Versions Compared

Old Version 34

changes.mady.by.user Nancy Cohn

Saved on

compared with

New Version 35

changes.mady.by.user Nancy Cohn

Saved on

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

Before you can process accruals for cash balances, you must set up cash segregation. This includes setting up entities for cash segregation and creating related bank account relationships, cash account relationships, and cash accounts.

You can then perform the following setup tasks to create securities used for cash balance accruals and set up cash accounts to link to those securities.

Create Cash Balance Accrual Securities

A cash balance accrual security allows you to create an interest bearing asset that you can link to a cash account. It has a processing security type of Cash Balance Accrual Security (CRINTC). Cash balance accrual securities have their own type of Investment Type (tag 11) code value of Cash Accrual Security (CR), Cash balance accrual securities have fixed income attributes, including the coupon rate, day count basis, coupon type, and other parameters used to calculate and accrue income on a periodic, that is, daily, basis for the account. Thus, you can set up fixed, variable rate, or floating rate assets.You  You typically set up a small number of these securities because different cash accounts often pay at the same rate and frequency, and can use the same security master record.

To manually add a cash balance accrual security, you can use Reference Data Center to create a new security. Or, in Accounting Center, you can also use the Cash Balance Accrual Security panel available in the Issue Viewer tool.

To manually add a cash balance accrual security:

In Accounting Center,

in

the left navigation pane, click Setup > Securities > Manage Securities > Issue Viewer.
You see

the Issue Viewer tool

.Click Add, select Cash and Cash Balance Accrual Security

.

You see the Cash Balance Accrual Security



Panel
.
  • Complete the options on the Cash Balance Accrual Security panel.
    The following fields are required to set up an equity security: Issue Name, Primary Asset ID Type, Primary Asset ID, Processing Security Type, Issue Country Code, Asset Currency, Primary Exchange Code, Coupon, Coupon Type Code, Day Count Basis, Payment Frequency Code, First Coupon Date. 
  • Click Submit.

    • If you set up a cash balance accrual security with a coupon type of floating rate, variable rate, or unscheduled variable rate, be sure to add related variable rates.

    Panel
    borderColor#9F9F9F
    titleColor#F7F9F9
    titleBGColor#B48436
    borderStyledashed
    titleContent on this page:

    Table of Contents
    maxLevel6
    indent2 px


    Edit Cash Balance Accrual Securities

    To manually change a cash balance accrual security, you can use Reference Data Center to edit a security. Or, in Accounting Center, you can use the Cash Balance Accrual Security panel available in the Issue Viewer tool.

    Some fields, such as Processing Security Type and Asset Currency, are locked when you add a security master record so they cannot be changed.

    Info

    If you need to change a security master record, Eagle recommends canceling the security, making changes to the security master record, and rebooking the security.

    Cash Balance Accrual Security Panel Options

    The following are the options in the Cash Balance Accrual Security panel. This panel is available in Issue Viewer. Note options may vary according to your selections. 

    Option

    Tag

    Description

    SRM Status Flag

    Release Status

    614

    Displays the release status of the Security Reference Manager (SRM) record. This field is null when adding a new security.

    Authorize Flag

    11742

    Flags records that have been authorized.

    Validation Process Flag

    4569

    Flags records that have been reviewed in the Security Reference Manager (SRM).

    Cash Balance Accrual Identification

    Issue Name

    961

    Specifies the name of the security.

    Issue Description

    962

    Describes the security.

    Ticker

    13

    Specifies the system of letters used to uniquely identify the security.

    CUSIP/SEDOL Check Digit Control Flag

    2292

    Indicates whether you want to generate or validate CUSIP and SEDOL numbers. Options include:

    • Generate Check Digit. Generates the remaining numbers if you enter part of the CUSIP or SEDOL number.
    • Validate Check Digit. Validates the CUSIP and SEDOL number you enter is correct.

