TRADESNEW

To post transactions, or trades, to an account use the TRADESNEW function.

1. At the APL Expert WHICH FUNCTION:? prompt, enter TRADESNEW and press Enter. The following screen displays

   WHICH FUNCTION: ? TRADESNEW

   DO YOU WANT THE SCREEN VERSION ?

• Type Y, and a full-screen user interface displays

• Type N, and the line editor is started, enabling users to enter the trade data on a line-by-line basis

  Below is the line editor interface. Enter N. The following screen displays.

  

2. Enter 0. The line editor prompt displays

   

3. Enter the appropriate data for each trade. Each data item is separated by a single space, with the trade completed by ending the line (pressing Enter.)

   Note: Enter incorrect information, and an error messages will appear when saving the batch.

   The following table describes each data item

   Field/Column	What to enter
   OPE CLO DEL	OPE – the trade is a “buy” or opening of a position CLO – the trade is a “sell” or closing of a position DEL – the trade is a deletion of a posted transaction. If the batch still exists, use DELBATCH to delete trades
   UNITS	Number of shares (or units for bonds). For bonds, type 100m for 100,000. For money market funds (where ISSTY=1) type 0 For options, type 100 times the number of contracts (5 calls = 500 units) To trade mortgage-backed securities by original face, use an F in front of the units. The system calculates current face using the factor (FACT) and post that as well as original face For Options, the quantity entered should be the number of contacts times the price multiplier. The price multiplier is typically, but not always, 100. For mini-options, the price multiplier is typically 10. The price multiplier is in the PRMULT field of the security master For short transactions, use negative amounts OPE with negative units for a short sale CLO with negative units to cover the trade
   TICKER CUSIP SACUS	TICKER – ticker symbol. Refer to guides for NYSE, AMEX, NASDAQ, etc. for the symbol CUSIP – CUSIP number. Refer to the confirmation slip or a CUSIP book for the CUSIP number SACUS – SACUS number. Refer to the APL security database
   Y/YTM P/PPS L/PPS AMOUNT	Y/YTM – yield to maturity for a bond. The price is calculated automatically. Example: Y3.256 P/PPS – price per share. Example: P110.125

• L/PPS – local price per share. Example: L110.5

• Net prices are entered without a prefix. Example: 11500 or 11500.00

  Field/Column	What to enter
  SNAM ACNUM DTCNO	SNAM – Account short name ACNUM – Account number DTCNO – DTC number
  DATE	Trade date. Permitted formats and examples: YYYYMMDD - 20010521 MM/DD/YY - 05/21/01 MM/DD (current year is implied) - 05/21
  REFER NUMBER	Type 0.This is filled in by the system
  Z/0 B/CPB L/LPS N/NPS C/CPS COMISS	Broker’s commission. There are six ways to enter commissions: Z/0 – True zero commissions B/CPB – Bond commission amount L/LPS – Local price per share for foreign securities N/NPS – Net cents per share (N.1250) Use this for bonds or OTC trades when the commission is built into the price of the trade but have the system display the amount on a commission report. Enter commissions this way, the system does not calculate in TRADESNEW to the net amount of the trade C/CPS – cents per share (C.20) Total amount of commission (125.00)
  BROKER	Enter the broker code as entered in EDRRNM or the broker table.

4. After all transactions have been entered, type the trailer line and press Enter. The trailer line summarizes the number of open, closed, or deleted transactions in the batch. The format for this command is:

   TRL [#OPEN] [#CLOSED] [#DELETED]

   Where,

   • [#OPEN] is the number of positions opened (buys)
   • [#CLOSED] is the number of positions closed (sells)
   • [#DELETED] is the number of transactions deleted

   Example: if you entered three purchases, two sells, and no deletes, the trailer line would be entered as TRL 3 2 0 .

   Note: This information is required. Otherwise, users cannot exit this function.

5. Type [Q and press Enter. The data is lined under the appropriate headings

6. Type [Q again and press Enter. The following message will appear:

   REMEMBER THAT WAS BATCH nn. WOULD YOU LIKE TO POST THIS BATCH NOW?

