32.2.1 Availability of Adjustment Methods

The list of Adjustment Methods depends on the adjustment type that you select: Add-on Rates (including Liquidity Adjustments, Basis Risk Costs, Pricing Incentives, and Other Adjustments), or Breakage Charges. The following table describes the Adjustment Methods available for each of the Adjustment Types.

Figure 32-3 Adjustment Rule Definition - Adjustment Rule Details


Adjustment Rule Definition - Adjustment Rule Details

Table 32-2 Availability of Adjustment Methods

Adjustment Method Adjustment Type: Add-On Rates (Liquidity Adjustments, Basis Risk Costs, Pricing Incentives, and Other Adjustments) Adjustment Type: Breakage Charges
Do Not Calculate Yes Yes
Fixed-Rate Yes
Fixed Amount Yes Yes
Formula Based Rate Yes
Use TP Method from Selected TP Rule Yes
Economic Loss Yes
Fixed Percentage Yes

Note:

If you select Do not calculate as the calculation method, no adjustment assumptions will be assigned to the particular product-currency combination. This is a particularly useful option when using node-level assumptions because it allows you to exclude a particular Child from inheriting a Parent's assumption.