How To Fix RY553 - Volatility values &1, &2, &2 for &4 are incompatible

RY553 - Overview

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 553

• Message text: Volatility values &1, &2, &2 for &4 are incompatible

What causes this issue?

The volatilities &1 &2 &3 for the &4 do not match. One of the volatiliti
es is significantly different to the others. As a result, the determined
correlations could be both greater than 1 or smaller than -1.

System Response

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

How to fix this error?

Check the volatilities.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RY553 - Volatility values &1, &2, &2 for &4 are incompatible ?

  The SAP error message RY553 indicates that there is an issue with the volatility values for a financial instrument or derivative. This error typically arises in the context of financial risk management or valuation processes, particularly when dealing with options or other derivatives that require volatility inputs.
  
  Cause:
  The error message "Volatility values &1, &2, &2 for &4 are incompatible" suggests that there are three volatility values being compared, and they do not match or are not compatible for the specified financial instrument (denoted by &4). The placeholders (&1, &2, &4) represent specific values or identifiers related to the volatility and the financial instrument in question.
  Common causes for this error include:
  
  Inconsistent Volatility Data: The volatility values being used may come from different sources or calculations that are not aligned.
  Data Entry Errors: There may be a mistake in how the volatility values were entered into the system.
  
  Configuration Issues: The system configuration for handling