In the TBA panel, you can manually book an open (buy or short sell) and close (sell or buy to cover) trade for a to be announced (TBA) security. A TBA security is an underlying contract on a mortgage backed security to buy or sell a mortgage backed security that will be delivered at an agreed upon date in the future. The number of pools and the specific pools that will be delivered to fulfill the TBA trade are unknown at the time of the trade. You can use the Allocate TBA Buy and Allocate TBA Turnaround panels to process allocations to the underlying pools once they are known.

This article assumes you are familiar with the entity and security level elections that have been made for processing a TBA security.

Book Open Trades for TBA Securities

To manually book an open trade for a TBA security

In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.
Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected.
Select the row with the security you want to trade.
On the Book Trade tab, in the Actions group, click Action Rules, point to Open, and click Buy or Short Sell.
You see the Open TBA panel.
Complete the options on the Open TBA panel.
Click Submit.
Once the trade is booked, it follows all core accounting processes.

On this page

1 Book Open Trades for TBA Securities
2 Book Close Trades for TBA Securities
3 Allocate TBA Buys
4 Allocate TBA Turnarounds

Open TBA Panel Options

The following are the options in the Open TBA panel. Note options may vary according to your selections.

Option	Tag	Description

Option	Tag	Description
Entity Information
Entity ID	1163	Specifies the unique identifier of the entity.
Entity Name	1164	Specifies the name of the entity.
Base Currency	86	Displays the base currency of the entity.
Issue Information
Trade Date	35	Specifies the effective date of the trade. The trade date cannot be greater than the post date, accounting date, or settlement date.
Accounting Date	36	Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date.
Monthly Accounting Date	4733	Displays the month end accounting date.
Settlement Date	37	Specifies the date the trade is settled.
Event Type	55	Displays the business intent of the transaction.
Long/Short Indicator	15	Displays an L (long) or S (short) to indicate whether the position is long or short.
Cross Reference Type	1234	Specifies the cross reference type associated with the security.
Issue Name	961	Specifies the name of the security.
Cross Reference ID	1233	Specifies the cross reference identifier associated with the security.
Instrument Type	11	Displays the instrument type.
Security Type	82	Displays the security type of the asset.
Issue Currency	85	Displays the local currency of the security.
Maturity Date	38	Displays the date the final principal payment is due on the security.
Coupon Rate	70	Displays the rate at which the security accrues interest. It is expressed as an annual rate.
Accounting Information
Create TBA Cashflow	9406	Indicates whether you want to create a cash flow for the TBA security. Options include: Yes. The system creates a cash flow when you book the open trade for the TBA. No. The system creates a net cash flow when you book a close trade for the TBA. If you leave this field blank, the system treats it as No.
Select Values to be Calculated by STAR	7000	Determines whether the system automatically calculates the trade data or allows you to enter it manually. Options include: Traded Interest/Amort Yield/OID Yield/Trade Yield Traded Interest/OID Yield/Trade Yield Amort Yield/OID Yield/Trade Yield Traded Interest/Amort Yield/Trade Yield Traded Interest Amort Yield/Trade Yield OID Yield/Trade Yield Calculate None
Accrued Interest Type	3715	Displays the accrued interest type. The value in this field must be CUM.
Original Face	41	Specifies the original face value of the security. This value must be greater than zero.
Current Factor	91	Specifies the paydown factor for the mortgage backed security. This value must be greater than zero.
Current Face	40	Displays the current face value of the security.
Price	45	Specifies the price of the security per unit. This field must be greater than zero.
Amort Yield	75	Displays the rate at which a bond accretes discount or amortizes premium. It is expressed as an annual rate. NOTE: Amortization, amortization yield, and interest only income are not calculated for short positions, as specified in the Long/Short Indicator field.
Trade Yield	9430	Specifies the yield calculated on the trade.
Principal	165	Displays the principal amount based on the following formula: (Current Shares * Quantity Scale ) * (Price * Price Factor)). This product is rounded to the local currency precision.
Implied Commission	78	Indicates if commission is included in the price. Options include No and Yes.
Commission	47	Specifies the amount of the trade commission.
Tax Amount	46	Specifies the tax amount on the transaction.
Stamp Duty Tax	51	Specifies the stamp duty amount on the transaction.
Other Fee	3752	Specifies any additional fees on the transaction.
Traded Interest	49	Specifies the interest accrued for the period's last coupon date, dated date, or issue date through the settlement date.
Local Net Amount	50	Displays the net amount of the trade based on the following formula: Principle + Fees.
Settlement Currency	63	Displays the currency in which the trade is settled.
Settlement Net Amount	64	Displays the actual settled amount of the trade. The value must be greater than zero.
Local to Base FX Rate	87	Displays the foreign exchange rate used to calculate the net base amount. The value must be greater than zero.
Base Net Amount	478	Displays the base amount of the trade. This amount is calculated based on the following formula: Local Net Amount / Local to Base FX Rate. The value must be greater than zero.
Settlement Information
Open TBA Trade ID	10503	Specifies an identifier for the open TBA trade.
Auto Settle Trade Indicator	58	Indicates whether the system settles the trade, coupon, and miscellaneous income and expenses automatically. If the entity's Auto Settle Indicator field is set to Yes, as specified on the Create/Edit Entity or Create Master Fund panels, the system creates a settlement when the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future. Eagle recommends that you set the Auto Settle Indicator field to No for the entity and trade panels. Options include: Yes. The system automatically settles the trade, coupon, and miscellaneous income and expenses. The system retrieves the settle date FX rate if the local currency does not equal base and generates a trade to settle date gain/loss. No. Default. The system does not automatically settle the trade, coupon, and miscellaneous income and expenses. You must schedule the settlement for these transactions using the Run Contract Cash global panel. Or, manually settle the transactions using the Run Multiple Settlements panel. If you use cash segregation based on actual cash settlements, you can schedule settlements using the Run Cash Auto Match panel and create settlements manually using Cash Matching.
