal Net Consideration ieii ianen earna eE AEREE AREARE AENEAN ERREKERI EERE EF 22 26 22 5 Specifying Details of the Parties Involved in a Deal eneneeeeeeeeeeeee 22 29 22 6 Maintaining Settlement Instructions for a Deal Leg 0 eee eeeeeeeteeeeeeenteeeeeeeeaes 22 30 22 6 1 Capturing Settlement Instructions c ssseenineeeeeennneeennnneeernnneeernnnneenna 22 30 22 6 2 Capturing Account Details sssssissriisissisiiisintceniiinisunariiniar ia kanitat enaki deines 22 31 22 6 3 Capturing Details of the Deal Output 2 cccccceeeeeseeceteeeeeeeeteeetneenees 22 32 22 6 4 Capturing Party D aaa or renen E EO E TETOR
191. If the Security Type is equity 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 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 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 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
192. 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 a non 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 You need to specify the whether the system should use leap year or leap date for calculating the interest 4 20 ORACLE e Leap Year Y Indicates that the system will compute the interest based on the number of calendar days in the year e Leap Date D Indicates that the system will use the ACT ACT FRF Interest Method to compute the interest Note This field is enabled only if the Denominator Basis value is Per Annum and the Denomi nator Method is ACTUAL ACT ACT FRF Interest Method In ACT ACT FRF 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
193. Interest Value Date Spot Price Trade Details Deal Type Priority Dealer Source Deal Reference Price Discount Premium Forward P amp L Deal Nominal Adjusted Price T Bill Withholding Tax Security Series Bankers Acceptance Conforms to ISMA Placement Loan Ref a Block Deal Reference Reversed Contract Ref No Actual DSTL Date Payment Currency Security Currency Rate Settlement SKL Spot Date Version Remarks Payment Account Payment Account Leg Reference 2 Leg Reference Payment Branch Payment Branch Accounts Accounts m oat Certificates OtherDetails Advice DealMatch Limits Parties Brokerage Events MIS Details Settlements Charges Walk inFrom Net Consideration Tax LimitsTo Walk inTo Maker Id Checker Id Authorization Status Status Date Time Checker Stamp 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 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 opt
194. L 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 Note Once defined a deal preference class can be made applicable to any number of products 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 click New from the screen tool bar 12 1 ORACLE 12 2 12 2 1 You can invoke the Securities Deal Product Preference Class Maintenance screen by typing SEDXDPCL in the field at the top right co
195. M 00049 The Start Date cannot be greater than the Branch Date SD LM 00050 The Last Price Change Date cannot be earlier than Start Date SD LM 00051 The Expiry Date cannot be earlier than Branch Date SD LM 00052 The Last Price Change Date cannot later than Expiry Date SD LM 00053 The Description is not entered SD LM 00054 The Face Value is not entered SD LM 00055 The Limit Contribution cannot be greater than the Cap Amount SD LM 00056 Report date should be greater than the date today SD LM 00057 The Total Issuer Exposure should be greater than 100 SD LM 00058 Collateral exists with the Issuer Code Record cannot be closed SD LM 00059 Securities exist with the Issuer Code Record cannot be closed SD LM 00060 There are Collateral linked to this Limit Record cannot be closed SD LM 00061 There are Collateral linked to this Security Record cannot be closed SD LM 00062 There are Collateral linked to this Price Code Record cannot be closed SD LM 00063 There are Collateral linked to this Collateral Type Record cannot be deleted SD LM 00064 This Facility is not available at this Branch ote ORACLE Error Code Message SD LM 00065 No Details exist for the Reference Number SD LM 00066 Customer Clean Risk Limit cannot be greater than Liability Clean Risk Limit SD LM 00067 Customer Clean Risk Li
196. O0045 Failed to CLOSE the contract SE DO0046 Unauthorised contract can not be modified SE DO0048 Contract will be put on hold SE DO0053 Failed in contract event log processing SE DO0054 Failed to unlock the contract SE DO0055 User Id should be same as the maker Id SE DOO0056 unauthorized record can not be processed SE DO0057 DSTL date should be entered SE DO0058 New DSTL date should not be before the existing DSTL date SE DO0059 Rollover completed successfully SE DO0060 Failed to process the deal leg records SE DO0061 Security ID does not match Please reenter the security ID 31 36 ORACLE Error Code Message SE DO0062 Input price does not match please reenter the input price SE DO0063 Trade date does not match please re enter the trade date SE DO0064 deal settlement date does not match please re enter the deal settle ment date SE DO0065 Deal units are not matching please reenter the deal units SE DOO066 Portfolio Ids do not match Please reenter the portfolio ID SE DO0067 Money settlement date does not match please reenter the money set tlement date SE DO0068 Failed to validate the dates SE DO0069 1 2 3 is 4 holiday Continue SE DO0070 Trade date is earlier than product start date SE DO0071 Deal Settlement date is earlier than product start date SE DO0072 Money Settlement date is earlier than product sta
197. ORACLE 20 Maintaining and Processing Corporate Actions 20 1 20 1 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 Interest coupon payment Redemption both series and quantity Maturities Calls End of Trading Warrants detachment tradable e Equities Dividend payment both cash and stock Bonus Rights Tear Off Exercise Expiry Stages in the Processing of a Corporate Action Event 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
198. ORACLE Securities User Guide Oracle FLEXCUBE Universal Banking Release 12 0 87 1 0 Part No E56600 01 August 2014 Securities User Guide August 2014 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous ap
199. Portfolio Type Transaction Start Day Contra Holding Contra Holding Validation X The Main Portfolio Product Preferences screen 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 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 e 30 Euro Actual e 30 US Actual e Actual Actual e 30 Euro 364 e 30 US 364 e Actual 364 Note The values of accrual method maintained in this screen get defaulted in portfolio creation for the selected product 1g ORACLE The Other Portfolio Product Preferences screen Portfolio Preferences Product Code Class Code Description Main Other Premium Discount Accrual Method Accrual Frequency E Accrue Premium mm Accrue Discount Accrual Start Day Accrual Start Month Accrue Premium Method Accrue Discount Method a Redemption Premium Accrual Method Accrual Frequency Accrual Start Day F Accrue Redemption Flag X Accrual Start Month Product Description Limits Tracking Bonds Equities Rights Warrants Treasury Bills Revaluation of Positions Revaluation Method Revaluation Frequency Revaluation Start Day Revaluation Start Month Revaluation Method LOCOM Revaluation Fre
200. 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 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 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 For example suppose that 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 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 dat
201. R E Debit Branch Saia ak 2 Debit Account T ii Sa m Debit account Description i S ue seo Credit Branch Ser ese ae Credit Account ts node Tp Credit Account Description m ai ntra Da Liquidation Auto y T Tenor Manual Maturity Type Fixed Rollover Allowed Yes Notice No Call Rounding Details Reporting Details M Rounding Required Currency Rounding Rule Truncate Amount Decimals a Outstanding Amount Units m r Holiday Currency Events Brokerage Effective Interest Rate Accrual Linked Entities ChangeLog Maker Date Time Date Time Contract Status Authorization 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 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 23 6 ORACLE 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
202. RACLE 32 4 3 1 SPLP Security Purchase from Long Position Accounting Entries 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 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 Standard Amount Tags Standard Debit Credit Role Alternative g Alternative Indictor Sec Asset GL Standard DEAL_NOMINALAMT Standard Debit 32 14 ORACLE Accounting Standa
203. RATE TRSYRATE TRSYRATE BBR BA BA ORACLE 4 4 1 TBILL TBILL LIBOR EURIBOR TAM TMM LIBOR HIBOR SOR LIBOR TSR BBR WIBOR SIBOR SOR BRIBOR SOR CMS COF11 ISDA LIBOR TIBOR Defining Rate Sources 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 clicking the adjoining arrow button Rate Source Definition E New E Enter Query Rate Source Description Input By Authorized By Date Time Date Time Modification Number Wi Authorized W Open ORACLE Here you can capture the following details Rate Source 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 BLBG 10 00 SWPMKR 11 00 BLBG 11 00 SWPMKR 3M SWPMKR COMP BLBG 365 BLBG BLBG SWAPRATE 11 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 H 15 OlS CPD ORACLE FIX3SR 3 00 SWAPRATE SWAPRATE 3 00 BBA BLOOMBERG HIGHGRADE MCPLSWAPINDEX ICAPBKT
204. RGUN Convertible Minimum Tradabale sian a Quantity Put Option Decimas Bankers Acceptance f Redemption Type Quantity Registered Bearer Registered p we Su Mas Voting Rights m Quantity Quotation Units i a Tenor Unit v z Form Type ScriptBased ARA Price Quotation Price x Minimum Tenor Collateral Type Mamun Tenor Interest Quotation Method i Periodic Coupon Allow Asynchronous Periodic Revision Revision Coupon Details Frequency Weekday JAdhere to Month End Revision Frequency WeekDay Adhere To Month End fr Auto Initiation Of Corporate Price Code lt m o F Limits Fields Maker Checker Mod No Record Status Date Time Authorization Status Date Time 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 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
205. RVLO 053 Price record is not open for revaluation SE RVL1 001 Failed in revaluation for a position SE RVL1 002 Failed in getting position balance for revaluation SE RVL1 003 Failed in processing for unsettled legs for revaluation SE RVL1 004 Failed in mark to market revaluation SE RVL1 005 Failed in computing amount tags for revaluation SE RVL1 006 Failed in population of revaluation details SE RVL1 007 Failed in population of revaluation details for a position SE RVL1 008 Failed in passing portfolio level accounting entries SE RVL1 009 Failed in computing amount tags for revaluation SE RVL1 010 Failed in populating portfolio level entries SE RVL1 011 Failed in building account entry list during revaluation SE RVL1 012 Failed in processing amount tags during revaluation SE RVL1 013 Failed in population of portfolio revaluation details SE RVL1 014 Failed in reversal of revaluation for a portfolio SE RVL1 015 Failed in logging exception during revaluation SE RVL1 051 Unauthorized unsettled legs exist SE SBRN 001 Failed in populating security details for other branches SE SBRN 002_ Failed to delete security details for other branches SE SBRN 003_ Failed to authorize security details for other branches SE SKEV 001 Failed to register the event for the position SE SO0008 Duplicate records during coupon population SE SO0013 Failed to get security details during schedule population SE SO0014 Interest revision sequence number does not exist SE SO0015 Fa
206. 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 Acquisi tion Cost MTM_EXP Sec Positions MTM Reval Expense ll ORACLE MTM_INC Sec Positions MTM Reval Income 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 SEC_REVL_LOSS Securities Revaluation Loss Amount SEC_REVL_PROFIT Securities Revaluation Profit Amt SEC_RRVL_LOSS Sec Revaluation Reversa
207. SD 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 settlement of Bank Sell deals The computed yield will be stored at branch portfolio security level
208. SE SO0002 ISIN Identifier must be Unique SE SO0003 Market of Issue cannot be cleared after having been populated once SE SO0004 Security Currency cannot be cleared after having been populated once SE SO0005 Initial Face Value would be cleared Proceed SE SO0006 Issue Price would be cleared Proceed SE SO0007 Redemption Price would be cleared Proceed SE SO0011 By SWIFT Standards valid day count indicators are A001 A002 A003 A004 A005 A006 and A007 SE SO0031 By SWIFT Standards there needs to be necessarily 1 characters SE SO0032 By SWIFT Standards valid characters are A Z 0 9 SE SO0033 By SWIFT Standards some characters are invalid Proceed with appro priate substitution SE SO0051 Internal Security ID is Mandatory SE SO0052 Product is Mandatory SE SO0053 Market of Issue is Mandatory SE SO0054 Issuer ID is Mandatory SE S00055 Registered Bearer is Mandatory SE SO0056 Form Type is Mandatory SE SO0057 Quantity Quotation is Mandatory SE SO0058 Price Quotation is Mandatory SE SO0059 Interest Quotation is Mandatory SE SO0060 Unit Decimals is Mandatory SE SO0061 Lot Size is not populated Proceed SE SO0062 Redemption Type is Mandatory SE SO0063 Security Currency is Mandatory SE SO0064 Payment Currency is Mandatory SE SO0065 Issue Tearoff Date is Mandatory SE SO0066 Start of Interest Date is Mandatory SE SO0067 Start of Trading Date is Mandatory 31 17 ORACLE Error Code
209. Security BondS ccccceesteeeeeentteeeeeeenaees 4 20 4 5 3 Specifying Interest Details ssssseeesssrreeerrnnerrrinrneeerrnnrrrrnnnnrnrrenerrrnnnnnee 4 24 46 Interest Method for Computing Coupon Interest cccceceeeeeeeeeeceeceeeeeeeeeeees 4 25 4 6 1 Exempting Interest for the EX POriod cceecccecceeteeeeeeentieeeeeeenteeeeeeenaaes 4 29 4 6 2 Specifying Spot Date oiei teis iaiia Sai ERA AORE SA RS 4 30 4 6 3 Specifying Ex dale o rrt E R AAEE 4 31 Ar Specifying Fax Details aari e r a E a E E 4 32 4 7 1 Associating Scheme with Issuer TAX cccccccceeee eee teeenneeeetenenaeeetenenaaees 4 32 4 7 2 Indicating Stop Association 0 0 cecceeetetteentte eee eeentteeeeeeeaaeeeeeeenaaeteeenenaaes 4 32 Maintaining Price Details ssnannnnnnnnnnnnnnnnnnnnnnnnunnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn 5 1 Sll IPTOdUC IOM a A A S 5 1 9 1 1 Price Quotation Method 0 0 ra rS ES E ES 5 2 Maintaining Market Price Codes cccccccccceeeeeeeeeeeeeeeeeneeneeeeeeeeeeeeeeeeeeeees 6 1 6 1 Introduction esiis a eii ab vbnddeneed adeddeee edddentebedageedblaaadert bbe 6 1 Maintaining Safe Keeping Locations cccccceseeeeeeeeeneeeeeeeeeeeeeeeeeenees 7 1 MoAb MOUGN siadiee oie aT anebetenp ease T E 7 1 Telt EXPOSE NING 2c e a r ae a E e a ea Ea 7 2 7 1 2 Specifying SK Location Account eeeriresessrrinnerrnrnrrnrrnnnerrrnnnnnnrrnnnernnnna 7 3 71 3 Making QUEYERE a 7 3 T2 Complitationot KEST nestee
210. 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 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 date can be the date of the coupon rate revision date or the DSTL date of the re computed sell deal Ea ORACLE 4 3 4 3 1 4 3 2 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 SEDXBRPM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Branch Parameters E New E3 Enter Query Branch Details Branch Code Branch Name Batch Processing Coupon Processing For Holidays Move Across Months Process Till Next Working Accounting Value Date Yes v day Revaluation Level Portfolio Holding Interest Accrual Level Deal Position Accrual Level Portfolio Holding Coupon Plotting No Maker Date Time Checker Date Time Mod No 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 au
211. T_RCPY 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 f Gredik Accounting Role Amount Tag Indicator Debit SEC COUPON PAY Securities Cou INTCOMP_PUCMA Pur pon Payable GL chase Interest Credit INTCOMP_BOT Deal Purchase INTCOMP_PUCMA Pur Interest chase Interest Debit SEC COUPON PAY Securities Cou INTCOMP_TIAC Interest pon Payable GL Accrued Credit INTCOMP_RCPY Interest Receiva INTCOMP_TIAC Interest ble Payable Accrued Debit INTCOMP_IMEM Interest Income INTCOMP_TIAC Interest Memo Accrued Credit INTCOMP_ Interest Income INTCOMP_TIAC Interest Accrued Note 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 Previ ous Year Adjustment GL During accounting for the amount tags with suffix _PY ac 32 33 ORACLE counting entries are passed against the Previous Year Adjustment GL maintained in the Chart of Accounts Debit Credit Accounting Role Amount Tag indicator SEC COUPON PAY Securities INTCOMP_PUCMA Coupon Debit Coupon Payable GL Amount Interest Accrued INTCOMP_OFF Purchase Inter INTCOMP_PUCMA Coupon Credit
212. The short description that you specify is for information purposes only and will not be printed on any customer correspondence 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 122 ORACLE 12 2 2 12 2 3 12 2 4 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 Exchange Rate Type You can specify the exchange 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 typ
213. Value for the field Confirmed Date is mandatory SE MA0358 Do you really want to confirm 31 11 ORACLE Error Code Message 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 combination of Branch Code Portfolio Id and Security Id does not exist SE MA0374_ Mandatory Field SK Location Id is null 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
214. Weekday of Ex Date Ex Days Holiday Treatment Fixed Method 10f1 E From Day ToDay Month Indicator Previous Months ExDate WeekdayofExDate Holiday Treatment Tax Fields Maker Date Time Mod No Checker Record Status Es Date Time Authorization Status oat ORACLE 4 6 3 1 4 6 3 2 4 7 4 7 1 4 7 2 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 Rolling Method Expiry Date Method 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 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 Specifying Tax Details With every market place
215. _dprp_accr_calc SE BA0195 Unhandled exception in fn_process_calc_table SE BA0196 Unable to calculate the tenor SE BA0197 Unable to calculate the no of days SE BA0198 Unhandled exception in fn_constant_yld_dp 31 30 ORACLE Error Code Message SE BA0199 Unhandled exception in fn_constant_yld_rp SE BA0200 Unable to select from setm_branch_parameters SE BA0201 Next process date 1 gt Process till date 2 for product 3 SE BA0202 Unable to select from setb_dprp_accr_master SE BA0203 Unable to update setb_dprp_accr_master SE BA0204 Unhandled exception in fn_dprp_batch_accr SE BA0205_ Unhandled exception in fn_pass_product_entries SE BA0206 Unable to update setb_dprp_accr_log SE BA0207 Unable to update accrual_entry_flag in setb_dprp_accr_log SE BA0208 Unhandled exception in fn_dprp_memo_accr SE BAO209 Unhandled exception in fn_dprp_reversals SE BA0210 Unhandled exception in fn_accrue SE BA0211 Unable to select from setb_bep SE BA0212 Unhandled exception in fn_accrue_during_settle SE BA0213 Unhandled exception in fn_acc_entry SE BA0214 Component code not correctly set SE BA0215 Unable to insert into setb_dprp_accr_log SE BA0216 Unhandled exception in fn_update_accr_log SE BA0217 Unhandled exception in fn_dprp_poswac SE BA0218 Unhandled exception in fn_dprp_negwac SE BA0219 Unh
216. a ae ea a Eaa R i iN iaire 34 23 34 17 22 Contents of ROPOT rieien a ah Se e aie ee 34 23 34 18 Securities Activity Report seessssssessssnnessssnrassisnnnesdtnnnaaseninnesnnaaannntnnnnenendannaaaennne 34 24 34 18 1 Contents of Report 0 2 2 ccccccceceeeecenennececaeceeteeeeeeseeteceeecaeeseeeseeeteettess 34 24 34 19 Corporate Action Events Processed Report cccceceeeeeeeeeeeeeceeeeeeeeeeeeeetees 34 25 34 20 COUPOM POMC rises iss eae T dustie eee unease cts vada vs eee spate cde nea eta 34 27 34 20 1 Contents OF REPO ae rata ea a a aa aang ede 34 27 34 21 Statement of Holdings Report ssssseeessssrsssssrresessnreesenrnneesrinndsstnannesnnnnnedennanannnenna 34 28 35 Function ID Glossary crisis cccaceenesecncesencccencecneeedennedeneveneeenetensnntenenteccecscats 35 1 1 1 1 2 1 3 1 4 1 Preface 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 Audience This manual is intended for the following User User Roles Role Function Back office data entry Clerk
217. 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 Note 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 interest revision schedule for the extended period 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 1310 ORACLE 19 2 14 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 se
218. a product combination that has already been created choose the Summary option From the Summary screen you can to open an existing product combination by double clicking on it Securities Combination Product Maintenance E new Enter query Product Code Slogan Slogan Remarks Start Date Product Group End date Combination Details Rights Exercise Type PreferredLeg Buy Leg Sell Leg Buy Product Buy Product Desc Sell Product Counter Product Sell Product Desc Counter Product Desc Maker Date Time Checker Date Time Mod No Record Status Authorization Status Tl ORACLE 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 picklist Product Slogan You can s
219. acking Parameters e Liquidation Auto Manual e Status Control Auto Manual e Exposure Category e Risk Free Exposure Amount e Internal Remarks e Demand Basis e Schedule Details e Settlement Details e The amendments through upload of the following fields are considered as financial amendment e Currency e Counterparty e Amount e Booking Date e Value Date e Cr Dr Branch Code e Cr Dr Account Number aa ORACLE e Holiday Currency e Commitment Revolving Non revolving e Maturity Type e User Input Maturity Date Note Note the following Ifthe request received has settlement details then the values sent as part of the upload should be uploaded If Settlement Details are not sent and are maintained in the list of amendable fields then the details corresponding to the parent contract is copied to the child contract Incase 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 Incase of financial amendment Settlement Instructions requires a special handling The financial amendment 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 For amending a contract if the source is null it indicates that the contract is created in Oracle FLEXCUBE and you are not allowed t
220. ade Details Deal Type You can select the Deal type from the drop down list The Deal Type can be e Primary e Secondary 22715 ORACLE 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 I 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 e Dematerialized e Immobilized e Combination 22 2 5 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 Reference 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
221. aed ek a eee ed ee 28 1 28 1 1 Querying Details of Securities Safe keeping Movements 2 0 000 28 1 28 1 2 The Other Query Screens ounce cecieescccenetcecteenetanae cen ensecesnnbasedevebanaeeenens 28 2 LST Ordon vise assess sate Dads ee ated A aati Ate inte ina tig 28 2 28 2 Viewing Portfolio Securities Movement c cccceceeereeeeeeeeeeeeeeticieeeeeetnaeeeeeeeea 28 3 29 Handling REPOS asses 2eecccsciscfecscezicetect casdessicasiecsdedscettiestesttatidetiatinesegeces 29 1 ZOU NMtrOCUCUION ss sft oist acest laden i cterages he sinncteed T T 29 1 29 2 Maintaining Prod GtS saniser iaa egiii a d a iei i ea aA aeei EA 29 1 29 2 1 Specifying Securities Repo Product Definition Details 0000 29 1 29 2 2 Setting Product Preferences ccccccceeeeceeesneeeeeeeenteeeeeeetneeeeeetiaaeeeeentaae 29 2 29 2 3 Specifying Interest Details for Product 00 eseceeceseteeeeeeentteeeeeeenteeeeeeeaes 29 3 29 2 4 Associating Discount Accrual Components to Product seeceeeeee 29 5 29 3 Capturing Details of Repo Contract ceccccccececceceeeeeeeeeeeeeeeeeeeeaecaeeeeeeeeeeeeeeees 29 6 29 3 1 Specifying Interest Details 0 0 cece cee e enn eeeeeennneeeeeetnaaeeeeeetnaeeeeenetae 29 8 29 4 Uploading Deals for AMENdMeNH cc cee eeceeee eee eeneeeeeeeeeeeeeeeeaaeeeeeetnaaeeeeeseaaes 29 9 29 4 1 Specifying Interest Details cece eeeeeeeteeeteeeeeeeeeeeeeeaeeeeeeeaaeeees 29 11 29 5 Maintaining As
222. ailed SE BA0266 Unhandled Exception in sepks_repo_addon fn_calculate_repo_ face_value SE BA0271 Unhandled exception in function sepkss_corpaction_msg fn_process_no tice SE BA0O272 Unhandled exception in function sepkss_corpaction_msg fn_check_ad vice SE BA0273 Unhandled exception in function sepkss_corpaction_msg fn_handoff SE BA0274 Error updating advice_generated field to Y SE BA0275 Error updating advice_generated field to P SE BA0276 Error updating internal_action_id in setbs_event_log SE BA0277 Unable to handoff to mstbs_msg_handoff Function sepkss_ad vice_utils fn_insert_msg_handoff returned false SE BA0278 Error updating statement date number fields in setms_portfolio_master SE BA0279 Unhandled exception in function fn_statements_handoff SE BA0280 Matched buy deals have not settled DSTL will not be done for 1 CS CF0001 Unhandled exception in fn_create_cash_flow version 1 CS CFO0002 Cstbs_event_due_dates not populated CS CFO0003 Unhandled exception in fn_create_cash_flow version 2 CS CF0004 Unhandled exception in fn_restore_cash_flow CS CFO005 Unhandled exception in fn_authorize_cash_flow CS CFO006 Unhandled exception in fn_settle_cash_flow CS CFO007 Unhandled exception in fn_process_charges CS CFO0008 Unhandled exception in fn_tax_charges CS CFO009 Unhandled exception in fn_is_referral CS CF0010 Unhandled exception in fn_process_settlements_lists 31 33 ORACLE
223. ained for the security will be used for revaluation Note You can link only one price code for a given security in a given portfolio Maintaining Risk Profile You can maintain risk profiles in the Risk Profile Maintenance screen To invoke this screen To invoke the screen type SEDXRMNT in the field at the top right corner of the application toolbar and click the adjoining arrow button 21 21 ORACLE 21 12 Risk Profile Maintenance Risk Profile Description Branch Code Risk profile Details 1 Of 1 Portfolio Id Priority Number Branch Code v v ELCs Date Time Checker Date Time Mod No Record Status Authorization Status Risk Profile Specify the risk profile Description Enter a description for the risk profile Branch Code Specify the branch code Risk Profile Details Portfolio Id Select the portfolio ID from the adjoining list of values provided Priority Number Specify the priority number to be associated with the benefit plan for the selected module Note The priority number specified should be unique across all benefit plans for a given module Branch Code Specify the branch code Viewing Safe Keeping Location Portfolio Balances You can view the safe keeping location portfolio balances in the Safe Keeping Location Portfolio Balances Summary screen You can invoke this screen by typing SESXSKPB in the fie
224. aintenance 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 Specifying Main details 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 The Safe Keeping location to and from which the securities will be delivered aN ORACLE 4 5 1 1 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 B
225. al 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 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 SEC 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 32 8 ORACLE
226. al 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 a ORACLE 7 2 2 7 2 3 7 2 4 e The user defined field KESTTYPE is associated with the 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 SEDXMRAT which represents the Security Price Definition Maintenance screen 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 sect
227. al in Denomina tor Method field The actual number of calendar days for which calculation is done 360 Actual days 360 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 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 ACT FRF Interest Method ACT ACT ISMA Interest Method The ACT ACT FRF 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 ae ORACLE 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
228. al 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 eee ORACLE The two tabs are Click this tab to enter the essential terms of a deal This screen along with Malm its fields has been detailed under the head Entering the details of a deal In the screen that corresponds to this tab you can enter additional details that are required to process the deal The screen also displays price related details calculated on the basis of Additional 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
229. alculated 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 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 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 SEDXCPND in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Coupon Maintenance gt Enter Query Corporate Action Id External Corporate Action Id Internal Security Id Record Date Event Date Exchange Rate Fixing Date Security Issuer Reference Confirmed Date 7 Confirmed Currency Name Issuer Payment Currency Exchange Rate
230. and a customer sell After this indicate the sell product that constitutes the combination Wwe ORACLE 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 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 option list available In Oracle FLEXCUBE the exercise of rights involves four steps 1 The selling of rights 2 The buying of rights 3 The buying of the resultant securities 4 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 caters to the selling of rights from the
231. andled exception in fn_dprp_dmwac SE BA0220 Unhandled exception in fn_dprp_wac_noaccr SE BA0221 Unable to check future holding SE BA0222 Unable to select from setb_unrel_unmatch for 1 SE BA0223 Unhandled exception in fn_rights_settlements SE BA0224 Unhandled exception in fn_warrants_ settlements SE BA0225 Unhandled exception in fn_bonus_settlements SE BA0226 Unable to get current holding for position 1 SE BA0227 Unable to select from setb_matched_deal for sell leg 1 SE BA0228 Unable to update setb_event_log 31 31 ORACLE Error Code Message SE BA0229_ Failed in function fn_find_cum_ex SE BA0230 Unable to break the match for 1 SE BA0231 Unable to get Buy deal for position 1 SE BA0232 Unable to insert into setb_matched_deal for sell leg 1 SE BA0233 Unable to update setb_unrel_unmatch SE BA0234 Unhandled exception in fn_drive_alpl SE BA0235 Unhandled exception in fn_drive_dprp_accr SE BA0236 Unhandled exception in fn_drive_fpl_accr SE BA0237 Unhandled exception in fn_drive_fpl_memo_accr SE BA0238 Unhandled exception in fn_drive_dprp_memo_accr SE BA0239 Unable to update setb_dstl_master for 1 and dstl date 2 SE BA0240 Unhandled exception in fn_reverse_alp SE BA0241 Unhandled exception in fn_mark_dstl_master SE BA0242 Unable to get the Rights intrinsic value SE BA
232. arily 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 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 ORACLE 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 your bank you can select an option from the pick
233. aring 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 Ta ORACLE 11 3 5 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 firs
234. arnings 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 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 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 out
235. arty 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 23 11 ORACLE 24 1 24 Transferring Securities across Locations 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 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 SEDXSKNL 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 24 1 ORACLE If you are calling a record that has already been created click on Summa
236. ased 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 e Actual Actual 29 4 ORACLE 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 Default From Class Class Description Accrual Preference C Discount Accrual Required Frequency v Handling of Fore Closure X Acquisition Type Day Count Method 10f1 E Currency Code Currency Name Numerator Method Denominator Method Denominator Method Specify the following details Denominator Method Select the denominator method from the adjoining drop down list This list displays the following values e 360 e 365 e 364
237. ash LIQD All types YACR Yield Accruals for deals All types 32 2 ORACLE 32 2 2 Customer Buy Sell Type of Products 32 3 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 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 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_DEAL_PROFIT Securities Forward Profit SEC_ADJDEAL_AMT Securities Adj
238. ate 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 Carr Hong Kong Beneficiary of Securi ties Eastern Securities Hong Kong Beneficiary s Safekeep ing Account with Receiver of Secu rities 987056 Securities Registration Details Securities delivered have been registered in favour of East ern Securities Hong Kong Securities Receipt Dec laration 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 Securities Deal Amount 600 000 00 HKD Other Charges Fees 650 HKD Securities Settlement Amount 599 350 00 HKD Our Charges 41 250 00 HKD Net Proceeds 600 600 00 HKD Value Date of Payment 28 MAR 1998 27 22 ORACLE 27 2 11 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 correspondenc
239. be null Tia ORACLE 11 2 5 Note For a contract with the sell quantity greater than the value dated holdings for a particular security code if you check Short Position Allowed and set Contra Holding Validation to No Check Unlimited or EOTI then the system will display an override message when you save or modify the contract 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 Repo on Today s Projected Holdings Check this box to enable Repo on projected holdings for the day If you check this the system will allow you to create a Repo deal based on the projected holdings for the day However this option does not allow you to create a Repo deal based on future dated projected holdings If you check this box you should leave the box Short Positions allowed unchecked 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
240. 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 MAO307 Value for Resultant Ratio Denom should not be less than or equal to 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 SE MA0350_ Value for field Announcement Date is mandatory 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_
