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A buy sellback/sell buyback is the spot sale and forward repurchase of a security. During the term of a buy sellback/sell buyback, the underlying collateral security is pledged to the lender of money. The collateral is transferred in the name of the lender of money. That is, the borrower of the security in the depository system. Due to this process, the lender of money receives any coupon payments paid by the issuer during this period. These coupon payments however, belong to the borrower of money or, lender of the security, who provided the collateral. Therefore, the coupon payments and interest thereon is reduced from the outstanding liability or asset relating to the buy sellback/sell buyback. The net amount is settled upon the termination or maturity of the deal.

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This article assumes you are familiar with the entity level elections that have been made for processing a buy sellback/sell buyback security.

Add Buy Sellback/Sell Buyback Securities

You do not need to set up a security master record for a buy sellback/sell buyback security prior to entering the trade. The system creates the security master record automatically when you book the trade. Before booking the trade, you must ensure that the underlying collateral security is available in the security master along with its fixed or variable interest rate. This information is required to calculate the net settlement amount, as well as the amount lent or borrowed.

Change Buy Sellback/Sell Buyback Securities

Some fields are locked when there is an existing position on the security. This is because a change would impact the existing position. These fields include Asset Currency, Investment Type, Processing Security Type, Quantity Type, Price Multiplier, and Quantity Scale. Other fields are locked so they cannot be changed. See the About Locked Security Master Record Fields page for more information.

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 buy sellback/sell buyback security:

  1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
  2. Enter Issue Viewer in the Start Search text box.
  3. Click the Issue Viewer link to access the tool.
    You see the Issues Viewer tool.
  4. Enter the query parameters and click Search.
    You see a list of security records that meet your selection criteria in the Query Result window.
  5. Select the security record you want to update and click Change/Buy Sellback & Sell Buyback. Or double click the security record.
    You see the Change Buy Sellback & Sell Buyback panel.
  6. Change the options on the Change Buy Sellback & Sell Buyback panel.
  7. Click Submit.
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