Set Up Securities for Cash Segregation

Owned by Tom Fahey (Unlicensed)
Last updated: Aug 08, 2024 by Jawann Swislow
2 min read

You can set up securities in several ways to accommodate their use in matching actual cash settlements with STAR open receivables and payables when you use cash segregation.

Use the CMM Cross Reference Identifier for Cash Matching

If you plan to use the Cash Matching workspace to match STAR open receivables and payables with bank cash settlements, you can set up security master records with the cross reference type of CMM (Cash Matching Module). If you do so, the bank settlements must also include a cross reference type of CMM to identify the asset. The CMM cross reference type is used by the CMM generic message streams, and enables the system to retrieve the correct security alias from the security master.

For example, in Reference Data Center's Add Security XReference panel (or Issue Viewer's Add Security Cross Reference panel), you can add security cross reference information by security exchange and security xref type. Security cross reference information is used to resolve the identification of a security, when the Eagle internal security ID is not available. In this panel, you can select the Xreference Security ID (tag 1234) which specifies the security identifier type for the cross reference to add. For example, BBID, CINS, CMM, COMMON, CUSIP, FWXREF, INTERNAL, ISIN, RED, RIC, SEDOL, SWAPID, TICKER, UPI (Unique Product Identifier), USI (Universal Swap Identifier), VALOREN, and WPK.

The Cash Matching process does not require use of the CMM cross reference type in order to match cash. Instead, the value of CMM provides flexibility, and its use removes any conflict with the other cross reference types used in Eagle solutions. If no conflict exists you can use another cross reference type.

Identify the Cash Matching ID for Securities

If you set up CMM security cross reference identifiers for use with cash matching, you can provide a Cash Matching ID for each security you plan to use in cash matching. Each security entry panel allows you to specify a Cash Matching ID (tag 1973) to identify the security issue for use in cash matching.

Assign Security Types

You can define a cash account relationship to assign a cash account based on criteria that include security type or security type in conjunction with cash event type (disbursement or receipt). If you plan to use these criteria in cash account relationships, ensure you assign the appropriate security type (tag 82) to the security master records used in cash matching.