Securities

hi all,
what does "Own Book Security Trading" , "Own Book short sale" and "Own book cover short"mean?
Can someone please elaborate on the topic?

thanks
Sirigili

Hi,

Normally in securities, 2 way of trading 1.Customer trading and another one is bank itself will involves in securities trading which is known as own book or dealer book in T24. You can easily differentiate these 2 type using its portfolios.

Customer portfolio:

1. When a customer is trading for all the transactions, customer account is acts as a major role, since all the credits and debits, Profit/Loss, Interest etc., will go via this account.
2. So in the SEC.ACC.MASTER record , when the portfolio contains the field ACCOUNT.NOS , it is a customer portfolio.
3. When you do a trade based on this portfolio, only certain files will get updated as a part of this process.

Dealer book portfolio:

1. When a bank is trading for themselves, all the transactions will via internal accounts and their relavant categories. So when a portfolio contains the catergories for each type like ACCRUAL, INTEREST.PAYABLE, RECEIVABLE, PROFIT , LOSS etc, which means it is a own book portfolio and all the amounts will be split up and parked into the relevant categories.
2. Another point is in SAM we can see the filed DEALER.BOOK should be updated with the customer number.
3. For ownbook trading, T24 will update certain specific files as a part of this process.

These are major difference between portfolios. Hope this clarifies.