Set Up Entities for Cash Sweeps

The entity setup for cash sweep processing varies based on whether you use cash segregation.

Set Up Entities for Cash Sweeps

When you set up an entity to process cash sweeps, and you do not use cash segregation, you identify the STIF sweep asset at the entity level. You set the entity's Cash Sweep field to Yes, and you complete the following fields in the Accrue Cash Balance Fields section of the panel.

• Cash Sweep (tag 4515). Indicates whether the system can perform cash sweeps into a short term investment fund (STIF) security for the entity. Options include:

  • No. Default. The system does not sweep the entity's uninvested cash balance into a Short Term Investment Fund (STIF) security. If you set the Position Cash Segregation Basis Indicator option to Yes, this option displays a value of No and is locked.
  • Yes. The system sweeps the entity's uninvested cash balance into a STIF security. If you select Yes, you must specify values for the Lookup STIF Issue Name and Lookup STIF Asset ID fields. You can sweep cash at the entity level if you do not use cash segregation.

• Minimum Balance (tag 16726). Specifies the amount of the minimum balance needed in order for the system to perform a cash sweep into a STIF for the entity. You must specify a positive number. If you specify a value and the cash balance is positive, the system sweeps cash into a STIF for the entity and creates cash sweep transactions only if the balance is equal to or greater than the minimum balance. If you specify a minimum balance and the cash balance is negative, sweep processing always occurs to cover that negative balance.

• Lookup STIF Issue Name (tag 301). Specifies the issue name of the STIF security associated with cash sweeps for this entity. You can select a Short Term Investment Fund/Vehicle with a processing security type of STIF (DBSTST) or Mutual Fund (EQEQMF) for use with cash sweep processing. For Eagle Accounting to process the cash sweep, the STIF security’s asset currency must match the entity’s Account Base Currency (tag 86) value. This field appears when you set Cash Sweep to Yes.

• Lookup STIF Asset ID (tag 364). Specifies the primary asset ID of the STIF security associated with cash sweeps for this entity . You can select a Short Term Investment Fund/Vehicle with a processing security type of STIF (DBSTST) or Mutual Fund (EQEQMF) for use with cash sweep processing. For Eagle Accounting to process the cash sweep, the STIF security’s asset currency must match the entity’s Account Base Currency (tag 86) value. This field appears when you set Cash Sweep to Yes.

Set Up Entities for Cash Sweeps when Using Cash Segregation

For Eagle clients that use cash segregation and want to process cash sweeps from a cash account into a sweep vehicle, there is no special entity setup for cash sweeps. You indicate eligibility for cash sweep processing, identify a sweep asset, and define an optional minimum balance at the cash account level rather than at the entity level.

However, you must set up entities and master funds for general use with cash segregation. For example, you must set the entity's Position Cash Segregation Basis Indicator field to Yes.

Set Up Cash Accounts for Cash Sweeps

When you process cash sweeps and use cash segregation, you can sweep cash from a cash account to a sweep asset. You identify the sweep asset at the cash account level.

To set up cash accounts for use with cash sweeps, in the Create Cash Account panel or the Edit Cash Account panel, create a cash account where you define the options specific to cash sweeps.

Set up each cash account as follows:

• Cash Sweep (tag 4515). Set the Cash Sweep field to Yes to indicate that the cash account is eligible for cash sweep processing.
• Minimum Balance (tag 16726). You can specify a minimum balance needed for the system to perform cash sweeps from the cash account into a sweep asset, as appropriate.
• Cash Balance Security. In the Cash Balance Security section of the panel, select the cash sweep asset associated with the cash account. You can use the Primary Asset ID, Issue Name, and Xref ID fields. A cash sweep asset has a processing security type of either STIF (DBSTST) or Mutual Fund (EQEQMF).

Set Up Corporate Actions for Sweep Assets

You can set up and process corporate actions such as coupons and maturities for sweep assets.

When a coupon for a cash sweep asset is generated, the system marks the transaction as income. When you use cash segregation, coupons for cash sweep assets generate cash at the appropriate custody location based on the cash account.

You can set up and process corporate actions such as maturities for sweep assets. When you use cash segregation, maturities for cash sweep assets generate activity as they do for other instruments in Eagle Accounting, and the system maintains cash at the appropriate custody level.