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Prices/Rates for Financial InstrumentsLocate this document in the navigation structure

Definition

Securities can be mapped as financial instruments. Financial instruments include stocks and futures. In the application, you can assign specific prices to a financial instrument on a specific day.

Use

To store prices of financial instruments in the system, you first have to define the following parameters:

  1. Security price category

    Price categories enable you to enter security prices for different purposes on the same date in the system.

    You might, for example, use security price categories to:

    • Map bid and ask prices

    • Distinguish between different price determination times (for example, prices at 12 noon, or closing prices).

  2. Price symbols

    A shorthand means of describing the market situation and the relationship between supply and demand. In Customizing, you have to define separate price symbols for each market data area.

    Example

    • b (or price without addendum) = bezahlt

      Supply and demand were cleared.

    • bG = bezahlt Geld

      Not all buy orders with a limit at the current quotation were filled; stocks continued to attract buying interest

    • bB = bezahlt Brief

      Not all sell orders with a limit at the current quotation were filled; further offerings.

  3. Price units

    The unit in which the price/rate is quoted. If you enter or import rates/prices into the system, you have to assign a unit that has been defined in Customizing to each rate/price. The units available are directly quoted, percentage-quoted, inverse percentage-quoted, or point-quoted. This unit always relates a rate/price to a base unit (currency, percentage, points). In Customizing, you have to define separate price symbols for each market data area.

    Example

    Stocks are quoted in euros. You have to set this up as follows: unit: EUR, direct quotation, translation ratio: 1, currency: EUR.

    Stocks are quoted in pence. You have to set this up as follows: unit: PNY, direct quotation, translation ratio: 0.01, currency: GBP.

  4. Read strategies for securities

    When you search for security prices, a read strategy enables you to prioritize your search by exchange, rate/price category, and maximum age. The search sequence that you define in the read strategy determines the sequence in which the system conducts the search.

    Example

    Priority

    Exchange

    Exchange Rate Category

    Maximum Age

    1

    FFM

    Closing price

    3 days

    2

    XETRA

    Opening price

    1 day

  5. Exchanges

    ID that indicates an exchange or market in the system.

    Example

    Frankfurt Stock Exchange: FFM,

    XETRA electronic trading facility: XETRA

  6. Clean and dirty prices

    Annuities can be hedged with or without accrued interest.