SPOS - Commodity Position Reports
What is SPOS
SPOS is a trade position reporting procedure, includes Physicals, F&O and EU licences.
F&O trade records to be included must be assigned to CLI accounts that are nominated as ‘House’ type, this enables exclusion of 3rd party trading.
Physicals TRADEs are excluded by the relevant tick boxes e.g. 3rd Party/Consignment, Brokerage. If their commodity code is setup (PHYSCODES) with ‘Excl Position’ ticked, those trades will be excluded from reporting. SPOS can view from a choice of the latest SDAY secured dataset, the current data or any of the frozen month-end datasets. SPOS organizes the reporting mainly based on the DEPT coding of the TRADE, TERM and LICS records. The DEPT static list provides grouping for ‘Region’ and ‘Category’ and these are used extensively for data retrieval and presentation. The SDAY procedure can be used to maintain ‘adjustments’ to the various company positions. These adjustments can be included in the company totals summary, not when DEPT level selected and only when viewing the SDAY dataset and when the Drive-By is Valuation Period. There is a Drive-By selection that allows for the columns to represent the trading periods as being either the TRADE Valuation Period (unless absolute valuation then period = SPOT) or the TRADE Position Period.
There are 3 main reporting styles:
Level 1 – summary position, reports a section for each Category with a line for RAW and WHT (mouse right click ‘show detail’ drills-down to level 2 report)
Level 2 – detail position, reports a section for each Category with the RAW and WHT positions shown with their many analysis of Physicals and F&O (allows drill-down to view the underlying values)
Level 3 – origin position, reports a section per RAW/WHT, Country of Origin/Commodity where the explicit list of Origins selected will be processed to produce a section for each origin and the rest will be shown under ‘Other Origin’ (allows drill-down to view the underlying values/contracts/F&O)
There are several reporting include/exclude selections, most of which are easily understood i.e. ‘Include Brokerage Contracts’, however the ‘Include sales invoiced tonnage’ needs explanation. If tonnages are to excluded because they are Sales Invoiced, apply the quantity percentage factor (viewed in TRADE/Invoice marking) to remove the applicable tonnage, however if either the sale or purchase of an allocated pair is NOT fully priced, both the sale and purchase are treated as being not invoiced i.e. show their gross position.
There is a feature to select the target weight units.
If the selection is not ‘Real Lots’ the results calculated by SPOS will use the TRADE weight and F&O lots converted directly using the PHYSCODES weight factor.
If the target is ‘Real Lots’, SPOS will use the real Futures lots and will convert TRADE weight to real lots by applying these rules. If the weight is priced, the TRADE commodity will be used to locate the underlying TCCM code (PHYSCODES/Commodity/Default F&O code) and will use that factor to create real lots e.g. TRADE of 500 Mt of WHT EEC2, which relates to TCCM code ‘L5’ which is a 50mt lot factor so real lots are 500/50=10. If the weight is price-to-be-fixed, the factor to be used will be the TRADE fixation market with the TRADE weight converted using that TCCM factor e.g. TRADE of 1000mt, fix market=NY11 (factor = 50.8) so real lots are 1000/50.8=19.685 Note SPOS will round the lots for presentation and totals.
The results from SPOS with the many different criteria being applied can be difficult to ‘prove’. The drill-down on the TRADE cells lists a lot of data which is complemented with a commentary at the far right of the report. The Commentary is a series of codes, their explanation is listed below:-
a)‘*’ indicates that the Fixing market for the contract is inconsistent with the Commodity group
b)‘#’ indicates Unassigned AB Sugar contract
What determines the section, e.g. WHT, RAW, where a position is placed is primarily the TRADE group code that is maintained using the PHYSCODES/commodity. This is a hidden field in TRADE. The pricing-to-come will usually be in it’s section according to the maintenance of the TCCM code, however there is a feature/option to view the price-to-come in its commodity group section.