Security window

Basic info tab allows you to define basic properties of a security, such as name and code of the security. A red star indicates that a field is mandatory. Based on the selected security type (and its base type), the available fields vary slightly - some fields are only available on certain types of securities, and some types of securities have a more limited set of fields available.

The following fields are available (fields marked with * are required):

Code*. An individual code defined for the security. The security code separates the security from other securities (the system does not allow more than one security with the same security code). The code is used to identify the security and search for the security from the system. The best practice is to only use numbers and letters (a-z).

ISIN code. The ISIN code of the security which identifies it on the market. The ISIN code, along with the trade code, is used to import transactions for a security, security prices, and in trading flows to link a security to trading connectors. To automatically fetch an update code for importing the security price, you have to specify the ISIN code of your security in the field and then click Update code 1-3 .

Name*. Name of the security.

Status*. Status of the security: "Active", "Passive", or "Closed". The status allows you to categorize securities. The recommended status to use for securities you actively work with is "Active", because securities with this status are shown everywhere in the system and can be worked with in the Transaction and Trade order windows. "Passive" and "Closed" securities are not selectable in these windows, but you can still find all securities in the Securities view.

Type*. Type of the security. The drop-down menu shows security types defined in Preference, Securities, Security types. When changing the type of the security from a base type to another (e.g. changing a bond to be a stock) also clears the information that is not supported by the new base type (in the example above, all bond-specific information would be cleared since not supported by the base type stock). You can see the list of security types used in Standard Solution in FA User guide: Standard security types .

Sub type. Sub type of the security. Options are defined in Preference, Securities, Security types. Only the sub types defined for the selected security type are visible in the drop-down menu.

Base currency. Allows you to select the base currency of your currency cross. Only available for securities with the base type CURRENCY_CROSS. For example, for a currency cross EUR/USD, your base currency would be EUR. For this currency cross, enter the quote currency USD in the Currency field.

Currency*. The currency your security is quoted in. All securities of the basic type currency are listed in the drop-down menu. You can see the list of currencies that are available in Standard Solution in FA User Guide: Currencies (ISO 4217) .

Country. The country of the security. Options are defined in Preference, General, Countries. The country of the security affects taxation (corporate action) transactions.

Marketplace. The market where the security is traded. Options are defined in Preference, Securities, Market place.

Trade code. Identifier of the security in the market where you trade it. The trade code, along with the ISIN code, is used to import transactions for a security, security prices, and in trading flows to link a security to trading connectors.

Update code 1, 2 and 3. Update codes for updating market prices for a security. The different update codes allow market prices to be imported and saved from different sources. The update code of the primary market data source should be defined in the Update code 1 field, and so forth. The imported market prices are saved in the right column in the Market data info tab, based on the update codes defined. If market prices are automatically fetched from an external market prices source, one of the update codes is reserved for the update code used by the external source. Update codes can be specified manually or fetched using the ISIN code in which case the ISIN must be defined.

Settlement place. Settlement place of the security. Options are defined in Preference, Securities, Settlement place.

CGT applicable. Option to mark the security as CGT applicable. Enable this option to have the system calculate CGT for profit on this security.

URL and URL 2. External links. You can define, for example, links to security brochures.

Rating. The rating of the security.

Tenor. The tenor of your interest rate security. Tenors are used when building yield curves in Preference, Yield curves to determine the duration/maturity of the interest rate.

Block size. The trade unit of the security. When equal to or less than one, the block size also affects the decimal places allowed for created cash transactions and trade orders. If no block size is defined, the allowed decimal places come from the security type preferences (see Security types). For example, if the block size is set to 0,01 the amount of the security in a transaction or trade order can be defined with two decimals, or if the block size is set to 1, the amount of the security in a transaction or trade order can be defined only with whole numbers.

You can also define the decimal places to use in transactions created against a certain account. To do this, enter the number of decimals in the Portfolio window, Accounts tab. For details, see Accounts.

Multipliers allow you to handle situations where you want to manipulate the unit prices you enter in the system:

Common use cases for multipliers:

Holiday calendar and Settlement period fields allow you to flexibly control, at the security level, which days are considered holidays and how many days the security takes to settle. Holiday calendar and settlement date offset are used for accrued interest and coupon calculations for bonds and for calculating the settlement date for trades in the security, that is how many business days trades for the security take to settle, and which market’s holiday calendar is used to determine these business days. For example, you can configure specific securities to settle in t+2 in a certain market, while others might settle in t+3 in another market.

Outstanding units. The number of shares outstanding. This value is used to calculate a Holding % available as a column in position listings.

Votes per share. The number of votes this security has per share. This information is used to track the number of votes in a portfolio or in a contact's holdings and to produce reports to financial authorities in case the percentage of owned votes exceeds or goes below certain limits.

