18.2.1 Capture Details of a Security

Security can be maintained in the Security Definition screen, which is invoked from the Application Browser. In the Securities Definition screen, you can maintain details of the different kinds of securities that you deal with. They include Bonds, Zero Coupon Bonds, Treasury Bills, Equities, Rights, and Warrants. When dealing with security, the details that you specified on this screen will be picked up automatically.

Security must be maintained under a Security Product, created by the Head Office. For instance, if your bank has defined a Short Term Zero-Coupon Bonds security product, you would maintain all short-term zero-coupon bonds that you deal with under this product. Security inherits all the attributes defined for the product under which it is maintained.

This enables the efficient maintenance of security. At the time of saving a deal, the customer's portfolio balances for the security of the deal will be taken and the balance in security currency will be computed and inserted in the FATCA accounts and obligations screen. If the deal is closed or liquidated completely, then the corresponding row in FATCA accounts and obligations maintenance will be archived. If you delete the deal before authorization, then you should also delete corresponding entry in FATCA accounts and obligations maintenance.

Table 18-1 Security Instrument Definition - Field Description

Field	Description
Security Reference Number	In Oracle Banking Treasury Management, reference numbers are generated automatically and sequentially, by the system. This number tag is used to identify the security that you are maintaining. It is also used in all the accounting entries generated by transactions involving security. Thus, the system generates a unique number for each security. 19-4 The security reference number is a combination of a three-digit branch code, a four-character product code, a five-digit Julian Date, and a four-digit serial number. The Julian Date has the following format: YYDDD Here, YY stands for the last two digits of the year and DDD for the number of day (s) that have elapsed in the year. For example, 31 January 1999 translates into the Julian date: 99031. Similarly, 05 February 1999 becomes 99036 in the Julian format. Here, 036 is arrived at by adding the number of days elapsed in January with those elapsed in February (31+5 = 36).
Security Id	You can identify a security that you are maintaining, with a unique identifier and a brief description. The identifier is referred to as the Security ID. A security will be identified by this number in addition to, the Security Reference No., generated by the system.
Description	The description that you specify is for information purposes only, and will not be printed on any customer correspondence.
ISIN (International Security Identification Number) Identifier	You can enter the ISIN reference, allotted to the security that you are maintaining. In theSWIFT messages that you generate, this number will identify a security.
Security Type	The securities that you deal in can be broadly classified into the following types: Bonds Zero Coupon Bonds Equities Rights Warrants You can maintain a security of a particular type, only under products defined for the type. For instance, you can only maintain bonds, under a product defined for Bonds. The attributes that can be defined for a security depend on the Security Type. For example, if the security type is indicated as Bond, you can also define details relating to interest.
Trading Status	This field is generated by the system, that states whether the trade is Active or Closed (Suspended).
Security Status	This field is generated by the system, that states whether the security is of Primary type (new issue) or Secondary type.
Interest Type	This is a auto populated field. This is populated by the system based on the security product preferences specified. The value can be: Fixed Floating
CFI Code	Enter the financial instruments classification code of the security.
Product Code	You can associate every security that you maintain with a Security Product that you have maintained in the Security Product Definition screen. When you associate security with a security product, it acquires the attributes defined for the product. This means, you do not have to define the attributes of a security, all over again, when maintaining it. On choosing a product, you can view the type of security that you can associate with the product. The Security Type field displays this information. For instance, you can associate a bond that you are maintaining only with a product created for ‘Security Type: Bond’.
Description	In the adjacent field, you can view a brief description of the product (with which you have chosen to associate the security that you are maintaining).
Market of Issue	For a security, you can identify a Market of Issue. Only a market that you have maintained in the Markets Maintenance screen can be specified.All securities maintained under a product, by default, will also be associated with the market specified, for the product. When maintaining a security, however, you can identify a unique market for the security. An issuer of securities should have a valid CIF record, in the Core module of OracleBanking Treasury Management. When maintaining a security, you should identify the issuer. Your CIF specifications for the issuer, such as Limits, will automatically be picked up, for the security.
Market of Trade	Select the market of trade from the adjoining drop-down list. The list will display the following values: Exchange Traded Over the Counter
Asset Backed Security	The system will automatically default this checkbox based on the value in the ‘Security Sub-Type’ field. If any one of the CLO, CMO or MBS is selected, then this checkbox will be checked. This field helps in identifying the instrument as Asset Backed Security or not.
Specify Material of Security	When maintaining a security, identify the manner in which it can be held, and the material of the security. The holder of a security can be one of the following: Registered Bearer Securities can be in different formats:
Redemption Quotation Method	The Redemption Quotation Method can be specified in the following ways: Percentage – In this case, the quantity to be redeemed is expressed in percentage. Factor – In this case, the quantity to be redeemed is expressed in fraction. Cash-flow – Here, the quantity to be redeemed is expressed as an actual cash flow. This represents the amount per face value that will be received on the redemption date. The cash flow includes the coupon and the redemption amount. Note: The Redemption Quotation types ‘Factor’ and ‘Cashflow’ are applicable only for the quantity redemption type securities.
Security Group	Specify the security group from the adjoining option list. The list will display all valid values maintained for the type ‘ABS_TYPE’ in the Treasury Static Type Maintenance screen. You can choose the appropriate one.
Security Sub-Type	Specify the security sub-type from the adjoining option list. The list will display all valid static values maintained in the system. You can choose the appropriate one.
Calculated Weighted Average Life	Displays the calculated Weighted average life of the instrument. It will be calculated on every accrual date and will get updated on every redemption or financial year change. Note: This is applicable only for Quantity redemption type and Accrual method as ‘Weighted Moving Average’.

Table 18-2 Securities Formats

Option	Description
Scrip-based	Issued in a paper format
Dematerialized	In an electronic format
Immobilized	Securities in lieu of which proxies are traded
Combination	Issued in one or more of the above formats