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How To Setup Adjustment Rule for Liquidity Adjustment With Different Reference Terms (Doc ID 2736264.1)

Last updated on JANUARY 19, 2021

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 8.1.0.0.0 and later
Information 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)
Interest Rate Code / Yield Curve (IRC)

Goal

Use case question on using an Adjustment Rule for Liquidity Adjustment with fixed term adjustment method:

Under Adjustment Rule for liquidity adjustments with fixed term adjustment method, the reference term has few options such as Original Term, Remaining Term, Repricing Frequency, etc. to calculate the liquidity premium rate. On selecting the reference term as "Remaining Term", the liquidity premium rate is getting calculated as expected.  However, when the contractual maturity term is less than one year, the liquidity premium rate is needed to be calculated as (0.5 * Contractual Term Rate) + (0.5 * 2 Year Term Rate). There does not appear to be any option to configure the same as part of Adjustment Rule.  Are any other options that could provide a solution for this scenario?

Solution

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In this Document
Goal
Solution
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