Overview

There may be a requirement to shut off accruals for a security or position in Eagle Accounting for market or operational reasons. The most common drivers are going into default, being priced dirty in the market, or having an unsupported accrual calculation.

One option to support these scenarios is to set up the security with a fixed rate of 0%, which will generate accrued interest of zero on a daily basis. In cases where manipulating the market reference data is not feasible, another option is to put the security or position in default. This allows you to suppress accruals, amortization/accretion, and/or OID.

Putting a security in default is a two-step process that involves populating fields on the security master file (SMF) and adding Debt Default Periods. This can create challenges for automation as most clients do not have an existing source that can generate the Debt Default Period messages.

This document describes a local workaround that can be implemented to add Debt Default Periods automatically during security creation when the security is created simply by setting Default Indicator (1551) = Yes. The process works when the security is set up via automation with a message or manually in Issue Viewer.

Assumptions

This process will create Debt Default Periods with:

• Add Periods Based On (1256) = Security

• Accounting Basis (21) null

  • While this field is required in the panel for security-level records, it is not required on the underlying event and testing confirms accruals are successfully suppressed when it is left null

• Default Type (1551) = Income

The same general process could be used with other elections for the fields above, but it would require adjustments to the logic and/or additional fields on the SMF panel.

Securities created in Reference Data Center will not invoke this process.

Implementation

Step 1: Copy Create Debt Default Period Panel to Lookups Folder

The Create Debt Default Period panel (pan-adefaulttype.htm) has logic to change the Event Type (55) between ADD_POS_DEFAULT and ADD_SEC_DEFAULT depending on whether a position-level or security-level record is being added. However, the default Submessage in the panel’s Global Properties, which is also the default Event Type, is ADD_POS_DEFAULT.

When a panel is called as a lookup (from another panel), the default Submessage (Event Type) is always used regardless of the panel logic and what is mapped to it. For this reason, we need a copy of the panel with a default Submessage of ADD_SEC_DEFAULT.

1. Open Web Panel Designer

2. Navigate to eagle > star > reference > Debt Default Periods

3. Right-click Add Debt Default Periods/Inhibit Earnings and select Copy

4. Navigate to eagle > star > LOOKUPS

5. Right-click LOOKUPS and select Paste as

6. Name the panel pan-adefaulttype-sec.htm

7. Open the panel and change to Overlay edit mode

8. Click Global Properties…

9. Change Submessage to ADD_SEC_DEFAULT and click OK

10. You will receive a message asking if you want to change the default value for tag 55

11. Click Yes

12. Save your changes

Step 2: Update Panel for Adding Multi-Leg Swaps

Once we have a panel that can create the appropriate records when called as a lookup, we can add the logic to call that panel from the Multiple Leg Swap panel (pan-addsecmastermultilegswap.htm). There are also tweaks to allow Default Indicator (1551) and Default Date (10142) to be set independently on each leg when creating a swap manually via Issue Viewer. Currently the values are entered on the contract and then propagated down to the legs.

1. Open Web Panel Designer

2. Navigate to eagle > star > reference > Add/List Issue

3. Open Multiple Leg Swap and change to Overlay edit mode

4. Click the …LISTBOX tab

5. Locate the 3931i Link ID

6. In the first Script section, remove L1551 and L10142 from the “Before” line below

   1. Before: IF :4590: != "C" THEN SET(L14,L1432,L38,L1551,L10142,L3997,L3998);

   2. After: IF :4590: != "C" THEN SET(L14,L1432,L38,L3997,L3998);

7. Locate the 1551i Link ID

8. Comment out the whole existing Script section:

   1551i	!Script	
   1551i	!Defentry	:1551:
   1551i	!class	global
   1551i	!Text	Loop(:vi:, :0:1551:, :0:1551:) [
   1551i	!Text	Loop(:vl:, :0:1551:, :0:1551:) [
   1551i	!Text	IF Not(IsEmpty(:vi:)) AND :vi:!=:vl: THEN FORCE(:vl:,:vi:)
   1551i	!Text	];
   1551i	!Text	];
   1551i	!End	

9. Add this new Script section before the one we just commented out:

   1551i	Script	
   1551i	Defentry	:1551:
   1551i	Text	IF :1551: = "Y" AND :68: != "" THEN ASSIGN(:10142:,:68:);
   1551i	End	

10. Locate the10142i Link ID, which should immediately follow 1551i

11. Comment out this whole section:

    10142i	!Script	
    10142i	!Defentry	:10142:
    10142i	!class	global
    10142i	!Text	Loop(:vi:, :0:10142:, :0:10142:) [
    10142i	!Text	Loop(:vl:, :0:10142:, :0:10142:) [
    10142i	!Text	IF Not(IsEmpty(:vi:)) AND :vi:!=:vl: THEN FORCE(:vl:,:vi:)
    10142i	!Text	];
    10142i	!Text	];
    10142i	!End	

12. Locate the 7705i Link ID

13. Add the code below to the end

    7705i	Lookup	V1_20
    7705i	LookupName	Insert Pay Leg Debt Default Period
    7705i	Type	VALIDATOR
    7705i	ExecuteType	AFTEREDIT
    7705i	Depends	V1_2
    7705i	Condition	:1551: = "Y" AND :10142: != "" AND :4590:="P" AND GetLookup("V1_2").GetLastRequestStatus() > 0
    7705i	Panel	pan-adefaulttype-sec.htm
    7705i	showlookupstatus	yes
    7705i	SourceMapIDs	21="USTAX":10=10:1551="INCOME":220=10142:4852="Created automatically during security setup.":
    7705i	IsQuery	no
    7705i	End	
    7705i	Lookup	V1_21
    7705i	LookupName	Insert Receive Leg Debt Default Period
    7705i	Type	VALIDATOR
    7705i	ExecuteType	AFTEREDIT
    7705i	Depends	V1_3
    7705i	Condition	:1551: = "Y" AND :10142: != "" AND :4590:="R" AND GetLookup("V1_3").GetLastRequestStatus() > 0
    7705i	Panel	pan-adefaulttype-sec.htm
    7705i	showlookupstatus	yes
    7705i	SourceMapIDs	21="USTAX":10=10:1551="INCOME":220=10142:4852="Created automatically during security setup.":
    7705i	IsQuery	no
    7705i	End	

14. Save your changes