Process a Manual Spot Transaction

Owned by Tom Fahey (Unlicensed)
Last updated: Nov 24, 2016 by Former user (Deleted)
3 min read

The Book Trade tool supports the processing of spot transactions. A spot contract, or simply a spot, is any transaction that does not occur in the futures or forward market. That is, the participants in a spot transaction agree to buy and sell, respectively, at the present market value and to settle the transaction a few days (usually one, two, or three) later. The term is most common in the foreign exchange market. Spots are processed as cash activity, similar to a cash contribution to one currency, and a withdrawal to the offsetting currency.

Book a Spot Transaction

To book a spot transaction using the Book Trade tool:

Content on this page:

  1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
  2. Enter Book Trade in the Start Search text box.
  3. Click the Book Trade (Accounting Center) link to access the Book Trade tool.
    You see the Book Trade tool's Query window.
  4. Enter your query parameters on the Query window.
    For example, select Primary Asset Identifier from the Query Based On field. Then, enter the Primary Asset Identifier field value for the currency for one side of the spot transaction. 
    NOTE: Currency identifiers are stored in the system as CASH + 3-digit Currency Code, for example, CASHCAD. You must also enter the Entity ID/Entity Name and the Trade Date and Settle Date field values.
  5. Click StartSearch.
    You see the securities that meet the search criteria.             
  6. Right click the cash security for which you are booking a spot transaction.
    For example, right click the CAD cash security. You see a shortcut menu with a set of options that determine the actions you can perform for the security. If you select the Book Foreign Exchange option, you see additional options that allow you to buy or sell the CAD currency via the spot transaction.
  7. Select an option from the shortcut menu. 
    You see the Spot currency exchange trade panel.
  8. Complete the options on the trade panel.
    For example, suppose you selected the Buy Currency – Spot Contract option. In addition to entering the entity and security identifier, you must enter a value for the following:
    –  Sell Currency Symbol. Specifies the offsetting sell currency code.
    –  Sell Quantity. Specifies the amount to be sold.
    –  Buy Quantity. Specifies the amount to be bought.
    The panel uses these cash amounts to calculate the values in the Sell to Base FX Rate and Buy to Base FX Rate fields. You have the option to automatically settle the transaction using the Auto Settle Trade Indicator field.
  9. Click Submit to process the spot.

View Results of the Spot Transaction

The Cash Journal report shows the breakdown of the two currencies.

 

Since U.S. Dollars were sold in the transaction, the Cash Journal report and the Position Viewer tool show a negative cash balance.

 

Cancel a Spot Transaction

In the Cancel Entitlements panel, you can cancel a previously booked spot transaction.

To cancel a spot transaction:

  1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
  2. Enter Cancel Entitlements in the Start Search text box.
  3. Click the Cancel Entitlements (Accounting Center) link to access the panel.
    You see the Cancel Entitlements panel.
  4. Complete the options in the Cancel Entitlements panel.
    After you enter the entity ID, dates of the trade (either exact dates or a range), and the currency of the spot, the system displays the relevant details of the transaction to cancel. If more than one transaction exists for the same currency and the same trade date, the system indicates on the right that more items are available.
  5. Click Submit.
    The original spot transaction is canceled.
  6. Close the Cancel Entitlements bottom tab to return to the Accounting Center.