Actual Settlement Vs Contractual Settlement.

I confused with which is Actual settlement and Cotractual settlement . So please anybody could clarify on this.

Many thanks JPB .

Hi,

could u explain me some on flow between T24 and security, if possible pls tell me how to configure and some service should active?

Thanks

Hi The Securities module uses the following applications:
1. SEC.OPEN.ORDER - T24 user can create multiple orders for securities on behalf of T24 customer.

At this time the quote from the Broker is requested, once the quote is obtained T24 user has to manually chose the field DEAL.STATUS EQ TRANSMITTED (done automatically if SWIFT is configured) or DEAL.STATUS EQ TRADED (if the T24 Bank holds the securities, in this case jump to 3)


2. SC.EXE.SEC.ORDERS - On Auth of SEC.OPEN.ORDER this record is automatically created in Hold status. Once the Confirmation on the quote is received, the T24 user confirms the quote with nominals to Broker via this appl (@ID is the SEC.OPEN.ORDER id).

User can also change the Nominal amount during the confirmation eg. SEC.OPEN.ORDER was placed for 1000 Nominals, and the user confirms only 400 Nominals in SC.EXE.SEC.ORDERS then on Authorization current record will go to history and another record (in HOLD) will be created in SC.EXE.SEC.ORDERS with Nominals as 600 if the remainder order is not cancelled.

Once the SC.EXE.SEC.ORDERS is authorised the SEC.TRADE record (with xxxx new @ID) will be created in IHLD status. (done automatically if SWIFT is configured)

3. SEC.TRADE - once the SEC.TRADE record is authorised the settlement will be done based on the setup in SC.PARAMETER (contractual / actual)

4. The security position will be updated only when the SETTLEMENT record is updated for the SEC.TRADE

To manually do the settlement user can input and authorise the relavent record in SC.SETTLEMENT

Well, few "little" things are missing in the above post ;) :

1. SECURITY.MASTER , where you "define" your a security
2. SEC.ACC.MASTER - to define security porfolio
.
.
and more more else ! Also, process itself is much more complicated then it looks !

Not to mention Corporate Actions, Withholding tax, CGT, EUSD, SBL, Repo ......

Hi, is this feature available in R7. I mean booking in one date and actual settlement in future date.

As per the R08 user guide

Parameter Level
Actual settlement can be switched on by setting the ACTUAL.SETTLEMENT field on the SC.PARAMETER file to ‘YES’. If the ACTUAL.SETTLEMENT field on SC.PARAMETER is left blank or set to ‘NO’ you will then continue to use contractual settlement as with previous releases.

So Actual settlemnt is not available for R07.

(Note: Ayway confirm the absence of field ACTUAL.SETTLEMENT in SC.PARAMETER in your R07 release.)

Thanks for the update.

We do have ACTUAL.SETTLEMENT field in R7. In our area we have the value NO. I just want some more information if someone can give time and provide.

1-If I update ACTUAL.SETTLEMENT YES now, will it disturb the current settlement process.
2-Can we parameterize actual settlement date for different portfolios, like for deals of portfolio A, it should settle after 2 working days and for deals of portfolio B, it should settle after 7 days. Can we parameterize such setup or do we have to manage settlement date for each individual deal.

Regards
Kabir

Hi kabirhussainy,

Yes jbp is right . The settlement is based on the date which is provided in the field VALUE.DATE . It's defaulted from no.of settlement days from STOCK.EXCHANGE table. Anyway you can change the VALUE.DATE by manually or by routines based on portfolio or whatever. The parametrization of settlement based on portfolio is not available.

Thanks Siva and JPB.

Regards
Kabir

Hi.
Can anyone tell me that
1. How a security portfolio's Book Value is calculated In SC.TRADING.POSITION.HIS in its V.DATED.COST.OF.POS field.

2. Is SC.TRADING.POSITION is same as SC.TRADING.POSITION.HIS ? I.e if i want to know today Book value of the portfolio, so can i use SC.TRADING.POSITION.

REGARDS.
This email address is being protected from spambots. You need JavaScript enabled to view it.