1. Propagation Patterns User Guide
  2. Propagation Patterns
  3. Defining the Propagation Pattern

1.1 Defining the Propagation Pattern

To define the Propagation Pattern:

  1. From the LHS menu, select Funds Transfer Pricing, select Maintenance, and then select Propagation Patterns to display the Propagation Patterns Page.

    Figure 1-3 Propagation Patterns


    This screen displays the summary of the Propogation Patterns. The Propagation Pattern allows you to define source tables and Lookup terms required for propagating Transfer Rates and Option Costs for any applicable instrument table from a prior period.

    The Propagation Patterns Screen displays two sections on the Screen based on if the account is a commitment or not (regular account)
  2. Enter or select the following:
    • Use Most Recent Prior Data [As of Date]: If Use Most Recent Prior Date option is not on, then As-of-Date – Lookback term is calculated.

      If Use Most Recent Prior Date option is on, the nearest prior As-of-Date available in the instrument record is used for calculation. The Lookback term from the Propagation UI is ignored.

    • Processing Table: Instrument tables that are enabled for Transfer Pricing or Add-On Rate Processing. These Tables are sorted alphabetically.
    • Source Table: Tables that are referenced to obtain the previously calculated Transfer Rates or Add-On Rates.
    • Frequency: A numeric value multiplied with a Multiplier to calculate the Historical Lag reference date for rate Lookups.
    • Multiplier: The unit value of the Frequency.
  3. Select the Source Table that needs to be associated with each Processing Table.

    Note:

    The Source Table for any Propagation Process can be either the same table (if you store multiple periods of instrument data in the same Instrument table) or a separate table (if you store historical records in separate Instrument tables).
  4. Specify the Historical Lag between the Processing and Source Tables.
    1. Select the Frequency.
    2. Select the Multiplier.

    Note:

    The prior period Source data for each Source Table is defined in relation to the current As-of-Date. For instance, if you transfer price monthly, you should specify the historical lag between the Processing and Source Tables as one month.

    Note:

    Alternatively, select the “Use Nearest Prior Date" option to have the system automatically determine the prior date.
  5. Click Save.The Propagation Pattern assumptions that you have defined, are saved.
  6. Click Reset to restore default values. This selection will set the Processing and Source Tables equal to each other and will set the Term and Frequency equal to 1 Month, for all rows.