Equity Product Definition

Prior to trading an equity, you need to create the Equity product. The equity product definition is required for equity and equity derivatives trading.

 

1. Defining an Equity

To define an equity product, from Calypso Navigator choose Configuration > Equity > Equity (menu action product.EquityWindow).

 

1.1 Loading an Existing Equity

You can load an existing equity into the Equity window using one of the following methods:

» Select a security code from the Security Code list, and enter the actual code value in the adjacent field.

Then click Search to load the corresponding equity.

Equity window - Loading an equity by security code

» You can also click at the top of the window to open the Product Chooser window - Help is available from that window.

Equity window - Loading an equity

 

Then modify the fields described below as needed.

 

1.2 Creating a New Equity

» Click and enter the fields described below.

 

1.3 Modifying an Equity Name

» Click to modify the equity’s name. You will be prompted to enter a new name.

 

1.4 Setting Custom Data

 Ⓘ   [NOTE: The Custom Data button is deprecated and has no function beginning in Release 12.0]

 

1.5 Saving an Equity

» Click to save your changes. You will be prompted to enter an equity name.

The system also saves a quote name for the product that is used to enter / retrieve market quotes.

You can also click to save the equity as a new product. You will be prompted to enter a new name.

 

Definition Fields Details

Fields Description

Name

Name of the equity specified when the equity is saved.

Product Id

Unique ID given by the system when the equity is saved.

Corporate

The long name of the corporate entity.

Equity Type

Select the product subtype.

The subtype is for information purposes and can be used for filtering equities.

Currency

Select the currency of the equity.

BB_CALC_TYP

Expand this label to view all the security codes defined for equity products.

You can enter a value for each security code as applicable.

You can create new security codes using Calypso Navigator > Configuration > Product > Code.

Country

Select the country of the equity.

Exchange

Select the market place where the equity is traded. The market place is a legal entity of role MarketPlace.

You can expand the Exchange to enter the Spot Days and also select Override Spot Days checkbox.

Spot Days

Default number of business days between the trade date and the settlement date. Business days are determined using the holiday calendars of the market place.

Override Spot Days

When this checkbox is unchecked, the value for spot days will directly come from legal entity attribute and it will be un-editable. However, if this checkbox is checked, the spot days field will be made editable and the user will be able to amend the spot days. The default value still come from legal entity attributes when the checkbox as unchecked.

Quote Type

Select the type of quote for the equity: Price, or PriceC (when the price is quoted in the number of cents).

 Ⓘ   [NOTE: The PriceVol quote type does not apply to equities]

Fixing Types

The following fixing types are supported in addition to CLOSE, OPEN, HIGH, LOW, and LAST:

• Future Price Reference (EDSP): This is a special quote typically known at the Open of the market trading. EDSP is published by a future or option exchange.
• Volume Weighted Average (VWAP): The average price of the day is popular as a fixing because many exchanges and brokers allow clients to Buy or Sell shares at the VWAP. Therefore, Fixing at the VWAP facilitates the orderly removal of hedge transactions.
• Prezzo di Riferimento (PDR): A special Italian Exchange-published level that is used to settle exchange and OTC derivatives.

Issuer

Select the issuer, a legal entity of role Issuer.

Trading Size

Enter the minimum number of equities that can be traded.

Trading Country

Select the country where the registry / depository is located.

Total Issued

Enter the number of equities that have been issued.

Par Value

 Enter the par value as applicable, mostly for Asian markets. It is used to compute the withholding on stock dividends.

Nominal Decimals

Enter the decimal places to use with the nominal. The default is zero decimal places.

Pay Dividend

Check the Pay Dividend checkbox if the equity pays a dividend.

You can expand Pay Dividend and specify a dividend currency, dividend frequency, and the number of dividend decimals.

The Dividend Frequency is used when creating a discrete dividend curve, to generate the projected dividends.

The Dividend Date Rule is not currently used.

Active From

Enter the date when the equity is active for trading.

Active To

Enter the date when the equity is no longer active for trading.

Status

It mostly applies to Bloomberg static data integration, but you can use it for your own purposes.

It shows the status of the integration. You can change it as applicable.

• NOUPDATE: Do not update from feeds.
• PENDING: Automatic changes were made via a feed update. The changes have not yet been verified.
• VERIFIED: The data has been verified.

Comment

Enter a free-form comment as applicable.

 

 

2. Viewing Corporate Actions

The CA panel shows the corporate actions that have been created for the equity in the Corporate Actions window.

This is for information purposes only.

Equity window - CA panel

 

3. Specifying Dividends

 Ⓘ   [NOTE: The Dividend panel is not supported and must not be used to create dividends. The dividends must be created directly from the Corporate Actions window]

 

4. Defining Security Codes by Legal Entity

Select the Legal Entities panel to specify security codes by legal entity as applicable. A row is created by default for the issuer of the equity.

Equity window - Legal Entities panel

You can use this panel to specify for example specific product codes by market place.

» Click to add a legal entity, then select a role, a legal entity, a security code (product code), and enter a product code value. Repeat as needed.
» Click Save to save your changes.

 

5. Viewing Audit Information

Select the Audit tab to view Audit information recorded for the equity. This only applies if the Audit mode is enabled.

Equity window - Audit panel

You can right-click the table and a number of functions will be available for configuring the layout.

 

6. Specifying Equity Resets

You can define multiple equity resets using the Equity Reset tab as needed. You can then select the actual equity reset to be used when you capture the trades.

By default, the system adds an equity reset for the Exchange specified in the Equity definition.

To add more equity resets, click and select a source and a type. You can modify the name as needed.

If no default equity reset is specified, the trades will use the "CLOSE" equity reset which corresponds to the spot quote.

When using equity resets, you can set the fixing quotes for the quote name: "EquityReset.<equity name>.<reset name>".

For example: "EquityReset.GOOG.NASDAQ".

Make sure to save the Equity.