Cubic and Quartic Interpolation Support across FTP Methods

Cubic and Quartic spline interpolation methods are available for non-cash-flow-based, cash-flow-based, and Direct Transfer Pricing methods. Customers can select these interpolations when rates must be derived between available Interest Rate Curve term points. Existing linear interpolation options remain available.

Provides smoother interpolated curves and greater modelling flexibility for institutions whose FTP methodology requires alternatives to linear interpolation. Uptake is controlled through the selected interpolation method.

Steps to enable and configure

1. In Transfer Pricing Standard Process > Calculation Selection > Interpolation Mode, select Linear, Cubic Spline, or Quartic Spline for terms between available points on the selected Interest Rate Curve.

Tips and considerations

Optional Uptake

Key resources

https://docs.oracle.com/en/industries/financial-services/ofs-analytical-applications/profitability-balance-sheet-base/index.html