10.7 Product Code- SRR4
SRR4- Reverse Repo - Bank - Fixed Rate
Business Scenario
Security Reverse Repo SRR4 helps customer/corporate to Borrow fund against securities. Targeted Customer Segment: Inter Bank Clients who seek lending.
Introduction
Security Repo Product SRR4 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
SRR4 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 SRR4 has the Life Cycle of Commercial Paper as listed below:
Table 10-19 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 |
Advices Supported
Following Advices setup done in the SRR4 Product as part of Product Life Cycle:
Table 10-20 Advices
Advices | Description |
---|---|
MMCONDEP | Repo Borrowing Confirmation |
SWIFT_MESSAGE | MT320,330, MT350 |
PAYMENT_MESSAGE | Payment Message |
MM_ROLL_ADV | Rollover Advice |
Messages
Table 10-21 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 SRR4 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 SRR4 product is parametrized with following Interest component. SRINTCLS - Security Repo Interest component
Special/Other Features
Other Features
- Interest Calculation Basis – Actual/360
Additional information (ex. UDF & other Special Maintenance)
As part of SRR4 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