Contents
1. Preface
1.1 Introduction
1.2 Audience
1.3 Documentation Accessibility
1.4 Organization
1.5 Related Documents
1.6 Glossary of Icons
2. Securities Domain
2.1 Overview of Securities Domain
2.1.1 Financial Markets
2.1.2 Characteristic Features of the Financial Markets
2.1.3 Financial Intermediaries
2.1.4 Intermediaries Operating in Financial Markets
2.1.5 Financial Assets (Securities)
2.1.6 Equities
2.1.7 Preference Shares
2.1.8 Fixed Income Securities
2.1.9 Rights and Warrants
2.1.10 Trading in Equities
2.1.11 Trading in Bonds / Fixed Income securities
2.1.12 Corporate Actions on Securities
3. Securities - an Overview
3.1 Introduction
3.2 A Snapshot of the Module
3.3 Processing at the Portfolio Level - at the Beginning or End of Day
3.4 Getting Started with the Module
3.4.1 Building Classes
3.4.2 Defining Products
3.4.3 Handling Interest, Charge and Tax Components
3.4.4 Building a Transaction Tax Scheme
3.4.5 Building an Issuer Tax Scheme
3.4.6 Handling Brokerage
3.4.7 Tracking Limits
3.4.8 Settling Deals
3.4.9 Querying the System for Details
4. General Maintenance
4.1 Introduction
4.2 Bank Parameters
4.2.1 Maintaining Bank Parameters
4.2.2 Maintaining Deal Products
4.2.3 Maintaining Nominal Based Yield Computation
4.3 Branch Parameters
4.3.1 Defining Branch Parameters
4.3.2 Specifying the Batch Processing Parameter
4.3.3 Specifying Revaluation Level
4.3.4 Specifying whether Coupon Dates can Move across Months
4.3.5 Specifying whether Accounting Value Date can Move across Months
4.3.6 Specifying Interest Accrual level
4.4 Floating Rate Codes
4.4.1 Defining Floating Rate Codes
4.4.2 Defining Rate Sources
4.4.3 Defining Rate Type
4.4.4 Defining Floating Rates
4.5 Market Details
4.5.1 Maintaining Market Details
4.5.2 Specifying ‘Main’ details
4.5.3 EIM for Treasury Bills and Security Bonds
4.5.4 Specifying Interest Details
4.6 Computing Coupon Interest
4.6.1 Interest Method for Computing Coupon Interest
4.6.2 Exempting Interest for the Ex Period
4.6.3 Specifying Spot Date
4.6.4 Specifying Ex date
4.7 Tax Details
4.7.1 Specifying Tax Details
4.7.2 Associating Scheme with Issuer Tax
4.7.3 Indicating Stop Association
5. Maintaining Price Details
5.1 Introduction
5.1.1 Price Quotation Method
6. Maintaining Market Price Codes
6.1 Introduction
7. Maintaining Safe Keeping Locations
7.1 Introduction
7.2 Exposure Line
7.2.1 Track Exposure Line
7.2.2 Specifying SK Location Account
7.2.3 Making Query
7.3 KEST
7.3.1 Computation of KEST
7.3.2 Defining KESTYTPE as a User Defined Field
7.3.3 Calculation of KEST for ‘Customer Sell’ Type of Transactions
7.3.4 Calculation of KEST for Customer Buy Type of Transactions
7.3.5 Specifying KEST Type for a Customer
7.3.6 Specifying KEST Rates in the Securities Price Definition Maintenance Screen
7.4 Specifying Generation of New SWIFT Messages
8. Building Branch & Currency Restriction Classes
8.1 Restrictions as Classes
8.1.1 Maintaining Restrictions as Classes
8.1.2 The Advantage of Defining Restrictions as Classes
8.2 The Branch and Currency Restrictions Class Screen
8.2.1 Maintaining Branch Restrictions
8.2.2 Maintaining Currency Restrictions
8.3 Specifying the Customer Category Restrictions Class
8.3.1 The Customer Category Restrictions Class screen
9. The Accounting Role to Head Mapping Class
9.1 Introduction
9.2 General Ledger Types
9.3 The Accounting Roles and Heads Class
