How To Fix RY483 - Volatility curve is not consistent

SAP Error Message - Details

• 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 Curve Configuration:
  
  Navigate to the configuration settings for the volatility curve in the SAP system.
  Ensure that all required data points are correctly entered and that there are no gaps or overlaps.
  
  
  
  Validate Market Data:
  
  Review the market data used to construct the volatility curve. Ensure that it is up-to-date and accurately reflects current market conditions.
  
  
  
  Recalculate the Curve:
  
  If applicable, recalculate the volatility curve to ensure that it is consistent with the latest market data and parameters.
  
  
  
  Review Parameters:
  
  Check the parameters used in the volatility calculations to ensure they are consistent and correctly formatted.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidelines on configuring and troubleshooting volatility curves.
  
  
  
  Seek Support:
  
  If the issue persists, consider reaching out to your SAP support team or consulting with SAP experts who can provide more tailored assistance.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address known issues or provide patches related to volatility curves.
  Transaction Codes: Familiarize yourself with transaction codes related to volatility curve management, such as those for creating or modifying curves.
  Training and Documentation: Ensure that users involved in managing volatility curves are adequately trained and have access to relevant documentation.
  
  By following these steps, you should be able to identify and resolve the inconsistency in the volatility curve that is causing the RY483 error message.