Accrual factors represent the period-to-date factor for a given effective date. The system uses this factor during the earnings processto calculate the accrual ptd for a holding. For example, an accrual factor with an effective date of January 9 would include all the interest up to and including January 8. The system multiplies the accrual factor by the position’s current quantity and price multiplier to determine the ptd accrual value.
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Earnings Process Calculates Accrual Factors. In this legacy approach, the Eagle system calculates accrual factors during the earnings process. The earnings process then uses those accrual factor calculations. The system does not store the accrual factors.
Third Party Calculates Accrual Factors. You can load accrual factors from a third party source. The system stores the accrual factors. The earnings process then uses those accrual factor calculations. By extracting the accrual factor calculation out of the earnings process, Eagle clients can benefit from performance improvements, as less time is needed during the earnings process.
Interest Service Calculates Accrual Factors. (For Private Preview clients only) The Interest Service can provide accrual factor calculations. It can pre-compute accrual factors and write them to the Eagle database for use as part of the earnings process. By extracting the accrual factor calculation out of the earnings process, Eagle clients can benefit from performance improvements, as less time is needed during the earnings process. Rather than simply shifting where and when the calculation takes place, this approach actually eliminates a significant amount of duplicated processing where the system is performing the same calculation over and over again. Clients can also benefit from decoupling the service from the Eagle application, as it allows the service to be upgraded independently. This is particularly useful when new features are delivered.
Accrual factors are also necessary to calculate interest flows for the cash flow service, which will start to call the Interest Service.
You can also maintain accrual factors manually.
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