1.6.8 Floating Rate Details

Table 1-9 Field Description

Field Description
Reset Tenor Enter the tenor for which the floating rate (when applied automatically) needs to be picked up from the floating rates table, for contracts using this product. This field is applicable to floating type of interest components and fixed type with rate code attached.
Rate Cycle Type Specify the rate cycle type to be used for contracts using this product.

The rate cycle type is the manner in which the floating rate should be picked up for the contract. The preference that you specify here is used when the interest component does not fit into any direct parameter defined for the Rate Code. The options available are:

  • Up – Choose this option to indicate that the rate of the upper tenor slab should be used
  • Down – Choose this option to indicate that the rate of the lower tenor slab should be used
  • Interpolate – Choose this option to indicate that the rate should be interpolated between the rates of the upper and lower slabs
  • Round-off – Choose this option to indicate that the tenor of the component should be rounded off to the nearest whole number. The rate defined for the derived tenor will be applied to the component.

This field is applicable to floating type of interest components and fixed type with rate code attached. This specification cannot be changed when you enter a contract using this product.
Interest Basis The interest basis indicates the method in which the tenor for interest has to be calculated, if their application is tenor based. It could be one of the following:
  • (Euro)/ 360
  • (US)/ 360
  • Actual/ 360
  • (Euro)/ 365
  • (US)/ 365
  • Actual/ 365
  • (Euro)/ Actual
  • (US)/ Actual
  • Actual / Actual

The Interest Basis defined for the product involved in the contract will be displayed. You can change it here to suit the bill you are processing.

Note:

In the product level, default value for interest basis field is (Euro)/ 360.
Borrow Lend Indicator You can use this field to indicate whether the borrowing rate, lending rate or mid rate must be picked up from the floating rate table, for the specified rate code. This specification cannot be changed when you enter a contract using this product.
Rate Code Usage Enter a code to identify the Floating Rate you are defining. You can associate several currencies to the rate code and specify rates for each currency.

While processing a contract, you need to indicate this code to make the rate applicable to the contract.

Rate code field is supported to fetch RFR rate codes. RFR rate code currency to be maintained for the specific RFR rate codes. For Example RFR code ‘SOFR’: only USD currency record should be permitted. If any other currency is maintained, system should validate accordingly.

Parent topic: Interest Details for the Product