How To Fix T8065 - No substitute volatility found for option on security number &

SAP Error Message - Details

• Message type: E = Error

• Message class: T8 - Analysis system evaluations

• Message number: 065

• Message text: No substitute volatility found for option on security number &

What causes this issue?

If the system cannot find a volatility for the security ID number you
specified, it searches for an interest rate volatility for the
reference interest rate used in the valuation curve for this security,
as the term of the reference interest rate is closest to that of the
security. The system first searches for the reference interest rate in
the bid curve, and then in the ask curve.

System Response

If the system finds a volatility, this is translated into a price
volatility. If it cannot find a volatility, it generates this error
message.

How to fix this error?

Define a volatility for the security ID number in the table for
securities volatilities:
Menu: Market risk --> Market data --> Current settings --> Enter
securities volatilities

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message T8065 - No substitute volatility found for option on security number & ?

  The SAP error message T8065, which states "No substitute volatility found for option on security number &," typically occurs in the context of financial instruments, particularly when dealing with options in the SAP system. This error indicates that the system is unable to find the necessary volatility data for the specified security number, which is essential for pricing options.
  Causes:
  
  
  Missing Volatility Data: The most common cause is that the volatility data for the specific security is not available in the system. This could be due to the data not being uploaded or maintained properly.
  
  
  Incorrect Security Number: The security number provided may be incorrect or not recognized by the system, leading to the inability to retrieve the associated volatility data.
  
  
  Configuration Issues: There may be configuration issues in the SAP system related to the financial instruments or the market data settings.
  
  
  Market Data Source Issues: If the system relies on external market data sources for volatility information, there may be connectivity issues or the data source may not be providing the required data.
  
  
  Solutions:
  
  
  Check Volatility Data: Verify that the volatility data for the specific security number is available in the system. If it is missing, you may need to upload or maintain the necessary data.
  
  
  Validate Security Number: Ensure that the security number you are using is correct and exists in the system. You can cross-check it against the master data.
  
  
  Review Configuration: Check the configuration settings related to financial instruments and market data in your SAP system. Ensure that everything is set up correctly to retrieve volatility data.
  
  
  Update Market Data: If your system relies on external sources for market data, ensure that the connection is active and that the data is being updated correctly. You may need to refresh or re-establish the connection.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific instructions on how to handle volatility data for options.
  
  
  Contact Support: If the issue persists after checking the above points, consider reaching out to your SAP support team or consulting with SAP experts for further assistance.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with transaction codes related to financial instruments and market data management in SAP, such as transaction codes for maintaining market data or checking security details.
  User Forums: Engage with SAP user forums or communities where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to identify the cause of the T8065 error and implement a solution to resolve it.