Broker Name	1235	Specifies the name of the primary broker.
Broker Code	88	Specifies the code that represents the broker.
Clearing Broker	1236	Specifies the name of the clearing broker, if different from the trade broker.
Clearing Broker Code	1237	Specifies the code for the clearing broker.
Custodian Bank Name	1146	Specifies the name of the custodian bank responsible for the trade. The field lookup allows you to select the custodians that have bank account relationships defined for the entity or for the composite associated with the entity. When you select a value, the system displays values for the Custody Bank Account Number field, Custody Bank Subaccount field, Cash Account Name field and Cash Account Number field, based on the bank account relationships and cash account relationships that apply to the transaction. NOTE: You must establish a relationship between the custodian bank and your entity prior to booking the trade.
Custodian Bank Code	1240	Specifies the code of the custodian bank.
Custody Bank Account Number	1660	Specifies the custodian bank primary account number. The panel displays the value associated with the selected bank account relationship for the custodian.
Custody Bank Subaccount	1661	Displays the custodian bank subaccount number. When you use cash segregation, the panel displays a value of OTHER as the custodian bank subaccount number for the transaction.
Cash Account Name	11696	Specifies the name of the cash account for the custodian. If you use cash segregation, you hold the cash for the trade in this account for the custody basis. The system displays a cash account name based on the cash account relationships that apply to the transaction, but you can override it. It selects the cash account relationship for the transaction based on the transaction's cash account type, currency, and long/short indicator. The lookup displays valid cash account relationships that apply to the transaction.
Cash Account Number	11697	Specifies the account number of the cash account for the custodian. If you use cash segregation, you hold the cash for the trade in this account for the custody basis. The system displays a cash account number based on the cash account relationships that apply to the transaction, but you can override it. It selects the cash account relationship for the transaction based on the transaction's cash account type, currency, and long/short indicator. The lookup displays valid cash account relationships that apply to the transaction.
Settle Instructions 1	1897	Allows you to add settlement notes.
Settle Instructions 2	1898	Allows you to add settlement notes.
Settle Instructions 3	1899	Allows you to add settlement notes.
Settle Instructions 4	1900	Allows you to add settlement notes.
Settle Location	43	Specifies the location in which the trade is settled.
Other Information
Transaction Notes	56	Contains user defined information about the trade.
Original Trade Ticket Number	761	Contains the trade ticket identification number. The system uses it during processing. For example, IDLOT close or cancel events use this number to locate an open lot.
Holding Term	9091	Specifies the holding term for the trade based on the number of days between the original acquisition date (tag 216) and the maturity date (tag 35) on the lot. If you use ledger reporting based on ledger granularity rules to break out accounts by holding term, the system uses this value to identify the holding term for trades related to bonds and preferred stocks. Eagle Accounting's core transaction processing calculates the holding term for you, but you can manually override the value displayed in this field. Eagle Insurance clients that use ledger granularity rules have the system calculate the holding term based on the schedule associated with a lot. Options include: Short Term. Identifies a short term holding. If the Holding Term Method field (tag 11479) in the trade's accounting basis has a value of 90 days, a short term holding term is 91 days to a year. If the Holding Term Method field has a value of 3 months, a short term holding term is 3 full months to a year. Cash Equivalent. Identifies a cash equivalent holding. If the Holding Term Method field (tag 11479) in the trade's accounting basis has a value of 90 days, a cash equivalent holding term is 90 days or less. If the Holding Term Method field has a value of 3 months, a cash equivalent holding term is 3 full months or less.
Regulatory Intent	8915	If you now hold the trade in an entity/accounting basis with the new International Financial Reporting Standards (IFRS) regulatory category of Fair Value Profit Loss (FVPL) but previously held the trade in an entity/accounting basis with the old regulatory category of Fair Value Option (FVO) or Held for Trading (HFT), you can identify the old regulatory category specified for the trade at the entity/accounting basis level. You can specify a value for reporting purposes only. Options include: Fair Value Option. Indicates the trade was previously held in a regulatory category of Fair Value Option, used for instruments managed on a fair value basis. Held for Trading. Indicates the trade was previously held in a regulatory category of Held for Trading, used for instruments held with the intent of selling them.
Pending Trade Flag	3695	Specifies whether the trade is eligible for pending trade processing prior to processing by the STAR accounting engine. If you use pending trade processing, the system can assign this value to incoming transactions that meet pending trade rule detail criteria. Or an incoming transaction can include this value. This field is hidden. Options include Y and N.
Pending Trade Status	3720	Specifies the trade's transaction status for pending trade processing prior to processing by the STAR accounting engine. If you use pending trade processing, the system can assign a value of Pending to incoming transactions that meet pending trade rule detail criteria. Or an incoming transaction can include a value of Pending or a custom pending transaction status value defined in the PEND_TRD_STATUS code category. The default status is Pending if no status is provided. This field is hidden.

