Securities Negative Interest Rate - Net Consideration - Interest Amount Calculated as Zero (Doc ID 2815773.1)

Last updated on OCTOBER 20, 2021

Applies to:

Symptoms

Actual Behavior

During Deal creation system is considering Interest Rate as Zero instead of Negative Interest Rate applicable. System is not calculating amount for Interest Amount Tag in Net Considerations from the Previous Coupon Date to DSTL Date.
We have not maintained any Rate Limits.


Expected Behavior

System should consider the negative interest rate applied.


Steps to Reproduce

1. Ensure that minimum or maximum rates are not maintained at SE product level.
2. Ensure that the current effective rate for floating case is in negative.(CFDFLRAE).
3. Now Book a Security instrument (SEDTRONL) using the above product.
4. Immediately book a SE deal (SEDXDLNL) using the above instrument so that the deal falls under "Broken Interest" period.
5. Run a EOD and check for the SPLP event which should have the bought interest also.
6. Check the interest amount tag in net consideration from Previous Coupon Date to DSTL Date


Business Impact

Due to this issue, users cannot use the negative interest rate

Changes

Cause

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