euro implementation

7/24/2019 Euro Implementation

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Table of Contents

Document History..................................................................................................................... 3

Executive Summary..................................................................................................................4

Support..................................................................................................................................... 4

Application Overview - Existing Functionality............................................................................ 5

Account onversion.............................................................................................................. 5

onversion o! ontracts" Deals an# relate# in!ormation.......................................................5

Setting up t$e System...............................................................................................................%

Assumptions.......................................................................................................................... %

Fixing t$e onverting urrency against t$e Euro..................................................................&

De!ining 'ase urrency onversion.....................................................................................&

Account onversion.............................................................................................................. ()ulti-company..................................................................................................................... **

+mplementing Euro onversions !or ,4 )o#ules..................................................................*

+mplications an# +mpact on ot$er mo#ules..........................................................................*

Future proo!ing.................................................................................................................... *

Account onversion............................................................................................................*3

onversion o! ot$er #ata - onsi#erations..........................................................................*5

,esting onsi#erations............................................................................................................*&

)inimum coverage o! testing...............................................................................................*&

,esting !or #i!!erent scenarios..............................................................................................*&

)ulti-'oo........................................................................................................................... *&

/on-stop.............................................................................................................................. *&

)anual A#0ustments............................................................................................................*&

'acup 1roce#ures.............................................................................................................*&

Alex Leggett| T24 Development


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Document History

Aut$or 2ersion Date

Alex eggett *. &*&

omments6

7A## any comments $ere8



4/18

Executive Summary

,$e E9:O mo#ule is #esigne# to allow conversion !rom a /ational urrency 9nit to t$e Euro.

+t can also ;e use# to re-#enominate currencies to a new /9.,$e usual re against t$e Euro" i.e. !rom aset #ate" t$e exc$ange rate o! t$at currency against t$e Euro is !ixe# in place an# t$ere!oret$e /9 ;ecomes in essence anot$er way o! expressing t$e Euro. ,$e /9 is t$en sai# to;e in t$e =transition p$ase>. At t$e en# o! t$is p$ase" t$e /9 e!!ectively ceases to exist.,$ere!ore" conversions o! accounts an# contracts ?w$ere amounts are $el# in t$e converting/9@ s$oul# occur wit$in t$is transition p$ase.

+t is" o! course" wort$ noting t$at t$is will not only a!!ect companies w$ere t$e ;ase currency is;eing converte#" ;ut also any company w$ere any customer $as accounts in t$e convertingcurrency or contracts w$ere any aspect o! t$ose contracts ?e.g. re!erence currency" #eliverycurrency" tra#ing currency etc@ is expresse# in t$e converting currency.

,$is #ocument covers t$e ;asic setup re


5/18

Application Overview - Existing Functionality

+t is wort$ noting t$at account conversion can ;e exten#e# to cover ot$er applications an#

mo#ules ;eyon# t$ose currently speci!ie#. However" t$e existing E9 in!rastructure onlycovers speci!ic #eals to ;e converte#" an# !or some mo#ules" t$is is online via versions" an#!or ot$er mo#ules" #uring t$e O'. ,$e type o! #eal will #ictate t$e approac$ taen w$enimplementing new solutions. ,$e !ollowing two sections ;rie!ly summarise t$e E9conversions in place at t$e time o! pro#uction o! t$is #ocument.

Account Conversion

Accounts can ;e speci!ie# !or conversion wit$inAC.CCY.CONVERSION. ,$is can ;e #onein#ivi#ually ;y creating recor#s #irectly wit$in t$e application" or as a ;ul process viaEU.CCY.CONVERSION. ,$e conversion o! accounts occurs wit$in t$e O' an# renum;erst$e account !or t$e converting currency" creating a new Euro account wit$ t$e same num;er

as t$e ol# account" an# converting t$e amount $el# in t$e ol# account to a new Euro amount.

,$us" !or example" account *345" w$ic$ $el# an amount in t$e ol# currency" $ol#s t$ee


6/18

,$e Euro manual provi#es #etails on $ow conversion is to ;e per!orme# wit$in t$ese ot$ermo#ules.



7/18

Setting up t"e System

,$is section #escri;es t$e c$anges to t$e system re


8/18

Fixing t"e Converting Currency against t"e Euro

,$e converting currency must ;e !ixe# against t$e Euro wit$in t$e CURRENCYapplication.

Figure 1 - settig t!e e"#ir$ %&te '(r t!e )(*ertig )urre)$

Once set up correctly t$e converting currencies will ;e viewa;le in EU.FI+ED.CURRENCY.

De#ning $ase Currency Conversion

+! t$e currency ;eing converte# is also t$e system ;ase currency" t$is s$oul# ;e set up in t$eEU.PARAMETERrecor# !or eac$ company t$at $as t$at ;ase currency.