   Where, nn is the batch number. The batch numbers typically range from 1 to 150.

7. When ready to post the batch, enter YES; otherwise, enter NO. Post the batch at another time using the function POSTNEW

   Be sure to write down the batch number, to reference the batch in other functions. Use VIEWBATCH or BATCHLIST to review not posted trades batches.

   The following three screens display a TRADESNEW scenario.

   

   

   

Understanding error messages when posting transactions

If any of the data entered in a trades batch is incorrect, the system displays an error message. Asterisk marks (***) appear over the field that you entered incorrectly to help you evaluate the batch. For example, if the broker code or the price per share is incorrect, the system enables users to overwrite the error message and post the batch anyway. Add the broker code later. However, before overwriting the error message, ensure the information is correct.

Trades in batches that have problems

Enter a bad SNAM or security identifier, and the system does not post the batch. Asterisk marks (***) appear over the bad data.

• Answer YES to the REVIEW DIAGNOSTICS AGAIN? prompt, and the message will appear on the screen again. Nothing happens

• Answer NO, and the following prompt will appear:

  Would You Like to Make Corrections to Batch 54 Now ?

Correct the bad data before posting the batch. Answer YES to correct bad data and post batch. Answer NO, a trades batch is created but the transactions are not posted.

“OVER SELLING SACUS” and “NOTHING TO SELL” errors

Watch for overselling and nothing to sell messages to prevent selling more shares of a security than owned (which could mean a transaction has been missed) or to sell an unowned security.

OVER SELLING SACUS means attempting to sell more shares of a security than owned. If this happens, the system records no sale at all.

Nothing to Sell mean attempting to sell a security that is not recognized in the security databases or that is not owned in the account.

The system displays the TICK and SACUS of every security in the batch. This helps identify which security transactions contain errors.

Files are created with the transactions (BATxxx.PST) and with the errors (ERRxxx.PST). If there are errors in a trades batch, a notification is sent via email. If you would like this feature, contact your Account Consultant.

Previously posted batches

Attempt to post a batch that has already been posted, and the following message will appear:

A batch should never be posted twice. To delete a posted batch, use the DELBATCH function. See Deleting trades after posting by using DELBATCH.

Repeating field values

If entering numerous trades, many fields, such as the date field, may be the same for every trade. To save time in typing, there are features provided to lock-in or repeat values in specified fields.

Using the quote symbol

Entered one complete line of data, and use the quote symbol ( " ) to carry down the value in one field to the next line of data input. This is done by entering the data for the next transaction, replacing repeated values with the quote symbol. Each quote symbol is separated by a single space.

Example: Using the quote symbol

The following example shows how to use the quote symbol to repeat data from the previous line:

When the [Q command is entered to quit the line editor, and [P is entered to picture the data, the following results are shown for lines 1 and 2:

The system automatically enters the value from the field in the previous line.

Using the exclamation point

Field values can also be locked when entering the initial trade by using the exclamation point (!). Type ! in front of each value you want to carry to the next line.

Locked values remain locked for each subsequent line. To release the lock, type [Q and press Enter.

Example: Using the exclamation point

In the following example, all data items except the TICK symbol is locked in the first TRADESNEW transaction. This enables users to enter just the TICK symbol for subsequent transactions, as shown below:

The system automatically carries the value in that field on the next record. To release the lock, type [Q and press Enter. The result is shown below.

Repeating descriptions in multiple TRADESNEW transactions

The \LOCKDES command enables users to repeat the DES line for multiple TRADESNEW transactions. Use the following steps:

1. Enter the trades, but omit the DES line after each one
2. After entering the trades, type [Q and press Enter

3. Type \LOCKDES and press Enter. The following prompt will appear:

   FROM LINE:

4. Type the line number of the first trade the system should apply the description to and press Enter. The following prompt will appear:

   TO LINE:

5. Type the line number after the last trade the system should apply the description to, and press Enter. The following prompt will appear:

   DES LINE

6. Type DES and description, separated by a single space, and press Enter. For example, type DES SD2/28/86. The system inserts the DES line after each trade line that you indicated above

Units used with securities transactions

The following table indicates the type of units to use in TRADESNEW for different types of securities.

