The Portfolio System provides advisors and their customers' monthly performance reports, including realized and unrealized gains and losses, net security positions, and estimated income spreadsheets.
Advisors can easily get an up-to-date picture of an account's portfolio composition and recent activity within the account.
Tax Lots and how they impact a portfolio.
A tax lot is created each time a security is purchased. For example, if an investor purchased 200 shares of Pfizer, Inc., on February 15, 2007, for $36.14 per share, and 300 shares of Pfizer, Inc., on March 1, 2007, for $35.00 per share, then this investor has two tax lots of Pfizer, Inc. The two lots represent the two different purchases of Pfizer, Inc., on two different dates at two different prices.
To manage a portfolio effectively, a tax manager needs to know not only what securities are held in the portfolio but also what the underlying tax lots are for those securities.
Continuing the example above, a tax manager must not only know that the investor owns 500 shares of Pfizer, but also that the investor purchased the shares on two different dates for two different prices. Furthermore, there could be two similar sets of portfolios and tax lots and yet the optimal portfolio management solution may be different because the investors’ tax circumstances and objectives differ. For example, one investor may have a significant capital loss carryforward and the other may have a net gain for the year. Therefore, the application of a single “standard” strategy cannot effectively meet all investors’ needs.
Customized Portfolio Management Approach
Systems. The foundation of a customized product structure is a flexible portfolio management system that provides the portfolio manager with analysis tools. The system must provide separate consideration of short- and long-term gains and losses, and objective functions designed to help an investor maximize losses and minimize gains while monitoring active risk.
Maximizing realized losses and minimizing realized gains are common objectives for individuals with taxable investments because a net realized loss can be used to offset some income (currently $3,000 for most individuals), and minimizing realized gains reduces the investor’s overall tax bill. Although this functionality may seem basic, not all portfolio management tools can perform at this level of customization. In such cases, the actual after-tax value may be significantly reduced. For example, if the portfolio management tool allows the tax manager only to generate a net loss, then the tax manager may be generating unwanted gains. The parameter of a net loss means that the system can generate both gains and losses as long as the net loss equals the desired amount. In essence, this reduces the manager’s after-tax returns by the amount of gains generated due to the inadequate tool. After-tax returns begin with the portfolio’s pretax return and then add in or subtract out the impact of taxes on the portfolio. For example, if a portfolio generates net realized gains, then the portfolio’s after-tax return will be less than the pre-tax return because the investor will have to pay taxes on the realized gains.
]]>The original value of an asset for tax purposes (usually the purchase price), adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value. Also known as "tax basis".
Cost Basis Example - Stock Split
You buy 100 shares of XYZ stock for $5 per share. Your online commission was $7 for the transaction, so your cost basis is $507. While you hold the shares, Company XYZ issues a 2-for-1 stock split, meaning you now hold 200 shares of XYZ. Your cost basis in the position is still $507 total, but your per-share cost basis has changed, and this will be important if you decide to sell all or part of your holdings. Divide $507 by 200 shares to arrive at your new per-share cost basis of $2.54. If you sell 50 shares at $3.50, your capital gains from the sale will be calculated using the adjusted cost basis of $2.54, not your original purchase price of $5.
Tax Lots
In your Scottrade account, the cost basis for each of your positions is tracked with a unique number called the tax lot number.
You can have multiple tax lots for the same security. For example, consider the XYZ example above. If your original purchase of 100 shares of XYZ was made on Monday, and you also bought 100 more shares of XYZ on Tuesday, each of these transactions will be assigned a different tax lot number even though they both involve shares of the same stock.
Partial fills are averaged into a single tax lot. For example, you place a market order for 500 shares of XYZ when each share is selling for around $10. Your order is filled in pieces: 100 shares at $9.99, 200 shares at $10.01 and 200 shares at $10.02. At the end of the trading day when all orders are processed, these three fills will be rolled up into a single tax lot with an average price of $10.01. This average price will be used to calculate your cost basis.
