Exercising Rights

Use

You can use this function to enter the exercise of security rights and option rights.

In the application menu for Treasury and Risk Management, choose Start of the navigation path Transaction Manager Next navigation step Derivatives/Securities Next navigation step Trading Next navigation step Option Right/Security Right Next navigation step Exercise End of the navigation path (transaction FWER).

Integration

You create securities that vest executable rights as classes. Once you have created these classes and the data for the respective executable right, they appear in the structure for executable rights when you call up the Exercise Rights function.

The Exercise function generates flows based on update types that the system then passes on to the parallel valuation areas. The derived business transactions which depend on the valuation area are then generated automatically for the rights exercise.

Once you execute this function, the system sets a lock for the positions involved, preventing any changes being made to their business transactions with dates before the key date of the exercise.

The system performs the authorization check as follows:

  • The authorization object T_RIGHTS is used for securities and T_RIGHTS_D is used for listed options. When exercising a right, the system performs checks for the individual activities (exercise, display, simulate, and reverse) for each company code and securities account or futures account.

  • If the system finds classes with executable rights, it first loads all the positions in the specified company code. Each position is then checked to see whether you have display authorization. If you do not have sufficient authorization, the system cannot display the position.

  • If you have display authorization, the system then checks if you are also authorized to exercise rights. If you do not have the required authorization, the system displays the position to be exercised as a zero position. It is not possible to make any entries.

Prerequisites

You have sufficient authorization to exercise rights.

You have made the required settings in Customizing for the Transaction Manager under Start of the navigation path Securities/Listed Derivatives Next navigation step Position Management Next navigation step Rights Next navigation step Update Types End of the navigation path.

Features

The system displays the positions for each company code for a particular key date and for selected securities or listed options. For each position you can determine which part of the position is to be exercised.

If you save an exercise right, the system automatically generates business transactions that reflect position changes in the system.

You can use various rights depending on the product category selected from the exercisable class.

See also: