BEST PRACTICES GUIDE

BNY Mellon Data and Analytics Solutions

Instrument Engineering Team

Last Update: 23 Jul 2017

OVERVIEW

The Eagle Suite provides rich functionality to model and process Physically Held Commodities such as precious metals (gold, silver, platinum). This document assumes that physically held commodities are valued and priced similarly to equities (in units of 1.00).

REFERENCE DATA

Physically Held Commodities are modeled as equities in Accounting. Equity security master records can be created using Issue Viewer, Security Reference Manager, or Reference Data Center.

Required Fields

Example Security Setup

ENTITY SETUP

There are no special entity configurations required to trade Physically Held Commodities modeled as equities.

TRADE PROCESSING

Physically Held Commodity buy and sell trades can be processed manually using the Book Trade module. The only required fields for buy transactions are:

• Shares (40)
• Price Per Share (45)
• Broker (88)

AUTOMATION

Eagle supports loading Physically Held Commodity SMFs and trades through standard Message Center streams. The SMF must be loaded prior to the trade (trades will not automatically spawn SMF records). Refer to the Supported Generic Interfaces guide for more information.

ACCOUNTING

Once a Physically Held Commodity position has been established follow all core Eagle accounting processes.

Valuation

Market Value = Units * Price * Price Multiplier * Quantity Scale

STAR TO PACE

The STAR to PACE process will create a single position for each Physically Held Commodity in the position_detail table.

• The market_value_income column on the Physically Held Commodity will capture the market value plus any accrued interest payable or receivable

Similar to other instruments, STAR to PACE creates data in position, position_detail, trade, and cash_activity tables.

OPERATIONAL REPORTING

Physically Held Commodities will appear on all core Eagle reports. The operational reports were specifically designed to support daily workflow. They are used to quickly identify differences and provide the necessary level of detail in order to resolve any discrepancies that may exist. The reports are primarily driven off of Data Management with data updated by the STAR to PACE Direct events. Eagle recommends following current best practices of using these core queries and building custom result profiles that fit your business needs.

INVESTMENT REPORTING

The STAR to PACE process moves position, cash activity, and trade data to PACE. This enables users to take advantage of all of the PACE OLAP reporting capabilities:

• Single/multi period lot, aggregate, and position reporting
• Trade activity reporting
• Cash activity reporting
• Exposure reporting with full analytics integration; some data must be augmented to achieve complete exposure reporting

PERFORMANCE

The performance toolkit has full functionality to calculate market value based performance for all holdings at the individual holding level. The toolkit process is pre-configured to read data supplied by the STAR to PACE process and calculate performance.