3.1.3 Rollover Tab

1. On the Money Market Contract Input screen, click Rollover.

   Money Market Contract Input with Rollover tab details are displayed.

   Figure 3-4 Money Market Contract Input - Rollover

   
   Description of "Figure 3-4 Money Market Contract Input - Rollover"
2. Specify the details in the Rollover tab as required.

   For information on fields, refer to the below table.

   Table 3-4 Roll over tab - Field details

   Field	Description
   Roll over Amount	Specify the option for the Rollover Amount from the drop down list as required. The options are: Principal Principal + Interest Principal + (Interest - tax) Principal + Additional Amount Principal + Interest + Additional Amount
   Additional Amount	Specify the additional details as per the requirement.
   Special Amount	Specify the special amount if applicable
   Treat Special Amount as	If the Special amount is specified, from the following options specify the what should it be treated as: Rollover Amount Liquidation Amount Maximum Rollover Amount Ignore
   Daily Refinance Rate	Specify the refinance rate as per the requirement.
   Roll By	Choose the Maturity Roll by from the drop down list: Days (Default) Months Quarters Semiannual Years
   Method	Choose the method of Maturity from the drop down list: Normal (Default) Split Consolidated
   Mechanism	Choose the Rollover Mechanism of the contract from the drop down list New Version (Default) Spawn Contract Linked Contract
   Mode	Choose the Mode of Rollover as required, The options are: Auto Manual
   ICCF Rollover	Specify the ICCF Rollover as required. The options are: Product Contract User Input
   Schedule Basis	Specify the Schedule Basis for Rollover as required. The options are: Product Contract Special
   Apply Charge on Rollover Amount	Select this option to apply charge on rollover amount.
   New Components Allowed	Select this option to allow new components.
   Liquidate Overdue Schedules	Select this option to liquidate the overdue schedules
   Apply Tax on Rollover Amount	Select this option to apply tax on rollover amount.
   Update Limits Utilization	Select this option to update the limits utilization.
   Interest Details	Click this button to launch the interest details screen and user can choose the field preferences which needs to be rolled over as part of Child contract or new version of the contract. The below preferences can be modified during rollover and unlock of the contract: Alternative Risk Free Rate Base, Spread/Margin, and Spread adjustment computation methods Lookback, Lockout and Payment Delay Days Customer Margin Interest Basis Spread Adjustment Note: This Interest Details button is only enabled, if the ICCF Rollover is selected as User Input. For more information, refer to the below section.

   1. Click the Interest Details button.
      The below screen is displayed.

      Figure 3-5 Money Market Contract Input - Interest Details

      
      Description of "Figure 3-5 Money Market Contract Input - Interest Details"
   2. Specify the field details in this screen as mentioned below.

