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

SAP Error Message - Details

• 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 volatility data may not be set up correctly.
  Market Data Issues: The market data feed providing the volatility values may have discrepancies or errors.
  
  Solution:
  To resolve the RY553 error, you can take the following steps:
  
  Check Volatility Values: Review the volatility values that are being used. Ensure that they are consistent and come from the same source or calculation method.
  Validate Data Entry: Verify that the values entered into the system are correct and match the expected format.
  Review Configuration: Check the configuration settings in SAP related to volatility handling. Ensure that they are set up correctly for the financial instruments you are working with.
  Consult Market Data: If the volatility values are sourced from a market data feed, check for any issues or discrepancies in the data being received.
  Recalculate Volatility: If necessary, recalculate the volatility values using a consistent method and re-enter them into the system.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling volatility values in your version of SAP.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. SAP frequently updates its knowledge base with solutions for common problems.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that deal with financial instruments and volatility management, such as transaction codes for risk management or derivatives.
  User Forums: Engage with SAP user forums or communities where similar issues may have been discussed. Other users may have encountered the same error and can provide insights or solutions.
  
  If the issue persists after following these steps, it may be beneficial to reach out to your SAP support team or a consultant with expertise in financial instruments and risk management within SAP.