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MM: Negative Interest MM Matching - Partial And Full Match (Doc ID 2885369.1)

Last updated on JULY 29, 2022

Applies to:

Oracle Banking Treasury Management - Version and later
Information in this document applies to any platform.


On : version, Production Support

Negative Interest MM Matching - Partial and Full Match

For MM Confirmation matching, Negative interest rate is not handled.
While booking a MM placement contract in USD currency with negative interest rate in Flexcube, system generates outgoing MT320 with field 17R as ‘L’ and field 34E as ‘USD’ (note: ‘N’ is not affixed to the currency since interest rate is negative). While inserting this contract into MMTB_CONTRACT_MM, system inserts the Currency as ‘SD4’ and not as ‘USD’ since system expects an ‘N’ before the currency (however, as per SWIFT standards ‘N’ is not required as this is correctly handled in the outgoing MT320 but not in the MM confirmation matching). Similarly, for the incoming MT320 for above contract, the field 17R will contain ‘B’ and 34E will contain ‘NUSD’. This is also not handled since while parsing the incoming message, system does not expect an ‘N’ before the currency in field 34E as field 17R is ‘B’, however as per swift standards ‘N’ is required to be affixed before currency in field 34E)
Vice-versa for MM Borrowing deals booked (i.e. for outgoing MT320, field 17R will be ‘B’ and 34E will be ‘NUSD’ and for incoming MT320 17R will be ‘L’ and 34E will be ‘USD’).

For MM Confirmation matching, Negative interest rate should be handled.



1: Create a MM rule using MMDCNFMT-Confirmation Rule Maintenance with
full match by including Interest currency and interest amount was
2: Create a MM placement contract by choosing "Payment on Confirmation"
from MM contract preference tab and authorize.
3: Place the incoming MT 320 message for both Placement and borrowing
which is received from the other party.
4: Run the BABIDBAT-Intraday Batch, system should match the contract.


Business Impact


Due to this issue, for negative interest rate, outgoing swift message is not generated correctly with Negative sign




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