Issuer. The issuer of the security. Issuers are defined in the system as contacts with the type Issuer.

Issuer description. The security issuer description.

Linked portfolio. The portfolio the security is based on. The linked portfolio is chosen from alternatives containing all the portfolios saved in the system. For example, funds and structured products are often based on a portfolio containing multiple different securities.

Linked security. Another security linked to your security. For example, you can link the underlying stock to your equity option, or link the underlying instrument to a derivative.

Manipulation. The manipulation of security prices: Direct (default, the prices are used directly as they are shown), Invert (the prices are shown as inverted) or In its own currency (the prices are shown without a currency conversion). The manipulation describes how security purchase and market unit prices are shown - usually prices are shown as "direct" (i.e. as they are used). The other options allow you for example to show FX rates as "invert" (i.e. inverted in relation to how they are used in calculations) or foreign-currency bonds "in their own currency" (i.e. even though the market value of your position is calculated in portfolio currency, the unit prices are shown without a currency conversion, allowing you to see the bond unit price directly as "percentage of the issue price").

Price from security. The security from which this security gets the market data information. If a security is chosen, the market data information shown for this security is fetched from the chosen security's market data information - changes to the market data are done through the linked security. The market data is fetched from the linked security without the manipulation effect, or always as "Direct".

Class 1, 2, 3, 4 and 5. Classes for the security. Class options are defined in Preference, Securities, Class 1-5. The classification system of securities can be defined as needed, and the classification system may consist of three parts: one class can be chosen for the security from each of the three available classes.

Bookkeeping account. Bookkeeping account number to use in postings. For details, Preference - Bookkeeping.

Tags. Choose tags from the alternatives defined in Preferences - General - Tags. Tags can be defined in three different ways:

When entering information for a security with certain base types, the Security window contains an additional tab for you to define extra information relevant for these types of securities. Extra info is available for base types BOND, FUTURE, DISCOUNT and OPTION, while Fixings, Index calc. method and Redemption are relevant and available for base type BOND. The information is used by the system for example when calculating accrued interests and redemption payments for a bond or when creating a coupon payment or redemption corporate action for a bond.

Extra info

The top section of the Extra info tab allows you to define information about maturity and payments for your bond, option, or future security.

Issue date. The date when the bond is issued and the interest begins to accrue.

Issue price. The issuer's original selling price of the bond.

Maturity date. The date on which the principal of a bond is repaid to the investor along with the final interest payment.

Maturity price. The amount of final bond repayment. In addition to the bond principal, maturity price can include other premiums, such as the last coupon.

Face value. The principal value of one bond unit.

Call date. The bond's next call date.

Fixings

Fixings tab allows you to define the fixing information for your security, especially relevant for calculating accrued interests and coupon payments on bonds. You can define fixings either as fixed (for example fixed rate bonds), or as floating (for example floating rate notes).

Fixing information is used to calculate the accrued interest for securities of base type BOND. Accrued interest on the position level is calculated based on the selected report date (unless you have overridden this on the portfolio level to calculate accrued interest on "settlement date", when the accrued is calculate based on a date calculated from the selected report date adjusted with bond's settlement date offset), holiday calendar and business day convention). If the bond is bought, the paid accrued interest of the purchase is used as the accrued interest of the position until the settlement date of the purchase. Bought accrued interest in the Transaction window is calculated based on the settlement date of the transaction.

Fixed fixings

The fields at the top of the tab allow you to define schedule, percentage and other information for fixings. For more detailed descriptions of the fields, see Bond-related calculations.

Calendar. The day count convention for the bond. The day count is used to convert dates to a numeric representation for financial maths, and is the base for accrued interest and coupon calculations for bond.

Frequency. The frequency (how often fixings are paid): Daily, Weekly, Every two weeks, Every four weeks, Every 13 weeks, Every 26 weeks, Every 52 weeks, Monthly, Every two months, Every three months, Every four months, Every six months, Annually or Once (zero-coupon bond).

For fixed rate bonds, define the fixed fixing information:

First fixing date. The first fixing date indicates the date of the first fixing after the security is issued. After the selected first fixing date, the following fixing dates are determined based on the calendar and frequency selected.

Coupon. The annual fixing as a percentage %.

For bonds, define additional parameters for calculating accrued interests and coupons (follow the links for more detailed description of the alternatives):

Stub convention. The rule used to place the stub period in the bond's schedule, if one should occur. When determining a schedule (i.e. how often a coupon is paid), each date between the start date and end date based on the day count convention is allocated into a period. Most dates are allocated into a regular period, based on the selected frequency. Any dates left over are allocated to a stub, either at the start or end.

