16. Define Attributes of a Portfolio Product
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.
16.1.1 Process Security Portfolio Process Definition
This topic describes the systematic procedure to define attributes of a portfolio product.
Prerequisite:
Specify User ID and Password, and login to Homescreen.
1.On Homescreen, specify SEDPFPRD in the text box, and click next arrow.
Step Result: Securities Portfolio Product Definition screen is displayed.
Figure 16.1: Securities Portfolio Product Definition
2.On Security Portfolio Product Definition screen, specify the fields.
For any product you create in Oracle Banking Treasury Management, 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 Banking Treasury Management User Manuals under Modularity:
•Product Definition
•Interest
•Settlements
Table 16.1: Securities Portfolio Product Definition - Field Description
|
Field |
Description |
|---|---|
|
Product type |
The first attribute that you define for a portfolio product is its type. You can broadly classify portfolio products into three types: •Customer Portfolio •Bank Portfolio •Issuer Portfolio •Collateral 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. note: Bank can create a Collateral Portfolio to hold security (pledged and received) as a part of Repo or a Reverse Repo transaction. Also, All Bank Portfolio Validations are applicable to Collateral portfolio. |
|
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. |
3.On Securities Portfolio Product Definition screen, click preference.
Step Result: Product Reference screen is displayed.
Figure 16.2: Product Preference
4.On Product Preference screen, specify the fields.
Preferences are the options that are available to you for defining the attributes of a product. The following are examples of portfolio preferences.
•The Preferred Costing Method (Weighted Average, Deal Matching, FIFO, FILO)
•The Revaluation details (Basis, LOCOM Basis, Method, Frequency, and Start Date)
•The Forward Profit and Loss Accrual details
•The Premium/Discount Accrual details
•The Redemption Premium Accrual details
•Corporate Action Notice details
All portfolios maintained under a portfolio product will inherit the preferences that you define for the product.
5.Accrual Method
•30(Euro)/360
•30(US)/360
•Actual/360
•30(Euro)/365
•30(US)/365
•Actual/365
•30(Euro)/Actual
•30(US)/Actual
•Actual/Actual
•30(Euro)/364
•30(US)/364
•Actual/364
note: The values of the accrual method maintained in this screen get defaulted in portfolio creation for the selected product.
Table 16.2: Field Description
|
Field |
Description |
|---|---|
|
Trade Date Accounting |
Check this box to indicate that the accounting events for Securities position movement (SPLP, SSLP, SPSP or SSSP) should be triggered on the trade date itself for the portfolios defined using the product. |
|
Branch Restrictions |
Indicate whether you want to create a list of allowed branches or disallowed branches by choosing one of the following options: •Disallowed •Allowed |
|
Categories List |
Indicate whether you want to create a list of allowed customers or disallowed customers by choosing one of the following options: •Disallowed •Allowed |
|
Currency Restrictions |
Indicate whether you want to create a list of allowed currencies or disallowed currencies by selecting one of the following options: •Disallowed •Allowed |
6.On Portfolio Preference screen, click Other.
Step Result: Portfolio Preference screen is displayed.
Figure 16.3: Portfolio Preference
7.On Portfolio Preference screen, specify the fields.
When defining a portfolio product, you can choose to specify preferences for the product, either by
•Associating the product with a Portfolio Preference Class that you have defined
•Entering your preferences specifically for the portfolio product
If you would like to associate a portfolio preference class to a product, choose the ‘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.
16.2 Process Security Portfolio Instrument Restrictions
This topic provides the systematic instructions to process security portfolio instrument restrictions.
Prerequisite:
Specify User Id and Password, and login to Homescreen.
1.On Homescreen, specify SEDPFINR in the text box, and click next arrow.
Step Result: Security Portfolio Instrument Restrictions screen is displayed.
Figure 16.4: Security Portfolio Instrument Restrictions
2.On Security Portfolio Instrument Restrictions screen, specify the fields.
For more information on fields, refer Table 16.3: Security Portfolio Instrument Restriction
Table 16.3: Security Portfolio Instrument Restriction
|
Field |
Description |
|---|---|
|
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. |
|
Class Code |
In Oracle Banking Treasury Management, each portfolio restriction class that you maintain is identified by a unique ten-character code called a Class Code. You can follow your 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 an icon to display the list of Security Product Code through its options list which has been maintained under Securities Security Product Definition. You have to select one which you want to move to the Allowed/Disallowed list. |
|
Product Description |
Security Product Code describes that you choose to Allowed/Disallowed list. |
|
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 |
Specify portfolio restrictions in the form of an allowed, or disallowed list. |
16.3 List of Glossary - Define Attributes of a Portfolio Product
SEDPFPRD
Securities Portfolio Product Definition - 16.1.1 Process Security Portfolio Process Definition (p. 170)
Security Portfolio Instrument Restrictions - 16.2 Process Security Portfolio Instrument Restrictions (p. 174)