Figure - )re&tig t!e EU.PARAMETER re)(r%



9/18

/ote t$at t$e categories an# transaction co#e re!erre# to in t$e previous section will nee# to;e #eclare# $ere.

A##itionally" t$e LCCY.CONV.REC !iel# wit$in EU.PARAMETERnee#s to ;e complete# as

s$own ;elow6

Figure - )(#/etig t!e EU.PARAMETER re)(r%

,$e run #ate s$oul# ;e set !or t$e a# $oc 0o;s in t$e !ollowing 0ATCrecor#s ?w$ere ist$e !inancial mnemonic !or t$e company in w$ic$ t$e ;ase currency is ;eing converte#@. 6

+++2EU.0ASE.CONV.CR0.RECALC

+++2EU.0ASE.CONV.REPORTING

+++2EU.0ASE.CONV.REPORTS

+++2EU.0ASE.VERIFY

+++2EU.0ATC.INTERRUPT

+++2EU.PL.REALISED.REPORT

+++2EU.POST.0ASE.CONVERT

+++2EU.PRE.0ASE.CONVERT +++2EU.RUN.0ASE.CONVERT



10/18

Account Conversion

onversion o! accounts is per!orme# #uring t$e O'. ,$is may ;e eit$er a!ter t$e EODprocesses" 0ust ;e!ore t$e reports processing" or at t$e ;eginning o! t$e SOD processing.,$e #i!!erence in t$ese two approac$es is in terms o! reporting" an# t$e approac$ taen will#epen# on t$e strategy !or conversion #ates a#opte# ;y t$e 'an.

+! converting #uring Start o! Day processing" t$e contracts s$oul# all ;e converte# on t$e;usiness #ay !ollowing t$at O' run ?i.e. a!ter t$e SOD t$at contains t$e conversion@.,$ere!ore t$e accounts an# contracts are all s$own on t$e previous ;alance s$eet as un#ert$e ol# currency an# on t$e next ;alance s$eet as un#er t$e new currency.

+! converte# #uring En# o! Day processing" t$e contracts can ;e converte# on any ;usiness#ay?s@ !ollowing t$e account conversion. ,$ere!ore t$e accounts an# contracts are all s$ownon t$e previous ;alance s$eet as un#er t$e ol# currency" an# on su;se


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,$e accounts are speci!ie# !or conversion wit$inAC.CCY.CONVERSIONeit$er

in#ivi#ually ?;y creating recor#s #irectly wit$in t$e application@" or as a ;ul process viaEU.CCY.CONVERSION.

Figure 8 - 4u/9 &))(ut )(*ersi(



12/18

%ulti-company

+! operating in a multi-company environment" t$e +/,E:O.1A:A)E,E: !ile will nee# topoint to ;ot$ t$e current range o! accounts an# t$e new range o! renum;ere# accounts o! t$eol# converte# currency. For example i! converting in company E9** in t$e example;elow" t$e accounts starting wit$ =3> are converte# to Euro an# renum;ere# accounts startingwit$ =(> provi#e# in eac$ case in t$e converte# currency.

Figure : - %e'iig t!e e7 r&ge (' reu4ere% &))(uts

,$e accounts t$us selecte# will t$en ;e converte# automatically #uring t$e next O' run ?aten# o! #ay or start o! #ay as previously set@.



13/18

&mplementing Euro Conversions for T'(%o!ules

,$is section covers t$e issues to ;e consi#ere# w$en #esigning Euro conversions !orapplications or w$ole mo#ules wit$in T24.

&mplications an! &mpact on ot"er mo!ules

+nitial consi#eration will nee# to ;e given to inter!aces wit$ ot$er mo#ules6

Has t$e Euro alrea#y ;een implemente# in t$e ot$er mo#uleB

Are t$ere s$are# !iles ;etween t$e mo#ulesB Do any o! t$e propose# c$anges come

un#er t$e scope o! t$e ot$er mo#uleB

an Euro conversion ;e run in#epen#ently wit$in t$is mo#uleB

S$oul# t$is mo#ule ;e converte# ;e!ore" a!ter or at t$e same time as t$e ot$erB

$at impact will t$e conversion ;eing planne# !or t$is mo#ule $ave on t$e ot$erB

$ile looing at t$is ot$er mo#ule" are t$ere similar ;usiness cases wit$in t$is mo#ule t$at

suggest similar approac$es to E9 conversionB

Future proo#ng

+t will also ;e wort$ consi#ering w$et$er !uture planne# #evelopments wit$in t$e mo#ule willnee# conversion C i.e. will any planne# wor inclu#e re!erences to accounts or currenciesB

learly" it will ;e wort$ ;earing in min# impact on E9 conversion w$enever #esigning any newc$anges to t$e mo#ule.



