19.4 Process Interest Coupon

This topic describes the processing of interest coupon and Rate Revision Details.

The Coupon Initiation event (CPIN) is triggered only for those interest coupons with initiation date less than or equal to today and for which initiation has not yet been done. After the initiation event is complete, the Events table is updated. The coupon collection event collects the coupon amount from the safekeeping location. The Coupon Collection event (CPCD) is triggered depending on whether the position is short or long.

The Events table is scanned and those events with a collection date less than or equal to today and for which collection has not been done are picked up for processing. Once the processing is through the events table is updated to indicate that collection is complete for this event. The Coupon Disbursement event (CPLQ) is triggered depending on whether the position is short or long. This function picks the event from the Events table and liquidates it after executing doing the necessary validations.

Note:

Triggering the event AICN completes the accrual of interest if accruals are due. The AICN event is triggered before the events for liquidation (CPSL or CPLL) are triggered. All details relating to Tax and ICCF are updated.

Once the event is complete, the Events table is updated to indicate that liquidation is complete for the event.

Note:

If the security currency is different from the issuer currency and you have maintained the exchange rate and the exchange rate effective date, then this rate will be used for conversion. Else the mid-rate will be used for conversion.

If the positions table has not been updated till the event date then positions and holdings are projected up to the event date. It is at depending on whether the interest calculation is position-based or holding based.

This topic has the following sub-topics:

• Process Interest Rate Revision Details
  This topic describes the systematic instruction to process Interest Rate Revision Details.