Treasury system can enter commodity bullet swaps Fixed for floating (closed to a floating price) and Fixed for average (closed with an average of prices).
Define the commodities your company trades in Settings / Commodity Swaps
To enter a new deal go to
New deal -> Commodities
Commodity bullet swap (Fixed for floating)
Enter all requested information
- Legal entity and Counterparty
- Select Buy / Sell depending on if your buying or selling the commodity swap
- Enter Fixed for floating if the price is fixed and will be settled to a floating price in the future.
- Commodity: show all the defined commodities and market place
- The quantity can be specified either in Lots or in exact quantity
- Deal date: is the date the contract has been signed deal entered.
- Cash settlement date: is date the system will pick the floating price. Note date code 2CMM -2d will give you the 3 monday in next month
- Prompt date: is the maturity date and Payment date of the deal. Note date code 2CMM will give you the third wednesday in next month it is also possible to type CMM with gives you the third wednesday 2 month ahead.
- Price: Enter both Base price and Contango / backwardation to be able to calculate the correct forward price.
Commodity bullet swap (Fixed for Average)
Enter all requested information
- Legal entity and Counterparty
- Select buy / sell depending on if your buying or selling the commodity swap
- Enter Fixed for average if the price is fixed and will be settled to an average of prices in the future.
- Commodity: show all the defined commodities and market place
- The quantity can be specified either in Lots or in exact quantity
- Deal date: is the date the contract has been signed deal entered.
- Period start date: first date the average closing price should be calculated from
- Period end date: Last date the average closing price should be calculated to. This is also the maturity date of the deal
- Prompt date: is the Payment date of the deal.
- Price: Enter both Base price and Contango / backwardation to be able to calculate the correct forward price.
Commodity bullet swap (Average for Floating)
Enter all requested information
- Legal entity and Counterparty
- Select buy / sell depending on if your buying or selling the commodity swap
- Enter Average for Floating if the base price is not known and will be set on an average of prices in the future.
- Commodity: show all the defined commodities and market place
- The quantity can be specified either in Lots or in exact quantity
- Deal date: is the date the contract has been signed deal entered.
- Period start date: first date the average base price should be calculated from
- Period end date: Last date the average base price should be calculated to. This is also the maturity date of the deal
- Prompt date: is the Payment date of the deal.
- Cash settlement date: is date the system will pick the floating price. Note date code 2CMM -2d will give you the 3 monday in next month
- Price: Enter Contango / backwardation (the base price will be set in Commodity prices after period end date).
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