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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 Center

    • All 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

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)

Trigger Trading Gain/Loss

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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

Reporting

To see trading gain loss posting search in accounting journal by memo accounts (7191) - YES