13. Security Restriction Classes

13.1 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:

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:

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.

13.2 Security Restrictions

This section contains the following topics:

13.2.1 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.

On the Summary screen, double-click on a class to open it.

13.2.2 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 restrictions in the form of an allowed or a disallowed list.

You cannot deal in security products that are not listed in the allowed list of Security Restrictions Class. If you have maintained a disallowed list for a class, security products that do not figure in it can be involved in deals linked to the product (to which you associate the restrictions class).

You can indicate if you are maintaining an allowed or a disallowed list type by choosing the appropriate option under this field.

13.2.3 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.

13.2.4 Security Access

Security Identification

It is the Internal Security Id for which Security Product has been maintained under Securities Security Product Definition.

Product

It is the Security Product Code that has been maintained under Securities Security Product Definition.

Security Description

It is the description of Security Identification.

Click add icon to display the list of Security Ids through its option list which has been maintained under Securities Security Product Definition. You can choose to move them to the Allowed / Disallowed List.

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: SEC01, SEC02, SEC03, SEC04, and SEC05.

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, SEC05.

All securities maintained under the different security products will be displayed in the Security ID, column under Security Access.

Highlight the security SEC05 in the Security ID column.

In the Restriction Type column corresponding to SEC05, 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 SEC05.