    Primary Asset ID Type

    1432

    Specifies the primary asset identifier type for the security, such as CUSIP, ISIN, and SEDOL.

    Primary Asset ID

    14

    Specifies the primary asset identifier for the security.

    Alt Asset ID Type

    5501

    Specifies an alternate asset identifier type for the security.

    Alt Asset ID

    1795

    Specifies the alternate asset identifier for the security.

    Cash Balance Accrual Xreference Identification

    CUSIP

    1952

    Specifies the Committee of Uniform Security Identification Procedure (CUSIP), a unique identification number that identifies the security issue.

    ISIN

    1955

    Specifies the International Security Identification (ISIN), a unique international identification number that identifies the security issue.

    Sedol

    1958

    Specifies the Stock Exchange Daily Official List (SEDOL) number, a unique identification number that identifies the security issue.

    Reuters

    1961

    Specifies the Reuters identification number that identifies the security issue.

    Bloomberg ID

    1964

    Specifies the Bloomberg identification number that identifies the security issue.

    SICOVM

    1967

    Specifies the SICOVM identification number that identifies the security issue.

    Valoren

    1970

    Specifies the Valoren identification number that identifies the security issue.

    Cash Matching ID

    1973

    Specifies the internal identification number that identifies the security issue for use in matching actual cash settlements sent to the Eagle system from a bank, custodian, or third party to open receivables and payable created in Eagle's Accounting solution

    INTERNAL

    1976

    Specifies the internal identification number that identifies the security issue.

    CINS

    1979

    Specifies the CINS identification number that identifies a foreign security issue. The CINS numbering system is an extension of the CUSIP numbering system.

    Xref Exchange

    1981

    Specifies the exchange where the security is traded.

    Cash Balance Accrual Details

    Processing Security Type

    3931

    Displays the code that the system uses to identify the type of security you are adding. For example, CRINTC, for Cash Balance Accrual Security.

    Security Type

    82

    Specifies the type of security.

    Sub Security Type

    1464

    Specifies the sub security type.

    Issue Country

    2290

    Specifies the name of the country that issued the security.

    Issue Country Code

    1418

    Specifies the identification number that represents the country that issued the security.

    Asset Currency

    85

    Specifies the currency in which the security is priced.

    Issue Tax Type

    668

    Identifies the security's tax structure. It is used with global tax withholding and tax reclaim processing.

    NOTE: Do not select All when setting up the tax structure for a security using this panel.

    Primary Exchange

    2291

    Specifies the marketplace in which the security is traded.

    Primary Exchange Code

    17

    Specifies the code of the marketplace in which the security is traded. It is also used with global tax withholding and tax reclaim processing.

    Cash Balance Accrual Coupon Periods

    Coupon

    70

    Specifies the rate at which the security accrues interest. It is expressed as an accrual rate. A value of zero is required for zero coupon bonds.

    Coupon Type Code

    97

    Specifies the interest rate of the security. Options include:

    Floating Rate. The security has fixed coupon dates and uses a variable rate that is based on an underlying index and index offset to calculate

    the

    coupon to use for earnings. You must enter the rate in the Variable Rate table.Variable Rate. The

    security

    has fixed coupon dates and uses a variable rate based on the security identifier to calculate the coupon for use in earnings. You must enter the rate in the Variable Rate table.
  • Fixed Rate. The security has fixed coupon dates and has a fixed coupon rate to calculate the coupon for use in earnings.
  • Unscheduled Variable Rate. The security has unscheduled payments and accrues interest based on a rate you enter in the Variable Rate table.

    • NOTE: The Inverse Floater and Step Rate coupon type code options are not available for cash balance accrual securities.

    Day Count Basis

    471

    Specifies the number of days assumed in a month or year when interest rates are quoted. For more information, see the Fixed Income Processing Guide.

    Payment Frequency

    2287

    Specifies the frequency at which the security pays interest and drops a coupon.

