Inconsistent Transfer Rates Output for FTP Process with Forward Rates (Doc ID 1605166.1)

Last updated on DECEMBER 05, 2013

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 6.1 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

In Oracle Financial Services Funds Transfer Pricing (FTP) 6.1.0.1, when running an FTP process against the Loan Commitments table (FSI_D_LOAN_COMMITMENTS) with the "Forward Rates" option selected, the forward rates output to FSI_O_FTP_IMP_FWD_RATES_AUDIT appear to be inconsistent.  You run the process against an initial data set and get one set of rates.  Then, after you re-load the data and re-run, you end up with a different set of rates.  As a result, the transfer rates created using these forward rates are inconsistent also.

Note: Forward Rates are only output to FSI_O_FTP_IMP_FWD_RATES_AUDIT if you use a "Cash Flow" Transfer Pricing method and select the related Audit Option in the FTP Process.

Example:

After the initial data load, you get the following in FSI_O_FTP_IMP_FWD_RATES_AUDIT:

TERMRATE
23 M 29.356404
24 M 30.36906


After re-loading the same records, you get different values in FSI_O_FTP_IMP_FWD_RATES_AUDIT:

TERMRATE
23 M 27.229884
24 M 28.238396


The forward rates output change despite having the same data records.  Since the Forward Rates are used to generate the Transfer Rates, the Transfer Rate results are also inconsistent.  You do not know which rates are correct or wrong.

Cause

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