3.3.2 Maintain Fair Values for Revaluing a Contract

If indicated that a particular contract must be revalued based on the contract fair price, the system automatically inserts a record in the Revaluation Contract Fair Price Maintenance screen for that contract. This is done during the Beginning of Day batch process based on the revaluation frequency specified at the product level. This concept can be explained with the help of an example:

You have set the revaluation frequency of the contract bearing the reference number 000DV21992950177 to monthly. The first revaluation was done on 1st January 2000. The next is due on the 1st of February 2000. On the 1st of February 2000 the system automatically inserts another record in the ‘Contract Fair Price Maintenance’ screen for the contract 000DV21992950177. You have to unlock the record, enter the in/out leg values and the net fair value of the contract.

1. On the Home page, type DVDCNVAL in the text box, and click next arrow.

   The Derivatives Revaluation Contract Fair Values screen is displayed.

   Figure 3-6 Derivatives Revaluation Contract Fair Values

   
   Description of "Figure 3-6 Derivatives Revaluation Contract Fair Values"
2. On the Derivatives Revaluation Contract Fair Values screen, specify the fields.
3. On the Derivatives Revaluation Contract Fair Values screen, select new to change the revaluation frequency of a specific contract.
4. On the Revaluation Contract Fair Value screen, select the reference number of the contact to change revaluation frequency. Enter the revaluation date, the new in and out leg values, and the net fair value.
5. Select the Summary option under Contract Price to call an existing contract price maintenance record.

   On the Summary screen, double click a record to open it.

6. Click the unlock icon or select Unlock from the menu to modify the in and out leg values. Enter the in and out leg values, and compute the new net fair value and save the record.

   During bulk upload of these fair values for multiple contracts, Oracle Banking Treasury expects the following information to be present in the upload message:

   • Contract Reference No
   • Effective Date
   • InLeg Value
   • OutLeg Value

   If any of these values are missing for any record, the system will terminate the upload process and raise an error as Net Fair value will default from Inleg and Outleg fair values.

   The single record and bulk record uploads requests are handled in bulk requests itself for the following:

   • DV Fair value
   • DV Rate Revision

   The system will also raise an error if:

   • Contract Reference Number is not valid
   • Duplicate record exists for the Contract Reference Number and Effective date combination
   • Revaluation date is greater than the application date

   Run the fair value upload process any time before the DV batch is processed during the day. During the DV batch, contract revaluation is done based on the fair value uploaded.