Tracking Your Cost Basis
Beginning in tax year 2011, the cost basis of a particular tax lot is required to be reported to you and the IRS via the revised Form 1099-B, which in the past has merely required reporting the gross proceeds less commission of a sale. At this time, brokerages will also be required to communicate cost basis information with one another, so if you make equity purchases in 2011 and later with another brokerage and transfer them to Scottrade, your cost basis information will be retained in the transfer. Similar regulatory requirements will be implemented for mutual funds and ETFs in 2012 and for options, fixed income and other securities in 2013. For more information about this regulation or cost basis in general, visit the Cost Basis Education section of the Knowledge Center.
Finding Your Cost Basis & Tax Lot Number
After a transaction has been processed, you can find its tax lot number by clicking the My Account tab in your account and choosing Order Status from the left menu. Your tax lot number and details of any partial fills, cancels or rebills will be available in the Completed Orders section.
Your cost basis for tax purposes is available in the Ledger section of Gain/Loss & Tax Center. Remember, for any positions entered before Jan. 1, 2011, especially those transferred from another firm, it is your responsibility to ensure you are providing accurate cost basis information to the IRS.
Scottrade does not provide tax advice. The material provided is for informational purposes only. Please consult your tax, or legal, advisor for questions concerning your personal tax or financial situation.
]]>A tax lot is a record-keeping method that tracks the dates of purchase and sale, cost basis, and transaction size for each security in an account portfolio.
Read more: http://www.investopedia.com/terms/t/taxlotaccounting.asp#ixzz1hMhojHm8
]]>In the U.S., the settlement date for marketable stocks is usually 3 business days after the trade is executed, and for listed options and government securities it is usually 1 day after the execution.
As part of performance on the delivery obligations entailed by the trade, settlement involves the delivery of securities and the corresponding payment.
A number of risks arise for the parties during the settlement interval, which are managed by the process of clearing, which follows trading and precedes settlement. Clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation.
| Instrument | Days to Settle in US |
|---|---|
| Stocks | 3 (3 days after trade date or "T + 3") |
| Money Market Mutual Fund | Typically 1 ("T + 1" or "next day"), though can be 0 ("same day") |
| Options | 1 |
The electronic settlement system came about largely as a result of Clearance and Settlement Systems in the World's Securities Markets, a major report in 1989 by the Washington-based think tank, the Group of Thirty. This report made nine recommendations with a view to achieving more efficient settlement. This was followed up in 2003 with a report, Clearing and Settlement: A Plan of Action, with 20 recommendations.
In an electronic settlement system, electronic settlement takes place between participants. If a non-participant wishes to settle its interests, it must do so through a participant acting as a custodian. The interests of participants are recorded by credit entries in securities accounts maintained in their names by the operator of the system. It permits both quick and efficient settlement by removing the need for paperwork, and the simultaneous delivery of securities with the payment of a corresponding cash sum (called delivery versus payment, or DVP) in the agreed upon currency.
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*PIC x VALUE X'01'. =>Two hex digits required = 1 byte.
*PIC x(2) VALUE X'1234'.
Levels
*01 rec-a PIC X. => 8 bytes MIN needed
*05 fld-a s9(4) comp-3 value +5.
|00|00|5C => 3 bytes =>odd better; +1 needs to be added, +2 if even
COMP - COMP-4 = COMP = BINARY
*2,4,8 bytes
*s9(4) COMP => 1 to 4=> 2 bytes => 9999 and less
*s9(9) COMP => 5 to 9=> 4 bytes => 999,9999,999 and less
*=>10 to 18=> 8 bytes
Ref Mod
MOVE fld(start:len) to ws.
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By default, intending users of CICS see the CICS "good-morning" panel displayed when they logon to CICS as a VTAM application (see Figure 182).
Use the CESF transaction to sign off from the CICS system.