      Table 3-5 Field Description

      Field	Description
      Component	Indicates the interest component.
      Rate Type	The rate type applicable for the selected product will be displayed. It can be one of the following: Fixed: a fixed interest rate Floating rate: an interest rate that changes periodically or automatically as per your specifications in the Floating Rate Special: an amount instead of a rate.
      Rate Code	For Floating Rate, the rate code will be displayed.
      Alternate Risk-Free Rate	Select this option to enable the alternate risk free rate preferences.
      Alternative Risk Free Rate Preferences	User can select any one of the below RFR calculation methods: Lookback Payment delay Lockout Interest/Profit Rollover Last reset Last recent Plain Index Value Rate Compounding Observation Shift Weighted Average The user can also select the combination of the below RFR methods: Lookback and Lockout Lookback and Payment Delay Lockout and Payment Delay Lookback, Lockout and Payment Delay Observation shift and Lookback WAC, Lookback and Lockout WAC, Lookback, Lockout and Payment Delay Index, Observation Shift, Lookback and Payment Delay Index, Observation shift, and Lookback Observation shift, Lookback, and Payment Delay WAC, Lookback and Payment Delay WAC, Lockout and Payment Delay
      Lookback	The user can select Lookback as RFR preference if the Rate Method is In-Arrears. The observation period for the interest rate calculation starts and ends a certain number of days prior to the Interest period. As a result, you can choose the interest payment to be calculated prior to the end of the interest period.
      Lookback Days	This field will only be relevant if Rate Method is In-Arrears or bearing and RFR method is Lookback.
      Lockout	The user can select Lockout as RFR preference if the Rate Method is In-Arrears. Lockout means that the RFR is frozen for a certain number of days prior to the end of an interest period (lockout period). During this time, the RFR of lockout period days is applied for the remaining days of the interest period. As a result, the averaged RFR can be calculated a couple of days before the end of the Interest period.
      Lockout Days	This field will only be relevant if Rate Method is In-Arrears or bearing and RFR method is Lockout.
      Payment Delay	The user can select Payment Delay as RFR preference if the Rate Method is In-Arrears. In this method, Interest payments are delayed by a certain number of days and are thus due a few days after the end of an interest period.
      Payment Delay Days	This field is relevant if Rate Method is In-Arrears or bearing and RFR method is Payment delay. Number of days by which the interest (or installment) payments are delayed by a certain number of days and are thus due a few days after the end of an interest period.
      Interest Rollover	Select this check box to enable the interest rollover as RFR preference. Payments are set in advance and any missed interest relative to in arrears is rolled over into the next payment period. This option combines a first payment (installment payment) known at the beginning of the interest period with an adjustment payment known at the end.
      Plain	This field is relevant if Rate Method is In-Arrears or bearing and RFR method is Plain. System uses averaged RFR over current interest period, paid on first day of next interest period.
      Last Reset	This field is relevant if Rate Method is In-Advance and Rate Convention is Last reset. In this option, interest payments are determined on the basis of the averaged RFR of the previous period.
      Last Recent	This field is relevant if Rate Method is In-Advance and Rate Convention is Last recent. In this option, a single RFR or an averaged RFR for a short number of days, are applied for the entire interest period
      Index Value	Select this check box to use the RFR index rate. The RFR Index measures the cumulative impact of compounding RFR on a unit of investment over time. Index Value supports below RFR preferences. Arrear Method Advance Method Arrear Method Lookback Lockout Payment Delay Plain Advance Method Last Reset Last Recent For more information on the RFR Index Value, refer to the attached RFR Index Value calculation worksheet.
      Observation Shift	Select this check box to apply observation Shift to RFR calculation. The observation shift mechanism provides the rate to be calculated and weighted by reference to the Observation Period rather than the relevant interest period. Observation Shift Currently supports below RFR Methods and combination. Lookback Lockout Lookback and Lockout combination For more information on the RFR Observation Shift, refer to the attached RFR Observation Shift calculation worksheet.
      Weighted Average	Select this check box to use weighted average calculation (WAC) as the RFR calculation method. The WAC here represent the simple average calculation and not compounded. The averaged RFR in this convention is the simple arithmetic mean of the daily RFRs. OBTR supports WAC to calculate base rate (BR), Credit Adjustment Spread (CAS), and Customer Margin. The WAC formula to calculate simple interest is: Here, db: the number of business days for the interest calculation period dc: the number of calendar days for the interest calculation period ri: reference rate for the day number i within the interest calculation period ni: the number of calendar days for which rate ri applied (on most days, ni will be 1, but on a Friday it will generally be 3, and it will also be larger than 1 on the business day before a holiday N: the number of calendar days in one year (360 to 365) For more information, refer to the RFR WAC sheet.
      Payment Movement	Select the payment movement from the drop-down list. The list displays the following values: Calendar Business If the option Calendar is selected, then the system skips the Holiday Preferences selected at the contract level. If the option Business is selected, it considers holiday treatment specified for schedule as per the Holiday Preferences selected at the contract level.
      Computation Calendar	Select the Computation Calendar from the drop-down list, when RFR is selected for interest calculation. The available options are: Currency Financial Calendar
      Financial Center	This field is mandatory if the Financial Center is selected as a computation calendar. Select the code of the financial center from the displayed list of values.
      Base Computation Method	The Base Computation Method is either simple or compounded.
      Spread\ Margin Computation Method	Spread\ Margin computation method can be maintained as either Simple or compounded.
      Spread Adjustment Method	Spread adjustment method is kept as either Simple or compounded.
      Rate Compounding	This allows enable user to select if rate compounding to be applied for each calculation period. When enabled, system opts for rate compounding instead of amount compounding, amount difference comes into effect only if the pre-payment is done. For more information on Rate compounding method, refer to the attached Rate Compounding calculation worksheet.
      RFR Rounding Unit	Specify the Rounding Units value to round daily index value to the nearest whole number and use it for interest calculation. It is applicable only when RFR index value is used.
      Rate Compounding Method	Select the Rate Compounding Method from the drop-down list. The available options are: CCR NCCR This Rate Compounding method produces a rate for a period by applying the RFR compounding formula to the RFR rate and applying the compounded rate to the principal to calculate the interest due. Currently it’s applicable for MM & SR modules.Rate Compounding supports two methods: 1. Cumulative Compounded Rate (CCR) Calculates the compounded rate at the end of the interest period and it is applied to the whole period. It allows calculation of interest for the whole period using a single compounded rate. 2. Non-Cumulative Compounded Rate (NCCR) It is derived from Cumulative Compounded Rate i.e., Cumulative rate as of current day minus Cumulative rate as of prior Banking day. This generates a daily compounded rate which allows the calculation of a daily interest amount. Rate Compounding supports below RFR preferences: Arrear Method Lookback Lockout Payment Delay Plain
      Basis	Indicates the Basis as User by default.
      Rate	For Fixed Rate type, the rate will be displayed in this screen.
      Spread	Indicates the spread value.
      Interest Basis	Indicates the interest basis maintained at the product. User can modify this interest basis during rollover.
      Spread Adjustment	Indicates the spread adjustment. User can modify this spread adjustment during rollover.
      Customer Margin	Indicates the customer margin. User can modify this customer margin during rollover.

      Note:

      User can enter or modify the rollover details in the interest details screen only during Unlock and Rollover Operations.