14/18

Account Conversion

onversion o! accounts is t$e re/&ti*e/$easy part o! t$e w$ole #esign process. Essentially"t$e system is provi#e# wit$ a list o! applications" against w$ic$ are given all !iel# names$ol#ing account num;ers. ,$e E9 in!rastructure will t$en convert accounts an# process allrecor#s in eac$ !ile c$anging any account num;ers re


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Figure < De'iig t!e ACCOUNT 'ie/%s t( 4e )(*erte%

Figure = A%%ig t!e #/i)&ti( t( EU.CONVERSION.PROCESS



16/18

Conversion of ot"er !ata - Consi!erations

IMPORTANT NOTE: O/$ t!e EU A))(ut )(*ersi( )& 4e e"te%e% t( )(*er e7#/i)&ti(s.

>!i/e it &$ #e&r t!&t t!is 'u)ti(&/it$ ig!t )(*er %e'iiti( (' (t!er)(*ersi(s 4esi%es A))(ut )(*ersi(, t!e rest (' t!e 'u)ti(&/it$)&(t 4e e"te%e% t( )(*er (t!er (%u/es 6ust 4$ )re&tig t!e re)(r%s.C(*ersi( (' %&t& (t!er t!& &))(ut u4ers must4e #er'(re%#r(gr&&ti)&//$, eit!er %urig CO0 (r (/ie ?t!is is usu&//$ #er'(re%*i& #r(#ri&te VERSION re)(r%s 7it! &tt&)!e% r(uties@.

Firstly" consi#eration will nee# to ;e given to t$e ;usiness cases w$ic$ will apply w$en an i-)urre)$?currency converting to E9:@ or re-#enominating currency is converte#. +t may ;et$at some o! t$e #eals or positions cannot ;e automatically converte# ;y t$eir nature an# will$ave to ;e manually mature#" close#" sol# or ;oug$t out" expire#" exercise# etc. Similarly"stan#ing #ata suc$ as instrument #e!initions may nee# to ;e set as untra#a;le a!ter a speci!ic#ate an# new instruments create# in t$eir stea#. Suc$ actions may nee# to ;e #onemanually !or vali# ;usiness reasons" an# t$ere!ore not re


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Single vs. )ultiple ustomers

Some #eals concern a single customerI ot$ers concern multiple customers" eit$er ascounterparties to eac$ ot$er or as partners in t$e same position;ene!iciaries. ,$is maya!!ect #esign o! t$e conversion processing.

Online vs. O!!line

Some o! t$e conversions on t$e system may nee# to ;e transparent to t$e user" !orexample" !iel#s $ol#ing t$e local currency. ,$ese are ;est converte# o!!line #uring O'processing. A##itionally" some #eals may ;e more e!!iciently converte# o!!line #uring t$eO'" even i! as a =;ac-stop> in case t$e processing $as not ;een complete# online ;y t$econversion #ate.

Ot$er conversions" #ue to t$eir complexity may nee# to ;e #one online using versions or

via en


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Testing Consi!erations

%inimum coverage of testing

,est plans must cover at t$e very least t$e conversion o! existing #eals" ;ot$ via online an#o!!line processing ?as applica;le@.

A##itionally" special care must ;e given to circumstances surroun#ing t$e nature o! t$e #eals"!or instance" cases w$ere t$e #eal may nee# to remain in place until a!ter t$e conversion.,esting s$oul# cover !inal maturity o! t$e #eal as well.

,$e test plan must naturally also cover t$e accounting expecte# on conversion o! #eals an#accounts as well as ;locing o! !uture #ealsconversion o! static #ata as appropriate.

Testing for !i)erent scenarios)ultiple scenarios will occur in t$e usage o! ,4 Euro conversion in ;ans across t$e worl#"an# t$ere!ore t$is must ;e taen into account in t$e test plan. onsi#eration s$oul# ;e givento t$e !ollowing !actors6

,iming o! account conversion relative to #eal conversion

onversion o! more t$an one in-currency

Di!!erent conversion #ates !or #i!!erent exc$anges

%ulti-$oo*

+s t$ere a s$are# customer !ileB $at ot$er !iles are s$are#" an# #oes t$is a!!ect t$econversionB

+on-stop

+! t$e /on-Stop pro#uct is installe#" $ow #oes t$e mo#ule $an#le #ealinstrument #e!initioninput C ;e!ore" #uring an# a!ter account conversion" ;ase currency conversion an#or #ealconversionB

%anual A!,ustmentsHow are a#0ustments to t$e !igures to ;e ma#e post-conversion" in t$e case o! roun#ingerrors etcB

$ac*up roce!ures

,est plan s$oul# inclu#e strategy !or account ;acups e.g. ;e!ore running conversion" at;atc$-$alt etc.

euro implementation

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