10.11 Product Code- SRDS
SRDS - Reverse Repo - CORPORATE - Floating Rate-RFR Discounted Product
Business Scenario
Security Reverse Repo SRDS helps customer/corporate to borrow fund against securities. Targeted Customer Segment: Corporate Clients who seek lending.
Introduction
Security Repo Product SRDS is RFR discounted Floating Rate Lending Instrument.
Synopsis (ex. High level features etc.)
- Short Term Debt instrument.
- The Maturity ranges 1-90 days
- It is backed by collateral of securities.
- The instrument is issued at a Bearing.
- This instrument product supports risk free rates and supports all advance Methods.
- SRDS product is configured with Alternate Risk Free Rate preference as Plain Method but it can be changed to below combination methods as well:
- Lockout & Payment Delay
- Lookback & Payment Delay
- Lookback, Lockout, and Payment Delay
Detailed Coverage
SRDS Securities Reverse Repo covers the following features,
- Security Repo Deal Booking
- Floating Rate of Interest
- Discounted payment method
- Auto Liquidation of Principal and Interest
Events Covered
Product SRDS has the Life Cycle of Commercial Paper as listed below:
Table 10-33 Events
Events Covered | Terminology |
---|---|
BOOK | Booking of contract |
INIT | Contract Initiation |
LIQD | Contract Liquidation |
ROLL | Rollover of Contract |
REVC | Contract Reversal |
CAMD | Contract Amendment |
CONF | Confirmation of contract |
REAS | Reassign User |
REVP | Reversal of Payment |
VAMB | Value Dated Amendment Booking |
ACCR | Contract Accrual |
YACR | Yield Accrual |
Advices Supported
Following Advices setup done in the SRDS Product as part of Product Life Cycle:
Table 10-34 Advices
Advices | Description |
---|---|
SWIFT_MESSAGE | MT320,330, MT350 |
PAYMENT_MESSAGE | Payment Message |
MMCONDEP | Repo Borrowing Confirmation |
MM_ROLL_ADV | Rollover Advice |
Messages
Table 10-35 SWIFT Messages
SWIFT Messages | Contract Field |
---|---|
MT 320 | Fixed Contract Confirmation |
MT 350 | Deposit Interest Payment Advice |
MT 202 | Payment Message |
MT 335 | Call/Notice Rate Change Advice |
Generic Features
Repo Product SRDS features includes:
- Deal Booking
- Forward date Deal Allowed
- Holiday period treatment
- Counterparty Confirmation
- Capturing of UDE values
- Liquidation of Deal– Auto / Manual
- Deal Amendment
- Reversal of Deal
- Floating Rate Interest
- Interest Schedule
- Fixed Maturity
Interest / Charges / Commission & Fees
Interest
In SRDS product is parametrized with following Interest component. SR_MINMAX – RFR Discounted Interest class code
Special/Other Features
Other Features
- Interest Calculation Basis – Actual/Actual
- Securities Pledged - Block Securities
- Collateral Revaluation Preferences - Margin Settlement
Parent topic: Product Catalog - Treasury Securities Repo Instrument