TOPEN - F&O Open Position Reporting
What is
TOPEN reports the different trading types of Futures, Options, CFD and FX. These can be individually or group selected for OPEN trade reporting, to be shown as either summarised by account/instrument, listed in detail, shown in a grid by instrument and prompt month or in detail with contract and market values shown as gross. The most effective of these reports is the client/broker summary which provides the majority of the equity details e.g. premiums, variation margins, commissions to be paid etc. However the viewing of account equity is best using EQUITY
There is a report style, applicable to Hedge Company operations only, that will show the OPEN trade situations with regards 'Pricing to-Come', this report combines the open Futures lots with the outstanding pricing requirements from the TRADE records.
The styles are:-
1> Summary; sequenced by account (Client/House and Broker), reporting lot positions, average prices, variation margins, premiums. Style enabled for Company consolidation.
2> Detail; sequenced by account (Client/House and Broker), reporting several items of detail per trade/deal. Style enabled for Company consolidation.
3> Net lots by month; summary sequenced by account/commodity showing net lots per F&O prompt month across the page with totals. There are 11 possible columns for reporting with the 11th column showing totals for that month and any other later months/dates. There are several variation of reporting with this style i.e. Dept Sequence tick box, include Strategy code in sort order, show Option positions as Delta’d, show the position from Broker perspective (except switch buy/sell significance). Style enabled for Company consolidation.
4> Value to market summary; sequenced by account, reporting lots, average prices, a total Contract value and total Market value
5> Contracts List; reports a summarised list of instruments/months/accounts present in the database, sequenced primarily by commodity/instrument
6>Pricing to Come; lists Open Futures and Open Options (delta'd) and any outstanding TRADE pricing separated into AA, SEO, BEO and Others. The details are grouped by market/prompt month/department.
7>Summary - Fair value. Same content as standard summary option except Forex VM is shown in separate Profit and Loss columns. This enables easier reporting to Revenue according to International Financial reporting Standards (IFRS).
8>Detail - Fair value. Same content as standard detail option except Forex VM is shown in separate Profit and Loss columns. This enables easier reporting to Revenue according to International Financial reporting Standards (IFRS).
If you wish to view settled Futures/Options/CFD use TENQ or CFDQ, this also has facilities for designing your own style detail reporting.
Variation Margin and Premium Reporting for Option Trading.
TCCM specifies whether an instrument is operating Option premiums as being held in suspense or paid/received at time of trading. Variation margining uses this criteria as follows; if paid upfront the variation margin is the current replacement cost, if premiums are held-in-suspense the margin is the standard margining procedure i.e. market premium less contract premium.
See EQUITY procedure as to how these values will be utilised in liquidity analysis.
OTCs do not settle as square positions in the same manner as Futures but they settle to market at their expiry date (the floating component) i.e. similar to FX deals. This is handled in ITAS by creating a manual settlement trade at the required market price; this price depends on the OTC contract but could be an average price over the previous 15 or 30 days etc. The process then settles in the standard manner. The settlement trade should have a specific trade code for recognition purposes and the trade should be deleted if the settlement is subsequently busted. There is a reporting option in TOPEN to facilitate report by Expiry instead of Prompt Month. A benefit of entering the OTC trade will be that it is a part of all P&L calculations whilst it is an open trade.