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 Comment	If 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 Type	Free list of strings to denote the type of contract is being created. Types are set in settings in Backoffice.
Settlement Type	Should 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 Currency	What is the underlying currency of the loan.
Currency FX	The currency fx between the loan currency and the underlying security currency at the time of contract creation.
Loan Type	Fixes 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 Extend	Should 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