7.3.5.1 Create Add-on Rate Rule

You create an Add-on Rate Rule to define Add-on Rate Methodologies for your products.

To create the Add-on Rate Rule:

1. From the LHS menu, select Assumption Specification, and then select Add-on Rate Rule.

   Figure 7-275 Add-On Rate Rule - Definition Mode

   
   

   

   
   
   You can search the rule on any of the product dimension, searched dimension will be auto-populated while defining the rule; if you like, you can change the default product dimension.
2. In the Code field, the code is auto-generated.

   Note:

   • You can also manually enter a numeric code.
   • Only numerical values are allowed; special characters are not permitted.
3. In the Name field, enter a descriptive name for the rule (1–120 characters). This is a required field.
4. Optional: In the Description field, enter a description (0–1000 characters).
5. In the Folder, Product Hierarchy, and Currency Selection fields, values are provided by default.

   Note:

   • You can search the rule on any of the product dimensions.
   • The searched dimension and currency will be auto-populated while defining the rule.
   • If needed, you can change the default product dimension.
6. Select the Add-on Rate Type from the Add-on Rate Type Selection section.

   Figure 7-276 Add-On Rate Type Selection

   
   

   

   
   

   Note:

   If you select Brokerage Charges is as the Add-on Rate Type, then the Do Not Calculate Assumption fields are not visible.
7. Conditional Assumptions - The Conditional Assumption feature allows you to segregate your product portfolio based on common characteristics, such as Term to Maturity, Origination Date, and Repricing Frequency, and assign specific Add-on Rate Methodologies to each of the groupings.

   Figure 7-277 Conditional Assumption

   
   

   

   
   

   The Filters field displays the View and Edit buttons. You can verify the existing Filters by clicking the View button. Click the Edit button if you want to modify the Filter condition.

   Note:

   If an instrument record does not meet any of the conditions, then the rule logic reverts to the Standard Assumption that is directly assigned to the Product/Currency combination.
8. Click Save to apply the Add-On Rate Rule and Assumption Calculation settings for the selected product members.