9.3.1 The advantage of Building Accounting Roles and Heads Classes
9.3.2 Maintaining an Accounting Roles and Heads Class
9.3.3 Mapping Roles to Heads
9.4 The Event Class
9.4.1 Maintaining an Event Accounting Entries and Advices Class
9.4.2 Specifying the Advices to be Generated
10. Defining Security Preference Classes
10.1 Introduction
10.2 Security Product Preference Classes
10.2.1 Specifying Security Product Preference Classes
10.2.2 The Market of Issue
10.2.3 Defining Interest Details for a Bond
10.2.4 Capturing Information Specific to a Security Type
10.2.5 Indicating Banker’s Acceptance
10.2.6 Capturing Trade-Related Information
10.2.7 Identifying the Holder
10.2.8 Specifying the Material of a Security
10.2.9 Indicating the Collateral Type
10.2.10 Opting for Automatic Initiation of Corporate Actions
10.2.11 Indicating the Price Code for Revaluation
10.2.12 Tenor Details
10.2.13 Capturing SWIFT Related Information
10.3 Defining Deal Limits for a Preference Class
10.4 Defining Securities Conversion Rule
11. Maintaining Portfolio Preference Class
11.1 Introduction
11.2 Portfolio Preferences Classes
11.2.1 Specifying Portfolio Preferences Classes
11.2.2 Identifying Portfolio Preference Class
11.2.3 Portfolio Type
11.2.4 Costing Method
11.2.5 Processing
11.2.6 Book Discount Premium
11.2.7 Book Intrinsic Value
11.2.8 Rekey for Authorization
11.2.9 Rekey Fields
11.2.10 Corporate Action Notice
11.2.11 Treasury Bills Accrual
11.2.12 Purchase Interest
11.2.13 Holdings Statement
11.2.14 Transaction Statement
11.2.15 Contra Holding
11.3 Detailed Preferences
11.3.1 Specifying Detailed Preferences
11.3.2 Premium/Discount Accrual
11.3.3 Limit Tracking
11.3.4 Forward Profit and Loss Accrual
11.3.5 Redemption Premium Accrual
11.3.6 Revaluation of Positions
11.3.7 Interest Accrual Preferences
11.3.8 Revaluation Exchange Rate Code
11.4 Yield Accrual for Deals bought on Par
12. Defining a Deal Preference Class
12.1 Introduction
12.2 Deal Preferences Class
12.2.1 Specifying the Deal Preferences Class
12.3 Features of the Screen
12.3.1 Identifying a Deal Preference Class
12.3.2 Exchange Rate Type
12.3.3 Brokerage Allowed
12.3.4 Automatic Money Settlement
12.3.5 Extension Allowed
12.3.6 Rekey Requirements
12.3.7 Specifying Other Preferences
13. Security Restriction Classes
13.1 Introduction
13.2 Security Restrictions
13.2.1 Specifying the Security Restrictions
13.2.2 Identifying a Security Restrictions Class
13.2.3 Security Restriction
13.2.4 Security Access
14. Maintaining Portfolio Restriction Classes
14.1 Introduction
14.2 Portfolio Restriction Classes
14.2.1 Specifying the Portfolio Restriction Classes
14.2.2 Portfolio Access
14.2.3 Viewing Securities - Portfolio Safe Keeping Location Balances Summary
14.2.4 Viewing Securities - Portfolio Safe Keeping Location Movements Summary
15. Defining Attributes of a Securities Product
15.1 Introduction
15.2 Product Type
15.2.1 Exchange Rate Variance
15.3 Preferences for a Product
15.3.1 Specifying Preferences for a Product
15.4 Coupon Processing
15.5 Capturing Interest Details
15.5.1 Specifying Interest Type Details
15.5.2 Specifying Event Details
16. Defining Attributes of a Portfolio Product
16.1 Introduction
16.2 Exchange Rate Variance
16.3 Indicating ‘Preferences’ for a Product
17. Defining Attributes of a Deal Product
17.1 Securities Deal Product
17.1.1 Defining Securities Deal Product
17.1.2 Product Type
17.1.3 Exchange Rate Variance
