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Overview
Control Center allows you to view entity statuses for all system events in real time and provides a central location for applying business edits, reviewing and controlling transactions, and performing valuations and audits of entities. The Control Center trading gain/loss process determines the impact of a trade by comparing a transactions trade price to the prior market price. If the prior market price for a security was $10 per share and the security was purchased at $9 per share, a trading gain is posted for $1 per share. Trading gains and losses are posted to two memo accounts (general ledger - 8003000801 & 8003000802) at the security level.
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Entity Setup
Before the trading gain loss can be processed, the target entity must be set up appropriately.
Entities need specific pieces of data, which can be populated using Create/Edit Entity (V17):.
Control Center Entity (10462): indicates if you can view an entity's status using the Control Center
No: the system does not allow you to view the entity status using the Control Center (this is the default)Yes: the system allows you to view the entity status using the Control CenterAll edit test procedures check this flag to ensure the entity is set up as a Control Center entity
When you select
Yes, additional fields in this section become available
Trading Gain/Loss Rule Id (9231): specifies the trading gain/loss rule for the entity
The trading gain/loss process determines the impact of a trade by comparing a transaction's trade price to the prior market price
This option is required if you set the Control Center Entity field to Yes. Options include:
DEFAULT INCLUDE: tests new purchases by using the current day market exchange price.DEFAULT EXCLUDE: does not post trading gain/loss for new security purchases.
Control Center Entity Tests (7003): specifies how you assign edit tests during fund setup. This option is required if you set the Control Center Entity field to Yes. Options include:
Core: used to attach out of the box edit tests upon fund setup.Non-Core: used to add customized edit tests to funds during the fund setup process.None: used to assign edit tests in the module after establishing them. Assigning edit tests at the composite level (not fund level) is easier to maintain.
Control Center Process Center (11407): specifies the control center process center code for the entity
Control Center uses this code for queries and processes that push edit test result data to the Status Map tables
This option is required if you set the Control Center Entity =
Yes
Control Center Daily Map (3975): specifies the daily Control Center status map used for the entity
This field appears when you set Control Center Entity =
Yes
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Derivatives Processing Security Types for Trading Gain/Loss
SWCDCO (Credit Default Swaps)SWCDCX (CDX Swap Contract)SWCOIF (Inflation Linked Swap Contract)SWCOIR (Interest Rate Swap Contract)SWLXEQ (Swap Leg Total Rate Return on Equity)SWCOCR (Currency Rate Swap Contract)FTXXXX (Future)Options
OPOPCM (Future Option)OPOPCR (Currency Option)OPOPDB (Debt Option)OPOPEQ (Equity Option)OPOPFB (Factor Based Option)OPOPIX (Index Option)OPOPSW (Swaptions)
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Trigger Trading Gain/Loss
After the trade is booked, you can manually trigger trading gain loss by using Post Trading Gain Loss. Enter the applicable Entity ID (1163)/Entity Name (1164) and Accounting Date (36) and click Submit.
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Trading Gain/Loss Calculation
New Buys = Current Business Day's Market Value of Trade - Cost of Trade
It is compared to the trade date closing price.
New Sells: (proceeds from trade) – (prior business day’s market value of trade)
The trading gain/loss calculation takes accounting date as the reference point for considering the previous day market value in the sell trade formula.
See attached:
View file name Example of Trading Gain Loss.xlsx
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Reporting
To see trading gain loss posting search in accounting journal by memo accounts (7191) - YES