Defining the Automatic Market Rates Management scope (1S4)

With the SAP Market Rates Management application, market data is automatically imported from the currency service provided by SAP Cloud Platform. You can load market rates with either the Refinitiv data option, or via Bring Your Own Rates (BYOR).

The Refinitiv data and BYOR options support eight different types market data, including Currency Spot Rate, Interest Rates, Forex Swap Rates, Basis Spreads, Credit Spread, FX Volatility with Moneyness, and Securities and Exchange Rate Volatilities.

You can schedule the request for current market data as a job to get the data when you need it and tailor the market data for importing to get only the market data you need.

You can also import historical market data into your system for comparison reasons.

Corporate Treasury in a centralized function must offer integration with Finance, other Lines of business, SAP and non-SAP systems for a single source of truth. SAP Treasury Management is well equipped to support new business models. Gone are the days when enterprises could cash in on their legacy. Technology is the key driver enabling innovation.

Amidst all these challenges, there is pressure on margins and working capital, the Oxygen for a business to run.

SAP Treasury Management and Risk Management on SAP S/4HANA Cloud is the smart system that uses digital age UX design with real time business analytics and digital assistants to stay ahead of the competition.

SAP Cloud Platform for Innovations and flexible deployment offers increased automation through smart services.

SAP supports the complete lifecycle of Treasury and Risk processes in SAP S/4HANA Cloud through Analytics and Automation. Customers are also in a position to benefit from reporting and controlling mechanisms.

Due to the given market conditions, customers expect a simplification and automation of front office activities for an efficient E2E SAP Foreign Exchange Management. Treasury managers expect a holistic solution including integration to the different trading platforms, payment providers, and other stakeholders.

The SAP Market Rates Management SAP Cloud Platform app helps enterprises to get rid of customer-specific development, reduce the implementation cost, and provide straight through processing (STP). Furthermore the SAP Cloud Platform apps can easily be integrated to different SAP backend systems.

With the additional flexibility to consume either market data through the Refinitiv data option or the Bring your Own Rates option (BYOR) customers are not bound to peer-to-peer integration or specific provider contracts anymore.

The new SAP Cloud Platform-based application, called SAP Market Rates Management, Refinitiv data option, offers out-of-the-box connectivity to comprehensive pricing and reference data from Refinitiv (formaly Thomson Reuters) business and is available to SAP customers worldwide.

The partnership makes it easier for chief financial officers, treasurers, and corporate finance teams to access pricing and reference data to more accurately calculate foreign exchange transactions. SAP Market Rates Management integrates foreign exchange and money market data from Refinitv for more accurate pricing of any global transaction.

The SAP Market Rates Management, Bring Your Own Rates data option allows you to upload and download your own market rates licensed from third party data providers. It includes upload and download APIs that enable you to upload and download market data in a format compatible with an SAP S/4HANA system. You can distribute the downloaded rates in all connected systems in your landscape. The application supports 12 market data types.

You can consume the Refinitiv data option for SAP Market Rates Management by using existing applications like Request Current Market Data on SAP S/4HANA Cloud. The SAP S/4HANA Cloud system communicates with the service in a plain text format that is referred to as the TBD4 format for the request and response service. To learn more about the TBD4 transaction, see Datafeed in the Treasury and Risk Management user guide.

The Refinitiv data option provides market rates that are licensed by Refinitiv. Only a pre-defined set of Reuters Instrument Codes (RIC) are available for download through the service. The full list of available RICs supported can be found on the SAP Help Portal.

Market rates are always end-of-day rates, with the exception of credit spreads. Credit spreads are published at 7:00 AM UTC. The marketDataProperty in your payload must be MID, BID, ASK or CLOSE.

The SAP Market Rates Management scope item supports seven different market data classes. The SAP S/4HANA Cloud system provides several apps where you define how for example how to import interest rates or credit spreads through your datafeed provider.

The different apps (one for each category) allow you to manually input translation tables between the datafeed and your master data.

The translation tables have to be defined before you can run any task to request market data. You need to define a translation table only once for one type of market data.

You can use the datafeed to incorporate current and historic market data into your financial transactions by means of the different SAP Market Rates Management services.

Once the market data file has been uploaded, the translation tables are used to convert the formats of external market data into system-internal formats. You have the option of calling up market data either daily (with a scheduled background job) or continuously (in real time).

Before you can use the SAP Market Rates Management feed, you need to subscribe to one of the following Market Rates Management service packages provided on the SAP Cloud Platform and create a service instance and service key.

Once you subscribed, you get a service URL, a client ID, and a client secret required to call the service from your system.

• SAP Market Rates Management - Trial Service:

  This is a free service that can be used for non-productive usage and testing, only. It provides currency exchange rates from the European Central Bank.