17.1.4 Specifying Preferences for a Product
17.1.5 Specifying User Defined Fields
17.1.6 Specifying accounting entries for KEST computation
18. Defining a Product Combination
18.1 Introduction
18.2 Creating a Combination Product
18.2.1 Creating a Combination Product
19. Maintaining a Security
19.1 Introduction
19.2 A description of the Security Instrument Definition Screen
19.3 Details of a Security
19.3.1 Entering and Saving the Details of a Security
19.3.2 Identifying a Security
19.3.3 Entering the Main Details
19.3.4 Identifying the Market and the Issuer
19.3.5 Specifying the material of a security
19.3.6 Specifying Redemption Quotation Method
19.3.7 Indicating Corporate Action Preference
19.3.8 Capturing Trade-Related Information
19.3.9 Specifying Type of Price Quotation
19.3.10 Capturing Information Specific to the Security Type
19.3.11 Indicating Banker’s Acceptance
19.3.12 Specifying Currencies
19.3.13 Specifying Relevant Dates
19.3.14 Specifying Price Details
19.3.15 Entering Interest Details for a Bond
19.3.16 Opting for Automatic Initiation of Corporate Actions
19.3.17 Indicating a Revaluation Price Code
19.3.18 Indicating the Collateral Type
19.3.19 Specifying the Market for Revaluation
19.3.20 Specifying the Yield Calculation Parameters for a Security
19.4 Interest Method for Computing Coupon Interest
19.5 Uploading Security Instruments for Amendment
19.6 Bulk Upload- Security Instruments & Market Security Price
19.6.1 Specifying Contract Interest Details
19.7 Reassigning Securities Deal Contract
20. Maintaining and Processing Corporate Actions
20.1 Introduction
20.2 Stages in the Processing of a Corporate Action Event
20.3 Rights and Warrants
20.3.1 Defining Rights and Warrants
20.3.2 Indicating Rights Ratio and Rounding Fractions
20.3.3 Specifying Event Narrative
20.3.4 Saving Rights/Warrants Record
20.4 Processing Rights And Warrants
20.5 Processing Rights
20.5.1 Rights Tear-Off
20.5.2 Rights Exercise
20.5.3 Warrants Tear Off
20.5.4 Warrants Exercise
20.6 Rights and Warrants Expiry Details
20.6.1 Maintaining Rights and Warrants Expiry Details
20.6.2 Specifying End of Trading Date
20.6.3 Event Narrative
20.6.4 Processing a Rights Expiry Event
20.6.5 Processing a Warrants Expiry Event
20.7 Security Redemption Details
20.7.1 Maintaining Security Redemption Details
20.7.2 Specifying Redemption Schedules
20.8 Security Redemptions
20.8.1 Processing for Security Redemptions
20.8.2 Redemption Processing based on Quotation Type
20.8.3 End of Trading Processing
20.9 Processing of Amendment on Redemption Schedules
20.10 Interest Coupon Details
20.10.1 Maintaining Interest Coupon Details
20.10.2 Linking Interest Component to Tax Component
20.10.3 Specifying Event Narrative
20.11 Processing Interest Coupons
20.12 Maintaining Interest Rate Revision Details
20.13 Maintaining Stock Dividend Details
20.14 Maintaining Cash Dividend Details
20.15 Processing dividends
20.16 Maintaining Bonus to Cash Conversion Details
20.17 Processing Bonus to Cash Conversions
20.18 Manually Processing Corporate Action Events
20.19 Moving on to Other Screens
21. Defining Portfolios
21.1 Introduction
21.2 Specifying Portfolio Definition Details
21.3 Entering the Details of a Portfolio
21.3.1 Identifying a Portfolio
21.4 Defining Preferences for a Portfolio
21.5 Specifying the Advices to be Generated
21.6 Viewing Event Details
