8.10 Value Dated Changes
This topic describes the value dated changes wand advices generated for value dated changes.
Value Dated Changes are changes to a deal that come into effect on a specific date called the Value Date. Examples of value-dated changes are changes in interest, charge, or fee amounts; collection of additional fees; etc.
Such changes indicated for a deal (through the Value Dated Changes function), falling due today (i.e., if the Value Date is today’s date), are executed by the Automatic Contract Update function during beginning of day. All the necessary accounting entries is passed and advices specified for the event are generated.
If the Value Dated change is in the rate or amount of any accruable component, the accruals are done for the deal with the old rate or amount as of the previous day (yesterday).
If the Maturity Date of a deal has been changed so that the deal matures today, the deal is liquidated provided all the prerequisites for such liquidation are met.
Note:
Any Value Dated Change done during the course of the day with the Value Date as today will, however, be processed during the EOD processing.