Capturing Equity Trades

Choose Trade > Equity > Equity/ADR to open the Equity worksheet, from Calypso Navigator or from the Trade Blotter.

Equity Quick Reference

When you open a trade worksheet, the Trade panel is selected by default.

Configuration

Define the equity product using .

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.

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

Note that the Trade Date is entered in the Details panel.

Proceed to the other panels as applicable.

Saving a Trade

Press F5 to save the trade, or choose .

You can also press 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

An equity trade requires the following market data: a discount curve, quote for the equity. If the settlement currency is a different currency than the product currency, then an FX quote is also required.

You can choose to check if all required pricing data are available in the Pricing Environment.

Click Price to price the trade.

Trade Lifecycle

You can allocate the trade to multiple books using .

You can apply corporate actions using , or using the CORPORATE_ACTION scheduled task.

See also - All Trade Menus for information on functions, menus and panels common to all trade windows.

1. Sample Equity Trade

Enter the fields described below as needed.

Trade Details

Fields	Description
Role/Cpty	The first two fields in the worksheet identify the trade counterparty. You can select a legal entity of specified role from the first field, provided you have setup favorite counterparties. Favorite counterparties are specified using Utilities > Configure Favorite Counterparties. Alternatively, double-click the Cpty label to set the list of favorite counterparties. You can also type in a character to display the favorite counterparties that start with that character. Otherwise, click ... to select a legal entity of specified role from the Legal Entity Chooser. The second field identifies the trade counterparty's role. The default role is specified using Utilities > Set Default Role. However, you can change it as applicable. Alternatively, double-click the Counterparty label to change the role.
Book	Trading book to which the trade belongs. Defaults to the book selected in the User Defaults. You can modify as applicable. You can select a book provided you have setup favorite books. Favorite books are specified using Utilities > Configure Favorite Books. Alternatively, double-click the Book label to set the list of favorite books. Otherwise, click ... to select a book. The owner of the book (a processing organization) identifies your side of the trade.
Status	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 panels 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.
Broker	Select a legal entity of role Broker as needed. It adds a fee of type BRK to the Fees panel. Please select the Fees panel to modify the fee as needed.

Trade Entry Details

Fields

Description

Buy / Sell

Select Buy or Sell, the direction of the trade from the book’s perspective.

Product code

Product description

You can select an equity using one of the following methods:

•

Select a product code, and type in a few characters of the code value in the adjacent field.

The system searches all the equities defined in the system, and those that satisfy the request are displayed in a list.

Select an equity from the list.

Note that the product code defaults to the Security Code selected in the User Defaults.

•

Click ... to select an equity from the Product Chooser Window - Help is available from that window.

Once you have selected an equity, you can click Show to view the equity product details in the Equity Product window.

Disabling the Product Code Search

You can disable the product code search for performance reasons.

To do so, add domain “EquityAttributes” with:

Value = NOT_LOAD_EQUITY_SELECTOR_CACHE

In this case, you need to use the Product Chooser Window to select a product.

Classification

You can select a classification for the trade as applicable. This classification is for information purposes only.

It is stored in the trade keyword "TradeClassification", and available values can be set in domain keyword.TradeClassification.

It can be used in filters to filter trades for various processes, and can be viewed in reports throughout the system.

Quantity

Enter the quantity that is traded.

Price

Displays the price from the pricing environment if any.

You can modify the price as needed.

Calculate

The dropdown consists of below 3 values to choose from. Default would be 'Settlement':

•

Quantity = Calculate Quantity where user input will be Settlement Amt & Price or (Negotiated Price & Currency & Currency rate)

•

Price/Negotiated Price = Calculate Price/Negotiated Price where user input will be Settlement Amt & Quantity.

•

Settlement = Calculate Settlement Amt. where user input will be Quantity & Price or (Negotiated Price & Currency & Currency rate)

Trade Currency

Defaults to the equity’s currency.

Settle

The settlement date defaults to the trade date.

If you change the trade date, double-click the Settle Date label to update the settlement date accordingly.

