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 entity bank relationships, cash account relationships, and cash accounts. See About Setup for Cash Segregation.
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.
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 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 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:
- From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
- Enter Issue Viewer in the Start Search text box.
- Click the Issue Viewer link to access the tool.
You see the Issue Viewer tool. - Click Add.
- Click Cash and Cash Balance Accrual Security.
Complete the options on the Cash Balance Accrual Security panel. - 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.
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Some fields, such as Processing Security Type and Asset Currency, are locked when you add a security master record so they cannot be changed.
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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. |
To manually change a cash balance accrual security:
- From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
- Enter Issue Viewer in the Start Search text box.
- Click the Issue Viewer link to access the tool.
You see the Issue Viewer tool. - Enter the query parameters and click Search.
You see a list of security records that meet your selection criteria in the Query Result window. - Select the security record you want to update and click Change/Change Cash Balance Accrual Security. Or double click the security record.
You see the Change Cash Balance Accrual Security panel. - Change the options on the Cash Balance Accrual Security panel.
- Click Submit.
The following are the options in the Cash Balance Accrual Security panel. 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.
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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.
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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.
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.
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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
added 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.