The Rate Type indicates whether the interest is a Fixed Rate, a Floating Rate or a Special amount. When creating a product, you should specify the Rate Type through the ‘Product - ICCB Details’ screen.

You should specify the method in which the rates in the Floating Rates table have to be applied. It could either be automatic application (meaning the rate has to be applied every time it changes), or periodic application (meaning the rate has to be applied at a regular frequency, defined for each contract involving the product).

Floating rates are defined with a borrow or a lend tag attached to them. Here, you indicate the nature of the floating rate that needs to be picked up for the interest component.

The options available are:

• Borrow
• Lend
• Mid

Each Rate Code corresponds to a rate defined for a combination of Currency, Amount (if it is necessary) and an Effective Date. These details are maintained in the Floating Rates table. This rate will be applied to contracts involving the product.