Position Changes
Use
This function allows you to enter changes to securities positions that do not result from securities orders . Although securities orders also change positions, they are not entered using the position change function. Position changes include transfer postings, corporate actions, exercising warrants, conversions and so on.
Prerequisites
To create or change a position change you need to be using position management in
SAP Banking
with updating of the position values by means of securities orders. If the position values are directly transferred to the SAP system, all position changes (and securities orders) have to be processed by the feeder system and are not entered in
SAP Banking
.
Caution
Note that you must always save position changes per position . This means, in the case of a stock split for example, that a position change must be saved for each affected position.
Note
Note that position changes saved within the SAP Banking component have no effect on positions in the Treasury and Risk Management
(TRM)
component. The reverse also applies.
Features
There are various categories of position change. In the SAP system, the following position change categories are supported:
General Inflow/Outflow
This category represents a general way of changing an existing securities position. You can enter the unit number or nominal value, the amount in position currency, and the amount in local currency. For outflows, you only need to enter the unit number. The acquisition value of the position is reduced accordingly. You can use this position category to enter a repayment or a write-down, for example. Position changes resulting from an exercising of warrants with cash settlement , are also shown by means of an outflow.
Position Transfer Posting
Transfer postings are used to transfer securities from a source position to a target position. If the amounts in the position and local currency are not explicitly stated, they are determined by the system on the basis of the acquisition values from the source position.
Stock Split
This category allows you to represent a capital increase/decrease on single position level. The current unit number of the position is adjusted in accordance with the swap ratio, while the acquisition values are retained.
Stock Swap
This category allows you to represent a stock swap. Within a securities account, all stocks in the source class are swapped with stocks in the target class in accordance with the swap ratio. In the process, the total acquisition value of the source position is transferred to the target position. The target class, swap ratio and any surcharge are generated automatically in source class maintenance (see the tab page
Stock Swapunder Accounting
Bank Applications
SEM Banking
Data Pool
Bank Transactions
Securities
Class
).
Posting Subscription Rights
Use this category to post subscription rights. In order to do this, you must have already created the target class as a subscription right. For the stocks of the source class, subscription rights of the target class are transferred to the same securities account in accordance with the swap ratio. You have to enter the price at which the subscription rights are to be posted. The total value of the subscription rights is deducted from the acquisition value of the stock position.
Exercising Warrants/Subscription Rights
Position changes of the category
Exercise
allow you to exercise subscription rights/warrants with deliveries. For the given quantity (unit number) of subscription rights or call warrants, the system transfers stocks to the same securities account in accordance with the subscription ratio. When exercising put warrants, two outgoing flows are generated. The subscription rights/warrants are taken from the position at the floating average price and increase or decrease the acquisition value of the stock position. The acquisition value of the stock position also increases by the basic value (base price X number of stocks). Note that the exercising of warrants with cash settlement is represented by a general outflow.Conversion (Convertible bonds/Reverse convertible bonds)
The conversion category can be used to represent the exercising of a convertible bond. The number of stocks to be received is determined by the conversion ratio stored in the class data. The bonds are taken from the source position at the floating average price. If a surcharge was agreed in the class, the acquisition value of the stock position increases accordingly.
Caution
A position is locked by a position change (stock split, stock swap, posting subscription rights or conversion) after the position date. Therefore flows may not be created or reversed that bring about position changes (securities orders or position changes) before or on this date. The reason for this is that the flows caused by position changes would be inconsistent. Using the position structure report, the system displays those position changes that lock a position. You must reverse these position changes in order to unlock the position.
Be very careful in all cases where position flows are generated by a read position value. The system always reads the current position value according to the position stored on the database (including all flows that exist on the database, securities orders and position values). Therefore, orders that are processed in the same processing block as position changes are not taken into account in the position value. For this reason, capital actions such as stock splits, stock swaps and posting subscription rights, as well as conversions, are imported in a separate run after the securities orders run.
The following figure shows how position changes are processed in SAP Banking:
