For the fund entity to hold any positions we have to create financial instruments. Within this example we are using the Swedish bank SEB as our custodian and thus we need to add a few custom fields to the instruments for them to be reported correctly.
Before we start adding these instruments we need to decide if we would like to include information about the primary market where an instrument is traded.
For this example we are going to add the common stock of Tele2 share class B which is traded on Nasdaq Stockholm with the MIC-code for the marketplace being XSTO. The video below demonstrates how to add a marketplace to BFS.
We can now progress into adding the instrument. To find out information about the financial instruments it is a good idea to have a look at OpenFIGI which is the Bloomberg Symbology https://bsym.bloomberg.com/.
Follow the video below to add the instrument.
To be able to execute transactions for the instrument we need to add an Execution Interface. If BFS is used for mirroring and reporting the Manual Execution Interface should be used and we should also set up our custodian, SEB in this case, as a counterparty and the custody account that we have with the custodian according to the video below.
First, let's set up the custody account.
Now let’s add the counterparty.
We also need to configure the counterparty type.
Now we can continue with creating the Execution Interface.
Now we are all done with the basic information and the instrument is tradeable which we can see by going back to the instrument list where we now have buy and sell buttons.
When using the custodian SEB we need to supply what is called the Classification of Financial Instruments (CFI Code): ISO 10962 with the instruction found here: http://www.tfiic.org/SiteContent/TH/Info/CFI%20Code_EN.pdf
We do this by adding the code as a custom field with the exact field name set to CfiCode according to the following video.
Each day, or at any other interval, we should import new prices for our financial instruments before we report our Net Asset Value. The easiest way to do this is to keep an Excel file with the instrument id’s and the last prices which we save as a CSV-file from Excel and then import to BFS.
A guide for this can be found by navigating to the House-icon and then selecting Import/Export Data.
Then click on the help icon for Historic Data and read the pop-out guide.