By default, the cash sweep process applies a price of 1. You can use the following fields to identify Money Market instruments that the cash sweep process needs to price at a value other than 1.
- Floating Price Instrument (tag 16727). Indicates whether a money market security processes cash sweep transactions using a floating NAV or uses a default price of 1. This field appears if you select a security with a processing security type of STIF (DBSTST) or Mutual Fund (EQEQMF). Options include
- Yes. The cash sweep process can price the money market security at a price other than 1. It uses a price from the source identified in the Floating Price Source field for the sweep date.
No. Default. The cash sweep process assumes the price is 1 to ensure that the currency sweep amount and the number of units of the instrument are always the same.
- Floating Price Source (tag 16728). Specifies the price source used for a floating NAV security during cash sweep processing. If you set the Float Price Instrument option to Yes but provide a null value for the floating price source, the security prices using the default entity price source. If the entity has multiple accounting bases, the system uses the price source of the primary basis. This field appears if you set the Floating Price Instrument field to Yes.
Set Up a STIF with a PST of EQEQMF
To set up a STIF security with a processing security type of Mutual Fund (EQEQMF), you can use Reference Data Center. Otherwise, use the Equity/Mutual Fund panel in Issue Viewer.
A STIF SMF with a processing security type of Mutual Fund (EQEQMF) must have:
Asset Currency for the STIF security must match the Base Currency of the related entity if you are using entity-level cash sweepsAsset Currency for the STIF security must match the Settlement Currency of the related cash account if you are using cash account-level cash sweeps, associated with cash segregation
Processing Security Type (tag 3931) field of STIF (EQEQMF)
By default, the cash sweep process applies a price of 1. You can use the following fields to identify Money Market instruments that the cash sweep process needs to price at a value other than 1.
Floating Price Instrument (tag 16727). Indicates whether a money market security processes cash sweep transactions using a floating NAV or uses a default price of 1. This field appears if you select a security with a processing security type of STIF (DBSTST) or Mutual Fund (EQEQMF). Options include
Yes. The cash sweep process can price the money market security at a price other than 1. It uses a price from the source identified in the Floating Price Source field for the sweep date.
No. Default. The cash sweep process assumes the price is 1 to ensure that the currency sweep amount and the number of units of the instrument are always the same.
Floating Price Source (tag 16728). Specifies the price source used for a floating NAV security during cash sweep processing. If you set the Float Price Instrument option to Yes but provide a null value for the floating price source, the security prices using the default entity price source. If the entity has multiple accounting bases, the system uses the price source of the primary basis. This field appears if you set the Floating Price Instrument field to Yes.
STIF SMF Setup Example
This example shows a STIF SMF record based on a processing security type of Interest Bearing Short Term (DBSTST).
Assume you want to establish a STIF SMF record that:
Is a USD based Short Term vehicle
Pays interest on the first day of each month
Accrues on an Actual/360 basis at a Variable Rate
You can enter the information shown in the following table into Reference Data Center. Otherwise, use the Short Term Debt panel in Issue Viewer.
Field Name | Value |
|---|---|
Issue Name | Name of the Security |
Issue Description | Description of the Security |
Primary Asset ID Type | Type of the Security Identifier |
Primary Asset ID | Value used to identify the security in Eagle Accounting |
Processing Security Type | DBSTST |
Issue Country Code | US |
Asset Currency | USD |
Settlement Currency | USD |
Income Currency | USD |
Coupon | 0 |
Coupon Type Code | Variable |
Day Count Basis | ACT/360 |
Payment Frequency | Monthly |
Issue Date | 19810101 (see note below) |
Dated Date | 19810101 (see note below) |
First Coupon Date | 19810201 |
Last Coupon Date | 20490101 |
Maturity Date | 20490101 (see note that follows) |
Maturity Price | 1.00 |
Floating Price Instrument | Yes |
Floating Price Source | EAGLE PACE |
| Info |
|---|
Because STIF vehicles generally do not represent actual physical securities, the dates used for accrual processing can be arbitrary. The Issue and Dated Dates should be prior to the first trade of the STIF security, and the Maturity Date should be far enough into the future such that you do not have to worry about running into that date during normal processing. Eagle recommends using the dates in the previous example for Issue, Dated, and Maturity Dates, if they meet the criteria of the STIF security. |
Because the STIF security needs to follow the same logic as any other fixed income security that is set up in Eagle Accounting, the First and Last Coupon Dates should be consistent with the Issue/Dated Dates and the Maturity Date. In this example, the security is paying Monthly and the accrual period goes from the first day to the last day of the month, with the payment appearing on the first day of the next month. Because this scenario uses 1/1/1981 as the Issue/Dated Date, and 1/1/2049 as the Maturity Date, the First Coupon Date should be 2/1/1981 (the first payment after the initial accrual period) and the Last Coupon Date should be 1/1/2049 (the payment after the last full accrual period). Once the SMF record is established, add the variable rates for the STIF security.
Use Reference Data Center or the Short Term Debt panel in Issue Viewer to set up the STIF Security Master File (SMF).