ELN Underlying Pricing in Pricing Center

Processing Notes

Last Update: 23 Jul 2017

OVERVIEW

This document describes how Eagle’s Pricing Center can be used to automatically pull the price from an ELN’s underlying security and apply it to the ELN for valuation.

Implementation requires a moderate to advanced understanding of Pricing Center and that Pricing Center already be configured for all general pricing purposes. The “parent” equity pricing rule must already be in place.

PRICING CENTER

Price Adjustment

A rule must be created to allow the underlying security’s price to be applied.

• Under Price Adjustments, click the “Create” link to create a new price adjustment rule
• Set up the Price Adjustment Rule as shown below

• Type (green arrow): Calc from Alternate Security (Same Crncy), Calc from Alternate Security (Alternate Crncy), or Calc Price from Underlying Security
  • If Calc from Alternate Security is selected, the identification criteria of the security being used for pricing will have to be defined (Source Security, red arrow, screenshot below)
  • If Calc Price from Underlying Security is selected, Pricing Center will already know which security to target assuming there is an active underlying relationship in the underlying_security table (this can be entered using Add Underlying Security)
• Target Security Criteria (blue arrow): identification criteria of the security being priced
• Price Source: pricing source for alternate/underlying security price
• Price Date Rule: date rule that will be used for the calculation
• FX Source: FX source to convert alternate currency security price (this can differ from the fund’s FX source)
  • If the underlying security is the same currency as the parent this field should be left blank
• FX Field: type of FX rate that will be used to convert alternate currency security price
  • If the underlying security is the same currency as the parent this field should be left blank.

Target Security Criteria

Source Security (only defined for Type = Calc Price from Underlying Security)

Price Formula

Price Rule

Attach price adjustment created above to price rule.

Once complete, the price adjustment will have a dependency on the equity “parent” rule. The alternate/underlying security should be priced first via the "parent" rule. This alternate/underlying price will then apply to the ELN based on the price adjustment configuration.