21.7 Maintaining Security Restrictions for a Portfolio
21.7.1 Features of the screen
21.8 Mapping Accounts to a Safe Keeping Location
21.9 Specifying Accounting Role to Head Mapping Preferences
21.10 Maintaining Security Revaluation Prices for a Portfolio
21.11 Maintaining Risk Profile
21.12 Viewing Safe Keeping Location Portfolio Balances
22. Processing a Securities Deal
22.1 Introduction
22.2 Securities Deal Input Screen
22.2.1 Invoking the Securities Deal Input Screen
22.2.2 A Description of the Securities Deal Input Screen
22.3 Entering the Details of a Deal
22.3.1 Product
22.3.2 Indicating details of the security that is traded
22.3.3 Indicating Deal Details
22.3.4 Entering 'Additional Details' of a Deal
22.3.5 Price Details of the Deal
22.3.6 Viewing Safe Keeping Location Balances
22.4 Deal Net Consideration
22.5 Specifying Details of the Parties Involved in a Deal
22.6 Settlement Instructions for a Deal Leg
22.6.1 Maintaining Settlement Instructions for a Deal Leg
22.6.2 Capturing Settlement Instructions
22.6.3 Capturing Account Details
22.6.4 Capturing Details of the Deal Output
22.6.5 Capturing Party Details
22.7 Levying Tax on a Deal
22.7.1 Features of the Tax Details Screemn
22.8 Processing Brokerage on a Deal
22.8.1 Features of the Contract Brokerage Details Screen
22.9 Uploading the Deals for Amendment
22.10 Liquidating a Deal
22.10.1 Money settlement
22.10.2 Security settlement
22.11 Reassigning a Deal to another User
23. Processing a Block Securities Deal
23.1 Introduction
23.2 Block Deal
23.2.1 Features of a Block Deal in Oracle FLEXCUBE
23.2.2 Invoking the Block Securities Deal Screen
23.2.3 A Description of the Block Securities Deal Screen
23.3 Details of a Block Deal
23.3.1 Entering the Details of a Block Deal
23.3.2 Indicating Details of the Security that is Traded
23.3.3 Indicating Deal Details
23.3.4 Specifying Details of the Single and Multiple Legs of a Deal
23.3.5 Specifying Details of the Multiple Leg of the Deal
23.4 Entering 'Additional Details' of a Deal
23.4.1 Specifying Additional Details for the Deal
23.5 Uploading the Details of a Block Deal
24. Securities Transfer Across Locations
24.1 Securities Transfer Across Locations
24.1.1 Transferring Securities Across Locations
24.1.2 Specifying the SK locations and accounts
24.2 Moving on to the Other Screens
25. Maintaining Block Security Details
25.1 Introduction
26. Batch Processes
26.1 Introduction
26.2 Beginning of Day Processing
26.2.1 Processing Daily Events
26.2.2 Invoking the Automatic Daily Program
26.3 Triggering Securities MSTL Batch
26.4 EOD Processing for Unrealized Revaluation
26.4.1 Unrealized Revaluation for Unsettled Buy and Sell Deals
26.4.2 Unrealized Revaluation for Settled Deals
26.4.3 Illustrations
27. Customer Correspondence
27.1 Introduction
27.2 Deal Related Advices
27.2.1 Corporate action related advices
27.2.2 Statement related advices
27.3 Sample of all the Advices
27.3.1 Securities Trade Confirmation Affirmation Message
27.3.2 Securities Market-Side Trade Confirmation
27.3.3 Securities Receive Free Instruction
27.3.4 Securities Receive Against Payment Instruction
27.3.5 Securities Deliver Free Instruction
27.3.6 Securities Deliver Against Payment Instruction
27.3.7 Securities Receipt Free Confirmation
27.3.8 Securities Receipt Against Payment Confirmation
27.3.9 Securities Deliver Free Confirmation
27.3.10 Securities Delivery Against Payment Confirmation
