Product Code

Business Scenario

The Securities Portfolio Product HTM3 is used for creating Bank Portfolios creation to handle Lifecycle events and Corporate Actions of Fixed and Floating Rate Bonds.

Synopsis (ex. High level features etc.)

The Fixed/Floating Rate bond portfolios are handled by this product.
It can handle Bonds issued at Discount/Par/Premium with positive Interest rate.

Detailed Coverage

HTM3 Securities Portfolio Product covers the following features,

Table 9-7 Detailed Information

Detailed Coverage	Description
Type of the Product	Securities – Bank Portfolio Product
Costing Method Covered	Weighted Average Cost
Accruals covered with Frequency	Interest Accrual (Daily frequency) Premium (Daily frequency) Discount (Daily frequency) Redemption Premium (Daily frequency)
Accrual Methods	Discount/Premium Accrual Method if Redemption type is Bullet - Straight Line Method Discount/Premium Accrual Method if Redemption type is other than Bullet – Constant Yield Accruals calc method – Actual/360
Liquidation	Auto Liquidation for Corporate Actions
Revaluation	Realized Revaluation with Method as MTM and frequency as Daily
MIS	The MIS details are not captured in this product
Charges/Tax	Coupon Processing Charges, borne by the Counterparty Coupon Processing Tax, borne by the Bank

Portfolio details

Issuer, customer and bank portfolios could be defined.
WAC, LIFO, FIFO, DM costing methods can have for each type of portfolio
Capturing Revaluation details for the portfolio
Capturing customer, currency or branch level restrictions
Capturing the discount/premium accrual details
Capturing the forward profit and loss accrual details
Defining the interest accrual details – different frequencies and types such as constant yield, exponential and straight line.
Defining the limit tracking details
Advice details

Events Covered

Table 9-8 Events

Events	Terminology
ACRD	Accrual of Sec. Discount Earned
ACRP	Accrual of Sec. Premium Paid
ACRR	Accrual of Redemption Premium Ernd.
BRVL	Securities Revaluation of Positions
CLIB	Booking of Contingent Liability
CPCD	Coupon Collection
CPIN	Coupon Init
CPLQ	Coupon Liqd
DVCD	Securities Dividend Collection
DVIN	Securities Dividend Initiation
DVLQ	Securities Dividend Liquidation
FACR	Sec. Forward Deal P Accrual
IACR	Securities Coupon Interest Accrual
PROV	Provisioning
PRVR	SETT MESSAGES Reverse Provisioning
RRVL	Securities Reversal of Revaluation
SCCD	Securities Stock To Cash Collection
SCIN	Securities Stock To Cash Initiation
SCLQ	Securities Stock To Cash LIQD
SPLP	Sec. Purchase from Long Position
SPSP	Sec. Purchase from Short Position
SSLP	Sec. Sale from Long Position
SSSP	Sec. Sale from Short Position
WELL	Warrants Sec. Exercise Processing
WENL	Exercise of Warrants for New Equity
WRLL	Warrants Sec. Tear-Off Processing
WROL	Warrant Detachment from Parent Sec
YACR	Yield Accrual

Advices Supported

Payment/Confirmation messages like MT202, MT210 and MT54x messages.

Interest / Charges / Commission & Fees

The HTM3 product is parametrized with following charges and tax components,

Charge Component – CPNCHG
Tax Component - CPBKTR1_TX

Special/Other Features

User can define various tax, charges and brokerage components for the deals.
Additional Advices / Statements are supported.

Additional information

The following are the maintenance required in OBTR to use the HTM3 product for Securities Portfolios.

SE Branch Parameter
Treasury Branch Parameter
Treasury Messaging Parameter
SE Batch Maintenance
Treasury Interest Class Maintenance
Treasury Charge Class maintenance
Treasury Tax class maintenance
Securities Safe Keeping Location and Account maintenance