About Cancelling Open of Cap/Floor Contract
- Nancy Cohn (Deactivated)
You can cancel Open Cap/Floor contracts prior to and after settlement. When you cancel an Open, the interest accrual and amortization values for the tax lot you are cancelling are automatically rolled back as part of the cancel transaction.
You can cancel cap/floor transactions using either the Cancel Trade panel or the Cancel and Rebook Trade tool. For more information, see Cancel a Single Trade or Batch of Trades or Cancel and Rebook Trades.
General Ledger Postings for Cancel Open of Cap/Floor Contract
When an open contract is cancelled, the following general ledger postings are required:
For a Buy to Open
Local Currency = Settle Currency = Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Investment Payable | 2002000100 |
Credit | Cost of Investments | 1010000100 |
Credit | Investment Interest Receivable | 1007000500 |
Local Currency = Settle Currency ≠Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Investment Payable (Local) | 2002000100 |
Credit | Cost of Investments (Local) | 1010000100 |
Credit | Investment Interest Receivable (Local) | 1007000500 |
Debit | Investment Payable (Base) | 2002000100 |
Credit | Cost of Investments (Base) | 1010000100 |
Credit | Investment Interest Receivable (Base) | 1007000500 |
For a Sell to Open
Local Currency = Settle Currency = Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Cost of Investments | 1010000100 |
Debit | Investment Interest Payable | 2004000400 |
Credit | Receivable for Investments Sold | 1002000100 |
Local Currency = Settle Currency ≠Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Cost of Investments (Local) | 1010000100 |
Debit | Investment Interest Payable (Local) | 2004000400 |
Credit | Receivable for Investments Sold (Local) | 1002000100 |
Debit | Cost of Investments (Base) | 1010000100 |
Debit | Investment Interest Payable (Base) | 2004000400 |
Credit | Receivable for Investments Sold (Base) | 1002000100 |
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