241. ble It stands 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 33a ORACLE 34 1 34 Reports 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 Corporate Action Coupons Tracking Ex Date Report Coupon Flipping Corporate Action Tracking Ex Date Report Corporate Action Pending Confirmed Unconfirmed Report Disposition Report Deal Settlement Report Securities with Short Positions Report Portfolio to Portfolio Deals Report Forward Profit and Loss PnL Accrual Report Securities Maturity Report Securities Contracts Overrides Report Securities Activity Report Backdated Deals Report Securities Exception Report Matched Unmatched Confirmation Message Report l ORACLE 34 2 34 2 1 Corporate Action Tracking Coupon EXDATE To generate the Corporate Action Tracking Coupon EXDATE report invoke the related screen by typing SERCPDUE in the field at the top right corner of the Application tool bar and clicking on the adjo
242. buy sell type of securities products sal ORACLE 32 2 1 Portfolio Type of Products 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 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 Cash Collection All types SCLQ Securities Stock to C
243. 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 E New E Enter Query Corporate Action ID External Corporate Action Id Security Id Security Issuer Reference Announcement Date Event Date Record Date m Resultant Security ID Parent Security Resultant Security Ratio Dispose Fractions p C Stock To Cash Conversion Stock To Cash Price Option End of Exercise Date Stock To Cash Action Id C Confirmed Issuer Payment Currency Continned Date f m Narrative Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status 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
244. 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 ee ORACLE 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 E New Enter Query Module Description Class Code Description Restriction Type Allowed Disallowed Customer Categories El code Description 4 Customer Access Class Customer Id Category Customer Name Restriction Type i D e s Allowed X Input By Authorized By Modification Date Time Date Time Number Wi Authorized W Open A Customer Category Restrictions Class 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 Customer categories that do not
245. cation Browser a ORACLE 20 3 20 4 20 4 1 20 4 2 Note 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 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 warrants 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 Processing Rights Processing for rights takes place for three events e Rights Tear off e Rights Exercis
246. ccording 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 across Safe Keeping Locations Facility to change the format of the security Processing 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 Manual and auto initiation at the security level Manual and auto collection from the SK location by the bank 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 Revaluation entries posted Getting Started with the Module Oracle FLEXCUBE s Securities module helps you streamline your operations to a remarkable degree This is borne out
247. ce Definition Maintenance screen by typing SEDXMRAT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Price Definition Maintenance EY New E Enter Query Security Id Security Description Code Description Branch Name Market Price Detail 1 Of 1 Market Price Code Value Date Price Quotation Interest Quotation Deal Price Local Currency Price Maker Date Time Checker Date Time Mod No Record Status Authorization Status If you are maintaining details of the market price for a new security click on new from the tool bar The Market Definition detailed screen will be displayed without any details To modify or update the existing prices as of different Value dates click on the unlock 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 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 al ORACLE The price code assigned to each security is used to identify the particular market price of the se
248. 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 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 secondary deal e Buy or sell type of deal e Deal type is spot or forward Viewi
249. cording 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 ve ORACLE 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 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 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 a
250. counting 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 or 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
251. crip 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 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 flow This represents the amount per face value that will be received on the redemption date The cashflow includes the coupon and the redemption amount 2 ORACLE 19 2 6 19 2 7 19 2 8 Note The Redemption Quotation types Factor and Cashflow are applicable only for the quan tity redemption type securities 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 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
252. ctual 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 1 Of 1 E Revision Start Date Discrete Continuous Revision End Date BaseFrequency WeekDay Adhere To Month End 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 tt ORACLE 19 2 15 19 2 16 19 2 17 19 2 18 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 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
253. curities 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 Report Format PDF Printer At Client Report Output Print Printer 34 15 1 Selection Options You can specify the Redemption Expiry Date before you generate the report red ORACLE 34 15 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 Tear off Date The issue date Redemption Or Expiry Date The expiry date of the security Security Currency The currency attached to the security Current Position Holdings as of Position Reference 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
254. curity 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 For 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 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 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 Here the market value of the security is quoted as the actual price of Absolute price the security Here
255. curity that you are maintaining Note Note the Following You must capture the Issue Price of Zero Coupon Bonds The issue price of Zero Coupon Bonds must be lower than the Redemption price 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 Entering Interest Details for a 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
256. 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 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 Specifying Processing Details Auto Liquidate for Corporate Actions The corporate actions that are applicable for securities in the portfolio can be automatical
257. cuss 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 Security Product E New E3 Enter Query Product Code Exchange Rate Variance Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Product Group Product Group Description Start Date End Date Remarks Rate Type Branch Currency Customer Preferences Interest MIS Fields Maker Date Time Checker Date Time Mod No 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
258. cy is entered as USD instead of INR When the authorizer selects the portfolio for authorization and indicates the re key fields of portfolio currency as INR the details of the portfolio will not be displayed The portfolio details will not be displayed if e The value in the field that has to be re keyed has been entered wrongly at the time of portfolio definition or e The re key value is input wrongly at the time of authorisation When you have correctly captured the currency of the portfolio as INR and the authorizer makes an error while entering the re key value In such a case also the details of the portfolio will not be displayed for authorisation 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 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 Notice Days Type You can further indicate whether the number of days that you specified was expressed in calendar or
259. d Interest Component Specifies the interest component involved Record Date Date of creation of the record Counterparty Specifies the details of the counterparty Details Issuer Currency Currency of the issuer and of security Security Currency 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 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 ReportFormat PDF Printer At Client Report Output Print Printer 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 a ORACLE 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 carries
260. d 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 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 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 12 ORACLE 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 ela
261. d 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 in a tabular form Highlight the record you want to view of and double click it You can invoke the Bonus to Cash Conversion screen by typing SEDXBNCS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bonus To Cash Conversion Enter Query Branch Code Branch Description Corporate Action Id Security Id Reference No Security Quantity Security Description Portfolio Id Safe Keeping Location Resultant Security ID Safe Keeping Account Portfolio Description Record Date Location Description Event Date Related Corporate Action ID Initial Bonus Due Bonus Encashed Adjusted Bonus Encashed Residual Bonus Maker Date Time Checker Date Time Mod No Record Status Authorization Status In the Bonus to Cash conve
262. ddress 1 Address 2 No v Normal v 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 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 a13 ORACLE 21 6 Viewing Event Details Click Events from the Portfolio 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
263. deal price of 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 Defining Securities Conversion Rule You can define securities conversion rule in Securities Conversion Rule Definition screen To invoke the screen type SEDXCNRL in the field at the top right corner of the application toolbar and click the adjoining arrow button Securities Conversion Rule Definition a Save Conversion Rule Id Process Status Unprocessed v Conversion Type Split Merge Conversion from 1 Of 1 Security Id Conversion To 1 Of 1 Security Id EVs Date Time Checker Date Time Mod No Record Status Authorization Status 10 9 ORACLE You can capture the following in this screen Conversion Rule Id Enter the conversion rule Id Conversion Type Indicate the type of conversion that you are effecting This release of Oracle FLEXCUBE supports only securities splits This implies that you can convert an existing security into one or several units of a new security While re denominating In currency securities to Euro choose split as the conve
264. details 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 Settling Deals For a customer you can maintain settlement preferences 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 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 frequentl
265. details You can spec ify the following details The accounts to be debited for charges Settlement The method in which the event 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 mes sage Details about the parties involved in the event 20 26 ORACLE 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 chang ing 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 cou pon aoe ORACLE 21 1 21 2 21 Defining Portfolios Introduction After creating Port
266. dicate 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 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 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 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 e Monthly e Quarterly e Half yearly 112a ORACLE 11 3 7 11 4 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 s
267. ding 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 196 ORACLE 16 1 16 Defining Attributes of a Portfolio Product 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 Securities Portfolio Product Definition E New amp Enter Query Product Code Exchange Rate Variance Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Product Group Product Group Description Start Date End Date Remarks Rate Type AccountingRole Events BranchCurrency Customer Instrument Preferences Charges Tax MIS Fields ELCs Date Time Checker Date Time Mod No Record Status Authorization Status For a
268. 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 Ifthe 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 Consider the following facts A security purchased for 10 million at a rate of 5 p a with the coupon date of 15t January Case 1 Assume the following parameters are maintained for a yearly coupon e Nominal 10 000 000 e Interest Rate 5 per Annum 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
269. e 34 6 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 right corner of the Application tool bar and click the adjoining arrow button Corporate Action Tracking Ex Date Report Corporate Action Type All Corp Actions v Selected Branch E ReportFrom ReportTo Specify 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 oe ORACLE 34 6 1 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 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 Description The description of the portfolio Security
270. e Certificate In the case of either a right or warrant the certificate itself is referred to as a right or as a warrant 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 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 vari
271. e 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 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 Accrual details e The Redemption Premium Accrual details e Corporate Action Notice details All portfolios maintained under a portfolio product will inherit the preferences that you define for the product Click Preferences button to invoke the Portfolio
272. e 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 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 the 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 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 gt ORACLE 20 4 3 20 4 4 20 5 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 th
273. e 05 APR 1998 Deal Price 102 5 PCT Number of Days Accrued 59 Settlement Amount 1 032 750 00 DEM Quantity of Financial Instrument Con firmed 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 Holland Step in Broker 27 8 ORACLE 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 Heldring en Pierson Address 45 28 Hanover House Coopers Avenue Amsterdam Holland Safekeeping Account 90568 32 Cash Account 386098 24 Receiver s Custodian Name Dresdner Bank AG Frankfurt Address DRESDEFF Deliverer s Custodian Name Deutsche Ban
274. e 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 Specifying 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 T
275. e 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 portfolio 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 ORACLE 3 4 3 e If you would like to auto liquidate for Corporate Actions e The MIS Heads under which you would like to report the portfolio 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 yo
276. e 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 14 20 ORACLE 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 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 value of the portfolio now stands at USD 1100 When the revaluation is run
277. e 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 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 percent age 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 Today SE MA0427 Collection can not be done as Collection Processing Date is later than Today 3big ORACLE Error Code Message 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 proc
278. e 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 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 You can invoke the Securities Rights Warrants Definition screen by typing SEDXRWDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Rights Warrants Definition E New E3 Enter Query Corporate Action Id External Corporate Action Id Right Or Warrant Rights Security Issuer Reference Warrant Resultant Security ID Resultant Security Description Internal Security Id Intermediate Security ID Internal Security Description Intermediate Security Description intermediate Parent Security Intermediate Security Ratio Fraction Round Standard Resultant Intermediate Security Resultant Security Ratio Fraction Round Standard Announcement Date Record Date Event Date Exercise Start Date Exercise End Date Intrinsic Value Puneninn Meina blinin Tunrninn Nrrantih lt i m Narrative Fields
279. e 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 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 e 30 Euro 364 e 30 US 364 e 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 19 24 ORACLE 19 6 Reassigning Securities Deal Contract You can reassign the securities deal contracts in Security Deal Contract Reassign screen To invoke the screen type SEDXREAS in the field at the top right corner of the application toolbar and click the adjoining arrow button Securities Deal Contract Reassign l Save Product Code a5 Deal Reference az Current User Id New User Id Product Code Select the code of the product from the adjoining option list Deal Reference Select the deal reference number from the adjoining option list Current User Id Specify the identification of the current user New User Id Select the user identification from the adjoining option list 19725
280. e 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 Securities Market Side Trade Confirmation PHP 250802 Pierson Heldring en Pierson 45 28 Hanover House Coopers Avenue Amsterdam Holland ZIP 5907 2502 Subject Securities Trade Confirmation Kind Attention Mr William Richards Securities Trade Officer Securities Department Dear Sir Madam 02 APR 1998 New York 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 ath ORACLE 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 York Stock Exchange Settlement Dat
281. e 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 22 6 ORACLE 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 method is also referred to as the Clean Price Note 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 quot
282. e 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 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 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 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 th
283. e 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 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 manual 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 20 11 ORACLE 20 7 1 20 7 2 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 sa
284. e regarding the above instruction Thanking you For Hang Seng Bank Hong Kong Securities Notice of Rights Message WARBURG 024 24 JAN 1998 Warburg Securities Sydney 892 Traflagar Square Australia 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 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 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 i ORACLE 27 2 12 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 Rights Subscription Price 40 AUD Type of Rights Saleable Indicative Market Price for Rights 25 AUD Pari Passu Date of Securities Exercised 15 MAR 1998 through Rights Other Information We are holding the above rights at your disposal and await your instructions Please ensure that your instructions
285. e 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 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 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 206 ORACLE 20 5 1 20 5 2 You can invoke the Rights Warrants Expiry Event screen by
286. e that is defaulted 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 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 Check 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 1a ORACLE 12 2 5 12 2 6 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 sp
287. e the amount tags with suffix _PY to indicate that they are passed against the Previ ous Year Adjustment GL During accounting for the amount tags with suffix _PY ac counting entries are passed against the Previous Year Adjustment GL maintained in the Chart of Accounts Accounting Role Amount Tag Debit Prenit Indicator For Interest SEC BRIDGE SEL INTCOMP_PUADJ This tag should be Debit Security Bridge GL assigned the difference between Sold Interest SALE and Interest Accrued INTCOMP_OFF Pur INTCOMP_PUADJ This tag should be Credit chase Interest Offset assigned the difference between Sold Interest GL and Interest Accrued INTCOMP_OFF Pur INTCOMP_PUCMA Purchase Interest Debit chase 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_RCPY INTCOMP_TIAC Credit Interest Receivable Payable INTCOMP_IMEM INTCOMP_TIAC_PY Interest Accrued Pre Debit Interest Income vious Year s contribution Memo GL INTCOMP_ Interest INTCOMP_TIAC_PY Credit Income INTCOMP_IMEM INTCOMP_TIAC_CY Interest Accrued Cur Debit Interest Income rent Year s contribution Memo GL INTCOMP_ Interest INTCOMP_TIAC_CY Credit Income 32 21 ORACLE Accounting Role
288. e to select from setb_deal_master for 1 SE BA0147 Unable to select from setb_portfolio_master for 1 SE BA0148 Unable to update setb_caevent_tearoff_log SE BA0149 Unable to select from setm_security_master for 1 SE BA0150 Unable to select from setb_dstl_master for 1 and 2 SE BA0151 This program can be run only as part of End of Day or Beginning of Day processing SE BA0152 Select from setms_security_master failed SE BA0153 Select from setms_price_detail failed SE BA0154 Select from Idtbs_contract_master failed SE BA0155 Select from Idtbs_contract_iccf_details failed SE BA0156_ Select from Idtbs_contract_balance failed SE BA0157 Unhandled exception in fn_calculate_mm_amount SE BA0158 Unhandled exception in Sepkss_repo fn_reverse_block_deals SE BA0159 Unhandled exception in Sepkss_repo fn_roll_block_deals SE BAO160 Select from setms_security_master failed SE BA0161 Security expires before Contract Maturity SE BA0162 Select from setms_portfolio_master failed SE BA0163 Select from Idtms_product_master failed SE BA0164 Unhandled exception in fn_roll_each_block_deal SE BA0165_ Failed to update cstbs_contract_event_log SE BA0166_ Block Product not maintained for this product SE BA0167 Unhandled exception in fn_reverese_each_block_deal SE BAO168 Failed to delete from setbs_caevent_tearoff_log SE BA0169 Confirmed Date should not be more than Today 31 29 ORACLE Error
289. e 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 treatment 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 For example the bank issuer currency EUR issues a USD denominated bond security currency USD for which one of the coupon payments falls due on a Saturday a holiday for both EUR and USD In addition the following Monday is a holiday for USD a ORACLE 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
290. eal Pre Alternative SEC_PREM_TOTA Alternative Credit mium LACCR Premium Standard SEC_PREM_TOTA Alternative Debit Expense LACCR Accrual of Alternative SEC_PREM_TOTA Alternative Credit Prem Exp LACCR Memo Deal Dis Alternative SEC_DISC_TOTALACCR Alternative Debit count Discount Standard SEC_DISC_TOTALACCR Alternative Credit Accrued Accrual of Alternative SEC_DISC_TOTALACCR Alternative Debit Disct Inc Memo Discount Standard SEC_DISC_TOTALACCR Alternative Credit Income 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 Interest 32 19 ORACLE Accounting Role Amount Tag pani PCrealt Indicator SEC BRIDGE SEL Security INTCOMP_PUCMA Purchase Inter Debit Bridge GL SALE est INTCOMP_BOT Deal Pur INTCOMP_PUCMA Purchase Inter Credit chase Interest est 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 INTCOMP_TIAC Interest Accrued Debit Income Memo INTCOMP_ Interest INTCOMP_TIAC Interest Accrued Credit Income For Discount DEAL_DISCOUNT Deal UNACCRD_DISCNT Debit Discount GL S
291. eal is to be matched Click Deal Match button 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 Leg Reference Leg Description Leg Reference Match Leg Reference Settlement Date Match Quantity Total Matched Total Required Total Remaining 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 the 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 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
292. ecifications in the Branch Parameters screen 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 For 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 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 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 You can specify any or all of the following as re ke
293. ecord 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 secu rity 1 SE MA0484_ Atleast one open redemption record should be maintained for security 1 on the maturity date 2 SE MA0485 Sum of all the open redemption records is not 100 for 1 Sits ORACLE Error Code Message 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 SE MA0493 Failed in populating security details for the new branch SE MA0494_ Effective Date should be later than today Site ORACLE 31 2 Error Codes and Messages for Securities Online Error Code Message SE SO0001 Internal Security ID must be Unique
294. ected Units as the Quantity Quotation Method the formula used to compute the Revaluation 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 N FV R MP _ NPY 26 6 ORACLE 26 3 2 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 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 FV R NPV MP _ 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 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 revaluatio
295. ed Whether interest should be accrued Whether forward profit or loss should be accrued 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 The accrual method Accrual frequency Start days 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 following 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 e Actual Actual e 30 Euro 364 e 30 US 364 e 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 e 30 Euro 360 e 30 US 360 alg ORACLE
296. ed 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 ate ORACLE 27 1 2 27 1 3 Note An MT 592 will be generated when a deal is reversed only if you have associated the ad vice tag REVSWIFT to the reversal event Corporate action related advices Corporate Action related advices are generated to intimate the customer of the following 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 customer portfolio Additional securities may be derived from securities held in custody securities being traded in
297. ed Cancelled Sell Legs are linked to this buy leg Only completely unmatched buy legs or buy legs linked to authorised reversed cancelled sell legs can be reversed SE ONL138 Error during updation of blocked balances SE ONL139 Portfolio cannot go short Current position insufficient SE ONL140 Holdings insufficient to be blocked SE ONL141 Error verifying available balance for Portfolio SE ONL142 MSTL possible for only Customer Buy Sell legs SE ONL143 Failed in Cash flow processing SE ONL144 Failed to populate the amount due records in cash flow SE ONL145 Failed in creating cash flow SE ONL146 SD LM 00001 The Issuer Limits details are incomplete Complete Delete the Issuer Limits details SD LM 00002 The Line Code is not a Limits Template SD LM 00003 The Line Code is not entered SD LM 00004 The Liability is not entered SD LM 00005 The Line Start Date cannot be later than the Line Expiry Date SD LM 00006 The Last Available Date cannot be later than the Line Expiry Date SD LM 00007 The Line Currency is not entered SD LM 00008 This Tenor has been maintained for the Limit SD LM 00009 The Tenor details are incomplete Complete Delete the Tenor details SD LM 00010 The Products Allowed details are incomplete Complete Delete the Products Allowed details 31 42 ORACLE Error Code Message SD LM 00011 The Branches
298. ed 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 revaluation 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
299. ed for this class code Proceed CF CL0014 Event for association Basis Amount tag and Amount Category are man datory CF CLO015 For module SS Basis amount category should be Normal CF CLO016 For module other than SS Basis amount category should be either Expected or Overdue CF CO0004 The value entered must be in the format 1 CF CO0005 Spread cannot be zero CF CO0006 Rate cannot be zero CF CO0007 Floor cannot be zero CF CO0008 Ceiling cannot be zero 319 ORACLE 31 6 Error Codes and Messages for Portfolio Online Error Code Message SE PO0010 Reference No could not be generated SE PO0001 Authorizer cannot be the same as the Maker SE PO0001 Authorizer cannot be the same as the Maker SE PO0002 Contract Reference Number does not match SE PO0002 Contract Reference Number does not match SE PO0003 Customer ID does not match SE PO0003 Customer ID does not match SE PO0004 Currency Code does not match SE PO0004 Currency Code does not match SE PO0005 Overrides not confirmed SE PO0005 Overrides not confirmed SE PO0010 Reference No could not be generated SE PO0011 Failed while 1 into Change Log table SE PO0011 Failed while 1 into Change Log table SE PO0012 Safe Keeping Location to Account mapping already exists SE PO0014 Failed to copy the con
300. ed in this chapter 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 Coupon payment Redemption both series and quantity Maturities Calls End of Trading e Equities Dividend payment both cash and stock Bonus Rights Tear Off Expiry Warrants Detachment Expiry 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 within 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
301. ed in the Securities Block Deal Detail screen 23 1 3 A Description of the Block Securities Deal 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 along the lines of which you can enter the details of a block securities deal The two tabs are Click this tab to enter the essential terms of a block deal This screen Main along with its fields has been detailed under the head Entering the details of a block deal ave ORACLE 23 2 In the screen that corresponds to this tab you can specify price currency and trade details that are required to process the deal Additional The features of this screen have been detailed under the head Entering additional details of a block deal 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 t
302. ed 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 meth od 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 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
303. ed 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 2971 ORACLE You can query information on the portfolio by using any of the reference IDs Security 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 Description This is the description of the security code selected T
304. edemption Price is lesser than the Initial Face Value Continue Skan ORACLE 31 3 Error Codes and Messages for Batches Error Code Message SE ACO001 Failed to Lock SE Leg Reference No 1 for 2 event SE AC002 Failed to get End Of Input for the current branch SE AC003 This is an End of Day process SE AC004 First run the predecessor programs before Event Selection and ALPL pro gram SE AC005 Process Till Date is Mandatory SE AC006 Process Till Date cannot be greater than 365 days from today SE AC007 Are you sure you want to start Event Selection and ALPL SE AC008 Event Selection and Processing and ALPL process Failed SE AC009 Event Selection and Processing and ALPL process successfully com pleted SE BA0001 Unhandled Exception in Sepkss_repo fn_populate_work_table SE BA0002 Unhandled Exception in Sepkss_repo fn_repo_block_deals SE BAO0003 Unhandled Exception in fn_create_block_deals SE BA0004 Unhandled Exception in fn_ammend_block_deals SE BAO0005 Unhandled Exception in fn_delete_block_deals SE BAO006 Insert to setbs_deal_master bombed SE BAO0007 Insert to setbs_deal_detail bombed SE BA0008 Insert to cstbs_contract bombed SE BAO0009 Insert to setbs_mm_repo_linkage bombed SE BA0010 Updation of cstbs_ contract bombed SE BAO0011 Insert to setws_repo_rrepo_blocks bombed SE BA0012 Unhandled Excep
305. edemption Terms At PAR Normal Redemption Redemption Amount 1 000 000 00 GBP Our Charges for Redemption Transac 250 00 GBP tion 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 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 i ORACLE 27 2 17 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 Securities Statement as per the details shown below Our Reference 000SES8981050320 ment is being requested Securities Safekeeping Account for which State 40596832 requested Identification of Securities for which Statement is ISIN FR0000771617 ELF AQUITAINE Shares Securities Statement Type Requested Statement of Transactions 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 fo
306. edemption 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 error message upon saving the record Note 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 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
307. edit SEC BRIDGE GL INT_GS_PUCM Credit SEC SETTLEMENT INT_GS_PUCM Debit 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 32 4 4 10 RACF Receive Versus Payment Confirmation Accounting Entries No accounting entries are allowed for this event Advices Nil 32 39 ORACLE 32 4 4 11 RBLK Release Block of Security Positions Accounting Entries Nil Advices No advices allowed for this event 32 4 4 12 REAS Reassignment of Securities Deal Accounting Entries No accounting entries allowed for this event 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 40 ORACLE 33 1 33 Glossary 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 This content can be found in the URL http www investorwords com 1141 corpus
308. eeeeeeeeeeeeees 16 1 16 1 Introductions ers ecict ae ect ee eit eae ee eet 16 1 16 1 1 Exchange Rate Variance cccccccccessecceesneeeeetenneeeeeseseeeeeeseneeeteenenaeeees 16 2 16 2 Indicating Preferences for a PrOdUct eeceeceeeeeetteeeeeeeeeeeeeeeeeaeeeeeeetaeeeeeeenaaes 16 2 Defining Attributes of a Deal Product cece eeeeeeeeeeeeeneneeeees 17 1 Tl miodu nien ear eae iat ie Nie eat ada 17 1 VEAL PrOdUCl TY PO criias saia aia aeaii deig aa AES ea A AEE Ep i AAE iTS 17 2 17 1 2 Exchange Rate Variance ccccccccceccecceeesceeeeeseeceeeeeseeeeeeeeseseaeeeetenaeeees 17 2 17 2 Specifying Preferences for a Product eee eeeeceeeeeeneeeeeeeeeneeeeeeeeeeeeeeeeetaeeeeeeeeaaes 17 2 17 2 1 Specifying User Defined FieldS sssseesrsrenesnnnnserrrennrnrrnnrerrrrnnrrennnnnnennae 17 3 17 2 2 Specifying accounting entries for KEST Computation sccceeeeeeeees 17 4 Defining a Product Combination ccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneneenees 18 1 ASI Introduction is0 1 paved tad eis ete A ede a eed 18 1 18 2 Creating a Combination Product 20 0 0 ee cceeeeeceeeeeeeeeeeeeeeeeeeeeeeeeetaeeeeseenaeeeeesenaaes 18 1 18 2 1 Creating a Combination Product 0 cccccesseeceeeeesteeeeeeentieeeeseesieeeeeeseaees 18 2 Maintaining a Security cceeeecceeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeeeeeeeeeeeeeeeeeeenees 19 1 19 1 Introduction raea r Gh Ain Wien hi ah wise beaten aed fn EEAS 19 1 19 1
