Oracle Treasury

Procedures in Setting up ECB Transactions

1. Currency If the said currency is not created in the Treasury system, follow
the steps below
Setup: Miscellaneous: Currency -> Codes (This action will help in creating
a new currency code)
2.

Currency If the said currency is available but not made as usable

currency in the Treasury system, follow the steps below
Setup: Policies -> Currency Details -> Click Unauthorised currencies (from
left) identify the currency -> Add/ Maintain Currencies -> and move it to
authorize currency (to right)

3. Create Holiday Rules for the Currency Configure the Currency Holiday
Rules by following Navigation Rules
Setup System -> Currency Holiday Rules -> Update Holidays
4. Interest Rate Yield Curve to be created (e.g) 12 M Libor, 6 M Libor, NSE o/n
Mibor etc. This is called creation of Bench Mark Rate. Loading of Interest Rate
Data in the Yield Curves Created.
Rates -> Current System Rates -> Datafeed Tab -> Click New for adding
new Interest Rate Codes -> Create a New Code -> Current Rate Tab ->
Click New for Adding new Interest Rate Code -> (Reference Code created
in the Datafeed tab will appear -> In the period field enter the number for
day/month/year ->In the term type select the day/month/year - > Select the
Base Currency -> Select the Accrual Basis Code - > Click save.
Click the Interest Rates/Prices tab in the below, a new popup would open
up for creation of interest rates. Click New and enter the interest rates and
save.
Create a 6M Libor for an ECB Transaction.
5. Creation of Counter Party (Bank details)
Setup:Parties -> Counter Party Profiles -> Fill the details of the Counter
Party -> Enable the following as per the requirements
FX
MM
Equity Market
Client
Risk Party
Advisor

Valuer
6. Creation of Transaction Details
Setup-> Moneymarket Transactions ->Wholesale Term Money ->
Created a data with following details
Type of Transaction - ECB
Principal USD 10,000,000/Rate of Interest USD 6 Months Libor + 1%
Interest Reset at 6 months Interval
Interest Payable at 6 months
Principal Payable of USD 500,000/- at 6 months interval
Term 5 years
7. User Access level for Transaction Validation
Setup-> System -> User Access Levels ->
Under Treasury User Enter the User Name
Under Application User Enter the User Name
Under Deal Access Tab
Deal Type
TMM
Deal Sub Type
Fund
Product Type
ECB
Input Authorized
Enable
Validation Authorized
Enable
Save the entries.
8. Validation of Transaction Data
Settlement -> Transaction Validation ->
Click the radio button Not yet Validated or Both
Enter the date in Validated From field
Check the deal details with the deal number
Click the Review Details and check the deal
Enable Transaction Validated button
Enable Confirmation Checked button
Click Save
9. Convert the USD Liability into INR Liability by converting for Spot rate
Foreign Exchange Transaction -> Spots/Forwards
Company ICL (LOV)
Counterparty Sampath Bank (LOV)
Client Sampath Bank (LOV)
Portfolio ECB
Deal Subtype SPOT
Product Type SPOT
Value Date - Inflow Date (Converting into the same date Cashspot)
Buy Currency INR

Sell Currency USD

Sell Amount USD 10,000,000/Reference Spot Rate 47.5757 (Picked from System - No need to
change for spot)
Transaction Rate 47.57
Save the Transaction (If swap is not taken)
10. Validating the FX Conversion
Settlement -> Transaction Validation ->
Click the radio button Not yet Validated or Both
Enter the date in Validated From field
Check the deal details with the deal number
Click the Review Details and check the deal
Enable Transaction Validated button
Enable Confirmation Checked button
Click Save
11. Create IRS for each cashflow
12. Deal linking
13. Settlement
14. Accounting
15. Reports Generation Internal
16. Reports Generation Accounting and Compliance