Business day convention. The rule used to to adjust a date (such as coupon date of a bond) if it falls on a non-business day.

Roll convention. The rule used to override the default schedule of a bond if needed. For example, roll convention “end-of-month” allows you to configure that the first date of a monthly schedule, such as June 30th, should roll to the last day of each month instead of the 30th of each month.

Ex-coupon period. The number of days before the coupon payment date during which the bond is traded ex-coupon, or without coupon (if the bond is bought during the ex-coupon period, the next coupon is paid to the previous holder of the bond, not the buyer).

Yield convention. The convention to use for calculating yield to maturity, durations and convexity from the alternatives UK BUMP/DMO method, US street, German bonds (default) and Japan simple yield. Note that for amortized bonds that have redemption plan defined in the Redemptions subtab, "German bonds" convention is used, regardless of your choice.

Base instrument and spread

You can define information relevant for floating rate notes linked to another instrument:

Base instrument . The base instrument from the securities defined in the system. The base instrument can be used as information for example for calculating fixings for floating rate notes.

Spread . The spread added to the values from the base instrument as a percentage %.

Offset days. The number of days before the observation a new reset rate is set.

Note

If you want to generate fixings for your floating rate notes based on the base instrument and spread, use the "Populate fixings for floating rate notes" process (see Add fixings for a floating rate note).

Generate fixings

You can check if the bond information you entered results in appropriate fixings. The Generate fixings button under the Fixings for floating rate note table produces a list of expected coupon dates based on the fixing information you defined (excluding base instrument and spread). The table shows:

• Fixing date . The date from which the defined fixing rate is valid from.

• Fixing. The value of the fixing as a percentage.

If you already have some entries in the table, they aren't replaced, but instead, only the dates that come after the latest date on the list are added.

Add fixings for a floating rate note

For floating rate bonds, you can define the individual fixings manually. Click the Add fixing button and define the fixing information in the fields on the right. The manually defined fixings are listed in the table, ordered with the date defined, newest first. Note that manually added fixings always override the fixed fixing defined.

Thus, a manually added fixing of 1.1.2014 and 5,00 % indicates that the fixing rate for the bond is 5,00 % starting from 1.1.2014. Once this coupon is paid, a new fixing date and rate should be added to start from the coupon payment.

Delete fixings

The Delete all fixings button below the table allows you to delete all fixings you have added or generated to your bond security.

Index calc. method

For index-linked bonds, the price, accrued interests and coupons are adjusted with an index coefficient to compensate for changes in inflation. You can define the required information in the Index calc. method tab.

When valuating a position of a security that has a linked index, a coefficient (calculated from the market prices of the linked index and index base value with the defined index convention) is taken into account (multiplied) when calculating the accrued interest and market value of the position. The index coefficient is calculated as$Coefficient(date)=Linkedindex(date)/IndexBaseValue$  based on the information defined within the Index calc. method tab.

Fields to define the linked index:

Calculation impact. Indicates if the defined linked index and index base value affect the Market value and accrued interest or Accrued interest. The first selection utilizes the linked index and index base value to calculate both the market value and accrued interests of an index linked bond according to the selected index convention, while the second selection applies the linked index and index base value only to the calculation of accrued interest according to the selected index convention, assuming that the market unit prices for the index linked bond are already index corrected.

Linked index. The linked index from the securities defined in the system. The market prices from the selected linked index are used to calculate the coefficient used to value an index linked bond according to the selected index convention.

Index base value . The value used to calculate the coefficient used to valuate an index-linked bond according to the selected index convention.

Floor index at base value. An option to floor index at base value. As a result, the coefficient in transactions can't drop below 1.

Fields to define the index convention:

Index convention . A pre-defined index convention from the conventions used in different countries or regions. Selecting an appropriate convention from the alternatives pre-fills the following fields for calculation mode and lags according to the selected convention, and valuates your index linked bonds with the linked index and index base value according to the convention of the region. If you cannot find an appropriate pre-defined convention, choose Other, and define the calculation parameters yourself.

Calculation mode . The calculation mode determines how the coefficient used to value an index linked bond is calculated based on the defined linked index and index base value:

• With Linear interpolation, the coefficient used in valuating index linked bonds is calculated with the interpolated value of the linked index for months defined in lag 1 and lag 2 prior to the settlement date of the bond. For example, Swedish idex linked bonds use an interpolated index value for 2 and 3 months prior to the bond's settlement date.

• With Direct calculation, the coefficient used in valuating index linked bonds is calculated with an index value taken for months back as defined in lag 1. For example, Finnish index linked bonds use 3-month lag with no interpolation.

