Straight Term Method Using TP Effective Date Not Generating Expected TP Rate

(Doc ID 1437450.1)

Last updated on OCTOBER 27, 2016

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 5.5 to 6.0.3 [Release 5 to 6]
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)


When attempting to run Funds Transfer Pricing process for adjustable type records with Straight Term Method, the transfer rate generated is based on the IRC for Origination Date instead of specified TP Effective Date.

Expected Behavior
Page 6-90 of the Cash Flow Engine filename: OFSAACFE_E24987_01_013112.pdf show the following:

Straight term methodology references ORIGINATION_DATE when defining the transfer pricing term that is matched to the term on the yield curve (Rate Management Interest Rate Code). For fixed-rate instruments, the term defined by (MATURITY_DATE - ORIGINATION_DATE) is matched to the relevant Interest Rate Code (IRC).

For adjustable rate instruments in their tease period, the term is figured as the (TEASE_END_DATE - ORIGINATION_DATE). The transfer pricing assignment date for the IRC is also determined by the ORIGINATION_DATE of the record. That is, the date of the yield curve (IRC) is matched to the date of the record's origination.

Note: IF TP_EFFECTIVE_DATE is populated, it will be used in place of ORIGINATION_DATE to determine the effective date for lookup of historical rates from the TP Yield Curve.


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