27.3.11 Securities Notice of Rights Message
27.3.12 Securities Notice of Event Message
27.3.13 Securities Advice of Money Income
27.3.14 Securities Advice of Income in the Form of Securities
27.3.15 Securities Advice of Redemption
27.3.16 Securities Request for Statement Message
27.3.17 Securities Statement of Holdings
27.3.18 Securities Statement of Transactions
27.3.19 Securities Statement of Pending Transactions
28. Making Queries
28.1 Introduction
28.2 Details of Securities Safe keeping Movements
28.2.1 Querying Details of Securities Safe keeping Movements
28.2.2 The Other Query Screens
28.2.3 Ordering
28.3 Viewing Portfolio Securities Movements
29. Handling Repos
29.1 Introduction
29.2 Products
29.2.1 Maintaining Products
29.2.2 Specifying Securities Repo Product Definition Details
29.2.3 Setting Product Preferences
29.2.4 Specifying Interest Details for Product
29.2.5 Associating Discount Accrual Components to Products
29.3 Capturing Details of Repo Contract
29.3.1 Specifying Interest Details
29.4 Uploading Deals for Amendment
29.4.1 Specifying Interest Details
29.5 Maintaining Asset –Liability Linkage
30. Printing Subsidiary General Ledger Form- Repo and Reverse Repo Deals
30.1 Introduction
30.2 SGL Form Maintenance
30.3 Maintaining Security Repo Payment
31. Error Codes and Messages for Securities
31.1 Error Codes and Messages
31.2 Error Codes and Messages for Securities Online
31.3 Error Codes and Messages for Batches
31.4 Error Codes and Messages for Deal Input
31.5 Error Codes And Messages for Non-Securities
31.6 Error Codes and Messages for Portfolio Online
31.7 Error Codes and Messages for Others
32. Annexure A - Accounting Entries and Advices
32.1 Accounting Entries for Securities Module
32.2 Securities Events
32.2.1 Portfolio Type of Products
32.2.2 Customer Buy/Sell Type of Products
32.3 Amount Tags
32.4 Accounting Roles
32.4.1 List I – Acct Roles for a Portfolio Type of Product
32.4.2 List 2 – Acct Roles for a Customer Buy/Sell Type of Product
32.4.3 SS Deal with a Portfolio Type Of Product: Bank Portfolio
32.4.4 SS deal with a Customer Buy/Sell type of product
33. Glossary
33.1 Securities Terms
34. Reports
34.1 Introduction
34.2 Corporate Action Tracking (Coupon EXDATE)
34.2.1 Contents of Report
34.3 Coupon Flipping
34.3.1 Report Options
34.3.2 Contents of Report
34.4 Securities Activity Report
34.4.1 Contents of Report
34.5 Backdated Deals Report
34.5.1 Contents of Report
34.6 Corporate Action Tracking (Ex-Date) Report
34.6.1 Contents of Report
34.7 Corporate Action Pending
34.7.1 Contents of the Report
34.8 Confirmed/Unconfirmed Report
34.8.1 Contents of Report
34.9 Security Disposition Report
34.9.1 Contents of Report
34.10 Deal Settlement Report
34.10.1 Contents of Report
34.11 Securities with Short Positions Report
34.11.1 Selection Criteria
34.11.2 Contents of Report
34.12 Portfolio To Portfolio Deals Report
34.12.1 Contents of Report
34.13 Matched/Unmatched Confirmation Message Report
34.14 Forward Profit and Loss (PnL) Accrual Report
34.14.1 Selection Options
34.14.2 Contents of Report
34.15 Securities Maturity Report
34.15.1 Selection Options
34.15.2 Contents of Report
34.16 Securities Contracts Overrides Report
34.16.1 Contents of Report
34.17 Securities Exception Report
34.17.1 Selection Options
34.17.2 Contents of Report
34.18 Securities Activity Report
34.18.1 Contents of Report
35. Function ID Glossary