Business Case: Inflation Indexed bond

[ESMA 70-1861941480-56 MiFIR data reporting Q&A, Q&A 10.1]  Example of transaction report on “inflation indexed bonds”: An investment firm acquires a DBRI 0.1% 04/15/2026 (ISIN Code DE0001030567) by trading over the counter at 110.00%. The nominal value of the transaction is 1000000 EUR. The net amount for this transaction is 1111274.01 EUR. Considering that for the purpose of this example: The static characteristics (as defined upon the issue of the financial instrument) are: Maturity Date: April 15 th 2026 Coupon frequency: Annual Day Count Convention: ACT/ACT Day to Settle Convention: 2 business days after the trade date The variables (dynamic characteristics depending on the market conditions) are: Trade Date: July 25 th   2016 Settlement Date: July 27 th 2016 (as per the Day to Settle Convention) Last Coupon Date: April 15 th   2016 Next Coupon Date:  April 15 th   2017 Accrued number of days: 103 (i.e., the number of days between the Last Coupon Date and the Settlement Date) Period basis: 365 (i.e., the total number of days between the Last Coupon Date and the Next Coupon Date) Quantity: 1000000 (i.e., the nominal or monetary value of the transaction) Clean price: 110.00 Index ratio: 1.009990 Accrued interest:  0.02821918 (i.e., Nominal Coupon /  Annual Coupon Frequency   x Accrued Number of Days /  Period basis    =  0.1/ 1  x 103/ 365   ) The net amount will be calculated as follows (pursuant to the formula provided in field 35 of RTS 22): Net amount [1] = [(Clean price x Nominal value) + (Accrued coupons x Nominal value)] x Index ratio i.e. [(( 110/ 100  x 1000000 EUR) + ( 0.02821918/ 100   x 1000000 EUR))] x 1.009990 =1111274.01 EUR. N Field name Values XML representation 30 Quantity ‘1000000’ <Tx>   <New>    …     <Tx>       …       <Qty>        <NmnlVal Ccy="EUR">1000000</NmnlVal>       </Qty>      <Pric>        <Pctg>110.00</Pctg>       </Pric>       <NetAmt>1111274.01</NetAmt>       <TradVn>XOFF</TradVn>       ...     </Tx>     <FinInstrm>       <Id>DE0001030567</Id>    </FinInstrm>     …   </New> </Tx> [1] Please note that this example differs from example 92 within the Guidelines by the index ratio that needs to be taken into account in the calculation of the Net Amount.