    Payment Frequency Code

    472

    Specifies the code that represents the payment frequency.

    Business Day Convention

    1536

    Used with the payment frequency value to determine when a coupon should pay interest should the scheduled coupon due date occur on a non business day.

    Coupon Day of Month

    10551

    Specifies the day of the month in which the coupon is payable.

    Business Calendar Name

    1480

    Specifies the business calendar for the security. The system uses the value to identify business days and non business days for the purposes of determining the coupon payment date and coupon payment schedules.

    Cash Balance Accrual Dates

    First Coupon Date

    473

    Specifies the date of the first coupon payment.

    Floating Rate Information

    First Rate Reset Date

    10911

    Specifies the first calendar date that the rate resets from the dated date of the security. The system uses the First Rate Reset Date field, along with Reset Frequency Code, Business Calendar, and Business Day Convention field values to create the floating rate reset schedule of the security.
    This field appears and is required only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Reset Frequency

    476

    Specifies the frequency at which the security resets its rate, beginning from the date defined in the First Rate Reset Date field. Options include:

    • 10 DAY
    • 14 Day
    • 28 Day
    • 30 Day
    • 35 Day
    • 49 Day
    • Annual
    • Bi-Monthly
    • Daily
    • Monthly
    • Quarterly
    • Semi-Annual
    • Weekly

    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Reset Frequency Code

    1788

    Specifies the code associated with the frequency at which the security resets its rate beginning from the date defined in the First Rate Reset Date field. Options include:

    • 10_D (10 DAY)
    • 12_M (Annual)
    • 14_D (14 Day)
    • 1_D (Daily)
    • 1_M (Monthly)
    • 28_D (28 Day)
    • 2_M (Bi-Monthly)
    • 30_D (30 Day)
    • 35_D (35 Day)
    • 3_M (Quarterly)
    • 49_D (49 Day)
    • 6_M (Semi-Annual)
    • 7_D (Weekly)

    This field appears and is required only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Reset Look Back Days

    10547

    Specifies the actual number of days to look back when setting the rate on the reset date. Floating Rate type securities can use a past rate on the specified reset date.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Reset Look Back Days Type

    5075

    Indicates whether the reset look back days are business days or calendar days. Options include:

    • B (Business). Uses business days to identify reset look back days, using the Business Calendar Name field (tag 1480) to identify the security's business calendar.
    • C (Calendar). Uses calendar days to identify reset look back days.

    This field appears only if the Coupon Type Code field (tag 97) has a value of X (Floating Rate).

    Periodic Cap

    10907

    Specifies the maximum allowed increase in a variable rate from one period to the next.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Periodic Floor

    10908

    Specifies the maximum allowed decrease in a variable rate from one period to the next.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Lifetime Cap

    10909

    Specifies the maximum coupon rate allowed during the life of the security.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Lifetime Floor

    10910

    Specifies the minimum coupon rate allowed during the life of the security.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Underlying Information

    Underlying Security ID

    1348

    Specifies the ID of the underlying security.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Underlying Issue Name

    1141

    Specifies the name of the underlying security.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Underlying Ticker

    1349

    Specifies the ticker of the underlying security.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Underlying Type

    916

    Specifies the underlying security type.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Index Offset

    215

    Specifies the basis point adjustment to the underlying index, for the purpose of calculating the coupon rate of a security.
    For convertible bonds, this field represents the number of shares of stock that a convertible bond can convert into per 1,000 units of a bond.
    This field appears only if you set the Coupon Type Code field (tag 97) to a value of X (Floating Rate).

    Issuer Information

    Issuer ID Name

    2285

    Specifies the name of the issuer.

    Issuer ID

    1413

    Specifies the identifier of the company or municipality that offered the security for sale.

    Country of Incorporation Code

    1174

    Displays the ISO country code in which the issuer of the security was incorporated.

    Issuer Industry

    1417

    Specifies the industry of the issuer.

