1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Add-on Rate Rules
  5. Defining Assumptions with the Default Currency
  6. Add-on Rate Calculation Methods
  7. Add-On Rate Rule - Use TP Method from Selected TP Rule

5.3.5.3.1.4 Add-On Rate Rule - Use TP Method from Selected TP Rule

The Use TP Method from Selected TP Rule selection allows the user to calculate the Add-On Rate based on any TP Method available in the selected Transfer Pricing Rule.

Figure 5-71 Add-On Rate Rule – Use TP Method (Transfer Pricing Rule Selection)


Add-On Rate Rule – Use TP Method (Transfer Pricing Rule Selection)

Users can attach any Transfer Pricing Rule on the Add-On Rate Rule Summary Page separately for each type of Add-On Rate. The TP Methods mapped to product hierarchy members in the TP Rule will be read during the Add-On Rate calculation process and applied during the calculation of the Add-on Rate(s). Outputs will be written to the respective Add-on Rate column, for example, Basis Risk Cost Rate, Liquidity Premium Rate, Pricing Incentive Rate, or Other Add-on Rate.

  • Term: The following Term Types are available:
    • Standard Term: Add-on rate would be calculated as per the repricing period for adjustable-rate instruments and use the original term (maturity date - origination date) for fixed-rate instruments.
    • Original Term: Add-on Rates would be calculated as per the original term like a fixed-rate instrument.

Figure 5-72 Add-On rate Method – Use TP Method (Term Selection)


Add-On rate Method – Use TP Method (Term Selection)