Bypass Earning Replay

About Bypassing Earnings Replay for TBA Allocations

Backdated trade processing, specifically with mortgage-backed type positions such as TBAs, can take a significant amount of time to process due to the amount of rollback/replay. The backdated activity can often take several hours to complete, which not only takes a significant amount of system resources to process but can delay other client-related activity as well. TBA allocations, for example, can lead to hundreds of backdated trades that rollback and replay months of earnings and paydowns for every transaction. Instead of doing rollback/replay after every trade, Eagle Accounting allows you to perform that rollback and replay once, after all activity has been posted. When you set the Bypass Earnings Replay (tag 11793) option to a value of A for a transaction, during transaction processing the system bypasses the following accounting functions in addition to earnings:

• OpenWashSaleAdj
• CloseWashSaleAdj
• accrueMaster
• LedgerPosting_Generate_DRCR
• supplementEventWithEarnProperty
• ledgerPeriodForwardBackward
• calcVariationMargin
• CalculateYield
• CalcTradedInterest
• setConvBond
• supplementEventWithYieldProperty
• LedgerPosting_Generate_DRCR_ByRow
• CalcTipsIndexRatio
• GetPaydownGainloss
• SetIncomeRecognitionTag

Not included in this list is the write cursor to the STAR to PACE Delta trigger log. The system also bypasses this log to increase processing speeds. After you run the REACCRUE event, the system populates the STAR to PACE Delta trigger log and subsequently updates the Eagle data warehouse.

Set Up Bypass Earnings Replay and Process Transactions

You can set the Bypass Earnings Replay (tag 11793) option to a value of A on transactions to have Eagle Accounting bypass the earnings replay during the rollback/replay process. This tag is appended onto all transaction activity. The rollback still occurs, but no income or trades replay ensues, which significantly improves system performance while posting backdated transaction activity. This setting is used mainly during TBA allocation, because the trade activity involved many backdated trades which rolled back earnings and factors each time during every trade. 

During transaction processing, Eagle Accounting uses the LAST_VAULT_DATE column on the ESTAR_COST_POSITION table. It sets this column equal to Trade Date minus one of the earliest trade on a position that was booked with tag 11793 set to A. Eagle Accounting uses this date to determine how far it needs to roll back earnings. The system then replays earnings up through the previous EARN_THROUGH_DATE on the ESTAR_COST_POSITION table. You can view the LAST_VAULT_DATE value in Position Viewer, where it is called PLANSTEP_FUNCTION_BYPASS_DT (tag 12401).

The system only bypasses ledger activity for open transactions. It does this because if a backdated close occurred that rolled back several transactions, the ledger postings associated with those rolled back transactions will remain on the ledger. Therefore, the system does not bypass ledger activity for closes and cancels at this time.

Reaccrue after an Earnings Bypass

In the Reaccrue for Earnings Bypass panel, you can perform rollback and replay for earnings processing for transactions that you previously bypassed. When you bypass rollback and replay earnings and other accounting processing for TBA allocations, Eagle Accounting allows you to perform that rollback and replay a single time, after all activity is posted. After you process transactions using the Reaccrue for Earnings Bypass panel, all activity including, but not limited to, ledger postings, warehouse activity, earnings, wash sales, trades, and corporate actions should be the same as if you did not previously bypass accounting processing for those transactions.

To reaccrue after bypassing earnings processing:

1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.. 
2. Enter Global Process Center in the Start Search text box.

3. Click the Global Process Center link to access the Global Process Center.
   You see the Global Process Center.

4. Open the Earnings folder in the left navigation pane and select Reaccrue for Earnings Bypass.
   You see the Reaccrue for Earnings Bypass panel.
5. Complete the options on the Reaccrue for Earnings Bypass panel. 
6. Click Submit.
   The Global Processing Results frame appears at the bottom of the panel. The Detail tab shows each entity/security that was accrued with a Status of Processed and Event Type of Earn. Otherwise, if the system finds no accruals to process, the system displays a message indicating it produced no loopbacks.

Reaccrue for Earnings Bypass Panel Options

In the Reaccrue for Earnings panel, you can manually rollback and replay the earning process after bypassing the earnings process, along with additional accounting functions. The options may vary according to your selections.

Accrue

For accrue information, there is only one option, Select Query Option (tag 2283). This option determines how to apply the global processing, as follows:

• One Entity/One Security
• One Entity/All Securities
• All Entities/One Security
• All Entities/All Securities

Entity Information

The following are the options for entity information:

• Entity ID (tag 1163). Specifies the identifier of the entity. It appears when you select One Entity/One Security or One Entity All Securities in the Select Query Option field.
• Entity Name (tag 1164). Specifies the name of the entity. It appears when you select One Entity/One Security or One Entity All Securities in the Select Query Option field.

Security Information

The following are the options for security information:

• Asset ID Type (tag 1432). Specifies the asset identifier type for the security. It appears when you select One Entity/One Security or All Entities/One Security in the Select Query Option field.
• Asset ID(tag 364). Specifies the asset identifier for the security. It appears when you select One Entity/One Security or All Entities/One Security in the Select Query Option field.
• Issue Name(tag 961). Specifies the name of the security. It appears when you select One Entity/One Security or All Entities/One Security in the Select Query Option field.
• Earnings Catch-up Flag (tag 512). Indicates whether the system replays earning up through and including the position's last earn through date. This option determines how far you want the earnings process to replay back through. Options include:
  –  Yes. Default. Replays earnings up through, and including, the last earn through date on the position.
  –  No. Does not run earnings up through the last earn through date. The system sets the LAST_VAULT_DATE column to NULL. You have to manually catch up earnings. Choosing No most likely indicates that you expect the system to post more trade activity on the position. This creates less work on the engine overall.