8.2.121.2 Module Usage

Oracle ALM

Oracle ALM uses RATE_CHG_RND_CD to determine the Rounding Method that is applied to the current rate after a repricing event. RATE_CHG_ RND_CD is used in conjunction with RATE_CHG_RND_FAC.

For existing business adjustable-rate records, the Cash Flow Engine matches the REPRICE_ FREQ, INTEREST_RATE_CD, and the reprice date to the information contained in the Forecast Rates Assumption Rule. This is to assign a Forecasted Rate. The margin is then added to this forecasted rate. Any rounding (RATE_CHG_RND_CD and RATE_ CHG_RND_FAC), rate caps/floors, and tease periods are applied, and the resulting rate is applied to the record as the record's repriced rate.

Note:

The RATE_CHG_RND_CD accepts values 1 - 4. Depending on the value input, the value of the forecasted rate as calculated earlier will differ.

Table 8-23 List of Rate Change Rounding Code Values

Rate Change Rounding Code	Description
RATE_CHG_RND_CD = 1	Truncate The cash flow engine truncates the forecasted rate to a whole value. For example, if unrounded forecasted = 8.65, the truncated forecasted rate =8.00.
RATE_CHG_RND_CD = 2	Round-Up The cash flow engine rounds the rate up to the nearest multiple of the RATE_CHG_RND_FAC. For example, if the unrounded forecasted rate is 8.65 and the RATE_CHG_RND_FAC = 0.5, the rounded forecasted rate = 9.00
RATE_CHG_RND_CD = 3	Round Down The cash flow engine rounds the rate down to the nearest multiple of RATE_CHG_RND_FAC. For example, if the unrounded forecasted rate is 8.65 and the RATE_CHG_RND_FAC = 0.25, the rounded forecasted rate = 8.50.
RATE_CHG_RND_CD = 4	Round Nearest The cash flow engine rounds the rate to the nearest multiple of RATE_CHG_RND_FAC. For example, if the unrounded forecasted rate is 8.65 and the RATE_CHG_RND_FAC = 0.25, the rounded forecasted rate = 8.75.

Oracle Funds Transfer Pricing

Oracle Funds Transfer Pricing does not reference RATE_CHG_RND_CD because it processes Cash Flows within Repricing periods.