Skip Headers

Oracle Transfer Pricing User Guide
Release 12.1
Part Number E13524-03
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

User Defined Repricing Pattern

This chapter discusses the procedure for working with and managing user defined repricing patterns.

This chapter covers the following topics:

Overview of Repricing Patterns

User defined repricing patterns provide a mechanism to capture instrument repricing patterns that are too complex to be accommodated through the use of the standard account table fields. See: Defining Repricing Patterns.

The procedure for working with and managing repricing patterns is, to a certain extent, similar to that of other Oracle Transfer Pricing business rules. It includes the following steps:

Related Topics

Standard Navigation Paths

Searching for Repricing Patterns

Search for a repricing pattern to perform any of the following tasks:

Prerequisites

Procedure:

  1. Navigate to the Repricing Pattern home page. This page is the gateway to all repricing patterns and related functionality. You can navigate to other pages relating to repricing patterns from this point

  2. Use the Search.

    1. Select the type of search: Code or Description.

    2. Enter the code or description of the pattern.

    3. Click Go.

      Only patterns that match the search criteria are displayed.

Related Topics

Overview of Repricing Patterns

Standard Navigation Paths

Creating Repricing Patterns

You create Repricing patterns to capture the repricing behavior of instruments whose rates change according to complex schedules.

Procedure:

  1. Navigate to the Repricing Pattern home page.

  2. Click Create Repricing Pattern.

    The Create Repricing Pattern page is displayed.

  3. Type a code value for the new Repricing Pattern.

    Important: The code is a numeric internal identifier for the repricing pattern. The code value must be a number between 500 and 998 and the code value you assign to the new pattern must be unique. In addition, the code must be mapped to the appropriate instrument records (ADJUSTABLE_TYPE_CODE field) to connect the instrument to the appropriate pattern.

  4. Type a brief description for the pattern.

    Note: If you do not provide a description for the pattern at the time of its creation, the system automatically generates a generic description: Repricing Pattern: Code Value.

  5. Select the Repricing Pattern Type: Absolute or Relative.

    The selection of the repricing pattern type determines the fields that are displayed in the Repricing Events table and the information you must provide to successfully define that pattern type. See:

    Note: The Create Repricing Pattern page displays the parameters associated with the Absolute repricing pattern type, which is the default repricing pattern type value. If you change this value to Relative, the system refreshes the repricing specifications corresponding to the new pattern type, and any data entered previously is lost. However, a warning message is displayed when you change the pattern type. The data is discarded only after your confirmation.

Related Topics

Overview of Repricing Patterns

Defining Repricing Patterns

Standard Navigation Paths

Defining Absolute Repricing Patterns

The Absolute repricing pattern is used for instruments that are date dependent. Each specific date is a separate event. You need to enter the month and day for each event, except for the initial event.

Prerequisites

Procedure:

This table describes some terms in the pages used for this procedure.

Selected Terminology
Term Description
Month In conjunction with the Day field, this drop-down menu, allows to you to specify a unique month-day combination for a repricing event.
Day In conjunction with the Month drop-down menu, this field allows you to specify a unique month-day combination for a repricing event.
Repricing Type A read-only field, it displays the repricing type, Flat rate or Indexed rate, associated with a particular event.
Update Allows you to update the definition of specific repricing events.
Delete Allows you to delete specific rows in the Repricing Events table.
  1. Click Create Event.

    The Create Event page is displayed.

  2. Select the Repricing Type: Flat or Indexed.

    The default is Flat. If you select Indexed, the system automatically changes the fields available for entry. See: Indexed Repricing.

    Note: You can change your selection of the repricing type at any point in this process. Sometimes it may cause a loss of data. However, a warning message is displayed when you change the repricing type. The data is discarded only after your confirmation.

    Flat Repricing

    A Flat rate is a specific rate—it is directly input. See: User Defined Repricing Event.

    To define a Flat Repricing Event, complete the following steps on the Create Repricing Events page:

    1. Enter the Net Rate.

    2. Enter the Gross Rate.

    3. Enter the Transfer Rate.

      Important: You must enter a valid value for at least one of these rate fields.

    4. Click Apply.

      The Create Repricing Pattern Page is displayed.

    5. Specify the required month-day combination for the event.

      Note: You cannot specify a month-day combination for the first event as this row is reserved for the initial period.

      At this point, you have the option of defining additional events or saving. To add an additional event, repeat Step 1: Click Create Event. If you want to save the repricing pattern and events, advance to the next step.

    Indexed Repricing

    An Indexed rate is a set of parameters used to calculate a rate. See: User Defined Repricing Event.

    To define an Indexed Repricing Event, complete the following steps on the Create Repricing Events page.

    1. Select the Indexed Repricing Type.

    2. Click Go.

      The fields associated with the Indexed repricing type are displayed.

    3. Enter the Interest Rate Code.

      Alternatively, select it from the list of values.

    4. Enter the Transfer Interest Rate Code.

      Alternatively, select it from the list of values.

    5. Enter the Net Margin.

    6. Enter the Gross Margin.

    7. Enter the Transfer Margin.

    8. Enter the Rate Cap Life.

    9. Enter the Rate Floor Life.

    10. Enter the Rate Set Lag and select the appropriate Multiplier.

    11. Enter the Yield Curve Term and select the appropriate Multiplier.

    12. Click Apply.

      The Create Repricing Pattern page is displayed.

    13. Specify the required month-day combination for the event.

      Note: You cannot specify a month-day combination for the first event as this row is reserved for the initial period.

      At this point, you have the option of defining additional events or saving. To add an additional event, repeat Step 1 Click Create Event. If you want to save the repricing pattern and events, advance to the next step.

  3. Click Apply.

    The repricing pattern is saved and the Repricing Pattern home page is displayed.

Related Topics

Defining Repricing Patterns

Creating Repricing Patterns

Defining Relative Repricing Patterns

The Relative repricing pattern is used for instruments where the repricing is determined by elapsed time since origination. Defining a Relative repricing pattern involves the definition of a series of repricing events applicable to a specific repricing pattern code. You need to specify the length of each repricing period and the number of times that event should occur before calculating the next event in the pattern.

Prerequisites

Procedure:

This table describes some terms in the pages used for this procedure.

Selected Terminology
Term Description
Frequency In conjunction with the Multiplier drop-down menu, this field allows you to specify how often repricing occurs.
Multiplier The unit of time applied to the frequency. The choices are:
  • Days

  • Months

  • Years

Repeat Allows you to specify the number of times a repricing event should be repeated.
Repricing Type A read-only field, it displays the repricing type, Flat rate or Indexed rate, associated with a particular event.
Update Allows you to update the definition of specific repricing events.
Move Up Allows you to move a particular row up by one position.

Note: The icon of the first and second rows is not active.

Move Down Allows you to move a particular row down by one position.

Note: The icon of the first and last rows is not active.

Delete Allows you to delete specific rows in the Repricing Events table.

The steps to create Relative repricing patterns are similar to creating Absolute repricing patterns. See: Defining Absolute Repricing Patterns.

The only difference is that the fields in the Repricing Events table are different. You need to specify the following parameters in the Repricing Events table for a Relative repricing pattern:

Related Topics

Defining Repricing Patterns

Creating Repricing Patterns