5.3 Application Specific Rules

This section explains about the Funds Transfer Pricing Cloud Service specific modules which are particularly referenced for transfer pricing calculations.

Topics:

1. Propagation Patterns: The Propagation Pattern allows you to define Source Tables and Lookup Terms required for propagating Transfer Rates and Add-On rates for any applicable Instrument Table from a prior period.
2. Replicating Portfolios: Replicating Portfolios are a special type of Non-Maturity Behavior Patterns and are created and managed directly through Replicating Portfolio UI.
3. Transfer Pricing Rules: Transfer Pricing Rules allow you to specify methodologies for Transfer Pricing your Product Portfolio.
4. Add-On Rate Rules: Add-on Rate Rules allow you to specify Methodologies to calculate Add-on Rates and Breakage Charges for the relevant products in your portfolio.
5. Prepayment Rules: A Prepayment Rule contains methodologies to model the prepayment behavior of various amortizing instruments and quantify the associated Prepayment Risk.
6. Prepayment Models: Prepayment Mod­els can be referenced by a Prepayment Rule to Model Prepayment Behavior of instruments based on a range of instrument level attributes.
7. Alternate Rate Output Mapping Rules: In Oracle Funds Transfer Pricing, you either can output Transfer Pricing Results to the default columns of the application, or to the seeded alternate columns or placeholder alternate columns selected using the Alternate Rate Output Mapping Rule.
8. Transfer Pricing Standard Processes: The Standard Process allows you to calculate Transfer Rates and Add-On Rates.
9. Break Identification: This topic introduces you to configuration and process of Break Identification.
   1. Break Identification Configuration: This section covers the procedure to configure the Break Identification.
   2. Break Identification Processes: The Break Identification Process allows you to determine the data that you want to process, specify the parameters for the process, and execute or run the Break Identification Request and generate results.
10. Rate Cards: Rate card functionality allows the user to select standard products for viewing in their daily FTP Rate report. Administrators schedule a daily FTP run for the selected set of standard products and end users can view daily rates for relevant standard products by defining their Daily rate card reports.
    1. Rate Card Products: Product setup allows Administrators to define the default Product Characteristics for standard products. The Administrator will define these assumptions for Products during the application setup through the user interface.
    2. Rate Card Reports: The Rate Card Report contains a Rate Report definition page and a Report page. The Rate Report definition includes the name of the Rate report, and the set of standard products for which the user wants to fetch the rates.