OVERVIEW

Control Center allows you to view entity statuses for all system events in real time and provides a central location for applying business edits, reviewing and controlling transactions, and performing valuations and audits of entities. The Control Center trading gain/loss process determines the impact of a trade by comparing a transactions trade price to the prior market price. If the prior market price for a security was $10 per share and the security was purchased at $9 per share, a trading gain is posted for $1 per share. Trading gains and losses are posted to two memo accounts (general ledger - 8003000801 & 8003000802) at the security level.

ENTITY SETUP

Before the trading gain loss can be processed, the target entity must be set up appropriately.

Entities need specific pieces of data, which can be populated using Create/Edit Entity (V17):

• Control Center Entity (10462): indicates if you can view an entity's status using the Control Center
  • No: the system does not allow you to view the entity status using the Control Center (this is the default)
  • Yes: the system allows you to view the entity status using the Control Center
    • All edit test procedures check this flag to ensure the entity is set up as a Control Center entity
    • When you select Yes, additional fields in this section become available
• Trading Gain/Loss Rule Id (9231): specifies the trading gain/loss rule for the entity
  • The trading gain/loss process determines the impact of a trade by comparing a transaction's trade price to the prior market price
  • This option is required if you set the Control Center Entity field to Yes. Options include:
  • DEFAULT INCLUDE: tests new purchases by using the current day market exchange price.
  • DEFAULT EXCLUDE: does not post trading gain/loss for new security purchases.

• Control Center Entity Tests (7003): specifies how you assign edit tests during fund setup. This option is required if you set the Control Center Entity field to Yes. Options include:
  • Core: used to attach out of the box edit tests upon fund setup.
  • Non-Core: used to add customized edit tests to funds during the fund setup process.
  • None: used to assign edit tests in the module after establishing them. Assigning edit tests at the composite level (not fund level) is easier to maintain.
• Control Center Process Center (11407): specifies the control center process center code for the entity
  • Control Center uses this code for queries and processes that push edit test result data to the Status Map tables
  • This option is required if you set the Control Center Entity = Yes
• Control Center Daily Map (3975): specifies the daily Control Center status map used for the entity
  
  • This field appears when you set Control Center Entity = Yes

Derivatives Processing Security Types for Trading Gain/Loss

• CDS (SWCDCO)
• CDX (SWCDCX)
• Inflation Linked SWAPS (SWCOIF)
• IRS (SWCOIR)
• TRS (SWLXEQ)
• Currency Rate SWAPS (SWCOCR)
• FUTURES (FTXXXX)
• OPTIONS (OPOPCM; OPOPCR; OPOPDB; OPOPEQ; OPOPFB; OPOPIX; OPOPSW)

POST TRADING GAIN LOSS

After trade is booked you can manually post trading gain loss using POST TRADAING GAIN LOSS panel by typing entity ID (1163) & name (1164) and accounting date (36)

TRADING GAIN LOSS CALCULATION

Trading Gain/Loss New Buys: (current business day’s market value of trade) – (cost of trade)

It is compared to the trade date closing price.

New Sells: (proceeds from trade) – (prior business day’s market value of trade)

The trading gain/loss calculation takes accounting date as the reference point for considering the previous day market value in the sell trade formula.

See attached:

Example of Trading Gain Loss.xlsx

REPORTING

To see trading gain loss posting search in accounting journal by memo accounts (7191) - YES