Exchange
The exchange corporate action can be used as a tool for recording exchanges, i.e. in situations where one security is exchanged into one or more other securities.
In addition to directly exchanging one security to another, the exchange corporate action supports dividing the purchase values of the original security to the new securities received in the exchange, as well as exchanging securities with different currencies. The exchange corporate action can be used for example for recording changes of security, spin-offs, redemption shares and convertible bonds. The exchange corporate action creates one transaction per open purchase lots for each new security added, calculates the amount for the transactions from the ratio and the position of the chosen security in the portfolio, and uses the percentage share of the original purchase value of the position as the trade amount of the created transaction.
The exchange corporate action can be recorded to the system through the Corporate action window with the following information (a star indicates a mandatory field):
- Removed security*
- Run based on*
- Exchange date*
- Exchange record date*
- Transaction type*
To the fields below, define the security / securities the removed security is exchanged to (add a new row for each new security you receive from the exchange). New securities can be added with the + button, and exchange information can be defined in the fields available per security added:
- New security*
- Exchange ratio*
- Fx rate*
- Share (%)*
Note
The exchange corporate action does not support changing a security to itself. If you need to exchange a security to itself, for example when recording a spin-off (a security spins off to itself and a new security), the removed security has to first be exchanged to a "temporary security" (create one to the system) and the temporary security can then be exchanged back to the original security with a new exchange corporate action.
A new corporate action is created with the OK button below the corporate action information. Remember to run the corporate action to your portfolio(s) in order to create appropriate transactions to your portfolios.
Exchange of funds with accrued interest
When you exchange fund securities that have accrued interest, paid accrual and accrued interest is transferred from the original position to the new position. This ensures that the position after the exchange includes previous position's accrual.
Exchange of funds with income distribution
To exchange funds with income distribution, select the Fund exchange realized accrual transaction type (FUNEXCH). The accrual of the original fund position is realized and the buyer gets the current market value accrual of the new fund position on the exchange date.
The accrual from the original position is sold and realized on the exchange date. You can view the accrual amount in the Removed accrual field of the exchange transaction.
The accrued income on the new position on the exchange date is included in the security's market price. You can view this accrual in the Accrual field of the exchange transaction.
The latest market value of the accrual on the new position is displayed in the Accrual column in the Overview.