10.3 Product Code- SR04

SR04 - Repo - Bank- Fixed Rate

Business Scenario

Security repo SR04 helps customer/Corporate to Borrow fund against securities. Targeted Customer Segment: Inter Bank Clients who seek fund.

Introduction

Security Repo Product SR04 is fixed Rate Borrow Instrument.

Synopsis (ex. High level features etc.)

• Type of Short Term Security Repo instrument
• The Maturity ranges 1-30 days
• It is backed by collateral of securities.
• It’s a Bank to bank deal.

Detailed Coverage

SR04 Repo Product covers the following features,

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

Events Covered

Product SR04 has the Life Cycle of Commercial Paper as listed below:

Table 10-7 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
VAMI	Value Dated Amendment Initiation
YACR	YIELD ACCRUAL
ACCR	Contract Accrual

Advices Supported

Following Advices setup done in the SR04 Product as part of Product Life Cycle:

Table 10-8 Advices

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

Messages

Following SWIFT Messages setup done in the SR04 product as part of product life cycle:

Table 10-9 SWIFT Messages

SWIFT Messages	Contract Field
MT 320	Fixed Contract Confirmation
MT 350	Deposit Interest Payment Advice
MT 202	Payment Message

Generic Features

Repo Product SR04 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
• IAS 39 Based Accrual
• Partial Liquidation of the deal
• Interest Schedule
• Fixed Maturity

Interest / Charges / Commission & Fees

Interest

In SR03 product is parametrized with following Interest component. SRINTCLS2- Security Repo Interest component 2

Special/Other Features

Other Features

Apart from above mentioned features following other features can be parametrized

• Interest Calculation Basis – Actual/360
• Securities Pledged - Block Securities
• MMTAX_AMT– Security Repo Tax Component

Additional information (ex. UDF & other Special Maintenance)

As part of SR03 Product Setup there is option available to capture other details about the deal or the parties involved using UDF Maintenance.