How To Fix T8259 - Valuation of options: Error when reading volatility of ref. int. rate &

SAP Error Message - Details

• Message type: E = Error

• Message class: T8 - Analysis system evaluations

• Message number: 259

• Message text: Valuation of options: Error when reading volatility of ref. int. rate &

What causes this issue?

Whilst reading the volatility of reference interest rate &V1& with
volatility type &V2&, an error arose.

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?

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 T8259 - Valuation of options: Error when reading volatility of ref. int. rate & ?

  The SAP error message T8259, which indicates an issue with the valuation of options due to an error when reading the volatility of the reference interest rate, typically arises in the context of financial instruments and derivatives valuation within SAP systems, particularly in modules like SAP Treasury and Risk Management (TRM).
  Cause:
  
  Missing Data: The volatility data for the reference interest rate may not be maintained in the system. This could be due to missing configuration or data entry errors.
  Incorrect Configuration: The settings for the valuation of options may not be correctly configured, leading to the system being unable to retrieve the necessary volatility data.
  Data Source Issues: If the volatility data is supposed to be fetched from an external source (like a market data provider), there may be connectivity issues or the data feed may not be functioning correctly.
  Versioning Issues: Sometimes, the version of the SAP system or the specific module may have bugs or issues that affect the retrieval of volatility data.
  
  Solution:
  
  Check Data Maintenance: Ensure that the volatility data for the reference interest rate is correctly maintained in the system. This can usually be done in the transaction codes related to market data maintenance.
  Review Configuration: Verify the configuration settings for the valuation of options. This includes checking the valuation methods and ensuring that all necessary parameters are set correctly.
  Data Source Verification: If the volatility data is sourced externally, check the connection to the data provider and ensure that the data feed is active and functioning correctly.
  Consult Documentation: Review SAP documentation or notes related to this error message for any specific guidance or patches that may address the issue.
  System Logs: Check system logs for any additional error messages or warnings that could provide more context about the issue.
  Contact Support: If the issue persists, consider reaching out to SAP support for assistance, especially if it appears to be a bug or a more complex issue.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as TPM1, TPM2, or TPM3 for managing financial instruments and options.
  SAP Notes: Search for SAP Notes related to T8259 or volatility issues in the SAP Support Portal, as they may provide specific fixes or workarounds.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to diagnose and resolve the error related to the valuation of options in your SAP system.