1. Asset Liability Management Cloud User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Forecasting Rules
  5. Pricing Margin

5.3.2.3 Pricing Margin

The Pricing Margin Rules allow you to define pricing margins (or spreads) for your new business originations. As with all forecasting rules, Pricing Margins are based on the Multi Dimensional Balance Sheet Structure (MDBSS). Pricing margins are defined period by period using your selected Time Bucket definition for each MDBSS node and, potentially, each currency. Pricing margins work together with an underlying base Interest Rate Curve (specified in Product Characteristics) to determine note rate pricing for new business volumes. New business assumptions are defined based on the combined inputs from the following forecast related business Rules:

  • Product Characteristics
  • Pricing Margins
  • Forecast Balance

All forecast Rules use the MDBSS. Rules intended to be processed together must share a common MDBSS.

When you require more complex definitions of pricing margins to model unique account pricing details, user-defined repricing patterns can be used.

Pricing Margin Rule Summary

This page is the gateway to all Pricing Margin Rules and related functionality. You can navigate to other pages relating to Pricing Margin Rules from this point.

Figure 5-169 Pricing Margin Summary


Pricing Margin Summary

Search Pricing Margin Rule

Prerequisites: Predefined Pricing Margin Rule

To search for a Pricing Margin Rule:

Click Search after entering the search criteria. The search results are displayed in a table containing all the Pricing Margin Rules that meet the search criteria.

Or

An alternative method to search a Pricing Margin Rule is through the Field Search option. This is an inline wildcard UI search that allows you to enter a search value (such as code, name, etc.) partially or fully. Rows that contain the string you are searching for are fetched and displayed in the Pricing Margin Rule Summary. You can enter the Name, MDBSS Name, , and Folder of the Pricing Margin Rule and click Search.

The Pricing Margin Rule Summary displays the following information:

Add: Click the Add icon on the page header to build a new Pricing Margin Rule.

  • Name: The Pricing Margin Rule's short name.
  • MDBSS Name: The instrument table selection for processing of data.
  • Time Bucket: The Time Bucket of Pricing Margin Rule.
  • Rate Dependency Relationship: The Rate Dependency Relationship of Pricing Margin Rule.
  • Folder: The Folder where the Pricing Margin Rule is saved.
  • Last Modified By: The user who last modified the Pricing Margin Rule.
  • Last Modified Date: The Date and Time when the Pricing Margin Rule was last modified.
  • Access Type: The access type of the rule. It can be Read-Only or Read/Write.
  • Action: Click this icon to view a list of actions that you can perform on the Pricing Margin Rule.
    • Multiple Delete: Enables you to select and delete one or multiple rules in the table simultaneously.
    • View/Edit: Based on the user privilege assigned, you can either only view or edit existing Pricing Margin Rules. To edit a rule, you must have Read/Write privilege.
    • Save As: You can reuse a Pricing Margin Rule by saving it under a new name thus saving time and effort in entering data multiple times; it also leads to reduced data entry errors.
    • Delete: You can delete Pricing Margin Rules that you no longer require. Note that only Pricing Margin Rule owners and those with Read/Write privileges can delete Pricing Margin Rules. A Pricing Margin Rule that has a dependency cannot be deleted. A rule cannot be retrieved after deletion.
    • Dependency Check: You can perform a dependency check to know where a particular Pricing Margin Rule has been used. Before deleting a rule, it is always a good practice to do a dependency check to ensure you are not deleting Pricing Margin Rules that have dependencies. A report of all rules that utilize the selected Pricing Margin Rule is generated.

Also See: