How To Fix RY483 - Volatility curve is not consistent

RY483 - Overview

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 483

• Message text: Volatility curve is not consistent

What causes this issue?

The volatility structure curve is inconsistent on the basis of the
following relationship:
<PF>v^2(t1)*t1 > v^2(t2)*t2 </>for <PF> t1 < t2</>

System Response

The system terminates the calculation.

How to fix this error?

Check the volatilities.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RY483 - Volatility curve is not consistent ?

  The SAP error message RY483, which states "Volatility curve is not consistent," typically occurs in the context of financial instruments and derivatives pricing within the SAP system, particularly in modules related to Treasury and Risk Management (TRM) or Financial Services.
  
  Cause:
  The inconsistency in the volatility curve can arise from several factors, including:
  
  Data Entry Errors: Incorrect or incomplete data entries in the volatility curve configuration.
  Curve 
  Configuration Issues: The volatility curve may not be properly defined or may have gaps or overlaps in the data points.
  Market Data Updates: Changes in market conditions or updates to market data that have not been reflected in the volatility curve.
  Inconsistent Parameters: Parameters used in the calculation of the volatility curve may not align with the expected values or formats.
  Versioning Issues: If multiple versions of the volatility curve exist, there may be conflicts or inconsistencies between them.
  
  
  Solution:
  To resolve the RY483 error, you can take the following steps:
  
  
  Check Volatility