19.6 Auto Processing of Rate Fixing

This topic describes the auto processing of rate fixing event.

If rate fixing event is not processed either manually from the Rate fixing screen or during BOD batch then during SE EOD batch processing system should check for effective date rate and if available, rate fixing should be processed based on the flag set for Proceed with previous available rate.

At Treasury branch parameter maintenance screen, a preference check Proceed with previous available rate is introduced and is considered during both rate revision and rate fixing process during EOD. Default value of this field is checked.

In case when Proceed with previous available rate preference is enabled, during EOD processing system will check for rate availability for that particular effective date in the Floating rate table and if rates are not available for that date, then Rate fixing and revision event is applied on instruments with the previous latest rate available in the system.

Whereas when Proceed with previous available rate check box is not enabled, during EOD, processing system will skip the Rate fixing and revision event on respective instruments in case when the rate for that effective date is not available.

Auto processing of rate fixing below the start of interest date or issue date for the first interest period is supported.

For every revision schedule, which applies a rate fixing during EOD processing, a new rate-fixing event RFIX triggers. In case of a forward movement on fixing days from the revision effective date, rate fix will happen after the revision effective date and interest catch up entries is posted during EOD processing.

Note:

For the Manual processing, refer to the Interest User Manual, Section 2.12 Treasury Manual Rate Fixing.