Validation Issue / Wrong Results of FTP Breakage Charges for Floating Rate Instruments
(Doc ID 2561299.1)
Last updated on NOVEMBER 13, 2024
Applies to:
Oracle Financial Services Funds Transfer Pricing - Version 8.0.0 and laterInformation in this document applies to any platform.
Oracle Financial Services Funds Transfer Pricing (FTP)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)
Symptoms
On 8.0.x version, during validation, results of Market Value, Breakage Amount, Breakage Charges from FSI_D_BREAK_FUNDING_CHARGES table didn't seem to be in line with expectation.
Detail cash flow is not able to give accurate picture with Market Value for one record being "0" in FSI_O_PROCESS_CASH_FLOWS. However BREAK_FUNDING_MV is populated in the FSI_D_BREAK_FUNDING_CHARGES table.
Use case:
- There are two records in FSI_D_BREAK_FUNDING_CHARGES table: first record is full break (breakage_type_cd=1), and second record is a partial break (breakage_type_cd=2).
- An Adjustment Rule has been created, where adjustment type was selected as "Breakage Charges". Method selected is "Economic Loss" with TP cash flow Interest type as "All in TP Rate".
- The Adjustment Rule was attached to an FTP process with Remaining Term methodology. Upon running it, breakage charges got computed with the following result columns being populated:
BREAK_FUNDING_AMT
BREAK_FUNDING_AMT_CHG
BREAK_FUNDING_MV
BREAK_FUNDING_RATE
BREAKAGE_AMOUNT
STEPS TO REPRODUCE
The issue can be reproduced at will with the following steps:
1. Run similar FTP process
2. Check and validate results
Cause
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In this Document
| Symptoms |
| Cause |
| Solution |
| References |