Forward Contracts mimic the cashflow of the underlying instruments. Therefore KODIAK Derivatives needs to generate the correct cashflows for all forward contracts. For contracts with underlying bonds, the system needs to generate and attach all interest payments to the correct forward contracts. For contracts with underlying shares, the system needs to generate and attach all dividend payments to the correct forward contracts.
Interest Payments
The Interest payment schedule for bonds is calculated by Kóði based on information published by the NOMXI Stock Exchange. Kóði also calculates the size of each payment (principal + interests + index adjustment). The KODIAK Derivatives system uses these calculations to attach those interest payments to each bond forward contract.
Dividend Payments
According to the Icelandic Security Depository: Ex-dividend date is the day on which all shares bought and sold no longer come attached with the right to be paid the most recently declared dividend.
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