Eagle Accounting has one field defined at the entity level that is specific to caps and floors. You must specify the Net Cap Floor field value prior to any trading of cap/floor contracts. If you do not specify this value prior to trading, trades do not process and tools such as the Book Trade tool do not display the correct trading options.
Option | Tag | Description |
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Net Cap Floor | 5830 | Determines how the system processes caps/floors. Options include: Yes. The system nets a buy and sell of a cap/floor on the same entity into a single position. No. The system treats a buy and sell of a cap/floor on the same entity as two separate positions. If you set the Net Cap Floor field to No, ensure you set the Tech Short Eligible Indicator (tag 57) at the entity level to indicate whether the position can go technically short.
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Tech Short Eligible Indicator | 57 | Indicates whether the entity can go technically short (book sell transactions prior to buys that will eventually be posted). Options include: Yes. Default. The system allows you to oversell, sell without a buy, and process a buy to cover without the short. Setting this field to Yes allows you to use the rollback and replay feature in Eagle's Accounting solution to adjust earnings. The system creates a negative long position (for an oversell or sell without a buy) or a negative short position (for a buy to cover without the short) and when the buy is received, the system replays that sell transaction. If you enter Yes, the system creates a settlement as soon as the trade is processed. There is no trade date to settle date gain/loss. This applies even if the settlement date is in the future. No. Recommended. The system does not allow you to oversell, sell without a buy, or process a buy to cover without the short. The system rejects the trade and sends it to the Exceptions workspace to be reprocessed manually.
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For general information about entity setup and entity-level options, see Create/Edit Entity Panel Options and Create Master Fund Panel Options. Detailed information about the Net Cap Floor options follows.
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The following figure illustrates transaction processing for a cap/floor net position, where you set the entity's Net Cap Floor field to Yes.
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https://jira.atlassian.com/secure/CreateIssue!default.jspa