309. eeeeteeeeseeeeeeeeseenaeeeeeeeneaeees 11 24 Defining a Deal Preference Class ceeeeeeeeeeeeeeeeeeeeeeeeeeeeeneeeeeneeees 12 1 12i LIMO MUCH sia aaa T A TON 12 1 12 1 1 Specifying the Deal Preferences Class s eseerrseerrsrnrrrrerrnnnrrennnnneernnne 12 1 13 14 15 16 17 18 19 12 2 Features Of the SCreSn is neare a desta cenisaae beeen bated Aaa 12 2 12 2 1 Identifying a Deal Preference Class cccccccccceseeeeteeeteeeeeteesaeeeeteeeaetees 12 2 1222 Exchange Rao Ty pe errre arara si gtreis his A E AA 12 3 12 2 3 Brokerage AlOWGA 22 cccccceesccecseeneecceceennencceceenanececeeeanatenssnensnceeneeneneceets 12 3 12 2 4 Automatic Money Settlement cccccccccececseeeeeeenteeeeeeeeeeeeeeeeeaaeeeeteeaeeees 12 3 12 2 5 Extension ANOWGOt is 2sccsccccctdesccteveststdancaniduccddvtedadeddneseadeddseseedadeaieeetadeiseees 12 4 12 2 6 Rekey ReQuireMent 0 cceccccceseesenenessnecceenenenscdetnesnanecenennansectnennaneeennes 12 4 12 2 7 Specifying Other PreferenCe cccccccccceeeceeeeeteeneeeeeseeeeeeeeseeeaeeeetenaeeees 12 5 Security Restriction Classes ooo cece eee eeeeeeeeeeeeeeeeeeeeneeeeeeeeeeeeeeeeeeeees 13 1 T31 Introduction ino eee ee ie i ee eed 13 1 13 2 Specifying the Security Restrictions 0 0 0 eeceeeeeeeeeeeeee eee teneeeeeeetneeeeeeeiaeeeeeeeea 13 1 13 2 1 Identifying a Security Restrictions Class cccccecsseeeeesteeeeeeeenteeeeeeenaees 13 2 13 2 2 Secur
310. eeerennseernenneeeennn 26 2 26 2 Triggering Securities MSTL Batch eceeeeeeeeeneeeeeeeeecneeeeeeeneeeeeeeeneeeeenenaaes 26 3 26 3 EOD Processing for Unrealized Revaluation ccccceeeeeeeeeeeeeeetneeeeeeentareeeeeenaaes 26 4 26 3 1 Unrealized Revaluation for Unsettled Buy and Sell Deals 00 26 4 26 3 2 Unrealized Revaluation for Settled Deals 0 0 ccccccceccteeeeeeeettttteeeeeteee 26 7 2033 MUSTAINE one epee eet E A AAN 26 10 Customer Correspondence cceeeeeeeeeeeeeeeeeeeeeeeeneeeeneeeeeeeeeeeeeeeeeeees 27 1 2721 Introduction eeii ad e a di eiia 27 1 27 1 1 Deal Related AOCGS ierre hernie e a ia ENEA 27 1 27 1 2 Corporate action related AAVICCS 2 ccceeeeeeneeeteseeeeteeeeeeeteetecssentnsaeeees 27 3 27 1 3 Statement related AAVICES ssseeessssrrresrrerrrrrrnrrererrnnnrrrnnrnrerrrnnrrennnnnrerenae 27 3 27 2 Sample of all the Advices 02 0 2 cecceceeceeccecceeeeeeeeeeeeeeseaeaaeeeeeeeeeeeeeseeeensneneeaeeeeeees 27 4 27 2 1 Securities Trade Confirmation Affirmation Message 0 cceceeeetetteee ees 27 4 27 2 2 Securities Market Side Trade Confirmation cccccecseeeceeeteeeeteeneetees 27 7 27 2 3 Securities Receive Free Instruction seseeesrrrersrrnnrrerrrrenrrnnnrneeerrrnerna 27 10 27 2 4 Securities Receive Against Payment Instruction ccccccteeeeeeteeeeeees 27 11 27 2 5 Securities Deliver Free Instructi n ssseseerrrreerernereneerrennrrrnnereee
311. een Contract Interest Details x 10f4 zi Internal Security Id E Creation ESN M Waiver Component Rate Code Rate Code Description Tenor Code Rate Tenor Code Description Interest Spread Flat Amount Interest Calculation Method v m Acquired Amount Security Index Spread Floor Ceiling os 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 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 128 ORACLE Rate Specify the interest rate Flat Amount Specify the flat amount Acquired Amount Specify the acquired amount Interest Method Th
312. een by typing SESXSKMV 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 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 The 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
313. eeping 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 maintained 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 p
314. efine SK accounts for each of the locations maintained aeg ORACLE 24 2 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 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 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
315. ek Day is Mandatory SE SO0210 Base Start Date must be on specified the Weekday SE SO0231 First Previous Virtual Coupon Date must be earlier than Previous Coupon Date SE S00232 First Previous Virtual Coupon Date must be later than Previous Coupon Date SE S00233 Second Previous Virtual Coupon Date must be earlier than Previous Coupon Date SE SO00234 First Next Virtual Coupon Date must be later than Next Coupon Date SE SO0235 First Next Virtual Coupon Date must be earlier than Next Coupon Date SE SO0236 Second Next Virtual Coupon Date must be later than Next Coupon Date SE S00237 First Previous Virtual Coupon Date is Mandatory SE SO0238 Second Previous Virtual Coupon Date is Mandatory SE SO00239 First Next Virtual Coupon Date is Mandatory 31 19 ORACLE Error Code Message SE SO00240 Second Next Virtual Coupon Date is Mandatory SE SO00261 Effective Date must later than Start of Interest Date SE S0O0262 Effective Date must be earlier than Redemption Expiry Date SE SO0263 Effective Date is Mandatory SE S00281 Event Date must be Unique SE SO00282 Event Date must be later than Issue Tearoff Date SE SO0283 Event Date must be earlier than Redemption Expiry Date SE SO0284 Cumulative To Be Redeemed must be lesser than 100 SE SO00285 Redemption Price must be greater than equal to Initial Face Value SE S00286 Even
316. eld that you enter It is only for reporting purposes aas ORACLE 23 2 3 23 2 3 1 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 Note the Following The price that you enter is taken to be in the currency of the security that is traded The entries made in this field can be amended before the deal is authorised How ever 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 interest 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 pr
317. eld 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 Corporate Actions on Securities Corporate actions are various events that happen on the different types of securities during the life cycle 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 ea ORACLE 2 1 12 1 2 1 12 2 2 1 12 3 2 1 12 4 2 1 12 5 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 e
318. ement screens Based on the details that you enter in the settlement screens the deal will be settled Settlements The details of these screens have been discussed in the section titled Maintaining Settlement Instructions This icon invokes the Tax services The application of tax on a deal is dis Tax cussed under the head Levying tax on a deal 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 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 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 associa
319. ement will be rounded up to the next full unit Round Down The entitlement will be rounded down to the previous full unit The entitlement will be rounded up to the next full unit if fraction is Round standard greater than 0 5 else it will be rounded down to the previous full unit For example rights are declared in the ratio of 10 1 for the parent security Parent security has 125 units This means that for every ten units of intermediate security owned one intermediary security right will be issued The entitlement is computed as follows Ratio 10 1 Rights Shares of Intermediate Security 125 x 1 12 5 10 If you choose Round Up 12 5 will be rounded up as 13 Round Down 12 5 will be rounded down as 12 In this case since the fraction is greater than 0 5 the entitlement Round standard will be rounded up to 13 You can also choose to retain the fractional unit as 12 5 20 3 ORACLE 20 2 2 20 2 3 The ratio and rounding standard for the Resultant security is computed in the same manner as the Parent to Intermediate security ratio Note Note the Following 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 The Intermediate Security Id LOV fetches only those securities which are c
320. emium Accrual and Discount Accrual is not allowed SE PO0054 For Accrual Asset Accounting Basis Premium Accrual or Discount Accrual must be chosen SE PO0055 Safe Keeping Locations are not defined Proceed SE PO0056 Security Restrictions screen is not visited Proceed SE PO0057 Role to Head mapping is not defined Proceed SE PO0058_ Portfolio ID is not unique SE PO0059 Revaluation of unsettled positions is not allowed without the revaluation of settled positions SE POO0060 Withholding Tax Accrual is not without Interest Accrual SE PO0061 Record successfully Closed SE PO0062 Record successfully Reopened SE PO0063_ Mandatory Fields Security Product Role To Head Class are null SE PO0064 Mandatory Fields Security ID Role To Head Class are null SE PO0065 Mandatory Fields SK Location SK Location Account are null SE POO066 Customer Account needs to be reselected Proceed SE PO0067 Customer Branch and Customer Account need to be reselected Pro ceed SE PO0068 Closure not allowed as live contracts are present SE POO0069 Failed to open a new record 31 51 ORACLE 31 7 Error Code Message SE PO0070 Failed to copy the record SE PO0071 Failed to delete the record SE PO0072 Failed to close the record SE PO0073 Failed to unlock the record SE PO0074 Failed to reopen the record SE PO0075_ Failed to authorize the record SE PO0076 Failed
321. en 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 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 In case the Security is a Bond and you have specified the bank parameter COMMON_YLD_ACCR as Y then The initial cash flow for yield computation is taken from the net considerations of the deal Yield is computed based on actual cash flows instead of the face value e Securities Batch 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 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
322. en 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 Building an Issuer Tax Scheme When building an Issuer tax class you associate it with a Rate Code and not a Tax Rule A code uniquely identifies a rate value You can group the Issuer tax classes that you have built a ORACLE 3 4 6 3 4 7 3 4 8 3 4 9 into an issuer tax scheme When maintaining a security product you can associate it with an issuer tax scheme that you have built Issuer taxes for securities associated with the product will be calculated by default according to the issuer tax components built into the scheme 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
323. en the investor s role is ownership together with other investing shareholders if any e Ifthe security is a bond then the investor is a creditor and the other entity can be corporate or government e Ifthe security is an option then the investor has certain well defined rights and the other entity has corresponding obligations Equities Buying equities of any company corporation lead to investors becoming owners of the corporation As a shareholder investor has certain basic rights oe ORACLE 2 1 8 1 e A claim proportional to the number of shares held to a portion of the corporation s assets e The power to vote on company business at shareholders meetings again in proportion to shares held e The right to dividends that may be voted by the Board of Directors e 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 Preference Shares Preference shares are also shares with certain variations e They carry a fixed dividend which is announced at the time of the issue e They have no voting rights e Payment of dividend to these shares are done first prior to dividend payment on equity shares e The claim of the preference share holder precedes the claim of equity shareholder Preference shares may be cumulative or non cumulative If t
324. enance is used for resolving the bridge account 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 Settiement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing IBAN Account Number Settlement Details E Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code a lt Settlement Direction Component Description D Debit C Credit Signature Verification 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 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
325. ender s Correspondent and the Receiver s Correspondent through which the reimbursement of the deal 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 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 araa ORACLE 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
326. enerates 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 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 For 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 External Reference If the transaction is being uploaded from an external source you can specify the identification for the transaction in the external source as the external reference number Source You have to indicate the source from which contracts have to be uploaded 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
327. entifying the HOIMCH 0 ecccceceeceeee eee teeeeeeeeeceeeeaeeeeseeeaaeeeeseseaaeeeesnensaeeees 10 6 10 2 7 Specifying the Material Of a Security s eeessssneerrrenrrrrirrnesrrnnnrrrnnnnnnernene 10 7 10 2 8 Indicating the Collateral Type ecccccceceesseeeeeeeeceeeeseneeeeeeeseeeaeeeeeeeeanens 10 7 10 2 9 Opting for Automatic Initiation of Corporate ACTtIONS ccccccceeeeeerteees 10 7 10 2 10 Indicating the Price Code for RevaluatiOn cccccecsseeseenseeeeeeeenseeees 10 7 10 2 11 TeNOr Details nomor ensiriirierseridiirni pi tii nane int araa site desbbanscdhnedudectvaedbededsress 10 7 10 2 12 Capturing SWIFT Related Information ccccccesectteeeteeeeteeeteeeetennneetees 10 8 10 3 Defining Deal Limits for a Preference Class cc ccccceseeeeeeeeeneeeeeteenneeeeeeeenaaeeees 10 8 10 4 Defining Securities Conversion Rule ecececceceeceeeeeeeeneeeeeseeeeeeeeseeaaeeeeseeeaeeees 10 9 Maintaining Portfolio Preference Class esesseeeeneeeeeeeneeeeeeeees 11 1 TLT IntroducthOnw secies ee ie ered Le ed dee 11 1 11 2 Specifying Portfolio Preferences Classes ccccceccceeeeeeeteceeeeeeeeeeeeeenneeeeerenea 11 1 11 2 1 Identifying Portfolio Preference Class sseeeeersieneerrnnrseesrnrnnrernnnneeernene 11 2 tZ e POTO Ty Pernice ia ele ent thas 11 2 1122 3 Costing Method o ra tenn ER annie tied eA i ae 11 3 11 2 4 _PFOCOSSING orespiriiiieriiiie eean titiking i iirin tida
328. ents will be rounded down to the previous full unit Round Down If the fractional unit is above 0 5 entitlements will be rounded up to Round 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 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 which the stock to cash conversion option is to be exercised 20 19 ORACLE 20 13 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
329. equal to today al ORACLE 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 AEDEODST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Login Page E New E3 Enter Query Select Activity Select Time Level Continue with AEOD Branch Current Status Run Till Time Level The system picks up the batch in accordance with the mandatory batch programs maintenance Click Ok button to run the batch To exit the screen without running the batch click on the Exit button 20 2 ORACLE 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 C Advanced Search 9 Reset Branch aZ Process Status Event Sequence Number EOC Status az Records per page 15 First Previous 4 of 4 Nex
330. equency Revaluation Start Month If you set the revaluation frequency as quarterly half yearly or yearly you have to specify the month in which the first revaluation has to begin besides the date on which the revaluation should be done For example you have selected the half yearly option and specified the start date as 31 and the start month as June 1122 ORACLE 11 3 6 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 the revaluation is done as per your holiday handling specifications in the Branch Parameters screen Note 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 For 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 daily On 31 January only realized revaluation of settled positions in the portfolio will be done Interest Accrual Preferences The interest on coupon bearing instruments can be accrued over the tenure of the instrument As a portfolio preference you can in
331. er By indicating From and To security IDs you can generate the securities with short positions report 34 11 2 Contents of Report The contents of the report are discussed under the following heads ela ORACLE 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 Portfolio Name This is the Internal Security Id for which Security Portfolio has been maintained This is the name of the portfolio Security Id Security Name This is the identification of the security This is the name of security Security Currency Deal Reference This is the currency of security This is the reference number of deal Settlement Date SK Location Indicates SK location in which the deal settlement has taken Deal Type page This indicates the type of deal Trade Date This is the date on which the deal is transacted This indicates the date on which the money was settled Nominal This indicates the net consideration of the deal 34 12 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
332. er 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 ordering 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 aaga ORACLE 22 7 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
333. ere encountered for the event will be displayed The following information is provided for each event Branch Account Dr Cr indicator Code The date on which the entry was booked aaea ORACLE e Value Date e The deal currency e Amount in deal CCY 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 5 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 Limits Exposure Lines Leg Reference Undelivered Total az E Track Clean Risk Limit E 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 butto
334. erence 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 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 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 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 alg ORACLE For example
335. erence Reference number of the transaction leg Number Leg Type Type of transaction buy or sell Security Code Security code Description Description of the security Portfolio ID The portfolio ID Deal Quantity Quantity of security traded Face Value Per Unit Face value of the traded unit of security Settlement Details Details of deal settlement Tag Currency This is tag currency Account The account used for deal settlement Amount Tag This indicates the amount tag for the account ar ORACLE 34 10 Deal Settlement Report 34 10 1 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 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 deal reference number The following
336. erence number Sender Reference Indicates the sender reference number Security Id Indicates the security ID ISIN In Books Indicates the ISIN number in books Security Type In Books Indicates the security type as per books Balance In Books Indicates the balance as per the books Discrepancy Type Indicates the discrepancy type ISIN Message Indicates the ISIN message Security Type In Message Indicates the security type mentioned in message Balance In Message Indicates the balance mentioned in message ores ORACLE 35 Function ID Glossary A SEDXMTCD ooi 4 18 AEBEODST cccccccccccccceeeee 26 2 SEDXPFCL rainen 11 1 SEDXPENL ooececcecccccsceseeceeee 21 1 B SEDXPRCL o 14 1 BCDDOCCD cxcieencticcs 20 26 SEDXREAS oooi 19 25 i SEDXREDF oo 20 9 SEDXRMNT oo 21 21 CFDFLRAT c0000ceeees 4 17 SEDXRVND cccccecee 20 16 CFDRTCD oo ceeceeeeeeeee 4 10 SEDXRWDE cccccceccece 20 2 Se Oa ae SEDXSECL neceesssscssesseeeeee 10 2 CFDRTTYP 0 esses teeetiee 4 16 SEDXSKLCO oiin 7 1 CSDACTCL oiiaii 9 5 SEDXSKNL 24 1 CSDCBRCL oiiaii 8 2 SEDXSRCL 13 1 CSDCUCCL revrrrrer tre ee ee re er 8 4 SERACTVT a 34 24 CSDRHCLM sss 95 SERBKDDL oooi 34 6 s SERCADUE oaaae 34 7 SORPHOLD ec 34 28 cee oe SEDDLPRD oon We S SERCPDUE in 34 2 SEDEXPDF ooi 20 7 SERCPFUP ooececceccccesceseeceoee 34 3 SEDINTBT ooieoe 26 3 SERCEPEN 34 07 SEDPFPRD oon He ee a
337. erest Adjustment Accrual Amount 220 ORACLE 32 4 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 Note 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 HLDG_MTM_INC_PY HLDG_MTM_EXP_PY UNSD_BY_MTM_INC_PY UNSD_BY_MTM_EXP_PY UNSD_SE_MTM_INC_PY UNSD_SE_MTM_EXP_PY UNSD_MTM_INC_PY UNSD_MTM_EXP_PY MTM_INC_PY MTM_EXP_PY 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 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 accounting roles that are applicable for a Customer buy sell type of product oat ORACLE List 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 De
338. es Elders Finance Group Sydney Securities Deliverer s Reference RYZ843 Beneficiary of Securi ties Fidelity Trust Limited New York Securities Registra tion Details Securities received have been registered in the name of the Fidelity Trust Limited New York Securities Receipt Declaration Details Certificate Numbers of Bonds have been delivered and match with the numbers mentioned in your instruction and the Certifi cates 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 17 ORACLE 27 2 8 Securities Receipt Against Payment Confirmation GS 12684 Goldman Sachs 22 FEB 1998 Toronto CANADA 602 South End Towers JFK Avenue New York U S A ZIP 897 643 260 Sub Confirmation of Receipt of Securities Against Payment Kind Attention Ms Andy Ryan Treasury 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 Identifica tion ISIN CADBONDNWC01 North Woods Canadian Minerals Ltd Bonds Trade Date 07 FEB 1998 Place of Trade Toronto Stock Exchange
339. es 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 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 general attributes each time you enter a deal rendering the entry of a deal in Oracle FLEXCUBE quick and simple Note While defining a combination product you have indicated the preferred leg of the combi nation 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 securi
340. es 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 Product Definition E New Enter Query Product Code Exchange Rate Variance Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan f Product Group Description Start Date End Date Remarks Rate Type Accounting Roles Events Branch Currency Customer Instrument Portfolio Restrictions Preferences Charges Tax MIS Fields Market Details Maker Date Time Checker Date Time Mod No 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 Portfoli
341. ess Collection SE MA0431 Do you want process Liquidation SE MA0432 Failed to process Initiation SE MA0433 Failed to process Collection SE MA0434 Failed to process Liquidation SE MA0435_ Initiation processed Successfully 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 Event 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 sta
342. et GL Name of the SL SL Code in Oracle FLEXCUBE Long Term Bonds OUTASST01 Medium Term Bonds OUTASST02 Short Term Bonds OUTASST03 In Oracle FLEXCUBE GL SLs are broadly referred to as Account Heads 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 Asset Liability Realized Profit Realized Loss Income Expense Contingent Asset Contingent Liability Position GL Position Equivalent GL These categories are referred to as Accounting Roles in Oracle FLEXCUBE 1 ORACLE 9 3 9 3 1 9 3 2 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 portfo
343. ethod is Mandatory SE SO0112 Liquidation Denominator Basis is Mandatory SE S0O0113 Accrual Denominator Basis and Liquidation Denominator Basis must be identical SE SO0114 Accrual Include To Day and Liquidation Include To Day must be identical SE SO0115 If Rate Basis and Accrual Liquidation Denominator Basis are not identi cal then it must be Periodic Coupon 31 18 ORACLE Error Code Message SE SO0116 If Rate Basis and Accrual Liquidation Denominator Basis are not identi cal then it must not be Weekly Coupon SE SO0131 Collateral Type is Mandatory SE SO0132 Dividend Basis is Mandatory SE SO0133 Warrant Basis is Mandatory SE SO0134 Rights Basis is Mandatory SE SO0151 Coupon Schedules have not been maintained Proceed SE SO0181 Series must be Unique SE SO0182 Redemption of this Series has already been defined SE SO0183 Series is Mandatory SE SO0201 Base Start Date must be Unique SE SO0202 Base Start Date must later than Start of Interest Date SE SO0203 Base Start Date must be earlier than Redemption Expiry Date SE SO0204 Base End Date must be later than Start of Interest Date SE SO0205 Base End Date must be earlier than or equal to Redemption Expiry Date SE SO0206 Base Start Date is Mandatory SE SO0207 Base End Date must be later than Base Start Date SE SO0208 Base Frequency is Mandatory SE SO0209 We
344. eturn 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 Financial Markets The financial markets channel the savings of the households and other surplus budget units to those individuals and institutions that need 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 Credit Market Credit market is a place where banks financial institutions and NBFCs purvey short medium and long term loans to corporates and i
345. 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 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 Note While computing NPV the Premium Discount and Interest adjustment On par are mutu ally exclusive Trading P L At the time of sale discount premium accrued redemption premium accrued is included for calculation of the trading 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 1an ORACLE e O S Interest Adjustment Accrual 26 ORACLE 12 1 12 1 1 12 Defining a Deal Preference Class 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 SK
346. f 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 e 30 EURO Actual e 30 EURO 360 e 30 EURO 365 e 30 EURO 364 In the nominal value 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 zs ORACLE 2 1 12 For example the
347. f 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 Banker s Acceptances BAs Banker s acceptances BAs are bills of 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 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 Rights and Warrants From time to time a company may need to raise additional capital by issuin
348. f the screen The tax will be calculated but not applied Note 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 liquidated e The currency in which it was liquidated Processing Brokerage on a Deal 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 aaa ORACLE 22 8 1 22 8 1 1 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 Brokerage Details Reference Number Broker Code Broker Name Payable Currency Amount Liquidation Status Reference Number Code Description Brokerage Currency Amount Boo
349. fault role to head mapping from the product or have associated a new role to head mapping class for the portfolio aa ORACLE 21 10 21 11 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 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 SP Price Portfolio Id Portfolio Description 1 Of 1 Security Id Revaluation Price Code In this screen you can maintain set of securities and associate appropriate price codes with each 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 maint
350. fe 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 Note The initiation collection and disbursement events are synonymous 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
351. fective coupon cash flow that are considered during revaluation for the deal will be 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 apa1 ORACLE 26 3 3 2 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 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
352. 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 For example suppose that you have maintained Financial Institutions as a customer category and you do not want Financial Institutions to avail a service that you offer es ORACLE 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 Fa ORACLE 9 1 9 2 9 The Accounting Role to Head Mapping Class 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 RETRP0001 Realised Trading Loss RETRL0001 Unrealised Revaluation Profit RELREVPO1 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 Ass
353. firmed 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 Securities Confirmed Unconfirmed Deals Report Counterparty Portfolio Counterparty Portfolio From To Report Format v Printer At Client Report Output v Printer 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 To Specify the portfolio to which the transactions are targeted 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 aan ORACLE 34 9 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 displayed Security ID The security ID
354. folio Definition screen by typing SEDXPFNL 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 ate ORACLE 21 3 21 3 1 From the Summary screen double click a portfolio to open it Security Portfolio Definition Save Product Code a5 Portfolio Id Product Description Portfolio Reference Fund Id Contract Main Main Preferences Detail Preferences Mies Type Customer Portfolio Description Customer Branch Branch Branch Name Branch Name Customer Account Currency Description Currency Name Portfolio Costing Method Asset Accounting Basis Customer Name Book Intrinsic Value Processing Details Contra Holding Validation Rights Auto Liquidate For Corporate Actions Corpus Account Warrants Short position Allowed Accrue Withholding Tax for Coupons Banker s Acceptance Issue Repo On Today s Projected Holdings Role ToHead Events SkLocation Security Restrictions SPPrice MIS Advice Fields ELC a le Date Time Checker Id Date Time Status Authorization Status The Securities Portfolio Definition screen consists of a header a footer containing fields that are specific to the portfolio you are defining and three tabs Contract main Main preferences and the Detail pref
355. folio 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 e 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 Note 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 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 Portfolio Definition screen is displayed without any details You can invoke the Security Port
356. formation 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 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 tends 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 Specifying Tr
357. g 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 Rights A right 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 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 26 ORACLE 2 1 10 2 1 11 combination of bonds and warrants The bonds are in regular form and the warrants are used to make the offering more attractive Th
358. h 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 SE MA0045 For Third Party as Charge Type Third Party Type is mandatory SE MA0046 This class cannot be closed because 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 Init
359. he 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 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 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 E New E Enter Query Market Code Market Description Market Type Over The Counter Option System Narrative Market Identifier Code Category Main Interest Spot Date Ex Date Ex Date Method Rolling Method Ex Days Count Basis
360. he 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 click OK button Back Dated Deals Report ReportFormat PDF Printer At Client Report Output Print Printer 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 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 oe ORACLE Body The following details are displayed Deal Reference The reference number of each deal Version The version number Settlement Date The settlement date of the deal Trade Date The date as of which the trade would take place Transaction Date The date on which the transaction would take place Security Description The description of the security Security Ccy The currency attached to the security Security Code The unique code that identifies the security Deal Value The total value of the deal Deal Quantity The quantity of the deal Adjusted Deal Price The adjusted deal pric
361. he 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 FV o Where ie ORACLE 19 2 10 e Fn is the redemption factor of the nth redemption schedule e F 4 is the redemption factor of n 1 redemption schedule this value will be 1 for the first redemption schedule e RP is the redemption price of the nt redemption schedule e Vo is the original face value of the security Note 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 sched ules 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 RP CFn Cy Where e CFn is the cash flow of nth redemption schedule e C is the actual coupon cashflow for the nth coupon period e RP is the redemption price of the nt r
362. he Margin computed is not between 0 and 100 SD LM 00030 The Collateral Currency is not entered SD LM 00031 The Collateral Type is not entered SD LM 00032 The Collateral Review Date cannot be later than the Collateral Expiry Date SD LM 00033 The Collateral Review Date cannot be earlier than Collateral Start Date SD LM 00034 The Expiry Date cannot be earlier than Start Date SD LM 00035 The Security Code is not entered SD LM 00036 The Security Type is not entered 31 43 ORACLE Error Code Message SD LM 00037 The Currency is not entered SD LM 00038 The Market Price Details are incomplete Complete Delete the Market Price Details SD LM 00039 The Line Code is not entered SD LM 00040 The computed exposure is not between 1 and 100 SD LM 00041 There are Active Sub Lines reporting to this Main Line Main Line cannot be closed SD LM 00042 The Last Price Change Date cannot be greater than Branch Date SD LM 00043 The Security Code is not entered for the MVBC SD LM 00044 The Price Code is not entered for the MVBC SD LM 00045 The Number Of Units is not entered for the MVBC SD LM 00046 The Collateral Ccy is not entered for the Collateral SD LM 00047 Security Code has not been entered SD LM 00048 The Issuer Exposure Details are incomplete Complete Delete the Issuer Exposure Details SD L
