2.5 Maintain Branch Parameters

This topic describes the systematic instructions to maintain branch parameters.

Maintain branch level parameters that govern the processing of derivatives in a particular branch of your bank through the Derivatives Branch Parameters Maintenance screen.

1. On the Home page, type DVDBRNPM in the text box, and click next arrow.

   The Derivatives Branch Parameter Maintenance screen is displayed.

   Figure 2-3 Derivatives Branch Parameter Maintenance

   
   Description of "Figure 2-3 Derivatives Branch Parameter Maintenance"
2. On the Derivative Branch Parameters screen, specify the fields.

   For more information about fields, refer to the below table.

   Those events, which have to be triggered automatically, will be processed accordingly during the batch process. However, you are required to indicate how automatic events falling due on a holiday should be processed.

   Table 2-2 Derivatives Branch Parameters Maintenance- Field Description

   Field	Description
   Process till Next Working Day	You have the option to specify whether the batch process should process automatic events falling due on a holiday either as part of the EOD process on the last working date before the holiday; or as part of the BOD process on the next working day after the holiday. For example, Assume today is 15th November 2000, 16th November 2000 and 17th November 2000 are holidays. If you check this field, during the Automatic Batch Update function run, only the events scheduled for 15th November 2000 will be processed. The events scheduled for the holidays, i.e., 16th November 2000, and 17th November 2000 will be processed during the Automatic Batch, Update function run during the beginning of day operations on 18th November 2000.
   Revaluation Reversal	As a branch level parameter, you can indicate how the deal level reversal of Unrealized Revaluation with Previous Year Adjustment should be processed. The available options are: Along with Revaluation - reversals of entries for a particular revaluation will be performed at the time of the next revaluation. Next-Day in BOD – select this option to indicate that any revaluation gain/loss should be reversed the very next day during the BOD process. If the BOD processing date happens to be the first day of the financial year, revaluation reversal will be done from the Previous Year Adjustment GL maintained in the Chart of Accounts. For instance, You have entered a deal with the following parameters: Revaluation method is Fair Value Revaluation Netting Required option is set to Yes; and Revaluation Frequency is monthly Frequency Start Day as 1. Assume that the deal comes into existence on the 15th of July. The fair value of the In Leg is USD 500, and that of the Out Leg is USD 350 as on the 1st of August. This results in a revaluation gain of USD 150 (500 –350)
   External Revaluation Required	Select the check box next to the External Revaluation Required, for the revaluation to be done externally. If this field is checked, ensure to set the external revaluation level to either branch level or product level in Derivative Branch Parameter Maintenance screen.
   External Revaluation Level	Choose the external revaluation level as required. There are two options for external revaluations, one at the branch level and the other product level. Note: If External revaluation is enabled, external revaluation level is mandatory.
   Manual Principal Reset Required	Select this check box for the Principal reset EOD processing on resettable Swaps.

   This topic has the following sub-topic:

• Revaluation Reversal Scenario I - Along with the next Revaluation