Conversion of the Issue Currency 

Purpose

The issue currency changeover is represented in the system as a special form of corporate action. To convert the currency of a security, define a corporate action in the category Convert issue currency. This definition is kept as a reference for all the flows generated.

Process Flow

1. Define and save the corporate action.

2. Post the corporate action. This converts all the flows and documents. The currency swap posting is made in FI. (For more information about the principle of currency swap postings (T-account example), refer to the end of the section headed Transaction Currency Changeover (TR-TM-MM/FX/DE/CM).) Reconcile the flows and documents in the subledger.

The system converts the following master data fields:

Affected fields for stocks.

a) Nominal value per stock

b) Fund volume

c) Issue price

d) Issue currency

Affected fields for bonds.

e) Issue price

f) Issue currency

g) Issue volume

h) Nominal value

i) Nominal value per trading unit

j) Nominal currency

k) Total issue amount

l) Minimum assignment amount

m) Cover amount

3. If necessary, you also have the option of resetting the changeover.

 For details of the exact procedure for the issue currency changeover, see Issue Currency Changeover

Cash Management update

The system converts the update to Cash Management automatically.