10.8 Product Code- CLRE

CLRE- Repo - Fixed Rate- Bearing

Introduction

Security Repo Product CLRE is Fixed Rate Lending 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

CLRE 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 CLRE has the Life Cycle of Commercial Paper as listed below:

Table 10-22 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 CLRE Product as part of Product Life Cycle:

Table 10-23 Advices

Advices	Description
MMCONDEP	Repo Borrowing Confirmation
SWIFT_MESSAGE	MT320,330, MT350
PAYMENT_MESSAGE	Payment Message
MM_ROLL_ADV	Rollover Advice

Messages

Following SWIFT Messages setup done in the CLRE product as part of product life cycle:

Table 10-24 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 CLRE 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 CLRE product is parametrized with following Interest component. SRINTCLS - Security Repo Interest component

Special/Other Features

Other Features

Apart from above mentioned features following other features can be parametrized

• Interest Calculation Basis – Actual/360
• Securities Pledged - Move to Collateral Portfolio
• Collateral Revaluation Preferences - Margin settlement

Additional information (ex. UDF & other Special Maintenance)

As part of CLRE Product Setup there is option available to capture other details about the deal or the parties involved using UDF Maintenance.

Other Special Maintenance

Following are the Maintenance Required in OBTR to use the above product for Security Repo Deals.

• SE Branch Parameter
• General Ledger Parameter
• Interest & Charges Parameter
• Journal Entry Parameter
• Messaging Parameter
• Local Holidays
• SR Batch Maintenance
• LD MM Floating Rate Maintenance
• Interest Class Maintenance
• Charge Class
• Tax Scheme Class