1.2.6.1 Downstream Deal Booking

This topic describes about the downstream deal booking in SEDXDLNL.

After TIDCNVTR authorization, the system books:

Sell deal (Source Security)

• Treated like a redemption of the source security.
• Input/Market price derivations (include nominal/quantity and premium/discount allocation).

Buy Deal(s) (Target Security)

• Updates new holdings on DSTL (effective) date.
• For each SKL/SKA combination, a buy deal is booked.
• Target quantity/nominal/price/premium-discount are derived using the formulas (example, Target Qty = Source Qty * Conversion Ratio, etc.).

New Header Fields

• SEDXDLNL header includes Parent Deal Type instead of Conversion and Parent Deal Reference captures the Conversion Reference (from TIDCNVTR).

Security Position Updates: On the conversion effective date, system updates security positions based on the conversion ratio. When Source security positions goes zero, and target security positions will be increased.