5.9 Product Code- MBI2

MBI2 - (Certificate of Deposit) Bearing Payment of Interest- Borrowing- Fixed Rate-inter Bank

Business Scenario

Money Market Instrument MBI2 is parametrized with following features.

Synopsis (ex. High level features etc.)

• Short term Debit instrument
• The Maturity period ranges from 1 Months - 24 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

MBI2 Money Market Instrument covers the following features:

Table 5-33 Detailed Coverage

Features	Type
Types of the Product	Money Market Borrowing
Payment Method Covered	Bearing Payment
Accrual Covered	Daily Accrual
Liquidation	Auto Interest Liquidation Auto Principal Liquidation
Rollover of Deal	New Version Rollover
Interest Rate details	Fixed Rate Interest
Schedule	Interest Schedule Principal Schedule
Maturity Type	Fixed Maturity
Forward Date Deal	Forward Date Deal allowed

Events Covered (including brief information on accounting)

Product MBI2 has the Life Cycle as listed below:

Table 5-34 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

Interest

• In MBI2 product is parametrized with following Interest component.
• MMINTCLS – Security Repo Interest Class

Charges

• Charge type - counter party
• Charge Component - MMBKCHG

Advices Supported

Following Advices setup done in the MBI2 Product as part of Product Life Cycle:

Table 5-35 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 MBT1 product as part of product life cycle.

Table 5-36 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 MBI2 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 MBI2 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