To support automation, the system comes pre-populated with wide a range of identifiers, including:

• Cash will automatically be recognised by currency code identifiers, e.g. AUD, BRL, GBP etc. They will also be recognised in the format Cash-AUD
• Futures will be automatically recognised if you use the standard contract codes. Click here for an example.
• Forward FX which are booked on two legs will be automatically recognised where each leg is in the format FFXUSD, FFX-USD
• Spot FX which are booked on two legs will be automatically recognised where each leg is in the format SpotUSD, Spot-USD, for example
• CFDs, Single stock futures and single stock options will be automatically identifier where they are in the format of:
  – CFD-(Sedol) or CFD-(Isin)
  – Fut-(Sedol) or Future-(Isin)
  – Opt-(Sedol) or Opt-(Isin)
  – Depositary Receipts

Where possible, we use standard security identifiers in the application. This has the advantage that the security data for derivatives do not need to be set-up for new derivatives holdings as part of daily processes, because they are already set-up in FundWare as part of a standard process. It means that derivatives contracts can be easily captured within the system with maximum operational efficiency and with sufficient accuracy to ensure that they are treated correctly from a rules perspective.

This approach therefore removes a significant part of the current required daily operational process.

The advantages of using standard contracts includes:

• New clients can be easily on-boarded in the most efficient way
• Efficient daily operational processes
• Lower implementation and support cost
• Leading derivatives are already set-up with details of the underlyings, multipliers, exchanges, which are all standardise
• Index derivatives (which can be excluded for a number of the rules) are properly identified
• Standard contracts properly identified as exchange traded or OTC
• A standardised price upload file can be used for these
• Auto-classified for regulatory reporting including AIFMD sub-types set-up and FCA Derivative Use
• Latest Tickers for Statpro

It also makes it possible to fully leverage of the Centralised Data Management processes, including for daily prices for index derivatives etc – see here for Centralised Data Management – Overview.

• To support derivatives, a wide range of underlyings are already in the system
• For currency derivatives, use the currency code as the underlying, e.g. AUD, BRL, GBP etc
• For index futures, use the standard index underlying code
• For interest rate derivatives, specify the underlying in the following format, e.g. USD0003m, USD006M, or if you are unaware of the maturity, use USDInterestRates
• For inflation index indices, there are a range of common codes available
• For derivatives on leading Index CDS contracts, you can use the common identifiers for the CDS.

Asset Types and Asset Groups

The standard identifiers for contracts and for underlyings is coupled with the use of standardised asset types and groups for these instruments and auto-classification of underlying asset type etc. Also, for example, these holdings will already be mapped to AIFMD sub-type classifications etc.

All “standard contracts” can be seen via the Governance Report “Derivatives Standard Contracts” set-up.

The detail can also be seen against the holdings, for example by running the Rule 28 Derivative Exposure Report.