9.13 Product Code -FBN3

This topic provides the FBN3 product details

Business Scenario

The ‘FBN3’ product is used to create Floating Rate Bonds issued by corporate, Banks or Government authorities.

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 and negative Interest rate.

Detailed Coverage

FBN3 Instrument Product covers the following features,

Table 9-13 Detailed Information

Detailed Coverage	Description
Type of the Product	Floating Bonds Instrument
Tenor	Days
Redemption Type	Quantity
Interest Type	Floating
Quantity Quotation	Nominal
Price Quotation	Deal Price
Interest Quotation	Flat
Auto Initiation	Auto Initiation of Corp Actions
Holiday check required	For Local Holidays
Restrictions	None
Rate Fixing	2 days before start of Next Coupon period
Interest	Floating Component - INT_NF12 (Positive Interest), INT_NF12_N (Negative Interest) Interest Details – Accrual Required, Coupon and Negative Interest Allowed Rate Type – Floating Floating Rate Type – Periodic Rate Code – LIBOR Rate Source – Reuters Tenor – 1M Rate Code Amendment is allowed

Additional information

The following are the maintenance required in OBTR to use the FBN3 product for Securities Portfolios.

• Branch Parameter
• Messaging Parameter
• Local, Currency and Financial Center Holidays
• Security Batch Maintenance
• Market code and price maintenance
• SK Location Maintenance
• Security, Deal, Portfolio and Combination Products
• Security Product, Deal product and Portfolio product preference classes
• Portfolio definitions