10.11 Product Code- SRDS

SRDS - Reverse Repo - CORPORATE - Floating Rate-RFR Discounted Product

Business Scenario

Security Reverse Repo SRDS helps customer/corporate to borrow fund against securities. Targeted Customer Segment: Corporate Clients who seek lending.

Introduction

Security Repo Product SRDS is RFR discounted Floating Rate Lending Instrument.

Synopsis (ex. High level features etc.)

• Short Term Debt instrument.
• The Maturity ranges 1-90 days
• It is backed by collateral of securities.
• The instrument is issued at a Bearing.
• This instrument product supports risk free rates and supports all advance Methods.
• SRDS product is configured with Alternate Risk Free Rate preference as Plain Method but it can be changed to below combination methods as well:
  • Lockout & Payment Delay
  • Lookback & Payment Delay
  • Lookback, Lockout, and Payment Delay

Detailed Coverage

SRDS Securities Reverse Repo covers the following features,

• Security Repo Deal Booking
• Floating Rate of Interest
• Discounted payment method
• Auto Liquidation of Principal and Interest

Events Covered

Product SRDS has the Life Cycle of Commercial Paper as listed below:

Table 10-33 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
YACR	Yield Accrual

Advices Supported

Following Advices setup done in the SRDS Product as part of Product Life Cycle:

Table 10-34 Advices

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

Messages

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

Table 10-35 SWIFT Messages

SWIFT Messages	Contract Field
MT 320	Fixed Contract Confirmation
MT 350	Deposit Interest Payment Advice
MT 202	Payment Message
MT 335	Call/Notice Rate Change Advice

Generic Features

Repo Product SRDS 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
• Interest Schedule
• Fixed Maturity

Interest / Charges / Commission & Fees

Interest

In SRDS product is parametrized with following Interest component. SR_MINMAX – RFR Discounted Interest class code

Special/Other Features

Other Features

Apart from above mentioned features following other features can be parametrized

• Interest Calculation Basis – Actual/Actual
• Securities Pledged - Block Securities
• Collateral Revaluation Preferences - Margin Settlement