363. he account currency Amount Tag This is the amount tag Amount This is the amount Pay Receive This is the pay receive 34 19 Corporate Action Events Processed Report You can generate Corporate Action Events Processed Report by using the Securities Activity Report 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 Corporate Action _ a Corporate Action Events Processed Select Event Initiation Branch Selection All Branches Specific Branch Selected Branch az Corporate Action Type Coupons Others ReportAs On 2011 01 04 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 action type The following options are available e All Branches ore ORACLE e Specific Branch Selected Branch Select the branch from the adjoining option list 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 Click OK and the following screen is displayed Corporate Action Coupons Tracking Ex Date Report All Branches Specific Branch Report From Report To ReportForma
364. he 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 19 12 ORACLE Click ZOOM button in the Coupon Schedule screen to invoke details of the coupon periods Coupon Period Coupon Period 1 Of 1 E Previous Coupon Date Next Coupon Date PeriodType Previous Virtual Second Date Previous Virtual First Date You can enter your coupon date amendments in this screen provided the amended dates do not 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 th
365. he implication of this option is explained in the following example 10 3 ORACLE 10 2 3 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 like 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
366. he top right corner of the Application tool bar and clicking on the adjoining arrow button Bills amp Collections Document Code Maintenance E New Enter Query Document Details Document Code Document Type Transport v Language Code Validate Shipping Document Short Description Guarantee Document Long Description C Bill Of Lading Clause Details 1 Of 1 Clause Code Description Maker Checker Mod No Date Time Date Time Record Status Authorization Status 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 To amend the details of an existing event click on unlock in the toolbar or Unlock from the Actions Menu 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 the given below Click on this button to view the leg events accounting entries and over Events rides Click on this button to enter the settlement message
367. he unrealized revaluation for the unsettled buy and sell deals will be done as of the revaluation date The 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 204 ORACLE Case 1 Revaluation Date lt Deal Settlement Date C R NPV 2 vac i Ta y Ad y AT Where NPV Net Present Value of the deal Total number of Coupon cash flows between the deal settlement date and the N revaluation date Ci ith 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
368. hey 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 company Fixed Income Securities The following types of securities are considered as fixed income securities Bonds Bonds are fixed income securities The basic characteristics of the bonds are as follows e Bondholders are typically lenders to the corporation and not owners as in the case of equity shares e They carry no voting rights e They carry a fixed interest rate which gets paid to the bondholder on a periodic basis e There is a maturity period associated with the bonds upon which the principal is repaid back by the corporation to the bond holders e 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 e Callable As with preferred stocks bonds may be callable Issuers have the ability to retire the issue before
369. his chapter for more details Product You should necessarily use a product 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 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 For 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
370. his 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 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 Process
371. ht 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 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 Rekey Fields You can specify any or all of the following as re key fields e Portfolio ID e Portfolio customer ORACLE 11 2 9 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 For example suppose that you define a customer portfolio in the currency INR The portfolio involves a product for which the re key fields assigned are the portfolio customer and currency By mistake the portfolio curren
372. ial Face Value can not be zero SE MA0069 Limits Maintenance will be deleted Proceed ORACLE Error Code Message SE MA0070 Weekday mandatory for weekly schedules SE MAO0071 Frequency is mandatory for periodic coupon revision SE MA0072 Limits not maintained Proceed SE MA0073_ Lot Size is mandatory SE MAO0074_ 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 SE MA0088 Cannot Unlock The record 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 MA0090 Record Date cannot be later then Event Date SE MAO0091 For Redeemable secur
373. ial 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 Financial 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 oe ORACLE 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 Intermediaries Operating in Financial Markets Intermediary Market Role Stock Exchange Capital Market Secondary market for securi
374. ice 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 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 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 236 ORACLE 23 2 4 23 3 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
375. ice of the securities sold Total sale proceeds 14550 for 150 Realized profit 175 The remaining securities would be held as 114 ORACLE 11 2 4 e 50 remaining out of deal A 95 e 50 remaining out of deal B 96 e 50 remaining out of deal C 96 5 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 selling a security without sufficient holdings As a preference you can indicate whether while trading in securities of a portfolio you can have a short position Check against the option short positions a
376. 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 Indicating Tenor Code Details Here you need to indicate the following Tenor 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 the add row button Similarly you can delete a tenor code by selecting the desired row and then clicking delete row 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 e IDREFIX e SBI e SOR e TELBORO1 a ORACLE TELBOR BMK CMT INBMK MIBOR MIFOR MIOIS MITOR RFRCBANKS BBSF LIBOR MUTANCALL TIBOR TONA TSR CD3220 CD KSDA TIIE BANXICO NIBOR NIBR BBR NZIONA WIBOR WIBOR ANNUAL STIBOR SIBOR SONAR SOR BRIBOR SOR THBFIX CMS COF11 FEDFUND FEDFUND ISDAFIX3 SANDPINDEX SIFMA TREASURY
377. ies 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 By maintaining classes you also give yourself the flexibility of applying the same restrictions class to several products Specifying the Security Restrictions You can maintain security restrictions 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 or click new icon 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 SEDXSRCL 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 13 1 ORACLE On the Summary screen double click on a class to open i
378. igation Related Documents You may need to refer to any or all of the User Manuals while working on the Securities module e Procedures e Messaging System ra ORACLE 1 6 Management Information System Central Liability Products Settlements Interest Charges and Fees Tax User Defined Fields Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function J Exit Add row Delete row a Option List ORACLE 2 1 2 1 1 1 2 Securities Domain 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 r
379. iled to delete security details SE SO00610 SE SPOP 024 Failed to get SK settlement account SE SPOP 026 Issuer payment currency is not the same as the SK account currency 31 58 ORACLE Error Code Message SE SPOP 027 Failed to get Portfolio Settlement currency SE SPRC 001 Failed in stock to cash processing for branches SE SPRC 002_ Failed in stock to cash event processing SE SPRC 003 Failed to get subsystems flags in stock to cash processing SE SPRC 004_ Failed in processing stock to cash amount due SE SPRC 005 Failed in processing stock to cash tax amount due SE SPRC 006 Failed in processing charge for stock to cash conversion SE SPRC 007 Failed in processing transaction tax during stock to cash conversion SE SPRC 008 Failed in processing settlements during stock to cash processing SE SSRV 001 SE SUTL 001 Failed to get security face value period SE SUTL 002 Failed to get coupon period SE SUTL 051 Failed to get the security face value for the date SE SUTL 052 Face value for security not maintained correctly SE SUTL 053 Face value for security not maintained correctly SE SUTL 054 Failed to get the coupon period for this date SE SUTL 055 Coupon period records not correct SE ACCT 001 Failed to pass leg accounting entry SE ACCT 002 Failed to pass position entry SE ACCT 003 Failed to pass portfolio level entry SE A
380. ill not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents Preface Sones eS Sa nee es Re 1 1 We UMTMOMUGHON pp ctecte He bvsccet hecbt see E E E E 1 1 V2 PAUGION CO oana e a A E tt habia E T ea eina A AE 1 1 1 3 Documentation Accessibility 0 00 0 ccccceeeeeeecneeeeeeeeneeeeeeeeneeeeeesaeeeseeeiaeeeeeeeaes 1 1 VAY Organizat aata aa EAE EATA ARA haste sage ETE A EAA 1 1 1S Related DOCUMONS orcs onea aa a EA E A E 1 3 1o Glossary of ICONS ansieae aria head a ii eae 1 4 Securities Domain aise sss soe Soca inaianei naaa aa iadaaa aen saiae 2 1 2 1 Overview of Securities DOMAIN 0 00 0 eee cece eeeeeeeee eee seneeeeeeeseeeeaeeeeteeeneeeeeeeeenaees 2 1 2 7 1 Financial Markets ea aae a E EAN AAA 2 1 2 1 2 Characteristic Features of the Financial Markets 0 ccccsceccsseeeeeeenee 2 2 2 1 3 Financial INCCrM QiArieS 0 0 paeen E AERA 2 2 2 1 4 Intermediaries Operating in Financial Markets c ccccccsceceeeeeenteeeeeeeeaes 2 3 2 1 5 Financial Assets Securities 20 0 cc ecccccee te eeeente eee eeeeneeeeeeenaaeeeeeeeaaeeeeeeeaaas 2 3 2 1 0 SE QUIUOS o 22 tree spbecti resides aaa aa a a aaia San see ea eh isla es 2 3 21 7 Preference SHAS i ccccicceeicectcceteaen tecennteentevenbecestucnbbsssadbennbecstevenbeceedeenbbes 2 4 2 1 8 Fixed INCOME Securities eese irni teen tee iE e EERE TEE ERATE SENERE 2 4 2 1 9 Rights And Warrant aerian ni
381. 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 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 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 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 0 ORACLE
382. ined 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 e Denominator Basis Per Annum YS moe Dae DH ee ORACLE 4 6 1 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 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 2gth February For coupon on 15 04 2000 the formula used in this method is 10 000 000 x 5 100 x 91 365 2gth February falls in this period
383. ing Interest Details for a BONA ccccccsseeeeeeennteeeeeeenteeeeeeenaees 19 11 19 2 15 Opting for Automatic Initiation of Corporate Actions cccccccceeee 19 16 19 2 16 Indicating a Revaluation Price Code o cececceeetceesteeeeeteeeteteeeteesaeeees 19 16 19 2 17 Indicating the Collateral TYP eccscccccesseeeeceeenteeeeeeenieeeeeteeneeeeeeenaees 19 16 19 2 18 Specifying the Market for Revaluation ccsceeececeeteeeeeeeeneeeeeetenenaeees 19 16 19 2 19 Specifying the Yield Calculation Parameters for a Security 2 0 19 17 19 3 Interest Method for Computing Coupon Interest ccccceeeeeeeeeeeeeeceeeeeeeeeees 19 20 19 4 Uploading Security Instruments for Amendment 0 ceeeeeeeeeteeetteeeeeeenteeeees 19 21 19 5 Bulk Upload Security Instruments amp Market Security Price eee 19 22 19 5 1 Specifying Contract Interest Details 0 cccccecesteeeeeenteteeteeeneeeeeeeaees 19 23 19 6 Reassigning Securities Deal Contract cc ecesseeeeeeeeeeeeeeeeeeeeeeeeseeeaeereeeeeaeees 19 25 Maintaining and Processing Corporate Actions 0sssseeeeeee 20 1 20 1 Wintrodu ctor aed sceiunedeeetese cereal Wii ei thea dearth aioe eet ane ett 20 1 20 1 1 Stages in the Processing of a Corporate Action Evenit 0e 20 1 20 2 Defining Rights and Warrants srias ieia aE E EEEE AREE 20 2 20 2 1 Indicating Rights Ratio and Rounding Fractions 0 cccccsceccesteeeeeeeeee
384. ing and Aog ORACLE Liquidate option in the Actions Menu or click liquidate icon from the toolbar The Release Securities screen is displayed Release Securities E New Enter Query Contract Reference 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 Securities screen Portfolio Indicate the portfolio from which you are blocking securities Click the adjoining option list and select the portfolio code from the picklist 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 accoun
385. ing interest for repo contract aot ORACLE 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 iccF x Contract Reference View Details 1 Of 1 Amount amanan Component Description anin l Accrued Amount cy Event Description Event z F Accrual Required Waiver s Rate Type Siea pe Bat Denominator Basis Maxi pner Basis 366 a Minimum i Margin manaii Spread Grace Period z Maximum Spread 5 Customer Margin C Discount No InterestProfit Rate Rate Code Floating Rate Details Interest Profit Basis f Rate Calculation Type Reset Tenor Code Usage X Indicator v 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 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
386. ining arrow button 4 Corporate Action Coupons Tracking Ex Date Report All Branches Specific Branch Report From Report To ReportFormat PDF Printer At Client Report Output Print Printer 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 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 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 Branch Code This shows the Branch Code of the branch for which the report is generated Portfolio ID This is the Portfolio ID Portfolio Description A brief description of the portfolio Security Id This identifies the security involved oe ORACLE 34 3 Security Description A description of the security involve
387. inst this product will be allowed Requirement However you would like to disallow a specific portfolio P0O5 Click add icon and select the ID of the Portfolio P0O5 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 P005 Portfolio Access Portfolio Identification It is the Internal Security Id for which Security Portfolio has been maintained under Securities Security Portfolio Definition 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 Viewing Securities Portfolio Safe Keeping Location Balances Summary You can view the portfolio safe keeping location balances of securities in the Securities Portfolio Safe Keeping Location Balances Summary screen You can invoke this screen by typing SESXPFSB in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Teg ORACLE Securities Portfolio Safe Keeping Location Balances Summary E Search Advanced Search 9 Reset D Clear All Case Sensitive Authorization Status Branch Code Security Id Records per page 15 v 10f1 Authorization Status Record Status Branch Code Por
388. invokes the Charge service of Oracle FLEXCUBE On invok ing this function you will be presented with a screen where the charge rate amount currency and the waive charge parameter can be speci fied 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 indi cate deal matching preferences Click this button to match earlier buys in a portfolio to the 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 encoun tered 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 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 228 ORACLE 22 2 22 2 1 Click this icon to invoke the settl
389. ion Classes 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 product that you create Note Once defined a portfolio restriction class can be made applicable to any number of prod ucts 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 click new icon on the tool bar The Portfolio Restrictions Class Maintenance screen is displayed without any details To invoke the Securities deal Portfolio Restrictions Class Maintenance screen type SEDXPRCL in the field at the top right corner of the Application tool bar and click on the adjoining arrow button If you are
390. ion is invoked by clicking the Accounting Entries button Accounting Entries Class Code Class Description Event Code Event Description Accounting Entries Definition ihl m Accounting Role Amount Tag Dr Cr Transaction Code Netting Indicator MIS Head mL W o E aa TE As part of the Accounting Entry details of an event you should specify the following details e The accounting role 29 ORACLE 9 4 2 e The amount item e Ifa debit or a credit e The transaction code e Ifthe 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 Accounting 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
391. ion 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 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 22 14 ORACLE 22 2 5 22 2 5 1 Note 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 the settlement currency to be different from the security currency you should also indicate the exchange rate to be used for the conversion Price Details of the Deal The following in
392. ions of this document e Incase 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 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 Incase 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 Specifying KEST Type for a Customer This is specified in the Field Name to Value Definition screen invoked by clicking on Fields button in the Customer Information Maintenance screen User Defined Fields UDF Details 1 Of1 o Field 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 as ORACLE 7 2 5 7 3 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
393. ise 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 28 ORACLE 32 4 3 15 RENL Rights Security Exercise Processing Accounting Entries 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 32 4 3 16 RXLL Expiry of Un Exercised Rights Accounting Entries 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 32 4 3
394. ities 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 MA0096 Value for field Event Date is mandatory SE MA0097 Value for field Record Date is mandatory ORACLE Error Code Message 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 secu rity 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 cannot be NULL SE MA0110_ Resultant Security Id cannot be NULL SE MA0111 Resultant Ratio cannot be NULL SE MA0112 Stock To Cash Price can
395. ities 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 96 arrived at thus Total cost price of the securities sold 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 e 50 remaining out of deal B 96 e 100 remaining out of deal A 95 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 96 arrived at thus Total cost of the securities sold 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 e 50 remaining out of deal B 96 e 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 14375 arrived at thus 4750 for 50 95 4800 for 50 96 4825 for 50 96 5 Total cost pr
396. ition FX New E3 Enter Query Security Id ISIN Identifier Security Status Security Description E Trading Status Product Security Type Security Reference Interest Type Main Interest Others Market Of Issue Issuer Code Registered Bearer Quantity Quotation E Fractional Quantity Form Type Price Quotation Decimals Redemption Type Interest Quotation X E Equated Redemption Redemption Quotation Renounceable Security Currency Confirm Corp Action Call Option Payment Currency Put Option Issue Date Face Value Outstanding Issue Size i Start of Interest Date i Issue Price Min Trading Size Start of Trading Date Current Face Value Lot Size Redemption Date E Redemption Price Issue Size Status Series Coupon Revision Redemption Schedule Interest Tax MIS Fields Input By Authorized By Contract Status W Authorized Date Time Date Time 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 tel ORACLE 19 2 19 2 1 Click this tab to enter the
397. ity Balance Move Reference Date Type ment 01 Opening 20 000 JAN Balance 1998 02 Regular Buy IN 43598T 000SE0198002 2 000 22 000 JAN 0021 1998 07 Regular Sell OUT 3475FL 000SE0198008 3 000 19 000 JAN 0007 1998 15 Regular Sell OUT P94860 000SE0198015 1 500 17 500 JAN 0002 1998 28 Regular Buy IN 484820 000SE0198028 5 000 22 500 JAN 0024 1998 05 Regular Buy IN B84759 000SE0498036 3 570 26 070 FEB 0032 1998 24 Regular Buy IN TT94857 000SE0598055 4 000 30 070 FEB 0021 1998 09 Regular Buy IN K93529 000SE0798068 15 000 45 070 MAR 0050 1998 16 Regular Sell OUT 180239 000SE0598075 8 000 37 070 MAR 0022 1998 28 Regular Buy IN 134811 000SE0898087 7 500 44 570 MAR 0009 1998 31 Closing Bal 44 570 MAR ance 1998 i ORACLE 27 2 19 Other Information Please revert back within 15 days of statement date in case of any discrepancies found 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 Securities Statement of Pending Transactions PB 209870 08 APR 1998 Prudential Bache Securi
398. ity 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 tS ORACLE 11 3 3 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 You can specify limit tracking preferences for each of the following security types e Bonds e Equities e Rights e Warrants e Treasury Bills Note You ca
399. ium X d Equities X 3 F Revaluation Of Unsettled a jm Accrue Discount Positions Rights X Accrue Discount Revaluation Level X Warrants X Accrual Method z Revaluation Method Treasury Bills Accrual Frequency m Revaluation Frequency X Start Day Revaluation Start Day Start Month Revaluation Start Month v Redemption Premium F Realized Revaluation Forward Profit amp Loss Accrual mF Accrue Redemption Revaluation Method X F Forward Profit amp Loss Premium ss Accrual eT LOCOM Basis oa Accrual Method X Accrual Method Accrual Frequency Accrual Start Day Revaluation Frequency Revaluation Start Day Rovaliiation Start Manth Accrual Frequency Accrual Start Day lt Role To Head Events SKLocation Security Restrictions SPPrice MIS Advice Fields The Portfolio Detail preferences screen Preferences that involve accounting entries defined for the product cannot be changed while creating a Securities Portfolio that involves it These include e The asset accounting basis e The portfolio costing method e Whether the intrinsic value of rights and warrants needs to be booked e Accrual preferences like Whether withholding tax should be accrued Whether the discount for T Bills should be accrued Whether withholding tax for discounted T Bills should be accrued att ORACLE Whether premium or discount should be accrued Whether redemption premium should be accru
400. ium 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 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 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
401. k AB Frankfurt Address DEUTDEFF ORACLE 27 2 3 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 Securities Receive Free Instruction ANZ 70562 07 Jan 1998 ANZ Banking Group Ltd New York USA 882 Meikel Towers gth Avenue Park Street Melbourne Australia Sub Our Instruction to Receive Securities Free of Payment 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 Sydney Stock Exchange Delivery Date 12 JAN 1998 Next Coupon Due Date 31 JAN 1998 Securities Book Value 1 500 000 00 AUD ato ORACLE 27 2 4 Quantity of Securities 4 500 000 Face Amount Safekeeping Account to be Deposited USSB7434 540 Securities Certificate Numbers AE 10001 to AE 10015 15 x 100 000 AUD worth Bond Cer
402. k 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 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 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 yi
403. ket price Face value x 100 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
404. king 5 No Booking Advance Arrears 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 brokerage payable are displayed against the currencies You have the option to change these currencies While you cannot input the brokerage payable amount the brokerage paid amount can be changed The following brokerage details are displayed e 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 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 2208 ORACLE
405. l 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 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 ai ORACLE 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 Securities 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 Expen
406. lass Maintenance Xx H save Class Code Module az Class Description Module Description Branch Restrictions Allowed Currency Restrictions Allowed Disallowed Disallowed Branch Restrictions Currency Restrictions HHE E Branch mr Description ial carers Cin scription Mirt m LH ia az _ Currency Balances E Currency Code ATM Cash Limit Residue Amount Negative residue Amount Round Up Down Rounding Factor Numerator Method Denominator Method A fE i lL up Actual Actual v Fields Input ByDOC1 Authorized By Modification E Authorized Date Time Date Time Number El Open A Branch and Currency Restrictions Class is identified by a unique Code and a Description The branch and currency restriction classes that 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 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
407. lat 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 3 3 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 previous coupon date USD 12 33 01 Feb 2003 to 10 Feb 2003 Market Price as of Revaluation Date USD 102 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 10 80 1 19729 0 219178 1 040255 39 51 20 18
408. ld at the top right corner of the Application tool bar and clicking on the adjoining arrow button alee ORACLE e Safe Keeping Location Portfolio Balances Summary amp Search Advanced Search 9 Reset D Clear All Case Sensitive Branch Code a Safe keeping Location Id a7 Safe keeping Location PEL Security Id a gt Account Records per page 15 v 10f1 Branch Code Safe keeping Locationid SK Location Description Safe keeping Location Account Securityld Secur lt i ni In the above screen you can base your queries on any or all of the following parameters and fetch records e Branch Code e Safe Keeping Location Id e Safe Keeping Location Account e Security Id Select any or all of the above parameters for a query and click Search button The records meeting the selected criteria are displayed If you are allowed to query then system displays the following details pertaining to the fetched records e Branch Code e Safe Keeping Location Id e SK Location Description e Safe Keeping Location Account e Security Id e Security Description e Security Currency e Portfolio Id e Portfolio Description e Portfolio Type e Portfolio Reference alaa ORACLE Security Form Current Position Current Holdings Opening Position Opening Holdings 21 24 ORACLE 22 Processing a Securities Deal 22 1 Introduction Using the securiti
409. lected and disbursed by batch from the safe keeping location of the holding for each portfolio e 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 2 ORACLE e Partial or full cash conversion at user defined encashment price collected by batch from the safe keeping location of the holding for each portfolio e Rights events are processed as appropriate auto buy or sell deals between the portfolio and the SK location of the holding Rights and Warrants e Tear off from the parent security at a user specified ratio e Exercise giving a user defined resultant security at a user defined ratio and exercise price e Automatic expiry on the date specified Portfolio features supported Bank Portfolio e Costing basis Deal Matching LIFO FIFO and Weighted Average Costing e Independent accrual option at flexible frequencies e Flexible accrual options for forward profit or loss e Revaluation using MTM or LOCOM for Settled or Total positions e Option to restrict the portfolio from taking a short position e Flexible user defined accounting entries and advices for each event e 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 e Costing basis is always WAC and
410. lios involving the product will be reported under the heads that you specify 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 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 automatically be picked up 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 v2 ORACLE 9 3 3 9 4 You can invoke the Accounting Role to Head Mapping Class Maintenance screen by typing CSDRHCLUWM 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 amp Enter Query Class Code Description Module Description Role To Head Mapping 1 Of 1 F Map Type Accounting Role Accounting Role Description Role Type AccountHead Accounting Head Desc
411. list 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 To understand the accounting methods mentioned above we will examine an example and apply all the costing methods to it The following deals have been struck for a bank portfolio Sequence Purchase Date Deal Asset Cost Number of Units Proceeds A 1 January Buy 95 100 9500 B 1 January Buy 96 100 9600 C 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 ORACLE Last in first out LIFO In this method of cost accounting the secur
412. ll Bank Buy or Bank Sell Customer Buy product using the above Bank Sell product 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 On authorization of the securities deal a loan MM contract is created with the issuer of the security as the counterparty Refer to the other relevant chapters in this User Manual for details of relevant data inputs 22 2 5 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 eel ORACLE 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 Leg Advices Leg Reference Event Details Event Code Description Advice Details a Advice Code Suppress Priority Party Id Party Name Advice Description m No Normal 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
413. llateral Type is Unavailable in the Current List SE SO0557 Revaluation Price Code is Unavailable in the Current List SE SO0601 Unhandled Exception in Security Definition Function SE SO0602 Unhandled Exception in Security Definition Function SE SO0603 Unhandled Exception in Security Definition Function 31 21 ORACLE Error Code Message SE SO0604 Unhandled Exception in Security Definition Function SE SO0605 Unhandled Exception in Security Definition Function SE SO0606 Unhandled Exception in Security Definition Function SE SO0607 Unhandled Exception in Security Definition Function SE SO0608 Unhandled Exception in Security Definition Function SE SO0609_ Unhandled Exception in Security Definition Function SE SO0610 Unhandled Exception in Security Definition Function SE SO0611 Unhandled Exception in Security Definition Function SE SO00612 Unhandled Exception in Security Definition Function SE SO0613 Unhandled Exception in Security Definition Function SE S00614 Unhandled Exception in Security Definition Function SE SO00615 Unhandled Exception in Security Definition Function SE SO0616 Unhandled Exception in Security Definition Function SE SO0617 Unhandled Exception in Security Definition Function SE SO0618 Unhandled Exception in Security Definition Function SE SO0619 Unhandled Exception in Security Defini
414. llowed to allow short positions for the portfolio This check box works in combination with the value in the field Contra Holdings Validation If you check this box you have to select a value for Contra Holding Validation While creating a Repo deal in a portfolio you should uncheck this box If Repo on Today s Projected Holdings is checked you should not check this box Contra Holdings Contra Holdings is value dated projected holdings based on the unsettled deals Contra Holdings Validation Select the method of validating the position The drop down list displays the following options e Online Select Online to validate the position online If you select this the system will allow you to create securities deal with value dated projected holdings e EOTI Select EOTI to validate the position during EOTI End of Transaction Input stage If you select this the system will allow you to create a securities deal without sufficient position The position will be validated during EOTI stage e No Check Unlimited the system will allow you to sell more than the holdings in a portfolio for a security without restrictions on quantity and value date It is mandatory to specify the validation method if you have checked the box Short Position Allowed If that check box is not checked then you need not specify the validation method If Short Position Allowed is unchecked then the value of this field has to
415. 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 securities 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 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 financ
416. location SKL that should be used when deals involving securities lodged at the SKL are traded erie ORACLE 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 SK Location Portfolio Id Portfolio Description Safe Keeping Location To Account Mapping 1 Of 1 Safe Keeping LocationId Safe Keeping Location Account 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 Click Exit to cancel the entries You will return to the Portfolio Definition screen 21 19 ORACLE 21 9 Specifying Accounting Role to Head Mapping Prefer ences While creating a product you have specified Role to Head Mapping preference
417. lock 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 From the Securities Deal Input screen click Charges button The Contract Charge Details screen is displayed Charge Detail Contract Reference Association Application Liquidation Application l El Creation ESN Component Tag Currency Tag Amount Charge Currency m 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
418. ls 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 Note In case of forward deals the spot price is defaulted from the market price maintenance and the price cannot be changed Payment CCY 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 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 forma
419. lternative SEC_DISC_TOTALACCR Alternative Debit Disct Inc Memo Discount Standard SEC_DISC_TOTALACCR Alternative Credit Income Sec Bridge S Alternative INTCOMP_PUCMA Alternative Debit SEC f This amount tag represents BRIDGE SEL the value of the Bought Interest if any at the time of Purchase for the sold secu rities Deal Interest Alternative INTCOMP_PUCMA Alternative Credit Bought INT COMP_BOT Sec Bridge S Alternative INTCOMP_TIAC Alternative Debit SEC l This amount tag represents PUDSE the interest accrual SEL Accrual of Int Standard INTCOMP_TIAC Alternative Credit Rec RCPY INT COMP_RCP Y 32 18 ORACLE Accrual of Int Inc Memo INTCOMP_I MEM Alternative INTCOMP_TIAC Alternative Debit Interest Income INT COMP_1 Standard INTCOMP_TIAC Alternative Credit 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 mou t Tags Standard Dr Cr Roles Alternative g Alternative Indicator Premium Standard SEC_PREM_TOTA Alternative Debit Accrued LACCR D