• SAP Market Rates Management - Refinitiv data option:

  This is a paid service that is built for productive usage. It provides market data from Refinitiv, an external data provider.

• SAP Market Rates Management - Bring Your Own Rates data option:

  This service can be used to import your own data that you have procured or licensed directly with data providers. As a consumer, you upload and then download your own market rates by using the SAP Market Rates Management service's upload and download APIs.

Check the SAP Store for further details on the Refinitiv package: https://www.sapstore.com/solutions/40127/SAP-Market-Rates-Management%2C-Refinitiv-Data-Option

Check the SAP Store for more details on Bring Your Own Rates: https://www.sapstore.com/solutions/40135/SAP-Market-Rates-Management%2C-Bring-Your-Own-Rates-Data-Option

In the SAP Cloud Platform, enter your space, and go to Services → Service Marketplace. Here, you can find the Market Rates Management Service tile: MRM - Thomson Reuters Data or MRM - Bring Your Own Rates.

Select the tile according to your needs and create a new instance for the service.

Open your created instance, go to the Service Keys section, and create a new service key. This generates unique credentials for you to access the service.

With this, we finish our SAP Cloud Platform setup, and can proceed to use the Market Rates Management services.

In the SAP S/4HANA Cloud system, you need to setup a communication system and a communication arrangement.

• A communication system is used to define the host name of the Automatic Market Rates Management.
• The communication arrangement in the SAP S/4HANA system defines all relevant information for the interface. It contains the communication system, inbound and outbound authentication.

If you've subscribed to type Refinitiv data option, you'll get the following information:

• downloadUrl
• clientid
• clientsecret
• url

You use this information to setup the link to the SAP Market Rates Management with the SAP Fiori tiles Communication System and Communication Arrangements.

Refer to the Setup Instructions for SAP Market Rates Management for further details.

Below, you will see two examples on how specific notations are setup in the SAP S/4HANA Cloud system. You would need to do this for all the data categories you are pulling from the SAP Market Rates Management service.

The app Assign Interest Rate Notations - Datafeed allows you to manually input translation tables between the datafeed and your master data.

The translation tables have to be defined before you can run any task to request market data. You need to define a translation table only once for one type of market data.

Before you can assign reference interest rate notations to your data provider, you first need to define your reference interest rates using the configuration app Define Reference Interest Rates by calling up the Manage Your Solution app, choosing Configure Your Solution, and searching for it.

Further, you need to enter the specific data for your interest rate notations, you specify an Instrument Class and Data Provider: For example, 03 for interest rates, and Y001 for the SAP Cloud Platform.

Administrative Data:

Reference Interest Rate: EURM03EUR

Datafeed Parameters: Instrument Name: EURIBOR3MD=:IRS

Data Source: REFINITIV

Instrument Property: C

The app Assign Security Price Notations helps you to define how security prices are imported through your datafeed provider.

This app allows you to enter translation tables manually for use between the datafeed and your master data.

The translation tables have to be defined before you can run any task requesting market data. Before you enter the specific data for your currency notations, you specify an instrument class and a data provider.

For example, you specify 02 for currencies and Y001 for the SAP Cloud Platform.

Administrative Data:

Security Name: MMF_DE1

Exchange Rate Type: SMMF

Price Type: 01

Save market data permanently in system: Flag

Rate/Price Provision: System Request

Max. Deviation in Percent: 10

Datafeed Parameters:

Instrument Name: MMF_DE1~SMMF:SEC

Data Source: BYOR

Instrument Property: 01

After you have setup all the communication arrangements and assigned the needed notations in the SAP S/4HANA Cloud system, you can request current market data with the app Request Current Market Data - Datafeed. The selected market data is obtained by means of the datafeed interface.

Key features of the app include the following:

• Request current market data for different market data classes, such as currencies
• Update market data (such as currencies and interest rates) in the market data tables
• Save a variant with your preferred settings

Note:

To retrieve current market data on a daily basis, you can schedule a background job using the job template Request Current Market Data in the Schedule Treasury Back Office Jobs app.

Upload, download, and distribute your own market data in your landscapes.

The SAP Market Rates Management, Bring Your Own Rates data option, allows you to upload and download your own market rates licensed from third party data providers. It includes upload and download APIs that enable you to upload and download market data in a format compatible with an SAP S/4HANA system. You can distribute the downloaded rates in all connected systems in your landscape. The application supports 12 market data types.

You specify a unique code for each market data type in the payloads. You can upload and download up to 1,500 records at a time (in one request) and 300,000 records per global account.

Features of the SAP Market Rates Management, Bring Your Own Rates data option include the following:

• Upload market rates from any system from your own sources and download them in the SAP S/4HANA or JSON format.
• Upload your market rates once and manage all your downloads by using SAP S/4HANA. Multiple SAP S/4HANA on-premise or cloud instances can download data from the application at the same time.
• Upload up to 12 market data types using a single upload API and download any or all market rates using one download API.
• Read, query, and delete your market data information by using the Manage Market Rates application. Sort through market data categories, and view records for each category.
• Access business messages about your market data uploads, downloads, and delete operations.

