PURPOSE
This document explains the procedure for setting up investment security in CS Lucas system.
WHY IS THIS IMPORTANT?
This allows user to buy and sell these securities.
PROCEDURE
A. Setting up Equity
1. From main menu, click Set Up > Static > Securities.
2. Click on Action and select New.
3. Select the Security Type as Equity. The following screen display.
4. Enter a short name, preferably not more than 10 characters.
5. Enter the full name of the equity.
6. Select the Price Type as price.
7. Select the Trade Currency and Holiday Currency.
8. Indicate how many T+ business days between trade date and settlement date.
9. Market price factor is either 1 or 100. Default is 1. When prices are loaded via price load or security prices, system will divide equities prices by 1 or 100 depending on the market price set up.
10. Once completed, click Save.
11. At the main screen, select the security type as Equity and click Refresh.
12. Click on the Edit button of the equity to view the details.
13. In the Maintain Security Information, you can amend the fields as shown in the screen below.
14. To maintain Bloomberg or Reuters codes and IDISIN information, fill in the fields in the Price Feed Code section. These can be used for integration purposes.
15. Users may also maintain the following credit ratings from Bloomberg. The following Bloomberg codes will be used for the ratings show on this screen. Ratings imported from the Prices > Price Load will be displayed here. For more details on how to get prices from Bloomberg, click here.
| Caption | Bloomberg Code |
| Fitch | RTG_FITCH |
| Fitch Issuer Default | RTG_FITCH_LT_ISSUER_DEFAULT |
| S&P | RTG_SP |
| S&P Issuer Credit | RTG_SP_LT_LC_ISSUER_CREDIT |
| Moody’s | RTG_MOODY |
| Moody’s Long Term | RTG_MOODY_LONG_TERM |
| Moody’s Issuer | RTG_MDY_ISSUER |
| Moody’s Unsecured Debt | RTG_MDY_SEN_UNSECURED_DEBT |
16. Click Update to save the changes made.
Note: The newly created security also needs to be tagged with the appropriate risk profile for compliance purposes. See Compliance guide for instruction on these tagging.
B. Setting up Bond
1. From main menu, click Set Up > Static > Securities.
2. Click on Action and select New.
3. Select the Security Type as Bond. The following screen display.
4. Enter a short name, preferably not more than 10 characters.
5. Select the Security Sub Type. Options available are floating rate note or variable rate note, fixed coupon or zero coupon. This field is optional and for information purpose only.
6. Enter the bond security full name.
7. Enter the issuer name. This field is optional and for information purpose only.
8. Price Type would be in Percent.
9. Select the trade currency and holiday currency.
10. Indicate how many T+ business days between trade date and settlement date.
11. Next, fill in the Periodic Parameters section. Select the basis for floating rate note or variable rate note. This field is user definable. Click here to see how to set up user definable field. For fixed coupon, create a “Fixed” as one of the option in the user definable list.
12. In the Rate/Last Reset field, enter the coupon rate.
13. Select the frequency of the coupon schedule.
14. Set the day convention and settlement to adjust the coupon schedule dates when they fall on non-business days. More details on the convention settings, see day convention for dates generation.
|
Field |
Description |
|
Day Convention |
This setting adjusts the End Date when the End Date falls on a non-business day. End Date is used for computation of coupon receivables. Default is Next Business Day. |
|
Settle Convention |
This setting adjusts the VDate when the VDate falls on a non-business day. VDate is the settlement date. Default is Next Business Day. |
15. Enter the issue date and maturity date. First coupon date is optional, enter if any.
16. Select the Accrual method for generating the coupon schedule.
17. Select the Purchase Interest (PI) Computation Method. See PI computation methods.
18. Select the Lot Size, if any. Leave blank if not required.
19. Once completed, click Save.
20. At the main screen, select security type as Bond and click Refresh.
21. Click on the Edit button of the bond to view the details.
22. In the Maintain Security Information, you can amend the fields as shown.
23. To maintain Bloomberg or Reuters codes and IDISIN information, fill in the fields in the Price Feed Code section. These can be used for integration purposes.
24. Users may also maintain the following credit ratings from Bloomberg. The following Bloomberg codes will be used for the ratings show on this screen. Ratings imported from the Prices > Price Load will be displayed here. For more details on how to get prices from Bloomberg, click here.
| Caption | Bloomberg Code |
| Fitch | RTG_FITCH |
| Fitch Issuer Default | RTG_FITCH_LT_ISSUER_DEFAULT |
| S&P | RTG_SP |
| S&P Issuer Credit | RTG_SP_LT_LC_ISSUER_CREDIT |
| Moody’s | RTG_MOODY |
| Moody’s Long Term | RTG_MOODY_LONG_TERM |
| Moody’s Issuer | RTG_MDY_ISSUER |
| Moody’s Unsecured Debt | RTG_MDY_SEN_UNSECURED_DEBT |
25. To view the coupon schedule details, click on Coupon button.
26. The system launches the screen showing the dates of the coupon based on the frequency and date conventions.
27. For each coupon, the system has also recomputed a Coupon PPM. This is the amount of coupon that you will received for every 1 million nominal amount of the bond.