420. ly 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 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 Corpus Account This field is meant for future use Short Positions Allowed If you check this box you can select whether system should do contra holdings validation during save Online or at the end of the day EOTI If you do not want any validation on contra holdings then you can select No Check Unlimited If you do no check this box then contra holding validation has to be null 21 5 ORACLE 21 4 If you check this box and Contra Holding Validation is set to No Check Unlimited or EOTI then the system will display an override message when you save modify the contract and the sell quantity is greater than the value dated holdings for a particular security code If there is an active Repo deal in the portfolio the system will not allow you to check this box Accrue Withholding Tax The withholding tax levied on transactions involving a portfolio can be accrued over the tenure of the security that is
421. maker Id Checker Id The checker Id ones ORACLE 34 17 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 gt Securities Exception Print Form Print From From Date Print To To Date Report Format Printer At Client Report Output r Printer 34 17 1 Selection Options You can specify the Redemption Expiry Date before you generate the report 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 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 Reference This is the reference number of the contract Module This 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 ones ORACLE Portfolio Descri
422. 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 Click on Fields button in 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 Details F Field Name Value Description The system will display the user defined fields KEST A and KEST B if you have maintained these UDF s Here 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 Note 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 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 counterpart
423. 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 eet ORACLE 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 For 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 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
424. mber cannot be changed 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 ate ORACLE 24 1 1 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 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 tra
425. mbination of CLASS CODE and MODULE SE MAO011 Duplicate values encountered for this class code SE MA0012 For WAC costing method the Accrue Premium flag and the accrue dis count 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 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 ORACLE Error Code Message 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 Redefaulting cannot be done Class maintenance has to be authorized first SE MAO0031 This rate code cannot be copied since it has been propagated to the present branc
426. ments Summary S Search t Advanced Search 9 Reset D Clear All Case Sensitive Branch Code Portfolio Id Records per page 15 v 10f1 Branch Code Value Date Portfolio Id Portfolio Description Value Date Security Id Portfolio Reference Securityld Security Description In the above screen you can base your queries on any or all of the following parameters and fetch records Branch Code Value Date Portfolio Id Security Id 14 5 ORACLE Select any or all of the above parameters for a query and click Search button The records meeting the selected criteria are displayed If you are allowed to query then system displays the following details pertaining to the fetched records Branch Code Value Date Portfolio Id Portfolio Description Portfolio Reference Security Id Security Description Security Currency Safe Keeping Location Id SK Location Description Safe Keeping Location Account Balance Type Opening Balance Closing Sec Balance Movements As Of Today 14 6 ORACLE 15 1 15 Defining Attributes of a Securities Product 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 dis
427. mit cannot be greater than Overall Limit SD LM 00068 Liability Clean Risk Limit cannot be greater than Overall Limit SD LM 00069 Limit Currency is not Entered SD LM 00070 Overall Limit is not Entered SD LM 00071 Liability Clean Risk Limit is not Entered SD LM 00100 Line Not Authorised SD LM 00101 Line Closed SD LM 00102 Line Not Found SD LM 00103 Invalid Customer ID SD LM 00104 Liability ID Not Specified SD LM 00105 Account ID Not specified SD LM 00106 Reference Id not specified SD LM 00107 Amount tag not specified SD LM 00108 Amount not specified SD LM 00109 Currency not specified SD LM 00110 Branch not specified SD LM 00111 Line 1 Amount exceeds Limit for specified tenor by 2 SD LM 00112 Line 1 Amount exceeds all available tenor limits by 2 SD LM 00113 Line 1 Amount exceeds line limit Limit 3 2 Utilisation 4 2 Overdraft 5 2 SD LM 00114 Main Line 1 Amount exceeds Main line limit amount Limit 3 2 Utilisation 4 2 Overdraft 5 2 SD LM 00115 Line has matured SD LM 00116 Line not available SD LM 00117 Amount exceeds limit for liability 1 Limit 3 2 Utilisation 4 2 Overdraft 5 2 SD LM 00200 Clean risk limit exceeded for Customer 1 On 2 Limit 4 3 Utilisa tion 5 3 Excess 6 3 SD LM 00201 Clean risk limit exceeded for Liability 1 On 2 Limit 4 3 Utilisation 5 3 Excess 6 3 akya OR
428. mpany 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 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 ani ORACLE 3 1 3 Securities an Overview 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 stagger
429. n Security Portfolio Definition Contract Main Main Preferences Detail Preferences Corporate Action Notice Required T Bill Accrual F Corporate Action Notice F Accrue Discount for T Bill Required i Accrual Frequency X Notice Days Notice Days Type Accrual Stat Day lt gt j Accrual Start Month F Corporate Action Required F Accrue Withholding Tax For T Bill Discount Statement of Holdings Statement of Transactions m Statement Of holdings j Statement Of Transaction required Required Statement Frequency X Statement Frequency oa Statement Start Day Statement Start Day Statement Start Month v Statement Start Month X Statement Number Statement Number H save Product Code m Portfolio Id Product Description Portfolio Reference Fund id Maker Id Date Time Checker Id Date Time Role ToHead Events SKLocation Security Restrictions SPPrice MIS Advice Fields The Portfolio Main Preferences screen Status Authorization Status e p D a Save Product Code Portfolio Id Product Description Portfolio Reference Fund id Contract Main Main Preferences Detail Preferences Premium or Discount Revaluation of Positions Limits Tracking F Accrue Premium F Revaluation Of Settled Bonds X s e a Positions z Accrue Prem
430. n Price e Alis the Accrued Interest e Ad is the Coupon Date Value Date e Ady is the Redemption Date Value Date 21 10 ORACLE The formula used to calculate the yield given price for T Bills will be Ad 1 Y A Where e Pois the Purchase price of the T Bill e R P is the Redemption Price e Yogis the Deal YTM e Ad is 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 deal for the current working day P2 P 3 a Li AI Mt Ady P 1 y 1 y If the Annualizing method is Compound the deal YTM is computed as follows 4 Yo ilen r i If the Annualizing method is Simple the deal YTM is computed as follows _ A Yo oa Yo P If case of EX Deal first coupon amount will be 0 C1 0 Where e Pis the Price of the Bond e Nis the Total number of coupons e Ciis the Coupon payment for coupon i alr ORACLE e Yq is the Deal YTM Periodic e Yogis the Deal YTM e Ais the Day Count Method Denominator e
431. n by typing SEDXBNPW in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securities Bank Parameter Maintenance EB New E Enter Query Bank Code Exposure Tracking Undelivered Exposure Total Exposure Yield to Maturity Display Decimals J Warrants amp Redemption Deal Products Rights Exercise Product Bank Portfolio Customer Portfolio Rights Tear off Product Bank Portfolio Customer Portfolio Bank Name Security MIS Parameter 5 Propagate Market Price Across Branches Rights Expiry Product Bank Portfolio Customer Portfolio Bonus Product Bank Portfolio Customer Portfolio Fields Maker Checker Date Time Date Time Mod No Record Status Authorization Status 4 1 ORACLE 4 2 1 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 securit
432. n date The YTM which is effective as of the revaluation date for the deal is used to discount the cash flows as of 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 eo ORACLE Case 1 EX Deal and Revaluation Date in the same coupon period of settlement date C RP NPV Y ar RIA Va Vd 3 I 1 y 1 y Where NPV Net Present Value of the deal Total number of Coupons between the revaluation date and the Redemption N date excluding the first cash flow from the deal settlement date i e C4 0 Ci ith coupon Yo Periodic Deal YTM Vd Coupon Date Revaluation Date P Reinvestment Period RP Redemption Price Vdn Redemption Date Revaluation Date RIA Pending Interest amount Received in advance as of the Revaluation Date Case 2 CUM Deal or Revaluation date and settlement date are in different coupon pe riods z C RP r gt E i 0 0 1 yq 1 yq 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 ith coupon Yo Periodic Deal YTM Vd Coupon Date Revaluation Date 208 ORACLE P Reinvestment Period
433. n e a a aaae 7 3 7 2 1 Defining KESTYTPE as a User Defined Field 0 ccccseetteeeeteeteeenneeees 7 3 7 2 2 Calculation of KEST for Customer Sell Type of Transactions 7 4 7 2 3 Calculation of KEST for Customer Buy Type of Transactions 00 08 7 4 7 2 4 Specifying KEST Type for a CUSLOMEDS c cccccseeeecetttteeeeettnneeeeeetneeeeenee 7 4 7 2 5 Specifying KEST Rates in the Securities Price Definition Maintenance Screen 7 5 7 3 Specifying Generation of New SWIFT Messages cccceceeceeeeeeeeteeeeeeeettieeeeerees 7 5 Building Branch amp Currency Restriction Classes cccccceeeeeeeeeees 8 1 8 1 Maintaining Restrictions as Classes 0000 0 eccececeeeeeee eee eeeeeee eee eecneeeeeetaeeeeeeenaeeeeeees 8 1 8 1 1 The Advantage of Defining Restrictions as CIA SS S c cecssieeeeeeenes 8 1 8 2 The Branch and Currency Restrictions Class Screen cceeeeeeeeeeeeneeeeeeeeneeeees 8 1 8 2 1 Maintaining Branch Restrictions 0 ccccccccecetteeeeeeenteeeeeetnnieeeeeetnaeeeenena 8 2 8 2 2 Maintaining Currency Restrictions 0 0 ccccccccccetteeeeeeentneeeeeetnteeeetetneeeeenes 8 3 8 3 Specifying the Customer Category Restrictions Class eceeeeeeeeeeeeeetteeeeeees 8 3 8 3 1 The Customer Category Restrictions Class SCIOCN cccccieeetttteeeteee 8 3 The Accounting Role to Head Mapping Class cccccceeeeeeeeeeeeeeeeees 9 1 9f Introduction esaesa ia AA EAN ONEA EA 9 1 g2 Ge
434. n have different limit tracking methods for the same security type depending on the type of portfolio to which it belongs 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 Fora Buy deal if strike price is greater than spot price then it is a loss e Fora 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 Fora 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 11 16 ORACLE 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 profit or loss is applicable to a portfolio class you can indicate accrual
435. n here is defaulted to any portfolios using the product Realized revaluation using the LOCOM method with the basis as Acquisition Cost is done only for settled deals 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 be for February If you specify the frequency as quarterly and fix the revaluation date as 31 the revaluation will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly revaluation fr
436. n queries in the Common Procedures manual of Oracle FLEXCUBE aes ORACLE 29 1 29 2 29 2 1 29 Handling Repos 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 Refer to the Money Market user manual for a detailed discussion of the other set up maintenance and processing functions Maintaining Products 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 produc
437. n this screen Initial Bonus Due 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 encashed 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 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 24 ORACLE 20 16 20 17 Processing Bonus to Cash Conversions The events table is scanned Those events with an initiation date less 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
438. n to delete the entries In either case you will be returned to the Securities Deal Input screen aoe ORACLE 22 3 Viewing Safe Keeping Location Balances You can view the safe keeping location balances in the Safe Keeping Location Balances Summary screen You can invoke this screen by typing SESXSKBL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Safe Keeping Location Balances Summary X S Search t Advanced Search 9 Reset 4 Clear All Case Sensitive Branch Code la Safe Keeping Location Id ka Safe Keeping Location Et Account Records per page 15 v 10f1 So Branch Code Safe Keeping Locationld Safe Keeping Location Description Safe Keeping Location Account Security m m r In the above screen you can base your queries on any or all of the following parameters and fetch records e Branch Code e Safe Keeping Location Id e Safe Keeping Location Account Select any or all of the above parameters for a query and click Search button The records meeting the selected criteria are displayed If you are allowed to query then system displays the following details pertaining to the fetched records e Branch Code e Safe Keeping Location Id e Safe Keeping Location Description e Safe Keeping Location Account e Security Id e Security Description e Security Currency e Current Position e Current Holding eee ORACL
439. nce Redemption E New E Enter Query Internal Action Id External Action Id Internal Security Id Security Issuer Reference Security Description Event Date Announcement Date Restart of Trading Date Record Date Exchange Rate Fixing Date Redemption Type Bullet Redemption Quotation Percentage 7 Call Indicator Redemption Quantity End Of Trading Date Dispose Fractions Round Standard Redemption Price Issuer Payment Currency Currency Name Exchange Rate Series Confirmed Fields Narrative ELCs Date Time Checker Date Time Mod No Record Status Authorization Status If you are defining details of a new redeemable security click new icon from the tool bar The Corporate 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 redempti
440. ncy 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 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 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 the half yearly and yearly accrual frequency
441. ndividuals 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 a ORACLE 2 1 2 Characteristic Features of the Financial Markets Financial Market Purpose Players Regulator Money Market Short term rupee Banks Government Fis Central Bank finance Corporates Fils MFs individuals Capital Market Long term rupee Corporates Banks Fls E g US SEC finance individuals MFs Flls Forex Market Short Long term Banks corporates forex Central Bank foreign currency dealers finance Credit Market Short long term Banks Fls NBFCs Central Bank rupee finance Within the above mentioned 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
442. ned in the Market Definition screen Txn 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 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 The price quotation method defined for the security in the Security Definition screen is defaulted You can change the quotation method that is defaulted Note 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 aa ORACLE 23 2 2 Note You can specify an interest quotation method only if the deal involves the buying or selling of interest bearing bonds Indicating
443. neeeenen SERCUCDL c sessesseeoeess 34 11 SEDSEPRD oi 15 1 SERDISRP e 34 12 SEDSGLMT cecsccccesseeseeeee 30 1 Soo HF SEDTRONL ososi TO ee SERFWPNL ooi 34 19 SEDXBLDL oi 23 2 SERMATRP oncecccccccesceseese 34 20 SEDXBLNL oi 25 1 aeaa An SEDXBNCS aiiai 20 23 N TTT SERPMTCH ooe 34 18 SEDXBNPM nooi 4 1 peapa a SERSHSEC cssessesseeseess 34 15 ee SERTPDL ooececcecccccscesceseesee 34 16 SEDXCAMN ccccccceeeees 20 26 SERXCPT noii 34 23 SEDXCDVD e 20 20 PEAR so SESXPFMV o 28 3 D SESXPSMV cceeeeseeeeeeee 14 5 SEDXOPND 000 20 13 SESXSKBL ooeecesccsecseeseeeeess 22 25 SEDXDLNL oi 22 2 P PF SESXSKMV oin 28 1 ee SESXSKPB ooceccecccccscecesee 21 22 SEDXDVDF oooi 20 18 SRDPAMIN oo 30 3 SEDXGLMT sscsctcscarcciccncareate 30 1 SEAD ap SRDPRMNT oi 29 2 Ea 2 BRD TROND ooi 29 6 ee Tr SRDXVMND cececcesceeesee 29 11 oer ORACLE
444. neral Ledger TYPE Senini a AE A accel ae dai tiie 9 1 9 3 The Accounting Roles and Heads Class cceccecceeceeseeceeeeeseeneeeeeseeeaeeeeteeaeeees 9 2 9 3 1 The advantage of Building Accounting Roles and Heads Classes 9 2 9 3 2 Maintaining an Accounting Roles and Heads ClasS csseccccctseeeeeeeeees 9 2 9 3 3 Mapping Roles to Heads ceccccecceceeeeteceeecneaeceeeeeeeeeeeesectesenesiseaeeaseees 9 3 10 11 12 94 The Event Classes us cscte ss echesaltet a a hewueloaid Sue these aberte aches 9 3 9 4 1 Maintaining an Event Accounting Entries and Advices Class 05 9 4 9 4 2 Specifying the Advices to be Generated ccccccsssceeeeentteteeeeentieeeeeeenaas 9 6 Defining Security Preference Classes ccc ceeeeceeeeeeeeeeeeeeeeeeeneeeenees 10 1 TOT Introduction c00i01 2 acadeceendiees fave die ated eat Ate eta 10 1 10 2 Specifying Security Product Preference Classes cccccceeeeeeeeeeeeeeeeentneeeeeeeea 10 1 10 2 1 The Market Of BSE iran aE AAE AO O ORAN 10 2 10 2 2 Defining Interest Details for a Bond eessssseeeiisseseennnsesrennnerrnnnneeennne 10 3 10 2 3 Capturing Information Specific to a Security Type sssessnnneeeeennneeeenn 10 4 10 2 4 Indicating Banker s Acceptance ccccceceeeeeeeeeeteeeeeeeneeeeeeseneaeeeeteeeaeeees 10 5 10 2 5 Capturing Trade Related Information ccccccseteeesseeeeeteeeeeeeetensaeeees 10 5 10 2 6 Id
445. never exist in physical form e Immobilized Very similar to Dematerialized But the physical forms of the certificates are available with the central depository 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 days The quantity of bonds is generally quoted in the market in two forms at ORACLE 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 o
446. nfirmation 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 Security 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 20 11 0 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 aut
447. ng details of the securities to be blocked in the Securities Deal Input Block Securities screen You can invoke the Securities Block Release Block Input screen by typing SEDXBLNL 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 SECURITIES BLOCK OR RELEASE BLOCK INPUT H save dii Hold Product FEJ P Product Description 4 Of D Form Type Script Based User Reference Deal Reference Quote By Security Code Description Security Series Block Date Release Date Transaction Date Units Partial Release Allow Auto Release Allow Deal Quantity Portfolio Portfolio Description Safe Keeping Location SK Location Description Safe Keeping Account Counterparty Block Type Block Reference Events Certificates Settlements Advices Charges Tax MIS Fields Maker ID Checker Id Status Release Time Checker Date Stamp Cancel Authorized 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 Bas
448. ng 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 eee ORACLE Click on Netcons in the Securities Deal Input screen to invoke the Net Consideration screen Deal Net Consideration Leg Reference Net Consideration ia Component Description Interest Details E Component Description Leg Description Cum Ex Coupon Interest Days Currency Amountin Component Currency Payment Currency Sign Total Amount In Payment Currency Currency Amountin Component Currency Payment Currency Sign Total Amount In Payment Currency 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 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 Note If the deal has customer buy and sell legs then both the customers in
449. 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 Al is the Accrued Interest e Ad is the Coupon Date Application Date e Adnyis 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 1 Y AS Where e P isthe Price of the T Bill e R P is the Redemption Price e Yois the Deal YTM e Adis the Redemption 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 For 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 enco
450. nnnnnnnnnnnnnnnnnnnnnn nna 4 1 A rodicio a ecaa a a ME ce a aa 4 1 4 2 Maintaining Bank Parameters eeesseeseeeseseireseerrrsstttrrrssttnrrsstttrrsssttunassttnnnstteennne 4 1 4 2 1 Maintaining Deal ProdutiS sererresrirsi eene en iEn E 4 2 4 2 2 Maintaining Nominal Based Yield Computation ccccccseceeceetteeeeeenene 4 3 43 Defining Branch Farameterseneccrenroniion a a E eii 4 4 4 3 1 Specifying the Batch Processing Parameter ccccesseeeeeesteeeeeteeneeees 4 4 4 3 2 Specifying Revaluation Level cccecceeeceeseeeeeseeneeeeeeeeeaeeeeteeenaeeeeeeeaaanees 4 4 4 3 3 Specifying whether Coupon Dates can Move across Months 0 008 4 5 4 3 4 Specifying whether Accounting Value Date can Move across Months 4 5 4 3 5 Specifying Interest Accrual lOVElI cccecccceeetenteteeeeetnneeeeeeetnneeeeeeetnaeeeeeetnas 4 6 4 4 Defining Floating Rate Codes ecccccccccceneeeeeeeeneeeeeeeeeeeeeeseeeeaeeeseeenaeeeeseeenaees 4 10 4 4 1 Defining Rate SOUTCOS cesen eein sr OR A 4 13 4 4 2 Defining Rate TY P cscccceeccseeseeencceccssencsectensnsnceenensaneceeneneantentecnansctentes 4 16 4 4 3 Defining Floating Rates 0 ccccccccceeeeeeeeeeee eee eteeeaeeeeeeeeeaaeeeseeeaeeeeteeaaanees 4 17 4 5 Maintaining Market Details 0 0 0 0 ccc ceceeeeee eee eeeeeee eee eeeeeeeeeeseeeeeeeeeesenaeeeeeeeeaeeeees 4 17 4 5 1 Specifying Main detallls rererere Siere a EnS OSERE S 4 18 4 5 2 EIM for Treasury Bills and
451. not 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 alog ORACLE Error Code Message 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 be greater than or equal to Expiry Date of Resultant security SE MA0140 Value for field Resultant Security Id is mandatory SE MA
452. ns 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 price that you enter is taken to be in the currency of the security that is traded 296 ORACLE 23 2 2 1 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 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 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 ris
453. ns in the form of an allowed or a disallowed list Taia ORACLE 13 2 2 13 2 3 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 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 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 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 Sec
454. ns 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 broker 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 22 11 ORACLE 22 2 3 2 22 2 3 3 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
455. nsesenerendaeenmeeeeaes 34 4 34 4 1 Contents Of Report 222 cc ccccccecceccececeeeeseceneaaanaeceeeeceeeeesaseensesseaseeseeeseess 34 5 34 5 Backdated Deals Repott c ccccccccceceeeeeeeeeeeeecenecaeceeeeeeeeeseseeeaeecaceeeaeeeseeeeees 34 6 34 5 1 Contents Of Report 2 222 cc ccccccecccceeceeeeceseceneanenaeceseeceeeneeaseeneesieaseeseeeseess 34 6 34 6 Corporate Action Tracking Ex Date REport eee ccceeeeeceeeeeeeencneeeeeeettaeeeeeeenaaes 34 7 34 6 1 Contents Of Rep ft sernai aaa aaa raaa eiaa E anr EAEE Ea 34 8 34 7 Corporate Action Pending seseesessseeesssrresensrnesrsnrnnesrnnnandtnnnnednnnnnneanennnacnnanaaaanennea 34 9 34 7 1 Contents of the Report c ccccccccececeeceseceneceeaeceseeceeeeeeatesteeninaeeeneeeseess 34 9 34 8 Confirmed Unconfirmed Report cccccccceeeeeececeeccaeeaeeeeeeeeeeeseseceaaeeeeeeenenees 34 11 34 8 1 Contents Of R por sietina auae iae n aean aa aiea 34 11 34 9 Security Disposition Report 2 2 2 0 ccc cceccccccececceeeeeeeeeeceneeceeeeeeeeeeeeeeesecsaccaeeeeeeeeereess 34 12 34 9 1 Contents OF REP OME a a aaa E SAS 34 13 34 10 Deal Settlement Report cccccccccecceeeeeeeeeeeceeenecaeeeeeeeeeeeeeesececensacaeeeeeeeeeenenes 34 14 34 10 1 Contents Of Report 0 1 cccccccceeeeeecencenenneceeceseeeeeeeseesecneeseesaeeeseeseeeneettees 34 14 34 11 Securities with Short Positions Report c cccccceccecceeeeeeeeeeeeeensecaeeeeeeeeeeeeees
456. nsferred 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 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 product 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 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 d
457. nt 22 FEB 1998 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 Securities Deliver Free Confirmation ML 450822 10 JAN 1998 27 19 ORACLE Merrill Lynch 842 32 Barton Towers Wall Street New York U S A Wellington NEW ZEALAND 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 Identification ISIN NZDBONDWRP04 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 Date 01 APR 1998 Securities Book Value 41 000 000 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 254
458. nt 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 Id Issuer Payment Currency Security Currency Tax Exchange Rate F Tax Component Tax Currency Tax Exchange Rate Issuer Currency Exchange Rate ee 20 18 ORACLE 20 9 2 20 10 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 Specifying Event Narrative You can maintain a free format message of the coupon event This narrative or message
459. ntained 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 Branch restriction Allowed Disallowed Security Product Restrictions 10f1 E Code Description 10f1 Security Id Product Description Allowed 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 ately ORACLE 21 8 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 the list of categories that you allow Exempting specific securities from an allo
460. ntaining Safe Keeping Locations deals with defining Safe Keeping Chapter 7 See oe locations and maintaining Safe Keeping accounts for trading securities Building Branch amp Currency Restriction Classes details on the parameters Chapter 8 to be defined and maintained governing the rules of processing securities and define Branch Currency and Customer Restrictions as Classes The Accounting Role to Head Mapping Class discusses the concept of Chapter 9 Accounting Roles and Accounting Heads Also described is the building of Accounting Role to Head Mapping Classes Defining Security Preference Classes are the options available for defin Chapter 10 ing the attributes of a security This chapter explains the building of a Security Preference Class MaintainingPortfolio Preference Class explains the building of a Portfolio Chapter 11 Preference Class Chapter 12 Defining a Deal Preference Class explains the building of a Deal Prefer ence Class Security Restriction Classes details the concept of a Security Restrictions Chapter 13 ve Class and the procedure of building one Chapter 14 Maintaining Portfolio Restriction Classes discusses the concept of a P Portfolio Restrictions Class and the procedure involved in building one Chapter 15 Defining Attributes of a Securities Product describes the concept of a P product and the building of a Securities Product in Oracle FLEXCUBE Chapter 16 Defining Attributes of a Portfolio Product explains how
461. ntains a list of all the unauthorised active deals e Step 3 Select the User Id of the user to whom you are assigning the deal Note 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 aoe ORACLE 23 1 23 1 1 23 1 2 23 Processing a Block Securities Deal 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 PFO1 PFO2 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 Features of a Block Deal in Oracle FLEXCUBE The following are the features of a Block deal e A block deal can have multiple parties associated with either the buy or sell leg e
462. nting Entries Nil Advices No advices allowed for this product 32 37 ORACLE 32 4 4 3 32 4 4 4 32 4 4 5 32 4 4 6 32 4 4 7 32 4 4 8 CANC Cancellation of securities deal Accounting Entries Nil Advices No advices allowed for this product CCON Counterparty confirmation Accounting Entries No accounting entries allowed for this event Advices Nil DACF Deliver Versus Payment Confirmation Accounting Entries No accounting entries allowed for this event Advices Nil DFCF Deliver Free Confirmation Accounting Entries No accounting entries allowed for this event Advices Nil DSTL Settlement of Securities Deal Accounting Entries Nil Advices No advices allowed for this event EXTN Extension of Deal Settlement Date Accounting Entries Nil Advices No advices allowed for this event one ORACLE 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 Cr
463. ntracts exist for Reassignment for Product 1 SEREAS 07 The Deal Reference Number is not valid for the Product Code selected SEREAS 08 FAILED in reassigning the deal to the new user SE MA0220 Changing the Leg type will redefault the Preferences OK to Proceed 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 With drawal 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 Trans fer 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 Exposure 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 h
464. nts 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 a ORACLE You can invoke the Event 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 Class Description Module Module Description Event Class EventCodex Event Description Accounting Entries Advice Fields Input ByDOC1 Authorized By Modification Date Time Date Time Number Wi Authorized 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 sect
465. number yet to be to be matched 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 2221 ORACLE been matched is displayed together with the number of units or nominal for which matching is done Leg Reference Leg Description Match Leg Reference Settlement Date Match Quantity Total Matched Total Required Total Remaining Aaea ORACLE 22 2 5 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 gt Leg Events Accounting Entries amp Overrides Reference Number Security Id Portfolio Id Events Serial Number Event Event Date Maker Id Maker Date Checker Id Checker Date P J ff Ell l 4 Accounting Entries Branch Account DriCr Amount Tag Code Date Value Date a J l Al 4 Contract Overrides 22 2 5 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 w
466. ny 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 refer the following Oracle FLEXCUBE User Manuals under Modularity e Product Definition e Interest e User Defined Fields 16 1 ORACLE 16 1 1 16 2 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 maintain a portfolio for the securities it issues This is an Issuer Portfolio Under each product type you can create any number of products Exchange Rate Variance For a special customer or in special cases you may want to use an exchange rat
467. o a specified party against payment of funds on behalf of your customer 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 on behalf of a customer an appropriate SWIFT message is generated The SWIFT message that is generated depends on the type of deal process
468. o 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 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 o
469. o amend If the value is not null then you are allowed to amend a contract AH710 ORACLE 29 4 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 ICCF button in the SRDXVMND screen Main View Details Interest Component Currency Event Rate Type Max Rate Minimum Rate Customer Margin Grace Period Interest Period Fixed Rate Rate Code Description Description Floating Rate Details Reset Tenor Borrow Lend Indicator Rate Cycle Type Grace Period Contract Reference X 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 Accrual Required X 30 Euro 360 X 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
470. o 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 under Modularity e Product Definition e Interest 17 1 ORACLE 17 1 1 17 1 2 17 2 e User Defined Fields e Settlements 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 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 with the
471. o 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 Note This field is defaulted based on the portfolio product selected and cannot be changed dur ing portfolio definition alg ORACLE 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 Dr Customer USD 20 Cr Asset USD 10 Cr Premium to be accrued USD 4 Cr ProfitandLoss USD6 Customer If you are setting up a Cust
472. oan 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 2 ORACLE 4 2 2 e The rate type should be Special e The payment 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 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 th
473. 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 ar ORACLE 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 generated You can also send this message when your bank has been instructed to deliver a specified amount of securities t
474. oliday 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 manda tory SE MA0255 Both Include To Dates should be same either YES or NO 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 Coupon 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 MA02
475. olio Moc 0 Main Details Premium Discount Accrual Revaluation of Positions Limits Tracking fw Accrue Premium fm Revaluation Of Settled Bonds Dd Positions fy Accrue Discount Equities X L F Revaluation Of Unsettled Accrual Method Positions Rights P Accrual Frequency X Revaluation Method X Warrants E Accrual Start Day Revaluation Frequency si Treasury Bills X Start Month X i Revaluation Start Day Forward Profit amp Loss Accrual Accrue Premium Method X Revaluation Start Month Forward ProfitLoss Accrual Accrue Discount Method X Realized Revaluation Accrual Method Revaluation Method X Redemption Premium Accrual Accrual Frequency X LOCOM Basis X F Accrue Redemption Accrual Start Day Revaluation Frequency Samii nail Accrual Start Month Accrual Frequency X Revaluation Start Day Accrual Method Revaluation Start Month X Accrual Start Day Accrual Start Month X Interest Accrual E interest Accrual Accrual Start Day Accrual Start Month X Accrual Frequency X Exchange Rate Type a i A Fields Maker Checker Mod No Record Status Date Time Authorization Status Date Time Me 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 you can indicate accrual preferences For example you have purchased a USD1000 bond for U
