5.21 Product Code- MMRF
MMRF- (Overnight Deposits) Bearing Payment of Interest- Borrowing- Fixed Rate-corporate Risk Free Rates
Business Scenario
MMRF is configured with Risk Free rates where rates are published based on the percentile and Volume of Transactions. For RFR Interest re-computation is required to be done daily. Money Market Instrument MMRF is parametrized with following features.
Synopsis (ex. High level features etc.)
- This instrument supports risk free rates and supports all arrears Methods.
- Issued by a large banks and corporations.
- Short Term Debt instrument.
- It is not backed by any form of collateral
- Issued by a large banks and corporations
- This instrument can be traded.
- The instrument is issued at a Bearing.
- c product is configured with Alternate Risk Free Rate preference as Plain Method but it can be changed to any of the arrears method and also the below combination methods:
- Lookback and Lockout
- Lookback, Lockout, and Payments Delay
- MMRF product has a minimum and maximum rates configured.
Detailed Coverage
MMRF Money Market Instrument covers the following features:
Table 5-81 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 5-82 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 MMRF product is parametrized with following Interest component.
- IN_MMRFR – Money Market _RFR_Interest Class
Advices Supported
Table 5-83 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 MPI4 product as part of product life cycle.
Table 5-84 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
Additional information (ex. UDF & other Special Maintenance)
UDF Maintenance
As part of MMRF 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 MMRF 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
Parent topic: Product Catalog - Treasury Money Market