Warrant Bonds (SAP Library

Warrant Bonds

Definition

Warrant bonds are bonds, to which one or several warrants is/are assigned. Warrant bonds are either traded CUM (with a warrant) or EX (without a warrant).

You can exercise the related Warrant during the option period, and you can also trade it alone.

Integration

To represent warrant bonds in the system, a specific product category (060 Warrant bond) has been created, for which you must define a product type in Customizing for the securities area.

You create the warrant bond CUM, the related warrant, and the warrant bond EX as a Class.

When you create the warrant bond CUM, you must have already created the classes of the warrant and the warrant bond EX, since you have to enter their ID numbers in the class data for the warrant bond CUM.

Choose the Security rights function to detach the warrant from the warrant bond CUM and also to exercise the warrant or execute the expiration of the warrant.

When you detach the warrants from the warrant bond CUM, the system posts the warrants and performs a 1:1 transfer posting of the positions of warrant bond CUM to positions of warrant bond EX.

To detach a warrant from the warrant bond, see: Security Rights