Security Type	What to Enter
stocks	Input the number of shares in the units field.
mutual funds	Treat these like shares of stock.
Bonds	The number must be equal to 1/100 of the par value. For example, if the par value were $50,000, enter 500 in the units field. Use the letter "M" to abbreviate to represent $1000 of par value. For example, of the par value were $75,000 you could enter 75M.
short-term credit	This includes commercial paper and certificates of deposit. Treat these monetary instruments like bonds.
Options	The units must be 100 times the number of options. For mini options, enter 10 times the number of options.  For example, to represent five options, type 500 in the units column. To represent 5 mini-options, type 50 in the units column.
Cash	Input 0 in the units fields for cash (ISSTY 1 only).
Futures	Enter the number of contracts. Use L for the price of the future.

Short sales

Note: Enter short sales in TRADESNEW as negative units (preceded by the “-” sign), and the trade type as OPE.

Entering Option Transactions

Posting an Option Trade

In TRADESNEW, enter a closed, buying position, or an open selling position, it’s sometimes not clear whether the number of securities is positive or negative. The following chart shows the correct sign to use:

Position	Buy / Sell	Enter as
Open	Buy	+
	Sell	-
Close	Buy	+
	Sell	-

Posting Options Regulatory Fees

An Options Regulatory Fee (ORF) is a fee imposed on options trades by the options exchanges and collected by the Options Clearing Corporation (OCC). This fee can be passed on to the investor clients as a transaction cost.

The fee amount is added the cost or deducted from the proceeds of the options trade.

Options Regulatory Fees can be applied during the TRADESNEW posting process in two ways;

• Fees can be systematically calculated and applied to all option trades posted by TRADESNEW for predefined accounts at a predefined rate

  This feature is available upon request and requires Fiserv configuration.

  • Use the EDORF editor to manage systematic ORF rate and accounts to:
    • Define the ORF rate in the Edit Rate table
    • Define account groups to automatically apply fees to option trades in the Edit Account table. Rounding method and precision can be defined per account groups
    • Track historical changes to the EDORF tables using AUDITTRAIL
• The fee amount can be entered as a description line (DES) of a TRADESNEW option transaction. See the Entering Special Trades section in this chapter for details

Systematically Applied Options Regulatory Fees

If enabled, fees are systematically applied when:

• A buy or sell transaction is posted using TRADESNEW for an option (issue types 3, 51 or 52)

• The account is part of an account group defined in the EDORF Edit Account table

• Price per share is used in the amount (P/PPS) field of the trade line

• There is no ORF description line included

• The trade date is within the date range defined in the Edit Rates table and has a valid rate

For example:

Calculation: ORF = Fee Rate * # of contracts

• Fee Rate = $0.0417 per contract

• # of contract traded = 24

• ORF = 24 *0.04 = $1.0008. The amount is rounded as defined in the EDORF Edit Account table. Rounding may be different for different accounts

• If an account is included in more than one account group in the Edit Accounts table, the first one listed is used for rounding rules

• The calculated ORF is added to the cost (COST) for buy/open trades and deducted from the proceeds (PROC) for sell/close trades

Manage ORF Parameters Using EDORF

To manage ORF parameters used for the systematic application of fees follow these steps.

1. From the Which Function prompt, enter EDORF

2. The EDORF menu is displayed. Select an option

   Edit    which   Option   Regulatory   Fe  e table                

           ESC to exit              

     ªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªªª

      Edit Rates                               

       Edit Accounts      

Edit Rates

Edit or add fee rates and start dates.

Field	Rules/Definition
Fee, $ per contract	Fee per contract defined in dollars with up to 6 decimals.
Start Date	Date when the rate becomes effective. Rate is applied until the start date for the next rate. Rates are sorted in chronological order.