Lag 1 in months. A numeric value between -1 and 12, representing the lag 1 in months. Used both for direct calculation as months back, and in linear interpolation as the end point for the interpolation. If your bond is tied to the NEY (lagged CPI), select -1 to use the upcoming month's CPI value in the calculation.

Lag 2 in months . A numeric value between 0 and 12, representing the lag 2 in months. Used only in linear interpolation as the starting point for the interpolation.

Pre-defined index conventions and the pre-filled values:

Index convention	Calculation mode	Lag 1 in months	Lag 2 in months
Canada, US, France, Germany, Italy, Denmark, Sweden, UK after July 2005	Linear interpolation	2	3
South Africa	Linear interpolation	3	4
UK prior to July 2005	Direct	3	-
Finland	Direct	8	-

Coefficient decimals. The number of decimals to round the coefficient in transactions to. By default, the number of decimals is 2.

Index price for interpolation start. The index price to use as a starting point of interpolation:

• Monthly – Index price from the beginning of the month.

• Daily - Index price on the settlement date of the transaction.

Redemption

Redemption tab allows you to define the redemption information for your security, relevant for example for partial expirations. This information is used in redemption corporate actions, and in transaction information for amortized bonds.

Fields to define the redemption information:

Frequency . Redemption payment frequency: 

• Annually, Semi-annually, Quarterly, Monthly, Weekly or Daily.

• Match coupon – use the coupon frequency defined in the Fixings tab.

First redemption date . The date of the first redemption after the security is issued. After the selected first redemption date, the following redemptions can be determined based on the frequency selected.

Repayment plan. Redemption structure:

• No repayments – No principal payments over the life of the bond. Repay the whole principal on the maturity date.

• Equated installments – Payments in equal amounts that include principal and interest. The principal amount gradually increases with time.

• Straight line – Payments that include principal and interest. The principal part is the same in each payment. Payment amount decreases over time.

• Other – Define redemption amounts yourself.

Redemption price type. An option to choose original or remaining principal as the base for calculation transaction or trade order amount. For details, see Amortizing bonds.

• Original principal – Calculate the price based on the bond’s initial face value. To have the bond's valuation on Overview and Analytics+ based on the remaining principal, you need to fill in the Delta/factor in the Market data info. See Market data info for details.

• Remaining principal – Calculate price based on the bond’s current remaining principal. The valuation is then based on the remaining principal as well.

Allocation tab allows you to define the allocation of the security. The allocations related to an asset group defined for the security are listed on the left-hand side of the window: a security can have an allocation for each asset group defined in Asset classes and types Preferences. You can find the list of allocations available in Standard Solution in FA User guide: Asset classes and asset types.

For example, you can define geographical and industry-based allocations separately.

You can view and modify the allocation information by choosing the corresponding allocation group from the listing on the left. You can add a new allocation, and define the allocation information on the right-hand side of the window.

When defining an allocation, first choose the asset group you want to use (e.g. are you defining geographical or industry-based allocation). Second, select the date from which the allocation is valid from for the security and add it to your allocation definition. The start date should usually be set before this security appears in your portfolios (i.e. when your portfolios start getting in transactions for this security) - if the allocation starts later than the first transactions for this security come in, this security is allocated as Other until the date it is valid from. If you want to update your allocation's content, add a new date to it - the new content will be valid from the new date onward, while the prior index content will be used until the new date.

Below each date you can see the content of the allocation. You can add a new asset type under the selected date: you need to define the asset type and the share of this asset type from the whole allocation. For each new position under the selected date, choose the asset type from the drop-down menu. In the field next to it, define the share of the selected asset type of the whole allocation. If the allocation consists of a single asset type, define the share as 100 % - if the share of the selected asset type is less than 100, you have to create new positions and define their shares so that the sum of the shares of different asset types under one date equals 100.

Market data info tab allows you to view and modify the market data information of a security.

Market data entries are listed based on the date, newest first. The Close column shows you the close price of the day, or the market price that is used for the security for that date. This close price is by default used when calculating the market value of positions in this security.

You can set how the Close price is determined by choosing one of the Price source options:

You can also define the price source on the portfolio level (see the Portfolio window topic).

You can modify an individual market data entry by choosing it from the listing. You can add a market data entry for the security with the Add market data button. Define the new market price entry in the available fields (fields marked with * are required):

When the market data information is filled in, save the market data entry with the OK button below the fields. Versions button allows you to view the versions of each market data entry.

You can also manage market data through the following buttons:

For bonds with appropriate bond information in the Extra information tab, FA also supports calculating the bond price based on importing YTM instead of bond price to the system. For more information, see the File formats for importing securities and security prices section. Price can be imported with % (e.g. 3.45%), when the system calculates the price according to YTM automatically.