5.15 Product Code- MBFA
MBFA (Certificate of Deposit) Bearing Payment of Interest - Fixed - Borrowing –FATCA
Business Scenario
Money Market Instrument MBFA is parameterized to cater to the FATCA TAX with the following features.
Synopsis (ex. High level features etc.)
- Short term Debt instrument
- The Maturity ranges 1-12 Months
- It is backed by any form of collateral
- Issued by a large banks and corporations
- The instrument is issued at a floating Interest Rate
- This instrument can be traded.
Detailed Coverage
MBFA Money Market Instrument covers the following features:
Table 5-57 Detailed Coverage
Features | Type |
---|---|
Types of the Product | Money Market Borrowing |
Payment Method Covered | Bearing Payment |
Accrual Covered | Daily Accrual |
Liquidation |
|
Rollover of Deal | New Version Rollover |
Interest Rate details | Fixed Rate Interest |
Schedule |
|
Maturity Type | Fixed Maturity |
Forward Date Deal | Forward Date Deal allowed |
Events Covered (including brief information on accounting)
Table 5-58 Events Covered
Events Covered | Terminology |
---|---|
BOOK | Contract Booking event triggers when Bank Initiate the Deal. |
ACCR | Contract Accrual |
INIT | Contract Initiation |
LIQD | Contract Liquidation |
ROLL | Rollover of Contract |
REVC | Contract Reversal |
CAMD | Contract Amendment |
CONF | Confirmation of contract |
NOTC | Billing Notice Generation |
REAS | Reassign User |
REVN | Rate Revision |
REVP | Reversal of Payment |
VAMB | Value Dated Amendment Booking |
VAMI | Value Dated Amendment Initiation |
YACR | YIELD ACCRUAL |
Interest / Charges / Commission & Fees
- In MBFA product is parametrized with following Interest component.
- MMINTCLS – Security Repo Interest Class
Advices Supported
Table 5-59 Advices Supported
Advices | Description |
---|---|
MMCONDEP | MM Borrowing Confirmation |
PAYMENT_MESSAGE | Payment Message |
MM_ROLL_ADV | Rollover Advice |
SWIFT_MESSAGE | MT320,330, MT350 |
MMAMDADV | Amendment Advice |
PAYADV | Payment Advice |
Messages
Following SWIFT Messages setup done in the MBFA product as part of product life cycle.
Table 5-60 SWIFT Messages
SWIFT Messages | Contact Field |
---|---|
MT 320 | Fixed Contract Confirmation |
MT 350 | Deposit Interest Payment Advice |
MT 202 | Payment Message |
MT 330 | Call/Notice Contract Confirmation |
Special/Other Features
Other Features
Apart from above mentioned features following other features can parametrized
- Interest Calculation Basis – Actual/360
Tax Details
- MM_FAT_AMT– Money Market Tax Component
Additional information (ex. UDF & other Special Maintenance)
UDF Maintenance
As part of MBFA 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 MBFA product for Money Market Deals.
- MM Branch Parameter
- Treasury Branch Parameter
- Treasury Messaging Parameter
- Local Holidays
- MM Batch Maintenance
- Floating Rate Maintenance
- Treasury Interest Class Maintenance
- Treasury Charge Class
- Treasury Tax Rule Maintenance
- Treasury Tax Scheme Class
- Treasury FATCA Rule Maintenance
- Treasury FATCA-Product Account Classes and Instruments Maintenance
Parent topic: Product Catalog - Treasury Money Market