Frequently Asked Questions (FAQ)

Futures, Options and CFDs

1	How can I view the number of lots traded (open and settled) between 2 trade dates, and sequenced by account? Use TENQ, tick both Open and Settled boxes, use filter for 'trade date' = 'between 3JAN00 and 29FEB00' and type 1 in right hand column (Sort Order) in the row named as 'account'
2	I need to view any outstanding trade instructions (GTC, OS, etc) which have not yet been marked as executed. Use TERM or TENQ and apply the filter 'Instruction' = 'Y', to retrieve non-executed trades. All other TRADING reports/enquires will ignore these trades from their reporting.
3	How can I produce reports for a group of accounts? There are several methods of grouping ‘CLI’ accounts; using CLI maintenance you group by Department (Cost/Profit centers), by Family (logical corporate association), by account type (CLICODES/types), by Classification code (CLICODES/Other class ), by account manager, by Introductory broker. When you operate TENQ, TOPEN, FXREPS, use the Client filtering according to how you have setup your groups.
4	Can OTCs be entered in ITAS? Yes they can be entered as standard Futures trades whereby 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 GPLREP and 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.
	How can I view a list of all TCCM instruments? Use TCCM and the ‘report’ button on the tool bar. Several filter selections are available, by selecting all, all, all you will view every instrument that has been previously set-up.
6	What is the structure for Commission rates Using TERM, the following rules are applied to determine what commission rate to use; -use company standard rate as maintained by S01 -use TCCM rate, if available -use CLI currency override rate , if available -use CLI commodity override rate, if available -use TERMCODES/Commission over-ride, if S01 feature (ctrl20_comsncode) is applied
7	Is there any method for linking individual trades in a strategy banding? Strategies can be operated for Futures only or Futures/Physicals. Strategy codes, strategy types, strategy groups need to be maintained in TERMCODES. This is only available in the company when the relevant S01 setting has been activated (ctrl20_strategies). The purpose is to specify individual trades with their codes and the controls are that the Dept being maintained on the trades must be nominated as a speculative type. Thereafter any CLI trading accounts need to assigned that Dept code. This then enables maintenance in TERM of the strategy code/group. TOPEN has several styles of Strategy reporting and there is a very specialist SPECPL reporting tool.
8	Is there any structure for Floor Broker commission being recorded? There are 2 sub systems available. (A) simplistic feature whereby in CLI (immediate right click) any number of combinations of Clearing Broker, FloorBroker, TCCM code and trade type can be maintained with a currency, clearing RATE and Floor RATE. This feature is only activated when a dual F&O environment and client/house commissions are maintained as the same as the Broker (ctrl20_brokcomsn). In TERM maintenance, if the combination of trade data (Clearing Broker, FloorBroker, TCCM code and trade type), is entered the 2 rates are combined for the accounting and P&L performance. Additionally, the floor rate is secured in the trade for any user specific reporting e.g. MERAP. Option (B) is more sophisticated and is activated by Hivedome x S01 (ctrl20_sepflrbrkcomsn). This feature will enable floor broker commission to be handled separately to the clearing broker commission. The Broker profile needs to maintained ; tick ‘Floor Broker Comsn Paid Directly’ in CLI\View Trading Details for F&O Brokers. TERM: the F&O setting ‘Prompt for Floor Broker’ needs to be activated. The maintenance of the commission rates for a trade is based on the knowledge of how the rates are to be applied:- ‘Floor Broker Comsn Paid Directly’ is ticked: - the ‘Comsn Rate’ column in TERM is the commission payable to the clearing broker and ‘Floor Brk Rate’ is the commission payable to the floor broker. ‘Floor Broker Comsn Paid Directly’ is not ticked: - the ‘Comsn Rate’ column in TERM is the combined broker commission, and the ‘Floor Brk Rate’ is the commission payable to the floor broker but is for information only. TOPEN, EQUITY, FREEZE will recognise this broker status. There is a specialist FBINV that will monthly provide Invoicing process for Floor Broker commissions payable.
9	How are Spread Options recorded? A Spread Option instrument (CSO - Option on Futures Spread) needs to be defined in TCCM codes maintenance. The essential data item in the setup of the code e.g. SB1 (New Your Sugar 1 month spread) is the ticker code to retrieve the relevant market prices and MOST important is the TCCM field with the label ' Spread Months' (see local help? for more detail). Trades are entered in the same manner as any Option trade. Selected Position reports include Spread Option business. The TERM/Exercise procedure for a Spread Options needs TCCM static maintained with the underlying futures instrument code. The exercise will create the 2 futures trades per the data and rules established in TCCM.
