Skip to Main Content
Quantum Ideas Portal
Welcome to the FIS Treasury and Risk Manager - Quantum Edition Aha! Ideas Portal.

By visiting this portal, you will be able to contribute towards the evolution of the Quantum solution through interactions with other Quantum users, FIS trusted partners and FIS staff from around the world. Each Portal User receives 5 votes. Each user is allowed 1 vote per idea. Votes are reset when an idea is in a final state i.e. Shipped (delivered in the product).

Users will receive weekly email updates that highlight new activity. Users will receive emails for their created ideas when:

  • Status changes

  • Comment changes

Be aware that when you post content, other community members will see your name. FIS is not responsible for content posted by other Aha! Ideas Portal Users.


Status Future consideration
Categories Strategic
Created by Mark Zumbraegel
Created on Aug 28, 2018

Support Advance Interest Timing for MM Deals

Currently, for Yield style MM deals in Qt, you can't specify an interest timing = Advance. Qt always assumes Arrears. Interest in advance is quite common in the Brazilian market (request is for FCA) for borrowings and guarantee fees.

You can customize the deal in Qt to replicate interest paid in advance, and Qt accepts this but that is not a long term viable work-around, given that FCA currently have 40-60 of these type of borrowings, additionally some are also amortizing (amortization can only take place on interest payment date). 

Interestingly, interest timing = Advance is supported in Analytics and it automatically and correctly generates the deal map. However, when the deal gets replicated in Qt, Qt ignores the Analytics deal map and creates its own with interest timing in Arrears. 

I see two possible solutions:

1. Provide an interest timing option for Yield type formulas in MM/Sec deals which then would generate the interest to be paid at the beginning of the period. It would need to need to support floating and amortizations, however rate sets and amortizations would occur on interest calculation dates. Since Analytics already supports this functionality, it may make sense to use Analytics to generate the deal map in a similar manner is currently done with P&I formula. 

2. Create the deal in Analytics and force the Analytics deal map into the Qt deal map. This would still result in the Qt deal map to be customized, but at least this wouldn't be done manually. Apparently, this is currently done in certain scenarios, but that needs to be confirmed with an Analytics BA.

  • Attach files