11.7 Define and Execute a Break Identification Process

Break Identification processing should be run if automatic break detection is the preferred approach to populating the break events table (FSI_D_BREAK_FUNDING_CHARGES). Users also have the option to populate this table manually during data loading or use a hybrid approach. The Break Funding Charges table is the source table for calculating breakage charges.

To complete the breakage charge calculation process, after populating breakage data, the Break Funding Charges table should be selected in a Transfer Pricing Process as the source table, and the calculate Adjustments option should be selected under Calculation Selection. Finally, an appropriate Adjustment Rule (containing Breakage Charge assumptions), should be selected in the TP Process to apply the desired Breakage Charge calculation method.

The Break Identification Process supports the following Break Types:

  • Full Break (type 1)
  • Partial Break (type 2)
  • Change in Attributes (type 3)
  • Partial Break + Change in Attributes (type 5)

Assumptions:

  1. Instruments that are fully repaid or terminated will not be available in the instrument table for the current period. If users choose to include fully re-paid instruments, in the current data, these records should have a current balance of zero and account open flag = No.
  2. Records will be identified and compared uniquely based on the ID Numbers. It is assumed that the ID Numbers will not be duplicated for a given period within an instrument table.
  3. Both current and prior period data exist in the same instrument table. The current period refers to As-of-Date specified in FTP Application Preferences. A prior period is calculated based on assumptions given in the Break Identification Process.
  4. When the Nearest Prior Date option is selected in the Break Identification Process for determining the prior period as of date, it is assumed that the process has been previously executed and an entry exists in the Process Run History table.

The following data flow illustrates how Break Identification processing works in the context of the overall staging and instrument table design:

Figure 11-33 Break Identification Process Flow


This data flow illustrates how Break Identification processing works in the context of the overall staging and instrument table design.

The following figure shows the overview of the Break Identification process:

Figure 11-34 Overview of Break Identification Process


This illustration depicts the overview of Break Identification Process.