476. olio 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 portfolio 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 Note Once defined a portfolio preference class can be made applicable to any number of prod ucts Specifying Portfolio Preferences Classes You can maintain portfolio preference classes in the Portfolio Product Preference Class Definition screen You can invoke the Securities Portfolio Product Preference Class Maintenance screen by typing SEDXPFCL 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 tel ORACLE 11 2 1 11 2 2 From the Summary screen double click a class of your choice to open it gt Securities Portfolio Product Preference Class Maintenance lex Save a Class Code Description m Module SP i Module description Securities Portfolio Moc WET Details Processing Cos
477. omatic 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 0 2 Specifying Event Narrative 20 12 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 Maintaining Stock Dividend Details In the Stock Dividend or Bonus Definition screen you can maintain details of the stock dividend declaration event for a security The essential details that you need to capture for a 20 17 ORACLE 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 Definition screen by typing SEDXDVDF 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 new button on the toolbar If you are
478. omer 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 Note 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 ai ORACLE 21 3 1 1 21 3 1 2 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 definition Currency For all types of portfolios indicate the currency of the portfolio You can select a
479. on in fn process leg for MSTL for leg 1 SE BA0085 Failed to Lock SE Leg reference no 1 for 2 event SE BA0086 Portfolio ID does not exist for position reference 1 SE BA0087 Corporate action notice details could not be got for 1 SE BA0088 Failed to update corporate actions due table for 1 SE BA0089 Failed in identifying if processing is required SE BA0090 Failed in inserting into contract event advice table for 1 SE BAO091 Unhandled exception in fn_periodic_accrual for Forward P L SE BA0092 Failed to do product level FPL accruals for 1 SE BAO093 Unhandled exception in fn_pass_product_entries for Forward P L SE BA0094 Unable to lock cstb_contract for 1 SE BA0095 Unhandled exception in fn_accrue_for_aleg SE BA0096 Unhandled exception in fn_reverse_for_a_leg SE BA0097 Unhandled exception in fn_complete_fpl_ accrual SE BA0098 Failed to insert into setb_event_log for 1 SE BAO0099 Unhandled exception in function fn_right_tearoff_ RGLL SE BA0100 Unhandled exception in function fn_pass_product_entries SE BA0101 Unable to do product level accruals for portfolio 1 and ccy 2 SE BA0102 Unable to update the setb_fwdpnl_master for portfolio 1 and ccy 2 SE BA0103 Unhandled exception in function fn_update_opening_bal SE BA0106 Unhandled exception in function fn_msg_handoff SE BA0107 Next process date 1 gt Process till date 2 for product 3 SE BA0108 Unable to get record from 1 for record 2 SE BA0109
480. on liquidation This option can be overwritten at the product level Note 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 Note 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 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 that you specify can be e Daily 11 10 ORACLE
481. on of Positions Deals 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 tion Expense LOCOM Method Accounting Role and Description Amount Tag and Description ah MTM_EXP Expense GL for Revalua MTM_EXP Revaluation Expense Debit tion MTM Method MTM Method MTM_LBY Liability GL for Revalua MTM_EXP Revaluation Expense Credit tion MTM Method MTM Method MTM_ASS Asset GL for Revaluation MTM_INC Revaluation Income Debit MTM Method MTM Method MTM_INC Income GL for Revalua MTM_INC Revaluation Income Credit tion MTM Method MTM Method LOCOM_REVAL_EXP Expense GL LOCOM_REVAL_EXP Revalua Debit for Revaluation LOCOM Method tion Expense LOCOM Method LOCOM_REVAL_LBY Liability GL LOCOM_REVAL_EXP Revalua Credit Advices No advices allowed for this event 32 35 ORACLE 32 4 3 27 RRVL Reversal of Position and Deal level Revaluation These entries can be set up for any kind of portfolio costing method and
482. on 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 report Body The following details are displayed Branch Code The branch code 9 ORACLE Corporate Action Type The corporate action type Portfolio Description The description of the portfolio Portfolio The portfolio Security Type The security type Security ID The security ID description and the initial component Description The description Record Date The record date Counterparty Account The counterparty account Counterparty Loca tion The counterparty location Issuer Currency The issuer currency Basis of Corporate Action The basis of corporate action Dividend Rate The dividend rate Rights Warranty Ratio The Rights Warranty Ratio Security Resultant The Security Resultant Security Currency The Security Currency Corporate Action Dues The Corporate Action Dues Initiation Status The initial status Collection Status The collection status Liquidation Status The liquidation status 34 10 ORACLE 34 8 34 8 1 Confirmed Unconfirmed Report You can generate confirmed unconfirmed report by using the Securities Confirmed Uncon
483. on 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 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 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 aoa ORACLE 20 6 1 1 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 For 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 For 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
484. 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 sold 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 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 z 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 Absolute Price This 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 millio
485. on to allow the rights to expire renounce where they sell the rights offer to another person or exercise the options ay ORACLE 2 1 12 6 2 1 12 7 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 from the market price 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 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 co
486. onds 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 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 Compound If the Annualizing method is Compound the Annual YTM is computed as follows Yo l y P 1 If the Annualizing method is Simple the annual YTM is computed as follows A Yo 1 Where e gis the Periodic YTM e Yois the Annual Deal YTM ae ORACLE e Ais the Day Count Method Denominator this is picked up from your maintenance in the Security Definition screen 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 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_AC
487. only if the Denominator Basis value is Per Annum and the Denomi nator Method is ACTUAL ACT ACT FRF Interest Method In ACT ACT FRF 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 Ifthe 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 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 provided by the external system has to same if it is a ne
488. 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 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 can 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 22710 ORACLE 22 2 3 1 Original DSTL Date This is automatically generated by the system to reflect the original delivery settlement date as per the market code main
489. ord 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 t Jan PCD to 10 Jan will be tracked as a receivable from the issuer of the units 200 20 1 10 The following entries would be passed as part of event SPLP amount tag IntComp_PUCM Dr IntComp_Repy Interest Receivable 200 Cr Sec Bridge GL 200 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_IA Dr IntComp_Rcpy Interest Receivable 320 Cr IntComp_lA Accrued Interest 320 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 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 os ORACLE 4 4 The following entries are passed for
490. orize 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 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 16 ORACLE 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 Security Definition screen The Yield Calculation Parameters screen is displayed Yield Calculation Parameters Yield Calculation Parameters T Bills YTM For T Bills 7 Use Bond Formula Annualizing Method Reinvestment Period Days Day Count Method Numerator Day Count Method Denominator Yield Calculation Parameters Bonds Reinvestment Period Days 365 Day Count Method Numerator Annualizing Method Compound Day Count Method Premium Discount For Denominator Current Interest Period 19 2 19 1 Specifying YTM method for T Bills The basis for YTM calculation for T Bills can either be 1 Simple interest 2 Effective Compound interest If you
491. ortfolio 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 You can invoke the Safe Keeping Location Maintenance screen by typing SEDXSKLC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button amp Securities Safe Keeping Location Maintenance E New E Enter Query Safe Keeping Location Id Safe Keeping Location Type Safe Keeping Location Internal or External Internal Description Customer ID Customer Name Exposure Line External Type 7 Bankers Acceptance Issue Safe Keeping Location Account Corporation Action Collection Manual 101 Auto E Safe Keeping Location Account Message to Incident Command System Maker Date Time Checker Date Time Mod No Record Status Authorization Status fl ORACLE If you are maintaining details of a new safe keeping location click on new icon 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 i
492. ot 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 E New enter query Market Code Market Description Market Type gt Over The Counter Option Market Identifier Code System Narrative ca Category Main Interest SpotDate Ex Date 4 Spot Date Method Rolling Method Spot Days Count Basis Weekday of Spot Date Spot Days Holiday Treatment Fixed Method 10f4 j z E From Day ToDay Month indicator Future Months SpotDay Weekday of Spot Date Holiday Treatment Tax Fields Date Time Mod No Record Status Date Time Authorization Status 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 aao ORACLE 4 6 3 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 Weekday of Spot Date You can indicate your preference of weekday for the spot date if you have specified t
493. ould become applicable Each rate that is defined for a Rate Code and Currency combination should have an Effective Date associated with it This is the date on which the rate comes into effect Once a rate comes into effect it will be applicable till a rate with another Effective Date is given for the same Rate Code and Currency combination Counterparty Name Specify the name of the counterparty Prepayment of Amortized Loans Recomputation Basis Choose the recomputation basis for prepayment of amortized loan The options available are Recalculated Tenor or Change EMI Choose the relevant basis from the list for recomputation basis Old Maturity Date If you opt for a prepayment with a change in the loan tenor the system will display the maturity date of the loan prior to the prepayment New Maturity Date Specify the new maturity date Prepayment Effective from You can choose the date on which the prepayment becomes effective You can start the prepayment on the Value Date or Next Installment Value Date Specify the value date Limit Date Enter here the Limit Date for prepayments If you have given a payment limit date the system shows all the components which are due till the limit date If you have given the amount limit in the Amount field it shows all the schedules for the limit amount Discount Rate Enter the discount rate If the discount rate basis is Direct Input then you have to enter the rate at which interest
494. ous 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 Wednesday 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 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 ina dematerialized form will increase the holdings of the customer in a electronic format Securities
495. pecify 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 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 Note 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 could create a combination for a bank buy
496. pecify 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 For example suppose that 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 the accruals are done as per your holiday handling specifications in the Branch Parameters screen Revaluation Exchange Rate Code The revaluation profit and loss will be in the currency in which
497. 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 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 0 12 Where W Value of the Bond on accrual date 21 13 ORACLE 21 5 PP Purchase Price of the Bond FV Face Value of the Bond n1 Number of days from purchase till the date of accrual n2 Number of days from purchase till maturity For example consider a Bond with the following basic details Purchase Price PP 80 USD Face Value Nominal FV 100 USD n2 10 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 Value of Bond in Discount Accrual Value of Discount Accrual by n1 excess of Purchase f by straight line Bond exponential method Price method 1 81 805 1 805 1 805 2 0
498. 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 indicate the Coupon Frequency The coupon frequency can be e Weekly e Monthly e Once in two months IEN ORACLE e Quarterly e Once in four months etc 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 You can define the actual coupon schedules in the Securities Definition Coupon Schedules screen You can invoke this screen by clicking the Coupon button Coupon Schedule 1 Of 1 Base Start Date Discrete Continuos BaseEndDate BaseFrequency WeekDay Adhere To Month End 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 t
499. plications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and its affiliates w
500. port 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 il ORACLE FPL Accrual Currency The currency of the forward profit and loss accrual Security The security involved in the deal Forward P amp L Accrued The total forward profit or loss accrued amount Deal Type Leg Reference FPL Accrued To date The type of the deal reference number of transac tion leg and interest accrual amount till date Security Quantity Accrual From Date The quantity involved in the security and the interest accrual from this date Accrual To Date The forward profit or loss accrued up to this date Deal Price FPL Accrued The deal price of the security and 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 Till date Forward profit or loss till the system date Spot Price The spot price involved in the deal 34 15 Securities Maturity Report You can generate securities maturity report by using the Se
501. pot 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 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 Securities Deal details Main screen emg ORACLE 22 2 3 4 Trading in securities that do not belong to a portfolio 22 2 4 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
502. 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 Note The 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 accrual can start only on 10 January However when accrual is done on the 1
503. 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 29 3 ORACLE To invoke the ICCF Details screen click Interest button in the Securities Repo Product Definition screen ICCF Details Product Code Amount Type Pre Payment Method FLEXCUBE C Stop Application Propagation Required Accrual Required Allow Amendment Consider as Discount Collection Type Advance Arrear Interest Rate Type Rate Code Borrow Lend Indicator Rate Cycle Type Fixed Borrow Up gt Event Rule Component Product Limits 10f1 Currency Default Rate Minimum Rate m Product Description Category Settlement Currency Level Number Units Grace Period Code Usage Reset Tenor Margin Basis Margin Application Event Description Rule Description Description Maximum Rate Expected Main Component Bulk Amount Link Contract As Rate Code Days Auto F Facility Periodic Default From Class Default Spread 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 b
504. psed in the year For 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 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 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
505. ption This is the portfolio description 34 18 Securities Activity Report You can generate securities activity report by using the Securities Activity Report screen To invoke the screen type SERACTVT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Security Activity Report ReportFormat PDF Printer At Client Report Output Print Printer 34 18 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 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 Deal Reference This is the deal reference Version This is the version Buy Leg Type This is the buy leg type Sell Leg Type This is the sell leg type Settlement SK Location This is the settlement SK location Security Code This is the security code Security Description This is the security description Market Code This is the market code Deal Quantity This is the deal quantity SeA ORACLE Trade Date This is the trade date D STL Date This is the D STL date Event This is the event Account This is the account Account Currency This is t
506. quantity for exercise SE DO0198 Counterparty confirmation is not allowed for this deal SE CALC01 Divide by zero condition Cannot calculate yield SE CALC02 Unhandled exception in function sepkss_calc fn_tbill_ pricetoyield SE CALC03 Divide by zero condition Cannot calculate price SE CALC04 Unhandled exception in function sepkss_calc fn_tbill_ yieldtoprice SE CALC05 Error condition while calculating Present Value of cash flow s SE CALC06 Unhandled exception in function sepkss_calc fn_bond_pricetoyield SE CALC07 Unhandled exception in function sepkss_calc fn_bond_yieldtoprice SE CALC08 Unhandled exception in function sepkss_calc fn_tbill_ calc SE CALC09 Function fn_tbill_calc does not understand mode 1 31 40 ORACLE Error Code Message SE CALC10 Function fn_tbill_ calc cannot determine which is to be calculated Yield or Price SE ONL100 Error during Netcons Processing SE ONL101 Error processing Parties SE ONL102 Error processing of Advices SE ONL103 Error processing Subsystems SE ONL104 Error updating of Exchange Rates in Settlements SE ONL105 Error retrieving Deal Amount Tags SE ONL106 Error creating Deal Amount Tag list SE ONL107 Error retrieving Deal Detail SE ONL108 Error retrieving Deal Master SE ONL109 Settlement CCY for a Netcons component different from Payment CCY SE ONL110 Error Processing Mod
507. quency Revaluation Start Day Revaluation Start Month Revaluation of Settled Positions Revaluation of Unsettled Positions X X X m Realized Revaluation X Interest Accruals Accrual Frequency Accrual Start Day Accrual Start Month Default From Class Interest Accruals X Forward Profit amp Loss Accrual Accrual Method Accrual Frequency Accrual Start Day Accrual Start Month Forward ProfitLoss Accrual Revaluation Exchange Rate Code Exchange Rate Type Description 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 16 4 ORACLE 17 1 17 Defining Attributes of a Deal Product Introduction In this chapter we shall discuss the manner in which you can define attribut
508. r ADV Form of Securities SEC RED Advice of MT 556 Custodian Custody Portfolio MPTN ADV Redemption Customer REQST Request for MT 570 Custody Portfolio Custodian FOR STMT Statement Customer Custodian Safekeeping Loca tion SEC HLD Statement of MT 571 Custodian Portfolio Customer STATMNT Holdings Safekeeping Loca Custodian tion SEC TXN Statement of MT 572 Custodian Portfolio Customer STATMNT Transactions Safekeeping Loca Custodian tion PNDING Statement of MT 573 Custodian Portfolio Customer TXN STMT Pending Transactions Safekeeping Loca tion Custodian 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 Bank Portfolio e SS deal with a Customer Buy Sell type of products 32 12 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 Saia O
509. r 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 genet ORACLE 32 4 3 11 DVLQ Securities Dividend Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC DIVDND PAY SEC_CASH_DIVDND Debit SEC SETTLEMENT SEC_CASH_DIVDND Credit Advices Nil 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 Exerc
510. r 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 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 20 ORACLE 20 5 3 20 5 4 20 6 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 events 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
511. r 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 Note 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 conver sion 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 20 15 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 Interest 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 SEDXRVND in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button interest Revision E New E Enter Query Corporate Action Id External Corporate Action Id Internal Security Id Interest Component Security Description Security Issuer Reference Announcement Date
512. r 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 Securities Statement of Holdings PB 209870 Prudential Bache Securities International 280 Symphony Towers Sunrise Avenue New York USA 27 29 02 APR 1998 Singapore ORACLE ZIP 4650 248 07 Subject Securities Statement of Holdings Kind Attention Mr Jonathan Smith Senior Treasury Officer Portfolio Management Services Dear Sir Madam Please find attached herewith the Securities Statement of Holdings of your Safekeeping Account with us Our Reference 000SE0198061000 2 Safekeeping Account 35746 978 Securities Statement as of Date 02 APR 1998 Statement Preparation Date 02 APR 1998 Statement Reference Currency USD Securities Statement Number 24 Value in Identification of Security alee walle m Exchange Statement i rice Security Securities Type Rate Reference per Unit Currency Currency ISIN Shares 67 25 403 500 00 1 75 706 125 00 S G0000682341 SGD SGD USD Plastic Fabrica tion and Molding Corporation ISIN Shares 6 375 98 493 75 1 75 172364 06 SG0000764341 SGD SGD USD Tribeca Device Assembler Cor poration Limited ISIN Shares 22 50 225 000 00 1 75 393 750 00 SG0000988721 SGD SGD USD Singapore Preci sion Computing Inc
513. r 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 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 your 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 ice ORACLE 7 2 7 2 1 Refer to the Deal Online chapter of this User Manual for details on processing Banker s Acceptances 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
514. r to the chapter Retrieving Information in Oracle FLEXCUBE in Reports user manual 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 Version The version of the security activity Event Indicates the event code Account Indicates the account Number Currency Indicates the currency of transaction Amount Tag Indicates the amount tag Amount Indicates the amount Pay Receive Indicates whether the transaction is pay or receive Sell Leg Type The type of sell leg a ORACLE Settlement Sk The settlement safe keeping Security Code The unique code that identifies the security Security Description A brief description of the security 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 5 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 t
515. rade Executing Trade Counter TRADE Trade Confir Party party CONF mation RECV SEC Receive Free MT 520 Custody Portfolio Custodian FREE MT540 Customer Custodian Safekeeping Loca tion DLVR SEC Deliver Free MT 522 Custody Portfolio Custodian FREE MT542 Customer Custodian Safekeeping Loca tion DLVR SEC Deliver MT 523 Custody Portfolio Custodian APMT Against Pay MT543 Customer ment Custodian Safekeeping Loca tion RECV SEC Received MT 521 MT_ Custody Portfolio Custodian APMT against pay 541 Customer ment Custodian Safekeeping Loca tion RECVFREE Receive Free MT 530 Safekeeping Loca Custodian CONF Confirmation tion Custodian Custody Portfolio Customer RECV Receive MT 531 Safekeeping Loca Custodian APMT Against Pay tion CONF ment Confir mation Custodian Custody Portfolio Customer DLVRFREE Deliver Free MT 532 Safekeeping Loca Custodian CONF Confirmation tion 32 11 ORACLE Custodian Custody Portfolio Customer DLVRFREE Deliver MT 533 Safekeeping Loca Custodian APMT Against Pay tion ment Confir mation Custodian Custody Portfolio Customer NOTICE OF Notice of MT 550 Custodian Custody Portfolio RGHTS Rights Customer NOTICE OF Notice of MT 551 Custodian Custody Portfolio EVENT Event Customer MONY Advice of MT 554 Custodian Custody Portfolio INCOME Money Customer ADV Income SEC Advice of MT 555 Custodian Custody Portfolio INCOME Income in the Custome
516. ranch Currency Customer Accrual Fee Details Discount Preferences Interest Charges Tax MIS Fields Status Maker Date Time Checker Date Time Mod No 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 under Modularity e Product Definition e Tax Product Type A product that you are defining can belong to either of the following types e Repo e Reverse Repo 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 specify 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 aoe ORACLE 29 2 3 Click Preferences button to invoke the preferences screen Preference Preferences Payments Product Code Holiday Treatment Holiday Currency Authorization Rekey Fields C Allow Brokerage Pay Past Schedules Prepayment Penalty
517. rd Amount Tags Standard Debit Credit Role Alternative Alternative Indictor Sec Bridge Pur Alternative DEAL _NOMINALAMT Standard Credit Deal Premium Alternative DEAL_PREMIUMAMT Standard Debit Sec Bridge Pur Alternative DEAL_PREMIUMAMT Standard Credit Sec Bridge Pur Alternative DEAL_DISCNT_AMT Standard Debit Deal Discount Alternative DEAL_DISCNT_AMT Standard Credit Deal Interest Alternative INTCOMP_PUCM Standard Debit Bought Sec Bridge Pur Alternative INTCOMP_PUCM Standard Credit Advices No advices allowed for this event 32 15 ORACLE 32 4 3 2 SSLP Security Sale from Long Position Accounting Entries 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 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 S
518. 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 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 einen ORACLE 27 2 13 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 Securi ISIN USFRNICIO007 Hea AMEEN IC Industries Finance Corporation Guaranteed FRN 1996 Quantity of Securities 2 000 000 00 Face Amount Event Narrative Interest Rate 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 For Chemical Bank New York USA 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 Nom
519. reated with Security Type as Right Warrant and the Tearoff Issue date for such security is greater than the Current System Exercise End Date should be less than the Expiry Date of Intermediate Security 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 Narrative Corporate Action Id Narrative You have the option of entering a free format 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 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 Appli
520. 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 Note Batch processing is applicable only for securities under Cashflow type of redemption quo tation Recalculation is done only for the redemption schedules on or after the current cou pon period 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 12 ORACLE 20 8 20 9 Processing of Amendment on Redemption Schedules You can amend future dated redemption schedules In such a scenario accruals linked to DPRP event are completed 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 rec
521. rernnrns 27 13 27 2 6 Securities Deliver Against Payment Instruction 0 0 cceeeettteettee eee teeneees 27 14 27 2 7 Securities Receipt Free Confirmation ccccccccccceeceeeseecteeeteeeeeeeteetees 27 16 27 2 8 Securities Receipt Against Payment Confirmation c cece 27 18 27 2 9 Securities Deliver Free Confirmation ccccccccssceeeeesteeeeteeeneeeeteeenanees 27 19 27 2 10 Securities Delivery Against Payment Confirmation ccceeseeeeeees 27 21 27 2 11 Securities Notice of Rights M SSAQEC cccccssieeesteeeeteenteeeeeeeennees 27 23 27 2 12 Securities Notice of Event MeSSAQEC ccccccecseeteenteeeeteeeneeeeeteeenaees 27 24 27 2 13 Securities Advice Of Money INCOME cccceeeteeeetetenteeeeeteeaeeeeteenaees 27 25 27 2 14 Securities Advice of Income in the Form of Securities 00000000000000 27 26 27 2 15 Securities Advice Of REACMPTION 1 ccccccccccceeeeeeenteeteceteeeteeeteteeeneaes 27 27 27 2 16 Securities Request for Statement Message ccce cette eee eteetteeeees 27 28 27 2 17 Securities Statement Of HOIGINGS ccccccceceeteeeteeeteeeeteeeeeeeeeenenaneees 27 29 27 2 18 Securities Statement Of TrANSACtiONS 0 ccccceeee eens eee teeneeeeeteenaetees 27 31 27 2 19 Securities Statement of Pending Transactions cccccccccscceeeieeeeees 27 33 28 Making Queries 22 26 cet cee ces aca a eee ee aa aaaeaii e 28 1 23 1 IMtrOdUCHONs 3 cctealentaiited aes aes eerie
522. responding price codes Tenor Details 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 10 7 ORACLE 10 2 12 10 3 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 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
523. rice of the T Bill R P Redemption Price Yo Periodic YTM Ad Redemption Date Value Date Period of Reinvestment Deal YTM Day Count Method Denominator 4 21 ORACLE Note 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 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 Bills 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 Note 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 Con
524. ription Maker Date Time Mod No Checker Date Time Record Status Authorization Status 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 For example suppose that you offer a portfolio maintenance facility to individuals An accounting role and head class can be built specifically for this service When building the class you can assign 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 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
525. rned false for position reference 1 SE BA0124 Failed to lock cstbs_ contract for position reference 1 SE BAO125 Unhandled exception when others of function fn_coupon_auto SE BA0126 Coupon amount due is zero for component 1 SE BAO127 Unhandled exception when others of function fn_process_interest_due SE BA0128 Unhandled exception in function fn_get_locks SE BA0131 Unhandled exception in function fn_SPLP_for_aleg SE BA0132 Unhandled exception in function fn_SPSP_for_aleg SE BA0133 Unhandled exception in function fn_SSLP_for_aleg SE BA0134 Unhandled exception in function fn_SSSP_for_aleg SE BA0135 Failed to insert into setbs_dstl_details for 1 SE BA0136_ Failed to update setbs_dstl_master for 1 SE BA0137 Failed while rounding amount tag 1 for amount 2 SE BA0138 Unhandled exception in fn_memo_fpl_accrual SE BA0139 Failed to get the ESN for Memo accrual 31 28 ORACLE Error Code Message SE BA0140 Cannot settle 1 as it is not fully matched SE BA0141 Unhandled exception in fn_complete_DSTL SE BA0142 Failed to get current_holding SE BA0143 Failed to do DSTL for 1 as position goes ve for Issuer Portfolio 2 SE BA0144 Failed to do DSTL for 1 as position goes ve for Non Issuer Portfolio 2 SE BA0145 Unable to select from setb_deal_detail for 1 SE BA0146 Unabl
526. rner of the Application tool bar and clicking on the adjoining arrow button Securities Deal Product Preference Class Maintenance E new amp Enter Query Class Code Class Description Exchange Rate Type e O Rate Type Description Deal Leg Type Bank Portfolio Buys Preferences C Forward Deals Allowed C Spot Deals Allowed Cancellation Allowed M Extension Allowed Automatic Money Brokerage Allowed Settlement C Automatic Delivery Settlement Partial Release Allowed Rekey Requirements Trade Date M Deal Price Security Id M Settlement Date M Portfolio Id M Money Settlement Date Date Time Checker Date Time Mod No Record Status Authorization Status After you have defined a deal preference class click save icon from the tool bar to save the record Click Exit to exit the screen You will be returned to the Application Browser Features of the Screen Screen features are explained below 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
527. roduct 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 Defining Security Preference classes of this User Manual For detailed information on each of the attributes please refer to the chapter called Defining Security Preference classes 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
528. rom the sender to the receiver 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 Settiement Details Reference Numbers Component _ Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing Intermediary Intermediary Reimbursement Institution Reimburse Institution 1 Reimburse Institution 2 Intermediary 1 Intermediary 2 Intermediary 3 Reimburse Institution 3 f 1 Intermediary 4 Reimburse Institution 4 Intermediary 5 Reimburse Institution 5 Receiver Correspondent Account With Institution Correspondent 1 la Account with Institution Correspondent 2 ej 1 Correspondent 3 Account with ee Correspondent 4 Account with Institution Correspondent 5 3 Account with Institution 4 Account with Institution 5 Receiver of Cover lai Receiver 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 S
529. rre niea a EEE EEE T EEA 2 6 21 90 Mading ANE QUILIOS neee E E A O 2 7 2 1 11 Trading in Bonds Fixed Income SECUIILIOS cccetecettettteeetetttteeeeeeenaees 2 7 2 1 12 Corporate Actions on Securities 1 ccccccceceeeeeeeeeeeteteceeeeeeeetteeteeseeninaeees 2 9 Securities an Overview sssssssssnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn nnna 3 1 Sal gt IMtFOGUCUION iora ees al TA E TOTT 3 1 3 2 A Snapshot of the Module c eie cee ee eee eee eee ee a a a e ae iaaa 3 2 3 3 Processing at the Portfolio Level at the Beginning or End of Day 3 4 3 4 Getting Started with the Module cc cececeeceeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeseeeeaeeeeeeeaaeees 3 4 34 4 Building Classes kiana ona eae 3 4 S42 Pening PrOGUCIS sisi haar thei saztt fei TETE RE T vied eat ERE T Ea 3 5 3 4 3 Handling Interest Charge and Tax Components 0 cccccceteeeeeeenteeeeeeeeteee 3 6 3 4 4 Building a Transaction Tax SCHEME ccccccciteeeeceetetneeeeetntneeeeeeenaeeeeenens 3 7 3 4 5 Building an Issuer Tax SCHOMEC 0 cccccccceeee settee eee ennieeeeeetneeeeeeetaeeeeetens 3 7 3 4 6 Handling Brokerage etdor tiiindrid reied asiana aai iaa ekak aiana Arana 3 8 3 47 Fracking LIMIS eetenseriniasreiiiieinin iniaiaiai E ETE 3 8 JAg Seng Deals r EE E E ee 3 8 3 4 9 Querying the System for Detalls ccceccccccttteeeceeentneeeeeesntaeeeeeeenaeeeeeeneaas 3 8 General Maintenance sssssssssssssnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn
530. rsion main screen enter the security ID the portfolio ID and the SK location Id from where bonus due is to be received Branch Code Specify the branch code 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 20 28 ORACLE Security Id 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 Security Id The resultant security Identification to which shares have been awarded is defaulted here Portfolio Id 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 i
531. rsion type In Oracle FLEXCUBE the re denomination of and In currency security to Euro is handled in the same way as a split Process Status Specify the process status from the drop down The options available are e Processed e Unprocessed e Repair Conversion from Security Id Specify the security ID from which the conversion is required Ratio Specify the ratio from which the security needs to be converted Conversion To Security Id Specify the security ID to which the conversion is required Ratio Specify the ratio from which the security needs to be converted 19 10 ORACLE 11 1 11 2 11 Maintaining Portfolio Preference Class 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 Portf
532. rt Printing from 31 14 ORACLE Error Code Message 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 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 Branch 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 r
533. rt date SE DO0073 Trade date should not be after product end date SE DO0074 Deal Settlement date should not be after product end date SE DO0075 Money Settlement date should not be after product end date SE DO0076 Trade Date cannot be after Today s System Date SE DO0077 Trade Date cannot be after the Deal Settlement Date SE DO0078 Trade Date is same as The Settlement Date SE DO0079 Money Settlement Date cannot be earlier than the Trade Date SE DO0080 Money Settlement Date cannot be later than Settlement Date SE DO0081 Actual Settlement Date cannot be earlier than Money Settlement Date SE DO0082 Actual Settlement Date cannot be earlier than the Deal Settlement Date SE DO0083 Interest Value Date cannot be earlier than Trade Date SE DO0084 Interest Value Date cannot be after the Settlement Date SE DO0085 Trade Date is earlier than Today s System Date SE DO0086 Settlement Date is earlier than Today s System Date SE DO0087 Deal input price exceeds market price by 1 Continue SE DO0088 Deal input price exceeds market price by 1 variance Exception limit exceeded SE DO0089 Deal is already settled Settlement date can not be extended SE DOO0090 Portfolio Id for Buy leg and that for sell leg should not be same Stor ORACLE Error Code Message SE DO0091 Counterparty for Buy leg and that for sell leg should not be same SE DO0092
534. rtfolio 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 bets ORACLE 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 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 specified as a Portfolio Preference Thus the redemption premium of all redemption premium be
535. ry 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 E New E gt Enter Query Previous Version Number Transaction Details Product Contract Reference User Reference instrument Details Security Code Security Series Quote By Transaction Date Details Transaction Date Deal Quantity Trade Date Delivery Settlement Date Auto Settlement Portfolio Details Portfolio Counterparty Transfer From Details SK Location SK Account Form Type ScriptBased Transfer To Details SK Location SK Account FormType ScriptBased m Events Settlement Advices Interest Tax MIS Input By Authorized By Date Time Date Time Active Authorization Status Product Code In Oracle FLEXCUBE 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 nu
536. s 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 Portfolio Id Portfolio Description Role To Head Role Head Description Security Product Role to Head Class Mapping 1 0f1 Product Description Role To Head Description Security Role to Head Class Mapping 1 Of 1 E Security Id Description Role To Head Description 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 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 class that you specified will become applicable to all securities in the portfolio Level three You have either accepted the de
537. s Fees 2 500 00 CAD Securities Deal Settle 5 550 000 00 CAD ment 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 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 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 000SEB7980040002 Securities Identification ISIN NZDBONDWRP04 Wellington Railway 1 Jan 1993 Bonds Trade Date 02 JAN 1998 aria ORACLE 27 2 6 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
538. s Input functions for deals queries Back office Managers Officers Authorization functions queries Product Managers Product definition and authorization End of Day Operators Processing during End of Day beginning of day Financial Controller Product Managers Generation of queries reports Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http Avww oracle com pls topic lookup ctx acc amp id docacc Organization This manual is organized into the following chapters About this Manual gives information on the intended audience It also lists Chapter 1 the various chapters covered in this User Manual Chapter 2 Securities Domain gives an overview of the securities domain Securities an overview explains the snapshot of the features and func Ghapiers tionality offered by the module General Maintenance deals with setting up and maintaining basic infor Chapter 4 a mation 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 t1 ORACLE Maintaining Market Price Codes deals with maintaining codes for the mar Chapter 6 ket price of securities including multiple price codes on account of trading in different markets Mai
539. s 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 Oninitiation of a repo deal e On liquidation of a reverse repo deal SGL Form Maintenance An SGL advice is printed on formatted stationery 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 SEDXGLMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button SGL Maintenance E New E3 enter query Form Number Status N Deal Reference Trade Date Transaction Date Security Id Maker Date Time Checker Date Time Mod No Record Status Authorization Status In this screen you can specify the form numbers either as a range or choose to enter the numbers manually Click on new icon in the tool bar to specify a new form number At any point of time the status of a form number will either be 301 ORACLE e U Used e N Not Used e Cancelled C Note Note the Following By default the status of a form number is N Not Used 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 t
540. s computed from the ex days set up defined for the local market of issue 20 21 ORACLE 20 14 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 Click 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 Entitlement will be rounded up to the next full integer if the fraction Round Standard 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 Confirmed Date When you select the check box and save the record the confirmed date will be defaulted with the current date
541. s 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 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 which 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 Note 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 unde
542. s not authorized SE MRKT 069 Could not get Ex date SE MRKT 070 Error in holiday check while computing ex date SE MRKT 071 Failed in holiday check while computing ex date SE MRKT 072 Failed in getting next working day when computing ex date SE MRKT 073 Failed to get next working day when computing ex date SE MRKT 074_ Market Ex date details not maintained SE MRKT 075 Market Ex date details not correctly maintained SE MRKT 076 Failed in getting the number of days in the month SE MRKT 077 Error while setting the format for the date while computing ex date SE MRKT 078 Could not set the ex date to the correct format SE MRKT 079_ Failed in holiday check while computing ex date SE MRKT 080 Failed in holiday check while computing ex date SE MRKT 081 Failed in getting next working day when computing ex date SE MRKT 082_ Failed to get next working day when computing ex date SE NONE SE ONLXXX SE RVLO 001 Failed to build array queue in revaluation SE RVLO 002 Failed in getting periodic revaluation date SE RVLO 003 Failed in periodic revaluation SE RVLO 004 Failed in getting market price for revaluation SE RVLO 005 Failed in reversal of revaluation 31 57 ORACLE Error Code Message SE RVLO 051 Price record could not be obtained for revaluation SE RVLO 052 Price record is not authorized for revaluation SE
543. saction 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 Sample of all the Advices A sample of all advices is given below 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 O0OOSSPT980070021 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 Number 05 ate ORACLE Financial Instrument Narrative Siemens Semi Annual Interest Bearing Five 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
544. 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 You 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 I ORACLE 3 2 A Snapsho
545. 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 ee ORACLE 22 6 3 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 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 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 deall Settlement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing 4 b nstrument Details Component Payment By Message Type L az A Details of Charges Remitter All Charges Instrument Number 5 5 Beneficiary All Charges Clearing Remitter Our Charges
546. scription is Mandatory cannot be NULL SE PRD021 Input to Product Group is Mandatory cannot be NULL SE PRD022 Input to Exchange Rate Override Limit Variance is Mandatory cannot be NULL SE PRDO23_ Input to Exchange Rate Stop Limit Variance is Mandatory cannot be NULL SE PRDO24 Input to buy Product Sell Product Mandatory cannot be NULL SE Rekey Values for the Buy and Sell Products Differ 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 of COMBP03 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 PRDO08 Product Code is NOT Unique SEREAS 01 New User and Current User must be different SEREAS 02 Contract 1 has been reassigned from User 2 to User 3 by User 4 SEREAS 03 New user ID cannot be NULL SEREAS 04 Product code cannot be NULL SEREAS 05 Contract reference number cannot be NULL ORACLE Error Code Message SEREAS 06 No Unauthorized Co
547. se 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 INTCOMP_PUCMA This Amount tag represents the value of the Bought Interest if any at the time of Purchase for the sold secu rities 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 bridge 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 Int
548. se 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 Securities Advice of Redemption Banque Paribas 18 Band Strand Pisa Avenue Paris France ZIP 654 420 08 Subject Advice of Securities Redemption Kind Attention Mr Charles Dalton Settlements Officer 27 27 02 APR 1998 London ORACLE Securities Department Dear Sir Madam Please be advised of Securities Redemption with details as shown below Our Reference 000SES8981050320 Identification of Securities being UK Treasury Bonds 7 Percent 1993 redeemed 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 R
549. set Liability LiInkage 0 cece eeeeeeeeeeeetneeeeeeetneeeeeetnaeeeeeeeeea 29 12 30 Printing Subsidiary General Ledger Form Repo and Reverse Repo Deals 30 1 30 1 IntrOdUCtION csini air i in di Lede tebe di desde aden 30 1 30 1 1 SGL Form Maintenance areeni i aai a aaa a a ii 30 1 30 2 Maintaining Security Repo Payment eeeessssesseieseeerrssseirrrssttrrrsssrtrnsssrenrnsssrrennne 30 3 31 Error Codes and Messages for Securities 22 0 cccccceeeeeeeeeeeeeeeeeneeeeeeees 31 1 31 1 Error Codes and Messages sssessssressssrnessrirnessrnnnnnstninnesttnnnnestttanasttnnneetnannnnna 31 1 31 2 Error Codes and Messages for Securities Online eee ee eeeeeeeeeettteeeeeeeaaes 31 17 31 3 Error Codes and Messages for Batches eessseseeesseeeresserrrrssrrrrrsssrrrnsssrrrnsn 31 24 31 4 Error Codes and Messages for Deal Input ssesssessinsssserresssrrrrssrrrrrsssrrrnsssrernss 31 35 31 5 Error Codes And Messages for NOn SeculritieS cceeeeeeeeeeeseeeeeeeeenneeeeeeeeaas 31 47 31 6 Error Codes and Messages for Portfolio Online 0 eee eeceeeeeeeeneeeeeeeeetteeeeeeeeaes 31 50 31 7 Error Codes and Messages for Others eccccceeeeeceeeeeeeeneeeeeeeeennaeeeeeeenaeeeeeeseaas 31 52 32 Annexure A Accounting Entries and Advices cccceeeeeeeeteeeeeeeeeeee 32 1 32 1 Accounting Entries for Securities MOCUIC ce ceeeeeceeeeeseeeeeeeentteeeeeeentateeeeeenaees 32 1 32 2 SECES EVOM aira
550. sider the following 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 wee ORACLE 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 Consider the following example for Yield T Bills Bonds Security Instrument SEC364M2 Deal Input Price 100 Redemption Price 120 Denom Method 364 DSTL Date 2 Sep 2008 Deal Maturity 23 Nov 2008 Formula used for Yield Calculation Discounted Yield Redemption Value Input Price Redemption Value Denom Method No of days True discount Return 4 23 ORACLE 4 5 3 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 748971 193415638 True discount Return Yield 120 100 100 364 81 0 898765432098765 Premium Discount for Current Interes
551. standing 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 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 Redemption 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 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 opti
552. t 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 Note 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 prod uct However these roles cannot be made applicable on portfolios with Weighted Average as the Costing Method The suffixes stand for RECV Receivable RIA Received in advance TBACR_ To be accrued D 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 in the table below 32 10 ORACLE Advice Advice SWIFT Sender of Receiver of Code Description Equivalent Message Message TRADE Trade Confir MT 517 Trade Instructing Trade Executing CONF mation Affir Party Party AFFM mation Buyer Trade Counter party MKT Market Side MT 518 T
553. t Securities Restrictions Class Maintenance E New Enter Query Class Code Description Module Module description Security Restriction Branch restriction Allowed 1A Disallowed Code Description Security Access 1 Of 1 Security ld Security Description Product Restriction Type Maker Date Time Checker Date Time Mod No Record Status Authorization Status 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 Code 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 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 restrictio
554. t 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 a10 ORACLE 23 4 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 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 International 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 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 p
555. t PDF Report Output Print Format Select the format of report The options are e HTML e RTF e PDF e Excel Output Output Select the output e Print e View e Spool Print At Select the print at e Client e Server 34 26 Printer At Client Printer ORACLE 34 20 34 20 1 Printer Select the printer Coupon Pending The Coupon Pending report gives the details of the previous coupon and the next coupon for a particular security To generate the Coupon pending report invoke the related screen by typing SERCPPEN in the field at the top right corner of the Application tool bar and then clicking on the adjoining arrow button Coupon Pending Select Report Output All Funds Specific Fund Selected Fund Holding As on A Report Format PDF v Printer At Client x Report Output Print Printer z Specify the following details Select Report Output Select the report output The options are as below e All Funds e Specific Fund Selected Fund Holding As on Specify the holding as on 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 name branch code branch date the Run Date amp Time the User ID of the user the page number of the report and the module for which the report is generated skar ORACLE
556. t All the details maintained for the particular market will be automatically picked up You can invoke the Market Definition screen by typing SEDXMTCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Market Definition B New amp Enter Query Market Code Market Type Over The Counter Option System Narrative EW Interest Spot Date Ex Date Country Code Local Currency Market Price Code Holiday Type Coupon Basis Warrant Basis YTM For T Bills Use Bond Formula Reinvestment Period Days Annualizing Method Day Count Method Numerator Day Count Method X Denominator 4 Market Description Market Identifier Code Category Country Description Safe keeping Location Id Price Code Description Holiday Currency E Dividend Basis x Right Basis X Yield Calculation Parameters Bonds M Premium Discount for Current Interest Period Reinvestment Period Days _ Annualizing Method Day Count Method x Numerator Day Count Method v Denominator Tax Fields Maker Date Time Checker Mod No Record Status Authorization Status Date Time If you are maintaining details of a new market place choose New from the Actions Menu or click on new icon from the tool bar The Market Definition detailed screen will be displayed If you are calling a market place m
557. t Date is Mandatory SE SO0287 To Be Redeemed is Mandatory SE SO0288 Redemption Price is Mandatory SE S00289 Disposition of Fractions is Mandatory SE SO0290 Redemption Price must be greater than equal to Face Value being Redeemed SE SO00291 Series is Mandatory SE SO0401 Attributes defaulted from Market of Issue would be redefaulted Proceed SE SO0402 Coupon Schedules would be deleted Proceed SE SO0403 Revision Schedules would be deleted Proceed SE SO00404 Redemption Schedules would be deleted Proceed SE SO0405 Interest Component s would need to be associated afresh Proceed SE SO0406 Tax Component s would need to be associated afresh Proceed SE SO0407 MIS would need to be associated afresh Proceed SE SO0501 Unable to Update Maintenance Stamp in Security Definition Function SE SO0502 Unhandled Exception in Security Definition Function SE SO0503 Unable to Update Maintenance Stamp in Security Definition Function SE SO0504 Unhandled Exception in Security Definition Function SE SO0505 Unable to Update Current Block Items in Security Definition Function SE SO0506_ Unable to Update Maintenance Stamp in Security Definition Function SE SO0507 Unhandled Exception in Security Definition Function SE SO0508 Unhandled Exception in Security Definition Function 31 20 ORACLE Error Code Message SE
558. t 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 If 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 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 E New amp Enter Query Market Code Market Description Market Type Over The Counter Option System Narrative Market Identifier Code Category Main Interest Spot Date Ex Date Allow Asynchronous Periodic Coupon Periodic Revision Revision Coupon Details Revision Frequency x Frequency WeekDay Week Day Adhere To Month End Adhere To Month End Rounding Basis X Rate Denomination Basis Day Count Accrual Liquidation Numerator Method Numerator Method Denominator Method gt Denominator Method Denominator Basis v Denominator Basis Include To Date Include To Date 366 Basis 366 Basis Tax Fields EL Da
559. t 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 Failed in populating accrual details for a portfolio 31 55 ORACLE Error Code Message 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 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 IMV 1 004 Failed in populating purchased and sold tax SE IMV1 005 Failed in building daily queue for interest rebuild SE IMV 1 006 Failed in building daily queue for interest accrual SE IMV 1 007 Failed in interest period adjustment SE IMV 1 008 Failed in tax period adjustment SE IMV1 009 Failed in populating interest
560. t 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 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 settled positions or settled and unsettled positions in a portfolio You will not b
561. t 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 The Advantage of Defining Restrictions as Classes By maintaining classes 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 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 l ORACLE 8 2 1 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 C
562. t 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 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 Contra holding is the value dated projected holdings based on the unsettled deals 11 11 ORACLE 11 3 Contra Holding Validation 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 validation option 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 In case of Buy Deals viz
563. t of the Module Architecture Se Ee ee Security Definition Portfolio Definition Market Definition gt DEAL T The instruments supported e Fixed interest bonds with quantity staggered bullet or series type redemptions and user defined coupon schedules supporting different interest methods for accrual and liquidation e Flexible interest bonds with quantity bullet or series type redemptions and user defined coupons with synchronous or asynchronous rate revision schedules supporting different interest methods for accrual and liquidation e Discounted instruments Treasury Bills Zero Coupon Bonds and Commercial Papers e Equities e Rights e Warrants Corporate Actions processing supported Bonds e Collection and disbursement of coupons for long and short holdings collected disbursed by batch from safe keeping location of holding for each portfolio e Redemption processed by batch as an auto sell type deal The types of redemption supported are Bullet at premium or face value Quantity percent of original face value at a user defined redemption price for each intermediate redemption Series with user defined series and redemption date and price e Warrant events are processed as appropriate auto buy or sell deals between the portfolio and the SK location of the holding Equities e Cash Dividend as rate per face value or value per unit col
564. t rate is mandatory and Spread should not be input CF CL0004 For Floating interest rate Spread is mandatory and Default Rate should be null CF CLO005 Default Rate Code and Default Tenor mandatory if Rate type is Floating rate CF CO0001 Component is of floating rate type Tenor code must be entered CF CO0002 Interest Calculation method must be entered CF CO0003 Effective Rate cannot be null CF CLO006 Changing the Rate type will delete all the rate maintenance Do you want to go ahead CF CL0007 There must be at least one component or relevant type CF CL0008 The component is linked to a product Cannot modify or close the record CF CLO009 This component has been authorized Only redefault is allowed CS PRO001 There are no authorized class codes CS PRO002 There are no more accounting roles CS PRO0003 Mandatory field Class Code is null CS PR0004 Mandatory fields Accounting Role Account head are null 31 47 ORACLE Error Code Message CS PRO005 There are no more events CS PRO006 Mandatory fields Accounting Role Amount Tag Txn code are null CS PRO007 Mandatory field Advice Name is null CS PROO008 There are no more advices CS PR0009 This is not the right button for moving the selected records CS PRO0010 Cannot move out of the block as some records are selected CS PRO011 Already in the las
565. t record CS PRO012 Already in the first record CS PRO013 Cannot create a new component as all the authorized class codes have already been used CS PRO0014 All the other authorized class codes have already been used CS PRO015 Mandatory field Scheme is null CS PRO016 Mandatory field Component is null CS PRO017 There are no authorized tax schemes CS PRO018 Product Preferences will have to be redefined Proceed CS PRO0019 Mandatory field Rate Type is null CS PR0020 Format is not correct The correct format is CS PRO021 Customer ID must be specified CS PR0022 Security ID must be specified CS PRO023 Portfolio ID must be specified CS PR0024 The Scheme has been authorized Only redefault is allowed CS PR0025 Mandatory Field Default Rate Code is null CS PR0026 Mandatory Field Default Rule is null CS PR0027 Mandatory Fields Rule Settlement Ccy are null CS PR0028 The Amount Tag 1 does not have corresponding components defined CS PRO0029 There are no details to be maintained for Customer Portfolio CS PR0030 Mandatory Field 1 is null CS PRO031 Mandatory Field Product Code is null CF CL0010 Default Rate should be within the Maximum and Minimum Rate specified CF CL0011 Floating rate type cannot be null when rate type is Floating CF CL0012 This class is linked to a product Cannot close the class 31 48 ORACLE Error Code Message CF CL0013 No rates maintain
566. t 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 e The product type whether a Repo or a Reverse Repo product e The interest and charges that you would like to levy on repo deals involving the product e The tax es that apply on the deals involving the product e The type of accounts and the GL SLs to which the accounting entries have to be posted e The advices to be generated at different points in the life cycle of deals involving the product e 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 Specifying Securities Repo Product Definition Details You can create a product in the Securities Repo Product Definition screen invoked from the Application Browser a ORACLE 29 2 2 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 Securities Repo Product Definition E New amp Enter Query Product Details Product Code Product Description Product Type Description Slogan Product Group Product Group Description Start Date End Date Remarks Accounting Roles Events B
567. t to which they belong Description Here you can view the description of SK Location based on the SK Location Id selected 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 aoa ORACLE 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 blocked for other reasons will not bear any such details aon ORACLE 26 1 26 1 1 26 1 2 26 Batch Processes 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 document
568. te Time Mod No Checker Record Status Date Time Authorization Status 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 4 24 ORACLE 4 6 The following combinations are allowed for calculating interest The Actual number of days in the period The Actual number of days in that year Actual Actual Click on Actuals in Numerator Method field click on Actuals in Denomina tor Method field The number of actual calendar days for which calculation is done 365 Actual days in a year 365 Click on Actuals in Numerator Method field click on 365 days in Denomi nator Method field This is similar to the Actual 365 method except that leap days are always Actual ignored in the numerator day count calculation ee Click on Actual Japanese in Numerator Method field click on 365 in Denominator Method field Sum of A and B where A Interest accrual days falling within the leap year 366 B Interest accrual Days not falling within the leap year 365 Actual 365 ISDA The denominator is the actual number of days in a year Click on 365 ISDA in Numerator Method field click on Actu
569. te 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 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 ago ORACLE Face Value Premium or Discount Accrued Interest if the interest quotation meth od 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
570. te 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 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 option to indicate that the premium on redemption premium bearing instruments in the po
571. ted 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 deal 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 a24 ORACLE 22 2 2 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 g
572. tenance 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 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 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 ea a eS Certificates Other Details From Other Details To Adice From Deal Match From Limits From Pates From Brokerage From Events From MES Details From Seeman From Charges From Walkin From Net consideration From TaxFrom Adice To Otal Makh To Limits To Parties To Charges To Walkin To Net consideration To TaxTo Brokerage To Evants To MIS Detaiks To SetlementTo These icons together with the functio
573. ter Query Corporate Action Id Price Quote Security Id Security Description Security Issuer reference Announcement Date Event Date Record Date Dividend Type Dividend Amount Dividend Rate Security Currency Issuer Payment Currency Currency Name Exchange Rate Fixing Date Exchange Rate Dispose Fractions Confirmed Confirmed Date Fields Narrative Maker Date Time Checker Date Time Mod No Record Status Authorization Status 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 event 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 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 i
574. tfolio Id Record Status Portfolio Id Portfolio Description Portfolio Reference Portfoli In the above screen you can base your queries on any or all of the following parameters and fetch records e Authorization Status e Branch Code e Record Status e Portfolio Id e Security Id Select any or all of the above parameters for a query and click Search button The records meeting the selected criteria are displayed If you are allowed to query then system displays the following details pertaining to the fetched records e Authorization Status e Record Status e Branch Code e Portfolio Id e Portfolio Description e Portfolio Reference e Portfolio Customer Id e Customer Name e Security Id e Security Description e Security Currency 14 4 ORACLE 14 4 Currency Name Safe Keeping Location Id SK Location Description Safe Keeping Location Account Security Form Current Position Current Holdings Opening Position Opening Holdings Portfolio Type Viewing Securities Portfolio Safe Keeping Location Movements Summary You can view the portfolio safe keeping location balances of securities in the Securities Portfolio Safe Keeping Location Movements Summary screen You can invoke this screen by typing SESXPSMV in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securites Portfolio Safe Keeping Locations Move
575. 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 the Decimals field Deals entered in fractional units of the security will be validated against the decimal value that you specify 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
576. the Field 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 v3 ORACLE 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 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
577. the denominator for interest calculation will be 365 and the formula will be 10 000 000 x 5 100 x 365 365 anal 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 is a leap year or a non 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 2gth February falls in this period Case 2 Assume the following parameters are mainta
578. 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 Note 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 Maintaining Cash Dividend Details The details of a cash dividend declaration can be captured through the Cash Dividend Definition screen Through this screen 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 You can invoke the Cash Dividend Definition screen by typing SEDXCDVD 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 new icon on the toolbar 20 20 ORACLE 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 E New E3 en
579. the same security You can add to or delete from the list of SK location accounts maintained To add a new account click add row button 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 existing SK account highlight the SK account number and click on the delete row button Making Query Click on the Search button in the Summary View screen to display the Query screen Computation of KEST 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 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 mutu
580. 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 ALoan 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 Note 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 22 16 ORACLE The Value Date This defaults to the deal settlement date The Maturity Date This defaults to the Redemption Date of the security The Amount This defaults to the Nominal Amount of the sell transaction The Interest Amount This defaults to the Discount Amount of the securities 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 Note
581. the security price is quoted as Price Market price Face ead eeri e value x 100 For 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 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 ata 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 a ORACLE 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
582. the selected record The details of securities lodged withdrawn in that particular location will be displayed 20 1 ORACLE 28 1 2 28 1 3 If you want to view the latest details click Refresh button The Other Query Screens Similarly you can query on the following e The balances in a particular SK location Current position Current holding Opening position Opening holding e The movement of securities within portfolios Opening balance Closing balance Movement as of e The balances in a particular portfolio Current position Current holding Opening position Opening holding Ordering You can view a display of the fields in the Summary View in the ascending or descending order 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 Order 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
