Forwards Pricing Custom Points Processing Notes

Owned by Jawann Swislow
Last updated: Jul 31, 2024 by Jawann Swislow
2 min read

Follow the steps below to add a new forward point tenor for forward pricing in Pricing Center.

  1. In System Management Center, open System Settings > System Parameters and locate Sys Item 169 - Forward interpolation method (0=Fixed Periods, 1=Actual Calendar Days)

    • Set to 1 if it is not already

    • This allows forward pricing to be calculated based on actual calendar days rather than fixed periods

  2. In Pricing Center, open Admin > Pricing System Settings

    • Locate DATA_MANAGEMENT_ONLY and ensure it is set to N

    • If it is set to Y, you can change it by right-clicking

    • This exposes all forward pricing-related screens, including in Accounting

  3. Relaunch Pricing Center

  4. Open EXCHANGE RATES > Admin > FX Standard Periods and click SEARCH

    • Right-click and select Add...

    • Enter the number of Days, Short/Long Name (these can be the same), and click Add

      • Note: the value of Short Name will be shown in the Period column in other screens

  5. Open EXCHANGE RATES > Admin > Add Demand

    • Select the Original Source under which your forward points loaded (IDC, BBPS, etc.)

    • Vendor Id is not required, but can be entered if a vendor supplies currency quotes in a non-standard format

    • Enter the currency pair (From Currency and To Currency)

    • Click Add

  6. Open EXCHANGE RATES > Admin > Direct Rate Entry

    • Select the Target Source, which should match your entity's Valuation FX Source (11652)

    • Set Rate Date to the effective date of your forward points

      • Note: Pricing Center uses forward points, not rates

    • Enter the currency pair (From Currency and To Currency)

    • Double-click the Value and Rate Type columns for each of your forward points and enter the appropriate values

      • Note: the Spot rate is required

    • Click Submit

  7. Open Tools > Forward Pricing (this uses the ESTAR.PRICING_ENTITY.FORWARD_PRICING stored procedure)

    • Select the Target Source, which should match the one used in the previous step

    • Set Target Rate Date to the effective date of your forward points

    • Keep From Currency and To Currency empty to ensure that both sides of Forward are priced 

    • Click Submit