5.24.1.2 Automatic rate set for Future Dated Transactions

In system a job processes automatic rate fixing on the Rate Fixing Date and IRAM event is registered for this process. The Base rate is picked up from Daily LIBOR Rate for the Rate fixing date for Drawdown currency and for Interest Rate Period and Rate Code. The System picks the IRFX message template and generates the advice for the IRAM event. If the Rate is input as 0 during future dated Drawdown booking, then the IRFX event is registered but IRFX advice is not generated. The IRAM is processed online once the Job starts processing and also when the rate maintenance available for the Rate fixing date.

If the flag Auto Auth Rate Fixing Events is Yes at loans parameters screen, then the RAM is auto-authorized with maker/checker as SYSTEM.

If the flag Auto Auth Rate Fixing Events is No, then the IRAM is not authorized. The Maker Id for IRAM event is the user id of BOOK event. you are allowed to authorize this event in the existing Interest Rate Amendment screen.

The Uninitiated Rolled over child contracts are not considered for automatic rate setting as the you have already captured the Rate Setting Rules during Rollover booking and processing of ROLL event will initiate the Rolled over child contract. You have to manually amend the interest rate through Interest Rate Amendment screen (IRAM), if further amendments required for the Drawdown interest components.

The Job fails the IRAM event if rate maintenance is not available for the day and the appropriate exception is logged saying rate maintenance is not available.

• If Rate Fixing Date falls on holiday for any future dated events, then the event is processed on the next working day. Value date is still be the Rate fixing date to pick up the LIBOR rate.
• If the rate sent from PMC is 0 or NULL, then the system does not process the Automatic rate setting.