Create a New Contract

Overview

New forward contracts are created by selecting a transaction from the Transactions Grid in the Main Window. Preferably transactions are created from actual trades on the market for a hedged portfolio using the KODIAK Oms Workflow. A trader will first have to buy or sell the underlying asset on the market or over the counter for the same trade amount as the forward contract will be. For an unhedged contract, transactions can be created manually, see Create a New Transaction

Get Started

Right click on a transaction from the Transaction Grid and select "Create Contract" to open the New Contract Window.

The New Contract Window

The window will show details about the selected transaction and give options to change parameters for the new forward contract.

Definitions 

Field

Description

Broker


The broker of this contract, can only be selected if the transaction had no broker specified.

Counterparty

The counterparty of this contract.

Transaction CommentIf the trader wrote a comment regarding the trade it will show here

Trade Details

Trade details grouped together.

Side

The customer side of the trade.  Buy will create a long contract. Sell will create a short contract.

Symbol

The ticker symbol of the underlying instrument.

Quantity

Number of shares being bought or sold.

Trade Date

The creation date of the trade.

Settlement Date

The date when the underlying instrument from the trade gets delivered (T+1 for bonds or T+3 for equity)

Clean Price

The quote price on the market. This is the price that the asset gets traded on.

Dirty Price

Dirty price is clean price plus accrued interest on the settlement date.

Trade Fees

These are the total fees on the trade, its the sum of Execution fee (broker fee) and Other fee (typically a back office fee)

Start Price

The initial spot price on the forward contract. For bonds this is the Dirty Price + Fees and for equity this is Price + Fees

Trade Amount

The transaction underlying traded value.  Trade Start Price *  Quantity

Forward Contract Details

Forward contract details grouped together.

Creation date

The date when  the contract is created.

Maturity Date

The date the contract will expire.

Final Interest Date

The next bank day or the settlement date after the contract expires (T+1 for bonds or T+3 for equity)

Opening Fee

Is  a fee that the bank charges for creating the contract.

Contract TypeFree list of strings to denote the type of contract is being created. Types are set in settings in Backoffice.
Settlement TypeShould the contract be settled in cash or underlying security

Start Price

The initial spot price on the forward contract. For bonds this is the Dirty Price + Fees and for equity this is Price + Fees

Contract Amount

The contract underlying value is: Quantity * Start Price

Loan CurrencyWhat is the underlying currency of the loan. 
Currency FXThe currency fx between the loan currency and the underlying security currency at the time of contract creation.
Loan TypeFixes vs Variable interest rates

Interest (%)

The interest % is the interest amount of the contract that will determine the Forward Price

Interest Fee bp

Interest Fee is added to the Interest Rate. Usually what the bank charges the customer for the loan.

Auto ExtendShould this contract be extended automatically in the end of maturity date?

Forward Interest (%)

Forwards interest =  Interest + Interest Fee.

Collateral Margin

The % of collateral margin if any. 

Forward Price

The Start Price + the interest from the Start date until the final interest date.

Forward Amount

The underlying forward value.  The forward price *  Quantity

OK/Cancel

OK to create new contract /  Cancel to cancel the action