About Populating System Flow Values for Cash Activity

The STAR to PACE Direct process populates the CASH_ACTIVITY table with the appropriate system flow values for the correct generation of the performance values for a security position. System flow values are populated for all records for the available currencies:

Local currency
Base currency
System currency

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1 Eagle STAR Cash Activity Fields
2 Eagle Data Warehouse Cash Activity Fields

Eagle STAR Cash Activity Fields

When an event settles in a currency other than the local currency, Eagle STAR assumes that the settlement currency is the local currency and the local values are denominated in the settlement currency. The following table shows the Eagle STAR cash activity fields and descriptions for a third currency event.

Eagle STAR – Cash Activity Fields

Eagle STAR – Cash Activity Fields
Field	Description
LOCAL_CURR	Settlement currency of cash event.
BASE_CURR	Entity base currency of cash event.
SETTLE_ASSET_ID	Settlement currency of cash event.
AMOUNT	Settlement value denominated in the settlement currency, populated as LOCAL_CURR on the record.
NET_AMOUNT_BASE	Settlement value denominated in the entity base currency, populated as BASE_CURR on the record.
SETTLE_AMOUNT_LOCAL	Settlement value denominated in the issue currency of the asset. The actual currency is not populated on the record.

S2P Direct processing, on the other hand, populates local currency with the value of the issue currency for all STAR generated and security position related cash flow records, except for MISCINC/MISCEXP. For the miscellaneous income/expense events, S2P Direct populates local currency and local flow values with the settlement currency values, that is, the local values of the STAR cash activity record.

S2P Direct processing also creates the original activity and its reflexive records that are assigned to the different securities. The original activity record, as stored on Eagle PACE database table, is assigned to the asset to which cash activity is posted in core STAR, and the reflexive record, as stored on Eagle PACE database table, is assigned to the settlement currency of such activity. When an event is settled in a currency other than local currency, (as example, a GBP denominated security dropped cash dividend in CAD), the CASH_ACTIVITY table in the CASH database holds different local flow values for the original and reflexive activity records, because they are denominated in different currencies.

Eagle Data Warehouse Cash Activity Fields

The following table shows the Eagle PACE cash activity fields and descriptions for a third currency cash event.

Eagle PACE - Cash Activity Fields

Eagle PACE - Cash Activity Fields
Option	Description
Trade & STAR Generated Income Flow
Local Currency	Look-up on the asset to get its issue currency.
Base Currency	Entity Base currency. This is the same as BASE_CURR field of STAR cash activity record.
Local Flow Values	IF asset currency = settlement currency THEN populate using AMOUNT field of the STAR cash record ELSE populate using SETTLE_AMOUNT_LOCAL field of the STAR cash activity record.
Base Flow Values	Populate using NET_AMOUNT_BASE field of STAR cash activity record.
System Flow Values	IF system currency = asset currency THEN populate using local flow values ELSE IF system currency = base currency THEN populate using base flow values ELSE IF system currency = settlement currency THEN populate using the Amount field on the CASH_ACTIVITY table ELSE derive as base flow values/ base currency to system currency FX rate
Miscellaneous Activity
Local Currency	Settlement currency. Populate using the LOCAL_CURR field of the STAR cash activity record.
Base Currency	Entity Base currency. This is the same as the BASE_CURR field of the STAR cash activity record.
Local Flow Values	Populate using the AMOUNT field of the STAR cash activity record.
Base Flow Values	Populate using the NET_AMOUNT_BASE field of the STAR Cash activity record.
System Flow Values	IF asset currency = system currency THEN populate using local flow values ELSE IF base currency = system currency THEN populate using base flow values ELSE derive as NET_AMOUNT_BASE/ base currency to system currency FX rate.
Reflexive Flow of Trade/ STAR Generated Income and Miscellaneous Activity
Local Currency	Settlement currency. Populate using the LOCAL_CURR field of the STAR cash record.
Base Currency	Entity Base currency. This is the same as the BASE_CURR field of the STAR cash record,
Local Flow Values	Populate using the SETTLE_AMOUNT_LOCAL field of the STAR cash record.
Base Flow Values	Populate using the NET_AMOUNT_BASE field of the STAR cash record
System Flow Values	Populate using the system flow values of the original activity record. Note: The values used for the computation are sourced from the reflexive flow record only.

There are several observations about the S2P Direct process to consider:

S2P Direct populates different local flow values across the original activity and reflexive flow records, even if the computation logic is the same. This is because the values used for the computation for third currency settlement activities are different, especially the local flow values.
S2P Direct is dependent on STAR populating correct value for the settlement_amount_local field. Eagle STAR populates this field using the trade date FX rate, which is the FX rate of original cash receivable/ payable event on the traded and settled cash records. As a result, the population process ignores the trade date to settlement date currency gain (or loss) on the settlement record. Also, if the S2P Direct process uses the settled record, then the local flow value for such an activity record is incorrect.
S2P Direct applies system flow derivation logic for the original activity independent of its reflexive flow. This means that if the correct cross currency FX rate is not available for one of these determinations, then different system flow values may exist on the original activity and its reflexive record.
Miscellaneous income and expense (MISCINC/MISCEXP) events posted directly to cash is a positive cash flow. Simply clarifying when a MISCINC, posted to an asset, is a negative flow to the asset. When posting directly to cash, it is a positive flow.