Edit Accounts

The Edit Accounts table provides the ability to:

• Add and edit account groups
• Define rounding precision in decimals for each account group
• Define rounding methods for each account group

Note: If an account is in more than one account group, the first group listed is used.

Field	Rules/Definition
Account Selection	Define an account group by using standard EDAC fields with AND/OR operators. One group per line.
Decimals	Enter a number 0 through 9. The default is 2.
Rounding Method	Select Nearest, Up, or Down

Historical Changes to EDORF Tables

When the Rates or Accounts tables are edited, information about the change is stored. Changes can be viewed by using the AUDITTRAIL function and selecting the Options Regulatory Fee (ORF) Table.

Entering price per share

In TRADESNEW, enter the price as P/PPS, the system stores the gross amount of the trade in the RCOST field in EDPORT (for opens) or in the DPROC field (for closes).

Enter the price as P/PPS, the system calculates the net amount, using the following formula:

(Price per share X units) +/- (commission) - (SEC FEE on sales only)

Any coded ticket charges in EDRRNM, the system adds these charges to the net.

Entering special trades

To enter special trades in TRADESNEW, type extra commands on the line following the trade line. The following subsections explain the commands necessary for various types of special trades.

Versus purchases (tax lot)

To sell against a particular tax lot, conduct a versus purchase. This trade automatically overrides any sell code entered for that account, and sell out the lot that was purchased on the specified date. For example, if on May 21, 2010 the user wanted to close out a lot of IBM common stock purchased on April 12, 2007, you would type the following:

Special settlement dates

To get the system to record a date other than the regular-way settlement date, specify a special settlement date for a trade. For example, to calculate interest calculated May 21 on a trade purchased on May 17, you would type the following:

The default settlement period is two business days for stocks, corporate bonds, agency bonds, and municipals. Treasury notes, bonds, bills, and options settle the next day.

Accrued interest

To post a special accrued interest amount to the cash ledger, enter the accrued interest amount as follows. Otherwise, the system calculates the accrued interest.

In this example, the system posts 1005.34 to the general ledger instead of the amount that it would normally calculate.

Note: For bonds with dated dates, insert this date in the appropriate place in EDSEC. See Making changes one at a time using EDSEC.

Showing delivery of a gift

If an account gives away a position, do not record the transaction as an ordinary trade, which would add cash to the ledger. Therefore, enter the delivery of the gift as a special trade. For example, to show that an account is giving away 500 shares of IBM on May 18, type the following:

Showing receipt of a gift

If an account receives a position as a gift, don't have the system to take cash from the ledger. Therefore, enter the gift as a special trade. For example, to show that an account is receiving 100 shares of IBM worth $12,500 on April 17, 2010, and that these shares were originally purchased on March 4, 2007, type the following:

Use the original date and cost on the OPE line and the receive date (RD) and receive value (RV) on the DES line. This ensures a correct posting to the performance file.

Unsupervised asset trades

To purchase or sell an unsupervised asset, post “UNSUPR” to the EXCLD field on the second level of EDPORT. The cash balance is not affected by an unsupervised trade.

If the DES line is the same for several transactions, save data entry time by instructing the system to automatically attach the same DES line to the transactions. See Repeating field values for information on the \LOCKDES function.

Trading discretion

To identify a trade as discretionary, unsolicited, or solicited, use DISCRT= on the description line. This code must be followed by one of the following flags:

Flag	Description
D	Discretionary
U	non-discretionary, unsolicited
S	non-discretionary, solicited
I	standing instructions

Here’s an example:

This code is stored in the third character of the COMFLG field in EDPORT for purchases and in the fourth character of the COMFLG field for sells.

Options Regulatory Fees

An Options Regulatory Fee (ORF) is a fee on option trades imposed by the options exchanges and collected by the Options Clearing Corporation (OCC). This fee can be passed on to the investor clients as a transaction cost.