This transaction:
Use the CEBR transaction to browse temporary storage queues and to delete them.
You can also use CEBR to transfer a transient data queue to temporary storage in order to look at its contents, and to recreate the transient data queue when you have finished. The CEBR commands that perform these transfers allow you to create and delete transient data queues as well.
Remember that:
This is can lead to confusion if for example an EXEC CICS READQ NEXT and a CEBR transaction attempt to work with the same Temporary Storage queue at the same time.
You start the CEBR transaction by entering the transaction identifier CEBR, followed by the name of the queue you want to browse. For example, to display the temporary storage queue named CEBRS209, you enter:
CEBR CEBRS209
If the queue name includes lower case characters, ensure that upper case translation is suppressed for the terminal you are using, and then enter the correct combination of upper and lower case characters.
Use CECI, which invokes the CICS command-level interpreter, to enter an EXEC CICS command, check its syntax, and modify it if necessary. In most cases, you can also process the command.
For programming information on each EXEC CICS command, see the CICS® Application Programming Reference or the CICS System Programming Reference.
For details of how to use the CECI transaction, see the CICS Application Programming Guide, which includes an example of a complete session with CECI.
Use CEDA to define resources to your CICS system while the system is running. With CEDA, you can update both the CICS system definition (CSD) file and the running CICS system.
Start the transaction by entering CEDA on the command line of the screen. Press ENTER. You get the following screen (Figure 30), which shows the options available within CEDA.
Debug by intercepting each CICS command
CEDF allows you to intercept your application programs at the program’s initiation, at each CICS command, and at the program termination. CEDF helps you to isolate and focus on problems in your application programs.
For information on how to use the CEDF transaction, see the CICS® Application Programming Guide.
You must ensure that the EDF resource definitions are installed. These resource definitions are provided in the IBM-supplied group, DFHEDF. For information about installing the resource definitions, see the CICS Resource Definition Guide.
You must also ensure that the terminal from which you run EDF is in transceive (ATI/TTI) status.
CEMT DISCARD commands
The DISCARD command allows you to remove an installed resource definition and its corresponding catalog entry from an active CICS system.DISCARD does not affect the CICS system definition (CSD) file, and you can therefore reinstate the resource using CEDA INSTALL(resourcename). DISCARD commands require ALTER access to the resource to provide similar security to that for SET commands (which use UPDATE access). You cannot discard resources that are currently in use or are CICS owned resources (beginning with "DFH" or "C").
CEMT INQUIRE commands
Most CEMT requests either inquire about (INQUIRE), or change (SET) the status of one or more named instances of a resource (such as a terminal), a particular subgroup of resources (such as a class of terminals), or all resources of a particular type (such as all terminals).The INQUIRE command causes the status of the specified resources to be displayed. The SET command makes the changes that you specify, and displays the new status of the resources. No changes are made if there are syntax errors in the SET command.
CEMT PERFORM commands
The CEMT PERFORM commands are not concerned with resource status. They are used to:
The SET command makes the changes that you specify, and displays the new status of the resources. No changes are made if there are syntax errors in the SET command.
To change the attributes of a resource, enter SET (or a suitable abbreviation) on the command line. The keywords you can use with CEMT SET are described in the rest of this section.CEMT SET PROG(prog name) NEWC
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CICS® multiregion operation (MRO) enables CICS systems that are running in the same MVS™ image, or in the same MVS sysplex, to communicate with each other. MRO does not support communication between a CICS system and a non-CICS system such as IMS™.
ACF/VTAM and SNA networking facilities are not required for MRO. The support within CICS that enables region-to-region communication is called interregion communication (IRC). IRC can be implemented in three ways:
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Gain exclusive control of a Resource. Schedule use of a resource by a task (enqueue).
Two tasks, enqueuing on the same resource and specifying a data area that contains a unique argument, can refer to the same location or to different locations, but the contents of the locations must be the same. The length must be supplied in the LENGTH option.