Book Close Trades for TBA Securities

TBA securities are often traded in multiple lots (a single position can consist of one or more individual lots). The system requires that these positions are closed out with the identified lot selection method. That means, if there are three lots in a position, you must book three close transactions.

To manually book a close trade for a TBA security:

In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.
Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected.
Select the row with the security you want to trade.
On the Book Trade tab, in the Actions group, click Action Rules, point to Close, and click Sell or Buy to Cover.
You see the Close TBA panel.
Complete the options on the Close TBA panel.
Click Submit.

Close TBA Panel Options

The following are the unique options in the Close TBA panel. See the Open TBA Panel Options section for more information about other options. Note options may vary according to your selections.

Option	Tag	Description

Option	Tag	Description
Accounting Information
Pairoff/Allocate Indicator	5671	Indicates whether you are allocating a TBA turnaround.
Position Original Face	109	Displays the original quantity of the position. The value must be greater than zero.
Position Current Face	122	Displays the current quantity of the position. NOTE: If the value in the Current Face field is greater than the value in this field, the value in the entity's Tech Short Eligible Flag field must be set to Yes, as specified on the Create/Edit Entity and Create Master Fund panels. If it is set to No, the trade will fail.
Lot Selection Method	27	Specifies the lot selection method the system uses to relieve (sell) lots of the security held by the entity/accounting basis. Options available in this panel include: Identified Lot (IDLOT). The specified lot or lots are sold first, which determines cost and tax implications. You can optimize this option to specific tax situations by selecting the specific lots to be sold. If you select this method, the lower pane in the panel displays lot details for each available lot, as determined by the entity's controlling basis. If no controlling basis exists, it displays lots for the primary basis. You must specify the quantity for one or more lots that you want to relieve. The total quantity you specify for the open lots must match the quantity entered for the total close. The close trade relieves the selected lots in each of the entity's accounting bases, and keeps the lot structures in sync. The system uses the lot's Orig Event ID field (tag 457) to match a single open lot in one basis to corresponding multiple open lots in another basis, as needed. This can occur for lots fractured as a result of wash sale processing. NOTE: The Identified Lot lot selection method calculates realized gain/loss on an identified cost basis, even if you set up the entity as average cost.
Prorata Noncredit Loss Reduction	16157	Indicates whether any noncredit loss associated with partial sells on the transaction is reversed prorata. This field appears only when you close less than the total outstanding quantity. Options include: Yes. Any noncredit loss associated with partial sells is reversed prorata. No. Default. Any noncredit loss associated with partial sells is reversed entirely.

Allocate TBA Buys

You can allocate the underlying pools associated with a buy trade for a TBA security.