Cash Date

This field is used for certain markets, like the Russian market, where the settle date of the cash can be different from the delivery date of the stock.

Two situations are possible:

•

Delivery of security after receiving cash.

•

Receiving security before paying cash.

Defining a cash date on the trade will impact the transfers but no other areas of the trade. Settle date and Cash Date are not synchronized.

Proceeds Details

Fields	Description
Negotiated Price	Enter the negotiated price, and select the type of negotiated price from the adjacent field. The field adjacent to the price type is the trade currency. It defaults to the product currency. You can select a different trade currency. In this case, you can enter the FX rate between the product currency and the trade currency. See Settlement below.
Settlement	Displays the settlement amount and the settlement currency. The settlement currency defaults to the trade currency. If the trade currency is different from the product currency, you cannot modify the settlement currency. If the trade currency is the same as the product currency, you can select a different settlement currency. In this case, you can enter the FX rate between the trade currency and the settlement currency. You can double-click the currency pair label to get the rate from the quote set if any.

Fields

Description

Negotiated Price

Enter the negotiated price, and select the type of negotiated price from the adjacent field.

The field adjacent to the price type is the trade currency. It defaults to the product currency. You can select a different trade currency. In this case, you can enter the FX rate between the product currency and the trade currency. See Settlement below.

Settlement

Displays the settlement amount and the settlement currency.

The settlement currency defaults to the trade currency.

If the trade currency is different from the product currency, you cannot modify the settlement currency. If the trade currency is the same as the product currency, you can select a different settlement currency.

In this case, you can enter the FX rate between the trade currency and the settlement currency.

You can double-click the currency pair label to get the rate from the quote set if any.

2. Trading ADRs

ADRs are traded as standard equities using Trade > Equity > Equity.

The specificity of ADR trades though is that the ADR product can be transformed into the underlying equity, and switched back to the ADR. This is done using a specific corporate actions window.

The ADR Corporate Actions window is not enabled by default.

2.1 Enabling ADR Corporate Actions

If not already enabled, do the following to enable the ADR Corporate Actions window.

1. Add CAADR to the productType domain.

2. Choose Calypso Navigator > Utilities > Main Entry Customizer and insert the following menu item under the Trade > Equity menu as shown below.

» The Action is “trading.TradeCAADRWindow” and the Name “Corporate Action”.

Click Apply, then click Save, and restart Calypso Navigator.

2.2 Transforming ADR Trades

Choose Trade > Equity > Corporate Action to transform ADR trades as shown below.

ADR Corporate Action Window

Enter the fields described below as needed, then choose .

Fields Details

Fields

Description

Role

Select a legal entity role; "Issuer" is selected as the default role.

Additional legal entity roles can be defined in the ADR.conversion.AgentRole domain.

Legal Entity

Select a Legal Entity of the selected role.

Book

Select a Book.

Click ... to configure the books available in the drop-down menu.

Status

Current status of the trade.

Ext Ref

Int Ref

You can enter an ID, external reference, or internal reference to load a trade.

Trade Date

Enter the trade date.

Settle Date

Enter the settle date.

Template

You can select a temple from the drop-down menu.

Create / Bust

Direction of the transformation. Double-click the Create label to change to Bust as applicable.

•

Create – To create the ADR position from the underlying equity.

•

Bust – To transform the ADR position into the underlying equity position.

ADR

Click ... to open the Product Chooser window for selecting an ADR. Help is available from that window.

You can double-click the ADR label to display the ADR's details.

Quantity

Enter the quantity of ADR that you are transforming.

Price

Enter the unit price of the ADR.

Amount

The amount is calculated as quantity * price.

Ccy

Displays the currency of the selected ADR.

Security

The underlying equity of the selected ADR is displayed.

Quantity

The quantity is calculated based on the ADR’s ratio and quantity.

Price

Enter the unit price of the underlying equity.

Amount

The amount is calculated as quantity * price.

Ccy

Displays the currency of the underlying equity.