28. To make changes to the coupon schedule, click on the periodic item hyperlink under Type field (e.g. VDate 12 Jan 2017). Make the necessary changes to the dates, accrual method, coupon rate and coupon PPM accordingly. To recalculate the coupon PPM based on dates, accrual method and coupon rate, click on the Recompute button next to Coupon PPM field. Tick on Populate Forward checkbox if you wish the coupon rate to be populated forward. Click Update and Save once done.
29. If there is bond that has any computation of coupon amount that CS Lucas system cannot generate automatically, user may compute the Coupon PPM manually and then update this coupon schedule accordingly.
i. To change a corresponding Coupon PPM, click on the Type for the item you wish to change (e.g. illustrated above the coupon item of VDate 12 Jan 2017).
ii. The fields below the coupon schedule will be populated with the Coupon Rate and the Coupon PPM.
iii. Change the Coupon PPM as appropriate.
iv. Click Update.
v. Click Save to save the changes made to coupon schedule.
30. You may also introduce coupon date. This is done as follows:
i. Set the End Date, Value Date, Accrual Method, Coupon Rate and Coupon PPM (manual or recomputed).
ii. Click Update.
iii. The new coupon item will be added.
iv. Click Save to save the changes made to coupon schedule.
31. Click Back Button to return to Maintain Security Information screen and Cancel Button again to return to Security screen.
32. Select the checkbox against the newly created security, click Action and Approve.
Note: The newly created security also needs to be tagged with the appropriate risk profile for compliance purposes. See Compliance guide for instruction on these tagging.
C. Setting up Money Market Fund
1. From main menu, click Set Up > Static > Securities.
2. Click on Action and select New.
3. Select the Security Type as Money Market Fund (MMF). The following screen display.
4. Enter a short name, preferably not more than 10 characters.
5. Enter the full name of the MMF.
6. Select the Price Type as price.
7. Select the Trade Currency and Holiday Currency.
8. Indicate how many T+ business days between trade date and settlement date.
9. Once completed, click Save.
10. At the main screen, select Money Market Fund and click Refresh.
11. To approve the newly created MMF, tick on the checkbox beside the ‘N’ and click Action and Approve.
12. Once approved, the ‘N’ will disappear.
13. To view or amend, click on the Edit button of the security.
14. In the Maintain Security Information, you can amend the fields as shown in the screen below.
15. To maintain Bloomberg or Reuters codes and IDISIN information, fill in the fields in the Price Feed Code section. These can be used for integration purposes.
16. Users may also maintain the following credit ratings from Bloomberg. The following Bloomberg codes will be used for the ratings show on this screen. Ratings imported from the Prices > Price Load will be displayed here. For more details on how to get prices from Bloomberg, click here.
| Caption | Bloomberg Code |
| Fitch | RTG_FITCH |
| Fitch Issuer Default | RTG_FITCH_LT_ISSUER_DEFAULT |
| S&P | RTG_SP |
| S&P Issuer Credit | RTG_SP_LT_LC_ISSUER_CREDIT |
| Moody’s | RTG_MOODY |
| Moody’s Long Term | RTG_MOODY_LONG_TERM |
| Moody’s Issuer | RTG_MDY_ISSUER |
| Moody’s Unsecured Debt | RTG_MDY_SEN_UNSECURED_DEBT |
17. Click Update to save the changes made.
Note: The newly created security may needs to be tagged with the appropriate risk profile for compliance purposes. See Compliance guide for instruction on these tagging.
FREQUENTLY ASKED QUESTIONS
FAQ01. How can I change the maturity date of the Bond security once it is created?
Once the Bond security is created, you can change the maturity date by amending the coupon schedule. Drill down the Bond security and click on the Coupon button in the Maintain Security Information screen.
Click on the last periodic repayment, i.e. 7 Dec 2018. Details will be populated at the fields below.
Change the Coupon End Date and VDate accordingly. Click on Recomp button for system to recompute the Coupon PPM amount based on the new End Date. You may also enter the Coupon PPM amount in the field if you do not wish for system computation.
Once completed, click Update.
System added a new periodic repayment line item in the Coupon schedule.
Then, click on the last periodic repayment line item, 7 Dec 2018 to delete.
Details will be populated at the fields below. Click Delete.
Periodic repayment line item is now removed from the Coupon Schedule.
Click Save to save the changes made.
RELATED INFORMATION
How to Set Up MMF with ICD Integration
Computation of Purchase Interest for Bonds
CHANGE HISTORY
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