Selling or Buying Back a Deal

This topic discusses selling or buying back a deal.

Page Name

Definition Name

Usage

Update/Display Sell/Buyback Details Page

TRX_SELLBUYBACK_SP

Enter the attributes of selling or buying back a deal.

Use the Deal Management Sell/Buyback functionality with all deal types to sell or buyback a deal. You can use this functionality to:

  • Sell a purchased investment at a point in its life cycle.

  • Split an existing deal into one or more new deals.

  • Call back a debt.

Use the Update/Display Sell/Buyback Details page (TRX_SELLBUYBACK_SP) to enter the attributes of selling or buying back a deal.

Navigation:

  • Deal Management > Capture Deals > Deals > Deal Detail

    Click Sell/Buyback on the Deal Detail page.

  • Deal Management > Capture Deals > Trade Tickets

    Click Sell/Buyback on the Trade Detail page.

The Sell/buyback link appears on the Details page after the deal is saved. The link remains visible as long as the deal is open. You cannot use the Sell/Buyback functionality with option or binary option deals.

To view this page, the Trade Type drop-down list box on the Trade Detail page must have a value of Closed. Otherwise, the Sell/Buyback link is not displayed.

See Trade Detail Page.

This example illustrates the fields and controls on the Update/Display Sell / Buyback Details page. You can find definitions for the fields and controls later on this page.

 Update/Display Sell / Buyback Details page

Note: Some of the fields on the Update/Display Sell / Buyback Details page are not displayed for non physical deals.

Transaction Dates

Field or Control

Description

Unwind Date

Enter the transaction sales date for a sell/buyback transaction.

Settlement Date

Enter the agreed upon settlement date for a sell/buyback transaction.

Unwind Settlement

Field or Control

Description

Unwind Par

Enter the sell/buyback par amount.

Price % of Par

Enter the sell/buyback pro rata percentage. Generally equals 100 if par, less than 100 if discount, and greater than 100 if premium.

Unwind Accrual Amt (unwind accrual amount)

Enter the traded accrued interest as of the sell/buyback settlement date.

Unwind Book Value

Enter the deal book value as of sale settlement date. System calculation for the current value is:

(Sale Pro Rata % / 100) x (Unwind Princp. Bal. + Unamort. Fee Amt + Unamort. Disc. Prem)

Unwind Principal Amount

Enter the sale price for a sell/buyback transaction. System calculation is:

Unwind Par x Price % of Par

Unwind Settlement Amount

Enter the sum of the unwind principal amount and unwind accrual amount.

Unwind Principal Balance

Review the original par amount if no amortization or unamortized principal balance exists.

Unwind Pro Rata %

Review the percentage of unwind par value of which a financial instrument is priced when booked into the system.

Amortized Disc/Premium (amortized discount premium)

Review the discount amount deducted from the par price of a given deal transaction such as a bond.

Unamortized Disc/Premium (unamortized discount premium)

Review the unamortized discount amount deducted from the par price of a given deal transaction such as a bond.

Write-Off Unam Disc/Prem (write-off unamortized discount/premium)

Review the amount written off due to this sell/buyback activity. System calculation is:

(Unamortized Disc / Prem ) x (Unwind Pro Rata % / 100)

Fee Balance

Review the total fee amounts for deals. (Refers to accruing fees only.)

Amortized Fee

Review the amortized accruing fee as of sell/buyback settlement date.

Unamortized Fee

Review the unamortized accruing fee as of sell/buyback settlement date.

Write-Off Fee

Review the write-off fee total. System calculation is:

Unamortized Fee x (Unwind Pro Rata % / 100)