To allocate the underlying pools associated with a buy trade for a TBA security:

In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.
Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected.
Select the row with the security you want to trade.
On the Book Trade tab, in the Actions group, click Action Rules, point to Allocate, and click Allocate TBA Buy.
You see the Allocate TBA panel.
Complete the options on the Allocate TBA Buy panel.
Add the underlying pools using the pane that appears on the bottom of the Allocate TBA Buy panel.
To add the underlying pools:
–  Right-click anywhere in the lower pane and select Add Rows.
–  Enter the number of rows you want to add in the Add Rows dialog box and click OK.
–  Complete the options on each row you added.
Click Submit.
You have allocated a TBA buy.

Allocate TBA Buy Panel Options

The following are the options in the Allocate TBA Buy panel. Note options may vary according to your selections.

Option	Tag	Description

Option	Tag	Description
Entity Information
Entity ID	1163	Specifies the unique identifier of the entity.
Entity Name	1164	Specifies the name of the entity.
TBA Information
TBA Primary Asset ID	14	Specifies the primary asset ID of the TBA security.
TBA Issue name	961	Specifies the name of the TBA security.
Choose TBA Lot	7225	Specifies the TBA lot to be allocated.
TBA Par	40	Displays the par value of the TBA security.
Price	45	Displays the price of the TBA security per unit.
TBA Lot Event ID	26	Specifies the event ID of the TBA lot that is being allocated.
Trade Date	35	Specifies the trade date stored for the TBA security.
Accounting Date	36	Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date.
Monthly Accounting Date	4733	Displays the month end accounting date.
Settlement Date	37	Specifies the date the trade is settled.
TBA Cost	7669	Displays the cost of the TBA security.
TBA Par to be Allocated	4000	Specifies the par amount to be allocated for the specified TBA lot. The value must be greater than zero.
Create TBA Cashflow	9406	Indicates whether you want to create a cash flow for the TBA security. Options include: Yes. The system creates a cash flow when you book the open trade for the TBA. No. The system creates a net cash flow when you book a close trade for the TBA. If you leave this field blank, the system treats it as No.
Other Information
User Defined Priority	2862	Specifies the user generated number that determines the event sub priority. That is, after the system accounts for the event sequence and corporate action sequence.

Allocate TBA Turnarounds

You can allocate the underlying pools associated with a short sell trade for a TBA security. A short TBA is called a turnaround since you end up selling the mortgage you hold. The open pools must exist in the system.

To allocate the underlying pools associated with a short sell trade for a TBA security:

In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.
Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected.
Select the row with the security you want to trade.
On the Book Trade tab, in the Actions group, click Action Rules, point to Allocate, and click Allocate TBA Turnaround.
You see the Allocate TBA Turnaround panel.
Complete the options on the Allocate TBA Turnaround panel.
Recall the existing open pools using the pane that appears on the bottom of the Allocate TBA Turnaround panel.
To add the underlying pools:
–  Right click anywhere in the lower pane and select Add Rows.
–  Enter the number of rows you want to add in the Add Rows dialog box and click OK.
–  Complete the fields on each row you added.
Click Submit.
You have closed the short position and subsequent pools.

Allocate TBA Turnaround Panel Options

The following are the options in the Allocate TBA Turnaround panel. Note options may vary according to your selections.

Option	Tag	Description

Option	Tag	Description
Entity Information
Entity ID	1163	Specifies the unique identifier of the entity.
Entity Name	1164	Specifies the name of the entity.
TBA Information
TBA Primary Asset ID	14	Specifies the primary asset ID of the TBA security.
TBA Issue Name	961	Specifies the name of the TBA security.
Choose TBA Lot	7225	Specifies the TBA lot to be allocated.
TBA Par	40	Displays the par value of the TBA security.
Price	45	Displays the price of the TBA security per unit.
TBA Lot Event ID	26	Specifies the event ID of the TBA lot that is being allocated.
Trade Date	35	Specifies the trade date stored for the TBA security.
Accounting Date	36	Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date.
Monthly Accounting Date	4733	Displays the month end accounting date.
Settlement Date	37	Specifies the date the trade is settled.
TBA Cost	7669	Displays the cost of the TBA security.
TBA Par to be Allocated	4000	Specifies the par amount to be allocated for the specified TBA lot. The value must be greater than zero.
Create TBA Cashflow	9406	Indicates whether you want to create a cash flow for the TBA security. Options include: Yes. The system creates a cash flow when you book the open trade for the TBA. No. The system creates a net cash flow when you book a close trade for the TBA. If you leave this field blank, the system treats it as No.
Other Information
User Defined Priority	2862	Specifies the user generated number that determines the event sub priority. That is, after the system accounts for the event sequence and corporate action sequence.

Accounting V17

Book Trades for TBAs