To apply an Options Regulatory Fee (ORF) to an option trade:

• Price per share must be entered in the amount (P/PPS) field of the trade line
• Include the following description line:

DES ORF<ORF $ amount>

When posted, the fee is added to the cost for buys/opens or deducted from proceeds for sells/closes.

In the following example, a fee of $1.20 will be added to the cost for this trade.

Note: For details about systematically posting ORFs, see the Posting Options Regulatory Fees section within this chapter.

Selling fractional shares

Selling fractional shares by using the TRADESNEW function is not recommended. Instead, use the SELLFRAC function, which is designed for this purpose.

1. At the WHICH FUNCTION:? prompt, type SELLFRAC and press Enter. The following will appear:

   SELL OFF FRACTIONAL SHARES THAT SUM UP TO 1 SHARE?

2. To sell off fractional shares of multiple positions of one security that sum up to one whole share, type YES and press Enter. Otherwise, type NO and press Enter. The following prompt will appear:

   X-REF FOR WHICH SECURITY (ENTER SACUS, TICK, CUSIP):

3. Enter in the SACUS, TICK, or CUSIP of the security for which fractions should be sold, and press Enter. The following will appear:

   AS OF DATE - HIT ENTER FOR CURPRDATE :

4. Enter the date by which accounts should hold the security to be entitled to fractional shares being sold, and press Enter

   Note: The preferred date format is yymmdd. For example, if the starting date is September 5, 2010, you would type it as 20100905.

   The following will appear:

   SEARCH FOR WHAT?

5. Enter in the account selection, and press Enter. The following will appear:

   ENTER PRICE:

6. Enter the price of the security, and press Enter. The following will appear:

   ENTER SELL DATE:

7. Enter the sell date for the fractional shares, and press Enter. A trades batch is created with the fractional positions to be sold

8. To save the data and exit the function, type [Q, and press Enter. The following prompt will appear:

   WOULD YOU LIKE TO POST THIS BATCH NOW?

9. If the transactions are correct, answer YES. If the transactions are not correct or if further research needs to be done, answer NO. Edit and post the batch after making corrections or at a later time

Looking up prices

The system can also calculate the deliver and receive values for any priced security. The following sections show how this is done.

Looking up deliver values

Use **LOOKUPDLV to look up security prices on deliver transactions. Use the following steps:

1. From TRADESNEW, type in the deliver value in the price field as shown below

   CLO   100  C  PPRJUL   EXPERT   20100731  0  0  0

   DES   DLV

   “PPRJUL” means use a price per share equal to PRJUL (07/31/ xxxx). Be sure to include both P's–the first “P” indicates the value basis is price per share.

2. Type [Q as if quitting the batch, but only once. The desired effect is to line everything up, but remain in the batch

3. Type **LOOKUPDLV and press Enter. Then, look at the batch again. It should now display the value of the security on July 31:

   CLO   100  C  P48.5   SNAM 2 0100631  0  0  0

   DES   DLV

   Finish the rest of the entries in the batch, add a trailer line, and post as usual. **LOOKUPDLV can do the lookup for multiple batches at the same time.

Looking up receive values

For free receives, use **LOOKUPRVAI to calculate the receive value with accruals for any priced security. This function works the same way as **LOOKUPDLV.

1. The first line contains the original purchase date. For the description line, use RD followed by the receive date. For the value on the date the position was received, use RV followed by the historical price. For month end pricing, use a PRXXX price the price field as shown below

   OPE  100  C  10000  EXPERT  20100708   0  0  0  0

   DES   RD20100731  RVPRJUL

   The PRJUL means use a receive value equal to 07/31/xxxx.

2. Type [Q, but only once

   The desired effect is to line everything up, but remain in the batch.

3. Type **LOOKUPRVAI and press Enter

   Look at the batch again. It displays the value of the security on 07/ 31/xxxx:

   OPE  100  C P59.18  SNAM   20100615  0  0  0

   DES   RD20100731   RV5918.75

   To exclude accruals from the receive value, use **LOOKUPRV instead of **LOOKUPRVAI.