16.1 Process Securities Deal Product

This topic describes the systematic instructions to define securities deal product.

1. On the Home page, specify SEDDLPRD in the text box, and click next arrow.

   Securities Deal Product Definition screen is displayed.

   Figure 16-1 Securities Deal Product Definition

   
   
   Description of "Figure 16-1 Securities Deal Product Definition"
   
2. On the Security Deal Product Definition screen, specify the fields.

   In this screen, you can enter basic information relating to a SP product such as the Product Code, the Description, etc.

   For any product you create in Oracle Banking Treasury Management, you can define generic attributes, such as interest details, tax details, etc., by clicking on the appropriate icon in the horizontal array of icons on this screen. For a Portfolio product, in addition to these generic attributes, you can specifically define other attributes. These attributes are discussed in detail in this chapter.

   You can define the attributes specific to a Portfolio product in the SP Product Definition Main screen and the SP Product Preferences screen. In these screens, you can specify the product type and set the product preferences respectively. For further information on the generic attributes that you can define for a product, please refer the following Oracle Banking Treasury Management User Manuals under Modularity:

   • Product Definition
   • Interest
   • Settlements

   Table 16-1 Security Deal Product Definition - Field Description

   Field	Description
   Product Type	An important detail in defining a product is to specify the type of product you are creating. The product type identifies the basic nature of a product. A Securities Deal product that you create can be of the following types: Bank buys Bank sells Customer buys Customer sells Standalone lodge Safe keeping location 9SK) to SKL transfer Block securities The accounting entries that are passed, the messages that are generated and the processing of deals involving this product are determined by your entry to this field. Note: The system will generate MT5x messages on booking Standalone Lodge and Standalone Withdrawal deals.
   Exchange Rate Variance	For a special customer, or in special cases, you may want to use an exchange rate (a special rate) that is greater than the exchange rate maintained for a currency pair. The variance is referred to as the Exchange Rate Variance. When creating a product, you can express an Exchange Rate Variance Limit in terms of a percentage. This variance limit would apply to all deals associated with the deal product. Rate Override Limit: If the variance percentage between the default rate and the rate input is between the Rate Override Limit and the Rate Stop Limit, you can save the deal by providing an override. Rate Stop Limit: If the variance between the defaulted rate and the rate that is entered varies by a percentage greater than or equal to the Rate Stop Limit, you cannot save the deal.

3. On the Deal Product Preference screen, click Preference.
4. On the Preference screen, specify the fields.

   When defining a product, you can specify preferences for the product, by either of the following methods:

   • Associating the product with a Deal Preference Class
   • Defining these preferences specifically for the product

   To associate a deal preference class to a product, click ‘Default From Class’ button the Deal Product Preferences screen. A list of the deal preference classes that you have defined specifically for Securities module of Oracle Banking Treasury Management will be displayed. Choose the deal preference class to be associated with the product, from the option list. All the details defined at the class get defaulted here. In addition, you can specify certain attributes for the deal.

   Table 16-2 Preference - Field Description

   Field	Description
   Consider Brokerage for Disc. Accrual	Check this option to indicate whether the brokerage component is to be considered for discount accrual on a constant yield basis.
   Branch Restrictions	Indicate whether you want to create a list of allowed branches or disallowed branches by choosing one of the following options: Disallowed Allowed
   Categories List	Indicate whether you want to create a list of allowed customers or disallowed customers by choosing one of the following options: Disallowed Allowed
   Currency Restrictions	Indicate whether you want to create a list of allowed currencies or disallowed currencies by selecting one of the following options: Allowed Disallowed Note: This option is enabled only if you have allowed brokers for the deal. Default fields, From and To leg Safe Keeping details. For detailed information on the other attributes please refer to the chapter called Defining a Deal Preference Class.

   This topic has the following sub-topic:

• Specify Accounting Entries for KEST Computation