In the Future without Variation Margin panel, you can manually book an open and close trade for a future without variation margin. The Future Expense/Capitalize Flag field determines how commissions and fees are treated. The system handles both full and partial terminations.
This article assumes you are familiar with the entity and security level elections that have been made for processing a future without variation margin. For example, you must enter a value for the Net Futures Position field. If you set this field to Yes, the system nets the long and short positions into a single long position. If you set this field to No, the system creates two separate long and short positions. Also, you must enter a value for the Futures Clearing Broker Code field. The system requires that you use the same clearing broker when you book an open and close trade for a future contract. You can hard code the field to ensure the same clearing broker is used for all futures transactions. You can access these fields using the Create/Edit Entity, Create Master Fund, and Edit Master Fund/Sector panels.
To manually book an open trade for a future without variation margin:
- In the Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace. - Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected. - Select the row with the security you want to trade.
- On the Book Trade tab, in the Actions group, click Action Rules, point to Open, and then click (Long) Future without Variation Margin or (Short) Future without Variation Margin.
You see the Open Future panel. - Complete the options on the Open Future panel.
- Click Submit.
Once the trade is booked, it follows all core accounting processes. The system uses the core cost tags to store the notional cost values at the position, open, and close Cost object levels for futures.
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