The purpose of the “Standard Contracts” approach is to ensure that all futures 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.

For example, the client holdings file has today a new instrument called “Z M7”

The system will be set-up to already know that:

1. “Z M7” refers to the new FTSE 100 Index Future
2. That its multiplier is 10
3. That the underlying is the FTSE 100 – and to bring in FTSE 100 prices
4. That its exchange UK LIFFE
5. That it is an equity index future and hence can be excluded from some of the diversification rules
6. That the underlying asset class is Equity