SOLUTION SPOTLIGHT

New Global One Interest Days Calculation to Facilitate the Processing of Brazilian Market Trades

The Brazilian market, along with other South American and European emerging markets, require an interest calculation which utilizes business days in the year rather than the usual standard of 360 or 365. The interest accrual formula uses a compounded interest model rather than the basic multiplication and division method used for standard interest accrual calculations.

The next release of Global One (7.0.0) includes an enhancement to calculate a trade's rebate or fee based on the new formula by providing an additional 'Interest Type' (FD). While the functionality was developed with the Brazilian market's 252 business days in mind, it can be used for any currency of trade. Global One will calculates a currency's business days for interest accrual purposes by taking into consideration weekends, weekend settlements, and settlement (bank) holidays.