The Market Rates, Bring Your Own Rates provides you with support for 12 market data types. Each market data type is identified by a unique code in the download request payload. 

You can get started with the Bring Your Own Rates data option by using the standard procedures for SAP Cloud Platform Cloud Foundry environment.

Like with the Refinitiv Data Option, you have to have a global account and subaccount on SAP Cloud Platform. To use the BYOR data option, you must create a service instance. You can create a service key to communicate directly with the service instance.

After that, you setup the connectivity to the SAP S/4HANA Cloud system by configuring the communication system and communication arrangement.

Upload your market rates once and manage all your downloads by using SAP S/4HANA. Multiple SAP S/4HANA on-premise or cloud instances can download data from the application at the same time.

Upload up to 12 market data types using a single upload API and download any or all market rates using one download API.

Finally, you can consume the information in the application no matter if it is a SAP S/4HANA Cloud or SAP S/4HANA on-premise system.

Before you can use the SAP Market Rates Management feed, you need to subscribe to one of the following Market Rates Management service packages provided on the SAP Cloud Platform and create a service instance and service key.

Once you subscribed, you get a service URL, a client ID, and a client secret required to call the service from your SAP S/4HANA Cloud system.

The service SAP Market Rates Management - Bring Your Own Rates data option can be used to import your own data that you have procured or licensed directly with data providers. As a consumer, you upload and then download your own market rates by using the SAP Market Rates Management service's upload and download APIs.

In the SAP S/4HANA Cloud system, you need to setup a communication system and a communication arrangement.

• A communication system is used to define the host name of the Automatic Market Rates Management.
• The communication arrangement in the SAP S/4HANA system defines all relevant information for the interface. It contains the communication system, inbound and outbound authentication.

If you've subscribed to type BYOR data option, you'll get the following information:

• uploadURL, 
• downloadURL, 
• client_id, and 
• client_secret

You use this information to setup the link to the SAP Market Rates Management with the SAP Fiori tiles Communication System and Communication Arrangements.

Refer to the Setup Instructions for SAP Market Rates Management for further details.

Below you will see two examples on how specific notations are setup in the SAP S/4HANA Cloud System. You would need to do this for all the data categories you are pulling from the SAP Market Rates Management service.

You can consume the SAP Market Rates Management, Bring Your Own Rates data option application within the Import Market Data application on SAP S/4HANA Cloud.

Market data can be obtained from various sources like banks, stock exchanges, and third party aggregators. These sources export data in their own formats. You can upload market rates from any source to the SAP Market Rates Management, Bring Your Own Rates data option APIs. To use this data within the SAP S/4HANA system, you must convert the rates into the JSON or text/csv format.

Note

The system from which you upload market data must support OAuth and HTTPS calls.

There is a specific field description for upload payloads. You need to strictly adhere to this specification in order to upload your information to the SAP S/4HANA Cloud System.

Depending on the uploaded data, the specified market data fields need to be filled, for example, in the .csv file.

In the example shown, there are two CSV upload structures for:

a) Index volatilities

b) Interest Rates

Note

If you intend to consume the download service through an SAP S/4HANA Cloud system, the data source in your upload request must be BYOR.

Continuing with the example, for interest rates, you need to set the interest rate notations with the according app in the SAP S/4HANA Cloud system.

The app Assign Interest Rate Notations - Datafeed allows you to manually input translation tables between the datafeed and your master data.

The translation tables have to be defined before you can run any task to request market data. You need to define a translation table only once for one type of market data.

Before you can assign reference interest rate notations to your data provider, you first need to define your reference interest rates using the configuration app Define Reference Interest Rates by calling up the Manage Your Solution app, choosing Configure Your Solution, and searching for it.

Further, you need to enter the specific data for your interest rate notations, you specify an Instrument Class and Data Provider: For example, 03 for interest rates, and Y001 for the SAP Cloud Platform.

Administrative Data:

Reference Interest Rate: EURM03EUR

Datafeed Parameters:

Instrument Name: EURIBOR3MD=:IRS

Data Source: REFINITIV

Instrument Property: C

Finally, you can request current market data with the app Request Current Market Data - Datafeed. The selected market data is obtained by means of the datafeed interface.

Key features of the app include the following:

• Request current market data for different market data classes, such as currencies or interest rates
• Update market data (such as currencies and interest rates) in the market data tables
• Save a variant with your preferred settings

Note

To retrieve current market data on a daily basis, you can schedule a background job using the job template Request Current Market Data in the Schedule Treasury Back Office Jobs app.