583. 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 the security product preferences specified The value can be e Fixed is ORACLE 19 2 2 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 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 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 expir
584. ther 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 i ORACLE 14 2 1 14 3 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 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 For example suppose that you have maintained a Portfolio Product to cater to Bank Portfolios You assigned the product a code PF01 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 aga
585. 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 PED Debit Description Amount Tag and Description 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 32 4 4 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 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 Forward deals allowed for this product 32 36 ORACLE
586. ties Investment Bankers Capital Market Corporate Advisory services Issue of Credit Market securities Underwriters Capital Market Subscribe to un subscribed portion of Money Market securities Registrars Deposito Capital Market Issue securities to the investors on behalf ries Custodians of the company and handle share transfer activity Primary Dealers Sec Money Market Market making in government securities ondary Dealers 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 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 e Ifthe security is equity stock th
587. ties 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 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 araa ORACLE Your Reason Refer Settle Identification for ence Counte Quantity of Settleme ment of Securities Pending Our rparty Securities nt Date Amou Status Refer nt ence ISIN Settle 74365 Merill 5 000 15 MAY 64 123 SG00007686 ment OOOSE Lynch 1998 50 61 Dateisin 05980 Interna SGD Poinsetta the 75000 tional Start Ship Future 1 Bank ping Ltd Singa Common pore Shares ISIN Instruc 87973 Royal 2 500 25 MAR 32 500 G00005723 tions 2 Bank of 1998 00 21 does not OOOSE Can SGD Singapore match 08980 ada International Counter 45000 Singa Trading Cor party s 8 pore poration Instruc Shares tions ISIN Deliver 23432 Societe 3 600 28 MAR 52 750 G00005723 Against 8 Gener 1998 00 21 Payment OO0SE ale Sin SGD Singapore Instruc 09980 gapore International tions
588. ties 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 aai ORACLE 22 1 1 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 SEDXDLNL 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 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 Securities Deal Input E New E enter Query Product User Reference External Reference Number Product Description NET Additional Security Security Code Market Code Deal Quantity
589. ties 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 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 ar16 ORACLE 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 000SSPT980070021 Securities Identifica tion ISIN AUDBONDWAG02 Western Australia Gold Mining Bonds Trade Date 02 JAN 1998 Place of Trade Sydney Stock Exchange Delivery Date 15 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 Deposited USSB7434 540 Securities Certificate Numbers AE 10001 to AE 10015 15 x 100 000 AUD worth Bond Certificates Deliverer of Securiti
590. tificates Deliverer of Securities Elders Finance Group Sydney Securities Deliverer s Reference RYZ843 Beneficiary of Securi ties Fidelity Trust Limited New York Securities Registration Details Securities received have to be registered in the name of the Fidelity Trust Limited New York 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 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 Securities Receive Against Payment Instruction CITI 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 ie ORACLE Kind Attention Mr Richard Stevens Custodial Officer Securities Department Dear Sir Madam Please arrange to receive securities against payment as per our instructions shown below Our Reference 000SE0
591. ting Method Treasury Bill Accrual Short position Allowed Costing Method v Waccrue Discount For corpus Account Treasury Bills lauto Liquidate For Corporate Saction Statement Accrual Frequency z Actions Statement Of Transaction Accrual Start Day lBankers Acceptance Required Accrual Start Month O H epo On Today s Projected Statement Frequency X Holdings Purchase Interest Statement Start Day Statement Start Month X Holdings Statement Wipe Deal Purchase 5 Interest IBook Discount Premium Accounting Basis Book Intrinsic Value Corporate Action Notice Statement Of holdings warrants required Wicorporate Action Notice Statement Frequency C W W Rights Required Statement Start Day Statement Start Month X Notice Days Rekey For Authorization Notice Days Type 5 Contra Holding Contra Holding Validation 5 Portfolio Type Required No OYes Rekey Fields Portfolio Id Portfolio Customer Portfolio Currency Portfolio Type Bank Customer lssuer Fields Maker Checker Date Time Date Time Mod No Record Status Authorization Status Identifying Portfolio Preference Class Class Code 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 One of the characters of the code should necess
592. tion Function SE SO00620 Unhandled Exception in Security Definition Function SE SO0621 Unhandled Exception in Security Definition Function SE SO0622 Unhandled Exception in Security Definition Function SE SO00623 Unhandled Exception in Security Definition Function SE SO0624 Unhandled Exception in Security Definition Function SE SO0625 Unhandled Exception in Security Definition Function SE SO0626 Unhandled Exception in Security Definition Function SE SO0627 Unhandled Exception in Security Definition Function SE SO0651 Coupon Schedule Definition resulted in convergent Coupon Dates SE SO0652_ The Tenor of the Security does not conform to the Tenor Variance speci fied at the Product Level SE SO0653 Coupon Date missing on Redemption Date 1 SE SO0654 No Series has been defined for Redemption on Event Date 1 SE S00655 Revision Schedule Definition resulted in convergent Revision Dates 31 22 ORACLE Error Code Message SE S00656 Effective Date of Revision on Event Date 1 does not lie within the same Coupon Period as the Event Date SE SO0657 Interest Rate not populated for Interest Component 1 SE SO0658 All Interest Components have been Waived SE SO0659 Tax Rate Code not populated for Tax Component 1 SE SO0660_ The Issue date should be later than the product start date SE SO0661 The Redemption or Expiry date cannot be later than the product end date SE SO0662 The R
593. tion in Sepkss_repo fn_delete_action SE BA0013 Security Value 1 should not be less than Loan Amount 2 SE BA0014 Unhandled Exception in fn_calculate_security_val SE BA0015_ Unhandled Exception in Sepkss_repo fn_repo_release_block SE BA0016 Unhandled Exception in sepkss_repo fn_repo_authorize SE BA0017 Old Deal Reference cannot be Null SE BA0018_ Copy Flag should be either V or N SE BA0019 Select from Cstb Contract failed 31 24 ORACLE Error Code Message SE BAO0020 Select from setbs_deal_master failed SE BA0021 Unhandled exception in fn_project_balance SE BA0022 Unhandled exception in fn_get_pfolio_balance SE BA0023 Unhandled exception in fn_get_balances SE BA0024 Unable to insert into setb_pfolio_vdated_movmnts SE BA0025 Unable to insert into setb_pfolio_skacbalances SE BA0026 Unable to get record from setb_pfolio_skacbalances SE BA0027 Unhandled exception in fn_upd_vbal_opening SE BA0028 Failed to get the commit frequency SE BA0029 Unable to get record from sevw_pfolio_skacbalances SE BA0030 Cannot settle Sell deal 1 Deal quantity 2 is greater than Available bal ance 3 SE BAO031 Unable to get record from sevw_pfolio_skacbalances SE BA0032 Failed to get the Next Processing Date SE BA0033 Unable to insert record into setb_event_log SE BA0034 Unable to lock record 1 S
594. tive Indicator Accrual of Int Rec Standard INT Standard Debit RCPY COMP_IA Intcomp_RCPY can be used Accrual of Int Inc Memo Alternative INT Standard Credit COMP_IA Advices No advices allowed for this event 32 4 3 23 CPIN Coupon Init Accounting Entries Accounting Role Amount Tag Dr Cr Indicator SEC COUPON PAY SE_FL_INT_IINI Credit 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 RECV SE_FL_INT_ICOL Credit SEC SETTLEMENT SE_FL_INT_ICOL Debit SEC COUPON RECV SE_FX_INT_ICOL Credit SEC SETTLEMENT SE_FX_INT_ICOL Debit Advices No advices allowed for this event pares ORACLE 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 SE_FX_INT_IMEM SE_FX_INT_TIAC Debit SE_FX_INT_I SE_FX_INT_TIAC Credit SE_FX_IN
595. tlement Date Actual MSTL Date J Certificates Other Details Advice DealMatch Limits Parties Brokerage Events MIS Details Settlements Charges Walk inFrom Net Consideration Tax LimitsTo Walk in To Authorization Status Status Maker Id Checker Id Date Time Checker Stamp 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 22 10 Liquidating a Deal Details about liquidating a deal are explained below 22 40 ORACLE 22 10 1 22 10 2 22 11 Money settlement 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 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 Security settlement
596. to copy the Product Details SE PO0078 Record cannot be Modified after the Event Date SE PO0079 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 Error Codes and Messages for Others Error Code Message SE BTCH 002 Failed in building array for a function SE BTCH 003 Failed in population of branch batch queue SE BTCH 004 Failed in batch processing for a day SE BTCH 005 Failed in processing task SE BTCH 006 Failed in unmarking end of transaction input SE CFLP 001 Cannot process Coupon Flipping SE CFLP 002 Cannot process Position SE CFLP 003 Cannot populate Securities Movements SE CPOP 001 Failed to populate Coupon for branches SE CPOP 002 Failed to populate Coupon SE CPOP 003 SK Account Currency different from Issuer payment Currency SE CPOP 004 Failed in processing tax due SE CPOP 005 Failed in charge processing SE CPOP 006 Failed in processing transaction level tax SE CPOP 007 Failed in processing Settlements SE CPOP 008 Failed in inserting coupon due record She ORACLE Error Code Message SE CPOP 009_ Failed in logging exception when populating coupon SE CPOP 010 Failed in populating coupon for branches SE CPOP 021 Next working date cannot be null
597. tomatic events that fall on a holiday in the Branch Parameters screen 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 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 For example consider the following securities held in a portfolio at your bank Portfolio Security ID 14 ORACLE 4 3 3 4 3 4 PF1 SE01 PF1 SE02 PF1 SE03 PF1 SE04 The security currency for SE01 SEO2 and SEO3 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 1 PF1 SE01 2 PF1 SE02 3 PF1 SE03 4 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
598. top right corner of the Application tool bar and click on the adjoining arrow button Portfolio To Portfolio Deals Report ReportFormat PDF Printer At Client Report Output Print Printer ome ORACLE 34 12 1 Refer the Reports User Manual for details about fields on this screen 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 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 associ ated with the deal get settled Adjusted Deal Price This is the price of interest bearing instr
599. top right corner of the application toolbar and click the adjoining arrow button Security Repo Payment Input E Enter query Contract Reference Number a Ot Syndication Reference Number Counterparty Counterparty Name Status Outstanding Amount Currency Outstanding Principal Amount Outstanding Amount Repayment Effective From Date and Amounts for Population of Components Due Allocation of Amounts Paid Value Date Limit Date Limit Amount Local Currency Equivalent Total Paid Local Currency Equivalent Total Pre paid Local Currency Equivalent Other Details Liquidated Nominal Local Currency Equivalent Discount Rate Payment Breakup 1 Of 1 E Component AmountDue Overdue AmountPaid InterestPrepaid Tax Prepayment Penalty Rate Adjustment Amount Events Breakup Settlement Split Advice Charges Tax MIS Fields Makerld Authorized By Date Time Date Time Contract Status You can capture the following in this screen Contract Reference Specify the contract reference number Outstanding Amount Specify the outstanding balance amount Outstanding Amount Repayment Specify the outstanding amount repayment Counterparty Specify the counterparty details Currency Specify the currency 30 3 ORACLE Syndication Ref No Specify the syndication reference number Status Specify the status of payment Effective from Enter the date for which the rate sh
600. topping 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 Note 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 aa ORACLE 5 1 5 Maintaining Price Details 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 Pri
601. tract SE PO0016 Security Allowed flag can t be changed if Security ID is null SE PO0017 Contract was input by 1 Cannot be deleted SE PO0018 Cannot delete a once authorised record SE PO0019 Record successfully deleted SE PO0020 Are you sure you want to close the contract SE PO0021 User Reference No already exists SE PO0023 Input Counterparty SE PO0024 Input Currency SE PO0025 Enter the Product Code SE PO0026 Keeping Location to Account mapping not maintained for this portfo io SE PO0027 Contract Reference Number does not exist for this portfolio SE PO0029 Contract shall be put on HOLD status SE PO0032 Pickup failed ote ORACLE Error Code Message SE PO0033 Unauthorized record cannot be unlocked SE PO0034 Unauthorized record cannot be closed SE PO0035 Failed to copy the portfolio security restrictions SE PO0036 Referral Failed SE PO0037 Unauthorized record cannot be reopened SE PO0038 Contract put on hold successfully SE PO0041 For Bank Portfolio and WAC costing method Accrue Premium flag should have the same value as that of Accrue Discount flag SE PO0050 Mandatory Field 1 is null SE PO0051 Location ID cannot be deleted as it is in use SE PO0052 For WAC Costing Method Redemption Premium is not allowed SE PO0053 For Non Accrual or Cash Asset Accounting Basis Pr
602. ty Details deals with specifying a quantity of p securities to be stopped from being traded in the market Chapter 26 Batch Processes documents the Beginning and End of Day functions that are processed by the system Customer Correspondence explains the various types of advices gener Chapter 27 ae ated at each stage for the Securities module Chapter 28 Making Queries tells you how to make queries for specific information p The steps to be followed to build a query are also detailed here Handling Repos discusses the details that you need to maintain in the Chapter 29 ie Securities module to process Repo and Reverse Repo deals Printing Subsidiary General Ledger Form Repo and Reverse Repo Deals Chapter 30 explains the process to track and maintain the subsidiary general ledger form and Security Repo Payment Chapter 31 Error codes and Messages for Securities lists the error messages that you P may encounter while working with Oracle FLEXCUBE Annexure A Accounting Entries and Advices for the Securities module Chapter 32 lists the suggested event wise accounting entries and advices for the Securities module Chapter 33 Glossary provides the list the important terms and its definition Chapter 34 Reports explains the various report programs and reporting features avail able under the Securities module Chapter 35 Function ID Glossary has alphabetical listing of Function Screen ID s used in the module with page references for quick nav
603. ty ROSIICHON eese peszzeechangennevents EEEE EEE A EET EEEE EE 13 3 13 A3 S CUMy ACCOSS oeii a E E TE E enlist 13 3 Maintaining Portfolio Restriction Classes ssssssssnneeenenennnnrnnnnnnnnnnns 14 1 14 12 INtrOdUCTION Aer iA etna ES AE PL ae iA AE AE 14 1 14 2 Specifying the Portfolio Restriction Classes 0 cccceeeeeeceeeeeeeetceeeeeeeeeneeeeeeeeaas 14 1 742 Pornliollo ACCOSS irria R EE AAO ee ae et 14 3 14 3 Viewing Securities Portfolio Safe Keeping Location Balances Summary 14 3 14 4 Viewing Securities Portfolio Safe Keeping Location Movements Summary 14 5 Defining Attributes of a Securities Product cccceceeeeeeeeeeeeeeeeeeeees 15 1 15 1 IntrOduCtiON sseni ra niin Pabedan 15 1 131 1 Produet TYPO seporin aa aE A tea ibis oceans Ma nee higen esas eaten 15 2 15 1 2 Exchange Rate Variance eerren netni anr A aE 15 2 15 2 Specifying Preferences for a Product ssssesssseeseessssssesrneserennnesssnnnenetennesettennene 15 2 15 Coupon Processihg asis dutt aTa Ara r EnA EEA EAEE EO TAA rA E EESTE 15 3 15 4 Capturing Interest Details 00aeseeeaeeesssneeennrsssessnnnnetinnnnenennnnaennanaadtennnnannnnanaatannne 15 5 15 4 1 Specifying Interest Type Details cccceececeeeesee eee eeenceeeeeseneaaeteeteeenantees 15 5 15 4 2 Specifying Event Details ccccccccccseeeeeeneeeeeteeeeeeeeeseeeeeeeeseeeaeeeeenenaeeees 15 5 Defining Attributes of a Portfolio Product cccccceeeeeeee
604. typing SEDXEXPD 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 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 amp Enter Query 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 Maker Date Time Checker Date Time Mod No Record Status Authorization Status You can amend the details of an existing rights warrants type of security by clicking on the unlock icon in the toolbar or by choosing Unlock from the Actions Menu Note Please remember that you can change the details of an existing rights warrants type of se curity only if it is not yet authorized Once a record is authorized and confirmed it will be processed as of the event date 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 Fo
605. u 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 have already been liquidated e The amount that was liquidated e The currency in which it was liquidated e220 ORACLE 22 2 5 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 d
606. u 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 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 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 The following transaction taxes apply on all the securities deals that you enter into A Stock Exchange tax
607. ucts 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 securities 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 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 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 Wh
608. ugh 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 Deal Related Advices 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 you input a securities deal where either your bank your custody customer is the trade counterparty and the receipt of securities is free
609. ule Components during Settlements pickup SE ONL111 Error Processing Module Components for Net consideration SE ONL112 Error Processing Interest Components for Net consideration SE ONL113 Error Processing Tax Components under Net consideration SE ONL114 Error processing Parties CIF record missing SE ONL115 Error inserting into Unrel Unmatch Table SE ONL116 Error processing exposures SE ONL117 Error processing clean risk SE ONL118 Error inserting into Securities Event Log SE ONL119 Error inserting Core Contract control table SE ONL120 Error updating Core Contract control table SE ONL121 Error inserting Core Contract event log table SE ONL122 Error retrieving Spot Price SE ONL123 Error processing event 1 SE ONL124 Error authorizing event 1 SE ONL125 Error retrieving data from Core Contract control table SE ONL126 Error Deleting contract SE ONL127 Error inserting Deal Master SE ONL128 Error inserting Deal Detail 31 41 ORACLE Error Code Message SE ONL129 Error inserting into Deal Matching tables SE ONL130 Error copying contract SE ONL131 Error splitting price SE ONL132 Error retrieving Face Value SE ONL133 Error retrieving Market Price SE ONL134 Error handing off messages SE ONL135 Error retrieving DCN SE ONL136 DEAL_NOMINALAMT not defined in product accounting entry SE ONL137 Active or Unauthorized Revers
610. uly to 31 December If the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen 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 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 Price Number of units held For example you enter a deal in Oracle FLEXCUBE to buy 100 units of equ
611. um Debit Sec Premium Paid Accrued on Sold Units Previous Year s Con Expense GL tribution ACCR_PRM_X SEC_PREM_TOTACCR_PY Total Premium Credit P_MEM Accrual of Accrued on Sold Units Previous Year s Con Premium Expense tribution Memo GL 32 22 ORACLE Accounting Role Amount Tag Debit credit Indicator SEC PREM PAID SEC_PREM_TOTACCR_CY Total Premium Debit Sec Premium Paid Accrued on Sold Units Current Year s Con Expense GL tribution ACCR_PRM_X SEC_PREM_TOTACCR_CY Total Premium Credit P_MEM Accrual of Accrued on Sold Units Current Year s Con Premium Expense tribution Memo GL 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 Debit Credit Description Indicator SEC BRIDGE SEL Security INTCOMP_PUCMA Sold Interest Debit Bridge GL SALE Interest Accrued INTCOMP_BOT Deal Pur INTCOMP_PUCMA also Pur Credit chase Interest chased 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 Accrued Advices No advices allowed for this event 32 23 ORACLE
612. uments exclusive of the interest component Interest Amount This is the amount of accrued interest to be paid or received Reference Number This is the reference number Buy Sell This is Buy Sell Portfolio Id This is portfolio Id Portfolio Description This is portfolio description 34 13 Matched Unmatched Confirmation Message Report You can generate this report using the Matched Unmatched Confirmation Messages screen 34 17 ORACLE 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 contents 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 List Of Selected Messages 1 Of 1 Selected Messages Report Format PDF Printer At Client Report Output Print Printer 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
613. unt 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 Note 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 Note the Following This option will be disabled if the bank level parameter COMMON_YLD_ACCR is set to Y ite ORACLE Asynchronous revision cannot be enabled if the Premium Discount for Current In terest Period is checked 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 i ry 2i Ady 3 e R P H A y Where Po is the Purchase price of the Bond N is the Total number of coupons C is the Coupon payment for coupon i Yq is the Periodic YTM Yo is the Annualized YTM A is the Day Count Method Denominator nis the Coupons in a Year P is the Period of Reinvestment If Null defaulted to A n R P is the Redemption Price Al is the Accrued Interest Ad
614. ura 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 aria ORACLE 27 2 14 Identification of Securities for which Cou pon has been Paid ISIN USFRNICIO007 IC Industries Finance Corporation Guar anteed FRN 1996 Securities Safekeeping Account 2938451 Quantity of Securities for which Coupon has been paid 2 000 000 00 Face Amount Coupon Number Collected 004 Coupon Due Date 01 APR 1998 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 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 Securities Advice of Income in the Form of Securities Credit Commercial de France 24 Kiosk Arcade Charles de Gualle Avenue Paris FRANCE ZIP 5690 456 27 26 15 APR 1998 London ORACLE 27 2 15 Sub Advice of Income in the Form of Securities Kind Attention Mr Richard Gere Chief Dealer Securities Department Dear Sir Madam Bonus Issued Plea
615. urage 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 A T Bill worth 50 000 000 00 FV is Bought on 1 Sep 2002 Maturing on 08 Aug 2003 at Annual Yield rate of 13 oie ORACLE 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 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 Amortized 127 800 D15 B14 D14 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
616. urity 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 For example suppose that 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 SECO1 SECO2 SEC03 SEC04 and SECO5 You are maintaining a Securities Restrictions Class SE_CUS_PR1 You include SZC1 in the Allowed list 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 18 ORACLE 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 194 ORACLE 14 1 14 2 14 Maintaining Portfolio Restrict
617. usted Deal Amount SEC_DEAL_AMOUNT Securities Deal Amount TBD_WHT_SELL T Bill Discount Tax Sell 32 3 ORACLE 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 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 Sec Short Holdings MTM Realized Reval Expense HLDG_RS_MTM_INC Sec Short Holdings MTM Realized Reval Income HLDG_
618. vices allowed for this event 32 30 ORACLE 32 4 3 21 WXLL Expiry of Un Exercised Warrants 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 SEC RLZD LOSS WARR_INTR_VALUE Debit WARRS ASSET GL WARRS ASSET GL Credit Advices No advices allowed for this event 32 4 3 22 IACR Securities Coupon Interest Accrual Accounting Entries 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 32 31 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 g Alternative Tags Alterna
619. volved 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 4 0 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 22 28 ORACLE e The deal price e The spot price e 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 5 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 deal leg Party Details x Leg Reference Number 103BS0813217000 Description Mesaages 10f1 F Advice Code Advice Description Partyld PartyName Address1 Address2 Address3 Address4 Address m
620. w 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 19 21 ORACLE 19 5 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 for Local Instrument Changed
621. wed 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 suppose that 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 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 Mapping Accounts to a Safe Keeping Location While setting up a portfolio you can indicate the default account at a safe keeping
622. when it is liquidated before the liquidation date i e the actual value obtained on the T Bill when you redeem it prior to the maturity date LCY Equivalent Specify the local currency equivalent for the liquidated nominal value of the amount The local currency equivalent is calculated using the standard rate in case of cross currency transactions Payment Breakup Component Specify the component that has to be maintained Amount Due Enter the details of the amount due for repayment in this field Overdue Specify the balance that is overdue Amount Paid Specify the paid amount Interest Prepaid Specify the profit prepaid for the component Tax Specify the amount paid in tax or ORACLE 31 Error Codes and Messages for Securities 31 1 Error Codes and Messages Error Code Message SE MA0001 New user and current user must be different SE MAO0002 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 MA0006 The Portfolio Contract Reference Number is not valid for the Product Code selected SE MA0007 al 1 has been reassigned from User 2 to User 3 by User gan 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 co
623. 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 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 Events 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 Note Triggering the event AICN completes the accrual of interest if accruals are due The AICN event is triggered before the events fo
624. will examine an example and apply each basis method to it 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 when you sell the bond Dr Customer USD 20 Cr Asset USD 10 Cr Premium USD 5 119 ORACLE 11 2 6 11 2 7 11 2 8 Dr Customer USD 20 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 When you sell the unit at USD 20 Dr Customer USD 20 Cr Asset USD 10 Cr PTBA USD 4 Cr Profit and Loss USD 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 rig
625. will return a fault message 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 Securities Deal input E New enter Query Product User Reference External Reference Number Product Description ET Additional Security Security Code Market Code Deal Quantity Price Quote Price Input Price Price In Local Currency Absolute Price Securities From Leg Product Portfolio Counterparty Safe Keeping Location Safe Keeping Account Securities To Leg Product Portfolio Counterparty Safe Keeping Location Safe Keeping Account Source Deal Reference Security Description Market Description Trade Date DSTL Date Local Currency Quantity Original DSTL Date Deal Input Time Yield Leg Product Description Description Description Leg Product Description Description Nescrintion Px R Accommodate Lodge Auto MSTL Accompany Withdraw Auto MSTL Version Block Deal Reference Reversed Contract Ref No Option Type f Fy Interest Deliver Interest Date Receive Maturity Date Transaction Date Quote By Leg Reference User Reference Broker Id Money Settlement Date Actual MSTL Date Leg Reference User Reference Broker Id Money Set
626. y 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 15015022 box unchecked to indicate the same a ORACLE 8 Building Branch amp Currency Restriction Classes 8 1 8 2 Maintaining Restrictions as Classes 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 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 For example suppose that you offer a special portfolio management facility christened Safe Fast Buck Requirement e You would like to offer this facility only in selec
627. y 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 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 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 Tear off Exercise Expiry e Bonus e Warrants Tear off Exercise 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 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 l
628. y date Security Definition EiNew Enter Query Security Id Security Description Product _ Security Type ISIN Identifier Security Status Trading Status Security Reference Interest Type Main Interest Others Market Of Issue Issuer Code Registered Bearer Quantity Quotation Fractional Quantity a Form Type Price Quotation Decimals Redemption Type Interest Quotation X E Equated Redemption Redemption Quotation F Confirm Corp Action Renounceable F Call Option E Put Option Security Currency aZ Payment Currency laz Face Value Issue Size Issue Date Outstanding Issue Size Min Trading Size Lot Size Start of Interest Date Start of Trading Date Redemption Date Issue Price Current Face Value Redemption Price Status Series Coupon Revision Redemption Schedule Interest Tax MIS Fields Input By Contract Status Date Time Authorized By Date Time I Authorized 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 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 4 ORACL
629. y 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 For example suppose that a user enter a deal to sell 100 units of a bond that belongs to the customer portfolio PF01 The deal involves a product for which the re key field assigned is the Portfolio ID Now the user makes a mistake and enters the Portfolio ID as PF02 The authorizer selects the deal for authorization and indicates the re key field of Portfolio ID as PF01 The details of the deal will not be displayed When this happens the authorizer can inform the user of the mistake and it can be rectified The deal details will not be displayed if 124 ORACLE e The value in the field that has to be rekeyed has been entered wrongly at the time of deal definition e The re key value is entered wrongly at the time of authorisation It could also be that the user had correctly captured the Portfolio ID as PFO1 but the authorizer made an error while entering the re key value In such a case also the details of the deal will not be displayed for authorisation 12 2 7 Specifying Other Preferences Besides the above preferences you can also specify the following e Forward deals allowed
630. y 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 i ORACLE The chapter Querying the System for details discusses this feature elaborately os ORACLE 4 1 Introduction 4 General Maintenance 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 Note The basic information necessary for the successful operation of the securities module should be periodically reviewed and updated to reflect the latest changes 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 Maintenance scree
631. you can build a Portfolio Product Defining Attributes of a Deal Product explained in this chapter is the pro Chapter 17 E cedure of building a Deal Product Defining a Product Combination chapter deals with setting up products Chapter 18 ee that cater to deal combinations Chapter 19 Maintaining a Security explains the details that you need to enter to main tain a security Maintaining and Processing Corporate Actions enables you to understand Chapter 20 the maintenance of corporate actions and the processing of corporate action events Chapter 21 Defining Portfolios deals with setting up of Portfolios for the Bank your customers and for an Issuer of securities Ve ORACLE Processing a Securities Deal deals with processing the following types of Securities deals e Bank portfolio buys and sells Chapter 22 e Customer buys and sells e Standalone lodge and withdraw e Safe keeping location SKL to SKL transfer e Block securities Chapter 23 Processing a Block Securities Deal explains the manner in which block p deals are processed in Oracle FLEXCUBE Transferring Securities across Locations explains how to transfer securi Chapter 24 ties from one Safe Keeping location to another or from one account to P 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 25 Maintaining Block Securi
632. ype 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 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 Note 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 Note After a form number is assigned to a deal you cannot reuse the number even on reversal of the deal associated with it one ORACLE 30 2 Maintaining Security Repo Payment You can maintain the details for security repo payment in the Security Repo Payment Input screen To invoke the screen type SRDPAMIN in the field at the

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