Overview: Exercising Security Rights 

You can use the standardized interface described below to edit or exercise security rights in all the rights categories.

This table gives you an overview of how the function is structured. The text below the table describes the individual components on the right hand side of the screen, explains the pushbuttons, and gives you additional information.

Overview table: Structure of the function
Pushbutton toolbar
					Test run
Left side of the screen				Right side of the screen
Tree structure for executable rights This structure contains the ID numbers of the classes that contain an executable right for the various rights categories. If a right appears in the structure, this means that it was created in the class data. Even if no position exists, the ID number still appears. You can switch between the processing screens for different rights without exiting the transaction, either by navigating in the structure or by selecting a new ID number on the right-hand side of the screen.				·        Company code: This is a required entry. ·        Key date: The key date must be specified. The system needs it in order to read the positions. The system date (current date) is the default value. ·        ID number: Enter the ID number you want to process. Choose  to go to the class data for the ID number selected. If you do not know the ID number of a security, you can search easily for the ID number using the F4 Help and the selection criteria for the various tab pages: ·        Rights category: The system displays the rights category of the ID number you have just selected.
				Header data See also: This area is described in more detail below.
				(Specific) rights See also: This area is described in more detail below.
				Position See also: This area is described in more detail below.

Calling up a Right

You can call up a right in two ways:

·        Using tree structure.

You can search for the ID number using the tree structure and double-click on the required ID number to display for the related rights data.

·        By entering the ID number in the  ID number field on the right-hand side of the screen.

To do this, use the F4 Help.

If several rights categories exist for an ID number, choose the right you require in the dialog box.

 Example:

A convertible bond also has a call right.

Header Data

The header area contains all the data that specifies the right. A warrant may have the following entries, for example: Option ratio, option category, base price, and minimum exercise. The data is taken from the class data.

If you need to enter current market data in order to exercise the right, you enter this information here.

Example: In the case of an equity warrant with cash settlement, the system needs the current stock price in order to calculate the cash settlement amount.

When you select a right, the header area is only displayed automatically if you are required to enter current market data.

(Specific) Rights

If several specific rights exist for a class, they are displayed here. Since you can only exercise one right, choose one of the rights available.

This section only applies to the following rights categories:

·        Warrants:

There are always at least 2 specific rights for a warrant, the right to exercise, and an expiration right. If you have not yet specified the details for a warrant, this area lists all the other possible rights on the basis of the missing entries.

Example:

If you have specified neither the Option category (call or put) nor the Settlement form (delivery or cash settlement), this section contains all the possible rights:

-         Call with cash settlement

-         Call with delivery

-         Put with cash settlement

-         Put with delivery

-         Expiration right

·        Subscription rights

·        Stock swaps

·        Callable bonds (callable and puttable)

Subscription rights, stock swap data and notice data can have different validity periods. A specific right is displayed in this section for each validity period. The most recent exercise period is selected as the default.

·        Drawable bond

Drawn partial positions for a drawable bond are transferred.

Position

In this section you see the positions for the class for each securities account. You can decide for each securities account how much of this position you want to exercise. To do this, enter the nominal amount to be exercised or the number of units to be exercised for each securities account.

The overview also shows whether other flows have already been entered (in the fields OthFlw..., OthFlowUnderl).

Choose  Postprocess flows to change the generated flows and/or enter other flows. See also: Postprocessing Flows

Choose  Securities account cash flow to switch to the securities account cash flow for the position you have selected.

Pushbuttons in the Toolbar

·        Choose  (Hide overview) to hide the tree structure.  Choose  (Display overview) to display the structure again.

·        Choose  (Expand all) to expand all the areas on the right-hand side of the screen. Choose  (Collapse all) to collapse all the areas.

·        Choose  (Posting control...) to display the posting control information.

Posting date

Document date

Text for an assignment

This posting information is written to all the flows for exercising a right.

·        Choose  (Other date entries...) to branch to the screen for entering the calculation date for the incoming and outgoing flows.

When you call up the function, the default entry for the calculation date is the system date.

If you do not specify a calculation date, it is set to the exercise key date when you post the exercise of the right.

The calculation date is calculated inclusively.

·        Choose  (Payment details...) to display the global payment details. See also: Defining Global Payment Details

·        Choose  Test run to simulate the run for exercising the right. Any errors that would prevent the right from being exercised are displayed in an error log, as they are when you actually exercise the right. If you complete the test run successfully, a posting log appears showing the flows that have been generated by the exercise run.

·        Choose  to exercise the right you are currently processing.

Other Functions:

The following functions are available in the Environment menu:

·        Create/change/display position indicator

Before you exercise a right, you must create the position indicators for all the relevant classes. You have the option of branching to this function from here.

See also:

Editing Position Indicators

·        Execute/reset period-end closing

Before you exercise a right, you must perform period-end closing for the class of the right on the exercise key date.

In addition, make sure that no closed flows exist after the exercise key date.

You have the option of branching to this function from here.

See also:

Period-End Closing

Reset Period-End Closing

·        Reverse security right

If a right was not exercised correctly, you can use the reversal function. This enables you to reset the exercise of a right for each securities account.

See also:

Reversing the Exercise of Security Rights