    Legal Entity Identifier (LEI)

    5089

    Displays the Legal Entity Identifier (LEI) that identifies the issuer as a financial party. If an LEI value is present, the Legal Entity Identifier Details section appears.

    Legal Entity Identifier Details

    Legal Name

    5090

    Displays the legal name of the issuer as the financial party registered with the LEI.

    Entity Status

    5091

    Displays the status of the issuer. For example, ACTIVE and INACTIVE.

    Legal Form

    5092

    Displays the legal form of the issuer as financial party registered with the LEI. For example, CORPORATION.

    Assigned Date

    5093

    Displays the date when the issuer's LEI was assigned.

    Last Update Date

    5094

    Displays the date when the issuer's LEI information was last updated.

    Disabled Date

    5095

    Displays the date when the issuer's LEI information was disabled.

    Record State

    5096

    Displays the record state for the issuer's LEI. The record state indicates the current process status of the CFTC Interim Compliant Identifier (CICI) record. For example, UNDER_REVIEW, DUPLICATE, CONFLICTING_SOURCES, INADEQUATE_SOURCES, VALIDATED, PENDING_REMOVAL.

    Certification State

    5097

    Displays the certification state used to register the issuer's LEI. For example, CERTIFIED, NOT_CERTIFIED, STALE.

    Street

    5098

    Displays the street address used to register the issuer's LEI.

    City

    5099

    Displays the city used to register the issuer's LEI.

    State

    5100

    Displays the state code used to register the issuer's LEI.

    Zip

    5180

    Displays the ZIP code used to register the issuer's LEI.

    Country Code

    5181

    Displays the country code used to register the issuer's LEI

    .

    Set Up Entity Information for a Cash Balance Accrual Security

    After you create a cash balance accrual security, you can identify the cash account to use with that security. This cash account, in turn, must be associated with a bank/custodian using a cash account relationship.

    Set up the entities, cash accounts, cash account relationships, and bank account relationships associated with the cash balance accrual security, if you did not already create them as part of your cash segregation initial setup. 

    A cash account relationship allows you to link a bank account relationship with a custody cash account. You can use cash account relationships to associate multiple cash accounts with a single custody account. When you use cash segregation, cash account relationships allow the system to default cash accounts for cash records when a cash account is not provided and for internally generated cash such as for corporate actions. During transaction processing the system uses cash account relationships to apply the appropriate cash account to a transaction.

    You can create cash account relationships to establish default cash accounts for different types of cash, such as trade, income, margin cash.

    Anchor
    set_up_cash_balance_accruals_htm_4903
    set_up_cash_balance_accruals_htm_4903
    Identify the Cash Balance Accrual Security for a Cash Account

    In the Create Cash Account panel or the Edit Cash Account panel, you must define the options specific to use the cash account with a cash balance accrual security.

    For the cash account, do the following:

    • In the Cash Account Detail section of the panel, set the Restricted field to Yes.
    • In the Cash Balance Accrual Election section, set the Accrue Interest on Cash Balance field to Yes and enter the Accrual Start Date value.
    • In the Cash Balance Accrual Security section, select the cash balance accrual security to associate with the cash account. Ensure that the cash balance accrual security's settlement currency matches the cash account's settlement currency.

    Update Eagle Accounting for the New Processing Security Type and Investment Type

    If you add securities with a processing security type (PST) of Cash Balance Accrual Security (CRINTC), consider the impact on any setup rules you created that identify rules for individual processing security types. Also be aware that cash balance accrual securities have their own type of Investment Type (tag 11) code value of Cash Accrual Security (CR), in case you have rules that apply to each investment type.

    For example, if you use custom contract cash settlement rules that the system uses to determine whether to settle trades through the contract cash process, and define rule details for each processing security type, ensure you define rules for a PST of CRINTC. Eagle's default contract cash rules include the CRINTC code.