Update Client ETF Valuation Rules on STAT bases

Owned by Nancy Cohn (Deactivated)
Last updated: Feb 08, 2024 by Kinga Huszno
4 min read

The STAT basis must have a Client ETF Valuation Rule defined in the Basis Processing Rule (tag 7152) and Basis Processing Rule ID (tag 2965) to process Systematic Value. There are three paths you can take to update the Client ETF Valuation Rule on the STAT basis. You can use one of the following panels to update the client ETF valuation rule on the STAT basis:

  1. Create Client ETF Valuation Rule (if the accounting basis does not already have a basis processing rule specified). When you create the rule, you can choose an option to have the system update the STAT basis's Basis Processing Rule with the client EFT valuation rule.

  2. Update Client ETF Valuation Rule on Basis (if the accounting basis does not already have a basis processing rule specified). Use this panel to update the STAT basis's Basis Processing Rule with the client ETF valuation rule based on the SVO Company Code or issue name you choose.

  3. Edit a Basis on a Portfolio. Create a client ETF valuation rule. Then edit the accounting basis and change its Basis Processing Rule field value manually, selecting the value associated with a client ETF valuation rule.

Note that that system does not update the Basis Processing Rule if there is an existing rule in place for options 1 and 2. Manually updating the rule using option 3 is required in this case.

Create a Client ETF Valuation Rule

You can use the Create Client ETF Valuation Rule panel to update the Client ETF Valuation Rule Name for a STAT accounting basis,

To create a client ETF valuation rule:

  1. Do one of the following:
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Rules > Client ETF Valuation Rule > Create Client ETF Valuation Rule.
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Rules > Client ETF Valuation Rule > Create Client ETF Valuation Rule.
    You see the Create Client ETF Valuation Rule panel.

    Create Client ETF Valuation Rule panel

  2. In the Update STAT Basis with Rule ID field, select Yes or No, as follows:
    - Yes. For all entities associated with the SVO Company Code, the system adds the rule ID to the STAT basis if a rule does not already exist.
    - No. Default. The system makes no updates to the accounting basis.

  3. Complete the remaining options on the panel.

  4. Click Submit.

Update Client ETF Valuation Rule on Basis

You can use the Update Client ETF Valuation Rule on Basis panel to update the Client ETF Valuation Rule Name for a STAT accounting basis, based on the SVO Company Code and security criteria you specify.

To update a client ETF valuation rule on accounting bases based on specified criteria:

  1. Do one of the following:
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Rules > Client ETF Valuation Rule > Update Client ETF Valuation Rule on Basis.
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Rules > Client ETF Valuation Rule > Update Client ETF Valuation Rule on Basis.
    You see the Update Client ETF Valuation Rule on Basis panel.

    Update Client ETF Valuation Rule on Basis panel

  2. In the Basis Processing SVO Company Code field, select the value for the SVO Company Code.
    If you specify a value, the system uses the Basis Processing Rules table to find all rules for the selected SVO Company Code (Client). When you submit the panel, the system updates the STAT basis, with the Client ETF Valuation Rule, for all entities associated with the SVO Company Code on the Rule returned where the rule information is not populated.

  3. In the Issue Name field, select a Fixed Income ETF.
    If you specify a value, the system uses the Basis Processing Rules table to find all rules for the selected security. When you submit the panel, the system updates the STAT basis for all entities associated with the existing rules for that security where the rule information is not populated. The system can find and update multiple rules using this selection.

  4. Click Submit.

Edit a Basis on a Portfolio

You can edit the basis on a portfolio to update the Client ETF Valuation Rule Name for a STAT accounting basis.

To edit a basis on a portfolio:

  1. Do one of the following:
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Accounting Basis > Edit a Basis on a Portfolio. 
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Accounting Basis > Edit a Basis on a Portfolio.
    You see the Edit a Basis on a Portfolio panel.

  2. In the Entity ID or Entity Name field, select the entity with the accounting basis you want to edit.

  3. Click Submit.
    In the Show All tab, you see a row for each accounting basis associated with the selected entity.

  4. Click the check box to the left of each accounting basis you want to edit.

  5. On the Form tab, in the Actions group, click Change Selected Accounting Basis Records.
    You see the Change Selected Accounting Basis Records panel. You see each accounting basis that met your criteria in the lower pane.

  6. Select the row for the accounting basis you want to edit.

  7. In the Basis Processing Rule Name box, select the Client ETF Valuation Rule Name.
    The system uses this rule for processing Systematic Valuation on the ETF securities attached to the rule. See the following figure, which shows this field. 

  8. Click Submit.