Product Definition Facility

This topic describes the front-end modules of Oracle Banking Treasury Management for the product definition facility.

A central feature of the front-end modules of Oracle Banking Treasury Management is the product definition facility.

This feature drastically reduces marketing time, allowing the bank to focus on and take advantage of the market opportunities.

Advantage of Defining a product

The product definition facility is a one-time effort. When defining a Repurchase as a product, specify (amongst other details):

• The tenor
• The rate of interest
• The repayment schedules

Securities Pledged option Collateral Preference

• The tax details
• The accounting entries to be passed
• The advice to be generated

The user need not specify these details every time a deal is entered. The product definition facility thus reduces the time required to capture a deal.

Automatic Processing Features

Oracle Banking Treasury Management completely automates and tracks all the events in the lifecycle of a Repo deal. It

• Generates deal tickets
• Accrues interest
• Liquidates due schedules
• Transfer the pledged/Received Securities to the respective portfolio:

• Mature's contracts due for maturity
• Rolls over deals according to your specifications
• Automatically generates the specified messages and advice

Using Oracle Banking Treasury Management, process Repo deals with fixed, floating, or period interest rates and various interest application methods. Also, define bullet schedules for all components. Oracle Banking Treasury Management allows the user to define brokerage on a cumulative or slab basis for each currency. Automate, liquidation of brokerage according to the preferences defined for the mentioned broker.

When defining a product in the SR module, specify the advice and messages generated at different events (such as interest liquidation and rollover) in the life cycle of deals involving it. Once an event defined for message generation occurs in a deal, the system automatically generates the advice or notices in the media specified. Configure the format and the contents of the advice to suit your requirement.

Settlement of Repo Deals

All scheduled component and maturity settlements are handled automatically in Oracle Banking Treasury Management by calling the Settlement and Messaging sub-systems. Further, generate, online, all payment and Securities transfer messages to correspondent banks/custodian together with related settlement accounting entries. In keeping with its flexible design, Oracle Banking Treasury Management offers the user the option to process maturities manually.

Roll Over Deals

The Securities Repo module provides an extensive feature for rollover of contracts on maturity. The rollovers might be with or without interest, with the option to net withholding tax on the rollover.