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Oracle® Insurance Rules Palette 9.4.1.0 E23637_01

# Currency Exchange

Currency Exchange functionality was enhanced to replace the existing NUVOffSet rule with a defined MathStatement (which operates much like a Function) to return the GuranteedExchangeDate, GainLossExchangeDate, and an indicator that exchange rates exist on the calculated date (RatesExist). An input offset integer will tell the MathStatement how many business days to add to the currency activity effective date.

The exchange of one currency to the next is done using the currency exchange rates for the Market Maker record attached to the Plan or Company. The base valuation currency is defined at the Plan level and all amounts passed into Activity assignment processing are presumed to be in this base currency. The system will apply the Market Maker's exchange rate as of the Guaranteed Exchange Date calculated by the configured MathStatement to convert from the base currency to the target currency of each fund in the activity allocation. Each currency will have its own exchange rate but the rates used will all share the same effective date as calculated by the MathStatement.

The exchange date calculated by the MathStatement will always be driven by the activity effective date plus any applicable offset business days based on the Plan Market Maker's calendar. Activity assignment will then find the guaranteed Price Date for each allocated fund based on that fund's calendar and business day offset record. Each fund's offset is applied to the Guaranteed Exchange Date based on the fund's calendar.

In some transactions it may be necessary to use the last know exchange rates or prices for the valuation and assignment processes. In these cases, the MathStatement used has no input offsets and returns the last known exchange date for the Market Maker as of the activity effective date. Additionally, the activity assignment will use the last known prices of the allocated funds for valuation with no business day offsets.

XML Example Showing the Call to MathStatement

## Configuration Requirements

The number of offset days should be held at the company level and overridable down to the transaction level. The Market Maker calendar will use the offset integer to determine the number of business days from the activity's effective date to look for the guaranteed exchange date. The offset integer is a parameter passed into the Math Statement function.

Currency conversion will use only one exchange date for assignment (can be different than the activity effective date). The exchange date is validated by:

1. Confirming the activity effective date is a business day on the custodian bank's calendar.
2. If the activity effective date (day) is a business day, add the number of offset days to the date.
3. If the activity effective date (day) is not a business day, move the calendar to the next business day and add the number of offset days.

The default offset day(s) will be 0 if not specified in the Math. However, a transaction may need to determine the currency exchange offset to be used as of the time of day locally when the activity is entered. TransactionTimes business rule can assist with cut off time frames.

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Business Rules

- PriceOffSet: This rule will manage the Net Asset Value lookup method called "NextPrice" and the implementation of exchange date and price offsets.

- TransactionTimes: This rule can be used in conjunction with the MathStatement for determining the number of offset day(s) when the activity effective date needs to be determined locally. Transactions added prior to a cutoff time may use (0) days while those added after may use a different number of offset day(s).

- PostAssignmentValidateExpressions: This rule can be used to pull values from Funds and confirm that the activity and/or accounting can go forward, the values in the funds meet minimum guidelines, or that funds have a sufficient amount for the activity being processed.

Navigate to Main Explorer | International Company | Subsidiary Companies | International Child Company | Plans | Unit Linked Template | Transactions | Policy Transactions | Withdrawal | Attached Rules | PostAssignmentValidateExpressions-(UnitLinkedTemplate).

Transactions

- Withdrawal: This transaction can be found in the International Child Company in the Unit Linked Template. The offset integer used within the MathStatement (FindNextExchangeDatePricing) in determining the GuaranteedExchangeDate and GainLossExchangeDate.
- MonthlyProcessing: This transaction can be found in the International Child Company in the Unit Linked Template. The Math Statement uses FindLastExchangeDatePricing in determining the GuaranteedExchangeDate and GainLossExchangeDate.

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