10	Can Intra Company and InterCompany F&O trades be easily entered? Definition of Inter-Company trading is one ITAS entity/company sells/buys with one of it’s group companies. Definition of Intra-Company trading is a department/business sector/Profit centre in an ITASA Entity/Company sells/buys with another department/business sector in the same Entity. ITAS handles intra-company trading with the S01 F&O configuration of Operate Internals when TERM will enable New , Amendment and Split processes. There is a S01 configuration for Inter Company processing, (ctrl20_interco). Setup as an 'Issuer' will enable the TERM procedures a) 'Issue Inter Company Trades' will locate the trade(s) that have been entered for a House account that is recognised as require to synchronise its' trades with its 'recipient' Entity, using the CLI .T static of target InterCo, the Dept and what House.T to apply. The CLI static maintenance for Inter Co is a right click feature before selecting a profile. An option in that maintenance is to specify if the Exported trades are immediately entered as executed or need the TERM/Confirm Import process to complete the entries i.e. simulate BRKIMPORT. b) the Issuer Entity trade will be created with its S01 nominated InterCo Broker i.e. exactly the same data as selected new business except opposite Buy/Sell, nominated House.T and Dept. c) the Recipient Entity trade will be created with its S01 nominated InterCo Broker i.e. exactly the same data as selected new business except nominated House.T and Dept. d) the same commission will apply on all 3 trades e) The real new business trade will be disabled for Hedge and Strategy Instructions application. That data is only entered in the 'recipient' Entity trades f) An Alert ID (##) will be despatched to indicate that new business has been imported AND thereby the Recipient Entity users can subscribe to that Alert F&O amendments for the recognised Interco trades apply the following rules to ensure/assist continuing synchronisation. If the 'Recipient' trade has been applied in Price Fixation or has been Settled, then NO automated synchronisation will be applied. Instead an Alert ID (##) will be despatched and the recipient trade will be marked as 'out of sync'. If the amendment is applied satisfactorily, an Alert ID (##) signalling satisfactory update will be despatched for user subscription. F&O deletion of recognised Interco trades will apply same checking as for an amendment. Trades that are entered in the 'Issuer' Company for recognised InterCo accounts can not be updated with Hedge and Strategy codings, that coding is made in the 'Recipient' Entity only. Setup as a 'Recipient' will enable the TERM procedure 'Synchronise Inter Company'. This will locate all trades 'out-of-sync' whereby the user selects which trade(s) to synchronise with the Issuer' version and the standard TERM procedures for Fixation amendment, Strategy coding, Client Recap can be executed. Each activation of TERM in the Recipient Entity will check and message the user IF there are outstanding trades requiring synchronisation. IMPORTANT NOTE: All Settlement processes must be executed independently in their respective Entities i.e. Futures Settlement, Option Exercise and Abandonments.
11	Can Broker Limits be applied? Use CLI/Limits/ F&O Limits where can maintain a selection of limits. This data is used in EQUITY reporting for 'Margin Call Sheets'
12	F&O Tenders, Delivery Notices If tendering to/from the Market e.g. F&O Position is L5 +5 mar09 @ $400/PMT a) Need to square the position with broker @ market closing settlement price e.g. L5 -5 lots @ $410 and also create a Long 5 trade @ $410 with the special F&O code = TDR (this is a standard code used in ITAS reports which will enable the trade to be excluded from TOPEN/SETTS processes by filtering b) The F&O continues to be margined until physical delivery when the F&O (TDR) trade needs to be DELETED from the position, using TERM/amendment/delete c) The physicals warrants can be entered manually in TRADE e.g. Purchase of WHT sugar 250 tons with the relevant traffic/warehouse details. d) The Invoice(s) are received and will need to update the TRADE record(s) using standard ITAS procedures, so total eventually the 250 tons x $400 is represented by corresponding accounting entries i.e. inclusion of settlements and invoices. e) To facilitate the correct VM for these trades, ITAS needs the day price that the market either publishes or can be derived by specialist ITAS process (see help? on TCCM/Derive Tenders Prices from Spot)

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