EXEC CICS ENQ
RESOURCE(SOCSECNO)
LENGTH(9)
A CICS® DB2® attachment facility is provided with CICS. The CICS DB2 attachment facility provides CICS applications with access to DB2 data while operating in the CICS environment. CICS applications, therefore, can access both DB2 data and CICS data.
CICS coordinates recovery of both DB2 and CICS data if transaction or system failure occurs.
The CICS DB2 attachment facility creates an overall connection between CICS and DB2. CICS applications use this connection to issue commands and requests to DB2. The connection between CICS and DB2 can be created or terminated at any time, and CICS and DB2 can be started and stopped independently. You can name an individual DB2 subsystem to which CICS connects, or (if you have DB2 Version 7 or later) you can use the group attach facility to let DB2 choose any active member of a data-sharing group of DB2 subsystems for the connection. You also have the option of CICS automatically connecting and reconnecting to DB2.
A DB2 system can be shared by several CICS systems, but each CICS system can be connected to only one DB2 subsystem at a time.
Attachment commands display and control the status of the CICS DB2 attachment facility, and are issued using the CICS supplied transaction DSNC. The attachment commands are:
The connection between CICS and DB2 is a multithread connection. Within the overall connection between CICS and DB2, there is a thread--an individual connection into DB2--for each active CICS transaction accessing DB2. Threads allow each CICS transaction to access DB2 resources, such as a command processor or an application plan (the information that tells DB2 what the application program's SQL requests are, and the most efficient way to service them). See Overview: How threads work below for a full explanation of how threads work.
When an application program operating in the CICS environment issues its first SQL request, CICS and DB2 process the request as follows:
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If you set CICS to perform an initial start, you should reinitialize the local catalog before bringing up CICS.
Log records for local resources are purged and resource definitions rebuilt from the CSD or CICS control tables. Units of work on other systems are resynchronized with this system, as described under START=COLD.
For the warm restart to be successful, the local catalog must contain the information saved by the CICS domains during the previous execution.
A warm start restores CICS to the state it was in at the previous shutdown.
You can modify a warm restart by coding the NEWSIT system initialization parameter. This has the effect of enforcing the system initialization parameters coded in the SIT, overriding any cataloged status from the previous CICS shutdown.
The exceptions to this is the system initialization parameter FCT, the CSDxxxxx group (for example CSDACC), and GRPLIST, which are always ignored in a warm restart, even if you specify NEWSIT=YES. Specifying NEWSIT=YES causes, in effect, a partial cold start.
START=AUTO should be the normal mode of operation, with the choice of start being made by CICS automatically. Use the recovery manager utility program, DFHRMUTL, to set overrides.
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SIT - System Initialization Table
System initialization parameters provided in SIT.
PCT - Program Control Table
Define application programs and BMS Maps in this table. We define program
names in this table to make CICS to identify programs.
PPT - Program Processing Table
Define transactionID ( 1 to 4 characters ) for main program which executes
input data comming from front end / other source. Here we give program name
and correponding transaction ID by which this program can get executed.
when user enters transactionID on the terminal, CICS checks this table to get
the corresponding program to be executed.
TCT - Terminal Control Table
FCT - File Control Table
To define files used in the CICS programs.
All the files being used in our programs needs to be registered in this table.
DCT - Destination Control Table
to define TDQ's,
TSQ - Temporary storage Table
Temporary storage Table
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Dealer sells govt sec to investor, usually on overnight basis, and buys them back the next day.
For the seller, who agree to repurchase the sec in the future, it is a repo.
For the party on other end of transaction, it is a Reverse Repurchase Agreement.
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It is a "contract" that is assigned a value and traded.
Examples are:
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Site Building
Sites are built using an XML configuration file along with file system directories containing the displayable content. PHP classes extend the behavior of the xTendSite framework to create the unique behavior of the Base Site, extending sites build upon the base site(s).