1. Preface

1.1 Introduction

This manual is designed to help you maintain and process Over the Counter dealings in Interest Rate and Currency Options in Oracle FLEXCUBE. It also assists you in handling all the necessary activities in the life cycle of an OCT instrument once it is booked. This includes the generation of messages and reports, the accrual and liquidation of interest components, the application of charges and taxes and so on.

1.2 Audience

This manual is intended for the Customer Service Representatives (CSRs) and staff in charge of setting up new products in your bank.

1.3 Documentation Accessibility

For information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.

1.4 Acronyms and Abbreviations

The following are some of the acronyms and abbreviations you are likely to find in the manual:

	Acronyms		Abbreviations
	OTC		Over the Counter
	IRO		Interest Rate Options
	CO		Currency Options
	EOD		End of Day
	BOD		Beginning of Day
	FV		Face Value
	TV		Time Value
	IV		Intrinsic Value
	System/the system		Oracle FLEXCUBE system (unless otherwise specified).

1.5 Organization

This manual is organized as follows:

	Chapter		Description
	Chapter 1		About this Manual gives information on the intended audience. It also lists the various chapters covered in this User Manual
	Chapter 2		Over The Counter Options - An Overview gives a snapshot of the features that the module provides.
	Chapter 3		General Maintenance explains the necessity of maintaining Branch Param­eters, Contract Fair Value details and Limit Tracking details.
	Chapter 4		Defining Attributes Specific to OTC Products describes the procedure to define attributes specific to derivative products.
	Chapter 5		Processing OTC Option Instrument lists and explains the details of an OTC option and describes how you can capture an OTC instrument.
	Chapter 6		Automatic Daily Processing documents the Beginning and End of Day functions that are processed by the system.
	Chapter 7		Annexure A- Event-Wise Accounting Entries and Advices for your OTC Options contains an event-wise list of suggested accounting entries and advices for the module. The advices generated are also documented here.
	Chapter 8		Annexure B – Examples of Processing Interest Rate and Currency Options in Oracle FLEXCUBE gives examples of processing actual Interest Rate and Currency options in Oracle FLEXCUBE.
	Chapter 9		Reports lists the possible reports that can be generated for the module.
	Chapter 10		Function ID Glossary has alphabetical listing of Function/Screen ID's used in the module with page references for quick navigation.

1.6 Related Documents

• The Procedures User Manual
• The Messaging System User Manual
• The Central Liability User Manual
• The Products User Manual

1.7 Glossary of Icons

This User Manual may refer to all or some of the following icons.

	Icons		Function
			Exit
			Add row
			Delete row
			Option List