10.3 Product Code- SR04
SR04 - Repo - Bank- Fixed Rate
Business Scenario
Security repo SR04 helps customer/Corporate to Borrow fund against securities. Targeted Customer Segment: Inter Bank Clients who seek fund.
Introduction
Security Repo Product SR04 is fixed Rate Borrow Instrument.
Synopsis (ex. High level features etc.)
- Type of Short Term Security Repo instrument
- The Maturity ranges 1-30 days
- It is backed by collateral of securities.
- It’s a Bank to bank deal.
Detailed Coverage
SR04 Repo Product covers the following features,
- Security Repo Deal Booking
- Floating Rate of Interest
- Bearing payment method
- Auto Liquidation of Principal and Interest
Events Covered
Product SR04 has the Life Cycle of Commercial Paper as listed below:
Table 10-7 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 |
VAMI | Value Dated Amendment Initiation |
YACR | YIELD ACCRUAL |
ACCR | Contract Accrual |
Advices Supported
Following Advices setup done in the SR04 Product as part of Product Life Cycle:
Table 10-8 Advices
Advices | Description |
---|---|
MMCONDEP | Repo Borrowing Confirmation |
SWIFT_MESSAGE | MT320,330, MT350 |
PAYMENT_MESSAGE | Payment Message |
MM_ROLL_ADV | Rollover Advice |
Messages
Table 10-9 SWIFT Messages
SWIFT Messages | Contract Field |
---|---|
MT 320 | Fixed Contract Confirmation |
MT 350 | Deposit Interest Payment Advice |
MT 202 | Payment Message |
Generic Features
Repo Product SR04 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
- IAS 39 Based Accrual
- Partial Liquidation of the deal
- Interest Schedule
- Fixed Maturity
Interest / Charges / Commission & Fees
Interest
In SR03 product is parametrized with following Interest component. SRINTCLS2- Security Repo Interest component 2
Special/Other Features
Other Features
- Interest Calculation Basis – Actual/360
- Securities Pledged - Block Securities
- MMTAX_AMT– Security Repo Tax Component
Additional information (ex. UDF & other Special Maintenance)
As part of SR03 Product Setup there is option available to capture other details about the deal or the parties involved using UDF Maintenance.
Parent topic: Product Catalog - Treasury Securities Repo Instrument