Delivering a Forward Securities Transaction

 

On the due date, the system delivers the forward securities transaction. The security can be delivered in two ways; via Cash Settlement or Physical Exercise.

Activities

  1. Choose Start of the navigation path Derivatives Next navigation step Trading/Back Office Processing Next navigation step Edit Financial Transaction End of the navigation path.

  2. Enter the Company code and the Transaction number.

  3. Choose Deliver.

  4. On the Structure tab page in the Amounts area, enter the spot amount on the due date.

  5. On the Structure tab page in the Exercise area, you specify whether delivery should be via Cash Settlement or Physical Exercise

    Note Note

    You can assign a position management procedure under Start of the navigation path Environment Next navigation step Position Indicators End of the navigation path.

    • Cash Settlement

      • Enter the Spot Maturity.

      • The system calculates the settlement amount. The system generates the flow for Cash Settlement and the purchase/sale flow without an amount.

      • Save the transaction.

    • Physical Exercise

      • Enter the Spot Maturity.

      • You can still change the position data if necessary.

      • When you save the transaction, the system generates a purchase or sale. This purchase or sale is assigned to the Contract activity category. The ID of the generated transaction is displayed in the Settlement area in the Ex. Trade field (= the financial transaction resulting from the exercise).

      • When the regenerated transaction has been settled and posted, the delivery of the forward securities transaction is complete.

    End of the note.