Capturing Trades for Funds

You can capture different types of trades depending on the funds.

Internal Funds

For internal funds, you can capture subscriptions and redemptions into the fund, as well as investment trades for the fund.

External Funds

For external funds, you can only capture subscriptions and redemptions since your organization does not manage the actual fund.

1. Before You Begin

Trade Window Configuration

The trades for all three types of products (ShareClass, Series, and UnitizedFund) are captured from the same window.

In order to allow that, you need to specify the following Trade Window Configuration using Configuration > User Access Control > Trade Window from the Calypso Navigator:

» The class name must be set to "trading.TradeUnitizedFundwindow" for the product types Series, ShareClass, and UnitizedFund.

Fund Maturity Workflow Rule

You may wish to set up a workflow rule to prevent saving new trades on funds that have matured. This can be accomplished by setting the following static data filter on the initial transition (typically NONE – NEW – PENDING) of the Trade workflow for the UnitizedFund product. It will ensure that trades are not created on funds whose maturity date is not in the future.

2. Internal Fund - Sample Subscription / Redemption

Internal Fund Subscription/Redemption Quick Reference

Configuration

Create internal funds using from the Calypso Navigator.

Allocate strategies to funds using from the Calypso Navigator.

Entering Trade Details

You can select a template from the Template field to populate the worksheet with default values. Then modify the fields as applicable.

See Subscrip / Redemp Menu for details on creating templates.

Or you can enter the trade fields directly. They are described below.

Select a strategy from the Inv Attributes panel.

Proceed to the other panels as applicable.

Saving a Trade

Hit F5 to save the trade, or choose .

You can also hit F3 to save the current trade as a new trade, or choose Trade > Save As New.

A description will appear in the title bar of the trade worksheet, a trade id will be assigned to the trade, and the status of the trade will be modified according to the workflow configuration.

From the Calypso Navigator, navigate to Processing > Accounting Operations > Subscription/Redemption (menu action trading.TradeSubscripRedempWindow) to open the Subscription/Redemption trade worksheet.

Enter the fields detailed below in the Trade panel as needed.

Select the strategy from the Inv Attributes panel.

Then choose to save the trade.

Trade Details

Fields	Description
Cpty/Role	Select the counterparty. The counterparty must have the Investor role specified.
Status	Displays the current status of the trade. The status is automatically assigned by the system based on the workflow configuration. The status will change over the lifetime of the trade according to the workflow configuration and the actions performed on the trade.
ID Ext Ref Int Ref	Unique identification number of the trade. The trade id is automatically assigned by the system when the trade is saved. You can load an existing trade by typing the trade id into this field, and pressing [Enter]. You can also display the internal reference or external reference. The default trade reference to be displayed can be selected in the User Defaults. The internal reference and external reference can be set in the Details panel of the trade worksheet.
Template	You can select a template from the Template field to populate the worksheet with default values. Then modify the fields as applicable. See Subscrip / Redemp Menu for details on creating templates.

Trade Entry Details

Fields

Description

Direction

Direction of the trade.

Select either Subscription or Redemption.

Product

Click ... to select the product.

You can select a share class or a series of an internal fund.

You can click to display the product configuration window.

Book

Displays the book associated with the fund.

Currency

Displays the product's currency.

Input Type

Select the input type:

•

Settlement Amount – You can enter the settlement amount in the Settlement Amount field.

•

Number of Shares – You can enter the number of shares in the Number of Shares field.

Settlement Amount

Enter the settlement amount based on the Input Type.

Number of Shares

Enter the number of shares based on the Input Type.

NAV Date

Displays the current date. Note that it is not the official date for publication of the NAV. It is not stored and it moves each day.

NAV/share

Displays the net asset value per share, if the quote is available. Otherwise, enter the net asset value per share.

The scheduled task AM_AMEND_UNITIZED_FUNDS can be used to update the NAV/share on each UnitizedFund trade having a new NAV/share in the quote.

See AM_AMEND_UNITIZED_FUNDS Scheduled Task for details.

Trade Date

Enter the trade date.

Settle Date

Enter the settlement date.

Mirror

Mirror Book

Mirror Trade Id

Select the "Mirror" checkbox if you want to mirror the current trade.

Select a mirror book.

A mirror trade will be saved with the current trade to the selected book, and you can view the mirror trade id.

Cumulative Period accrual

Only appears for money market products.

Displays the cumulative accrual for the period.

Subscrip / Redemp Menu

The menu items of the Subscrip / Redemp menu are described below.

Menu Items	Description
Price (F4)	To price the trade.
Solve (F9)	The Solve function is not implemented by default. However, you can create a custom Solver. Please refer to the Calypso Developer’s Guide for details.
Configure Results	To configure the pricer measures to be displayed in the Results panel. You will be prompted to select pricer measures. Pricer measures are the outputs of the pricing routines.
Save Result Config	To save the pricer measures configuration.
Re-order Pricing Parameters	To change the order of the pricing parameters in the Pricer Params panel.
Save Parameters Order	To save the pricing parameters configuration.
Save As Template	To save the trade as a template. You will be prompted to enter a template name and specify whether the template is private or public. Other users will not be able to use private templates.
Delete Template	To delete a template. You will be prompted to select a template. Only the user who created a template (whether it is public or private) can delete it. You can also delete templates using Utilities > Maintenance > Monitoring > Clean-up > Clean-up Database > - Products panel from the Calypso Navigator. Please refer to Calypso Utilities documentation for details.

3. Internal Fund - Sample Investment Trade

You can capture any type of trade as an investment trade. You just need to select the book associated with the fund.

Sample Bond Trade

Enter the fields in the Trade panel as needed.

Select the book associated with the fund.

Select the strategy from the Inv Attributes panel.

Then choose to save the trade.

4. External Fund - Sample Subscription / Redemption

Any book in your organization can subscribe / redeem into an external fund.

External Fund Subscription/Redemption Quick Reference

Configuration

Create external funds using from the Calypso Navigator.

Entering Trade Details

You can select a template from the Template field to populate the worksheet with default values. Then modify the fields as applicable.

See Unitized Fund Menu for details on creating templates.

Or you can enter the trade fields directly. They are described below.

Proceed to the other panels as applicable.

Saving a Trade

Hit F5 to save the trade, or choose .

You can also hit F3 to save the current trade as a new trade, or choose Trade > Save As New.

A description will appear in the title bar of the trade worksheet, a trade id will be assigned to the trade, and the status of the trade will be modified according to the workflow configuration.

Pricing a Trade

You can choose to check if all required pricing data are available in the Pricing Environment. Click Set Quotes to set the price of the fund.

Click Price to price the trade.

Fund trades are priced using PricerUnitizedFund.

From the Calypso Navigator, navigate to Trade > Equity > Fund (menu action trading.TradeUnitizedFundWindow) to open the Unitized Fund trade worksheet.

Enter the fields as described for internal subscriptions / redemptions.

Select an external fund, a share class of an external fund, or a series of an external fund for the product.

Then choose to save the trade.

Unitized Fund Menu

The menu items of the UnitizedFund menu are described below.

Menu Items	Description
Price (F4)	To price the trade.
Solve (F9)	The Solve function is not implemented by default. However, you can create a custom Solver. Please refer to the Calypso Developer’s Guide for details.
Configure Results	To configure the pricer measures to be displayed in the Results panel. You will be prompted to select pricer measures. Pricer measures are the outputs of the pricing routines.
Save Result Config	To save the pricer measures configuration.
Re-order Pricing Parameters	To change the order of the pricing parameters in the Pricer Params panel.
Save Parameters Order	To save the pricing parameters configuration.
Save As Template	To save the trade as a template. You will be prompted to enter a template name and specify whether the template is private or public. Other users will not be able to use private templates.
Delete Template	To delete a template. You will be prompted to select a template. Only the user who created a template (whether it is public or private) can delete it. You can also delete templates using Utilities > Maintenance > Monitoring > Clean-up > Clean-up Database > - Products panel from the Calypso Navigator. Please refer to Calypso Utilities documentation for details.

5. AM_AMEND_UNITIZED_FUNDS Scheduled Task

After the NAV of a fund has been published, it is necessary to reprocess all of the fund's Subscription/Redemption trades to compute the number of shares relative to the official NAV/share.

The scheduled task AM_AMEND_UNITIZED_FUNDS is used to update the NAV/share on each UnitizedFund trade having a new NAV/share in the quote. AM_AMEND_UNITIZED_FUNDS would typically be chained with PROCESS_TRADE to run in succession, in order to publish events to the Transfer engine.

Common Attributes:

•

Pricing Environment – The quote type specified in the QuoteUsage pricing parameter for the selected pricing env will be used. The quote type is selected in the following order:

–

QuoteUsage for UnitizedFund, if specified

–

QuoteUsage for ANY, if specified

–

Else CLOSE quotes are used

Task Attributes:

•

Apply Trade Action – The trade action to be applied to the trades.

•

Create Task – Select true to create a task when an exception occurs (default), or false otherwise.