16. Defining Attributes of a Portfolio Product

16.1 Introduction

In this chapter, we shall discuss the manner in which you can define attributes specific to a Securities Portfolio product.

You can create a securities portfolio product in the Securities Portfolio Product Definition screen, invoked from the Application Browser. In this screen, you can enter basic information relating to a Portfolio product such as the Product Code, the Description, etc.

You can invoke the ‘Securities Portfolio Product Definition’ screen by typing ‘SEDPFPRD’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

For any product you create in Oracle FLEXCUBE, you can define generic attributes, such as 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:

Product Type

The first attribute that you define for a portfolio product is its type. You can broadly classify portfolio products into three types:

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.

This chapter contains the following section:

16.2 Exchange Rate Variance

For a special customer, or in special cases, you may want to use an exchange rate (a special rate) that is greater than the exchange rate maintained for a currency pair. The variance is referred to as the Exchange Rate Variance.

When creating a product, you can express an Exchange Rate Variance Limit in terms of a percentage. This variance limit would apply to all portfolios associated with the portfolio product.

Override Limit

If the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit, you can save the transaction (involving the portfolio) by providing an override.

Stop Limit

If the variance between the default rate and the rate input varies by a percentage greater than or equal to the Rate Stop Limit, you cannot save the transaction involving the portfolio.

16.3 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.

All portfolios maintained under a portfolio product will inherit the preferences that you define for the product.

Click ‘Preferences’ button to invoke the Portfolio Product Preferences screen. In the two tabs (titled ‘Main’ and ‘Details’) in this screen, you can define preferences for the product that you are creating.

The preferences that you can specify are spread over two screens:

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:

Note

The values of accrual method maintained in this screen get defaulted in portfolio creation for the selected product.

Product Restriction

Branch Restrictions

Indicate whether you want to create a list of allowed branches or disallowed branches by choosing one of the following options:

Categories List

Indicate whether you want to create a list of allowed customers or disallowed customers by choosing one of the following options:

Currency Restrictions

Indicate whether you want to create a list of allowed currencies or disallowed currencies by selecting one of the following options:

The ‘Other’ Portfolio Product Preferences screen.

When defining a portfolio product, you can choose to specify preferences for the product, either by

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 Specifying the Security Portfolio Instrument Restric­tions

Securities Portfolio Instrument Restrictions screen is introduced to maintain the Instrument restrictions for Securities Portfolio Products.

You can invoke the ‘Securities Portfolio Instrument Restrictions’ screen, type ‘SEDPFINR’ in the field at the top right corner of the Application tool bar and click on the adjoining arrow button.

 

Product Code

Specify the product code. Alternatively, you can select the product code from the list.

Product Restriction

The description will be displayed based on the Product Code selected.

Instrument Restrictions

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.

Class Description

The description will be displayed based on the Class Code selected.

Security Restrictions

A security restriction identifies a unique list of allowed or disallowed security products.

Product 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.

Product Description

It is the Description of Security Product Code that you choose to Allowed/Disallowed list.

Security Product Security Access

Internal Security Id

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

Product Code

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

Security Description

It is the description of Security Identification.

Restriction Type

You can specify portfolio restrictions in the form of an allowed, or disallowed list.