Asset Valuation

The following is a review of how asset value is calculated in the Mark to Market, P&L Insight, Position, Unrealized P&L and Results per contract screens.

For realized assets Agiblocks calculates the P&L in the same way as for unrealized : by taking the sum of Contract Value and Market Value.

The main difference is that Agiblocks calculates Market Value on the date of realization.

This is great, when the realized pair (sale+purchase or sale+stock) has the same valuation parameters (= position, valuation period, reporting period, which determines the futures price and premium that are being used) because then you get as combined P&L of the pair:

Purchase.ContractValue + MarketValue +Sale.ContractValue - Marketvalue equals Purchase.ContractValue + Sale.ContractValue

The above makes sense, but in reality it is possible to let them have different a position, a different valuation period and a different reporting period.

So Agiblocks has a rule that says that from the moment they become a reserved pair to a sales, Agiblocks forces both sides to get the position, valuation period, and reporting period from the sales side.

•	The non-sales asset will really be updated with these values so they are also shown in the same position and periods as the sales in all Risk management module screens (Mark to Market, P&L Insight, Position, Unrealized P&L).

•	As a result, they will get the same market valuation already at that moment and changes to the position and valuation period and reporting period on the purchase contract or stock will no longer affect them.

•	When the pair is broken (reservation is deleted), the purchase/stock item will need to be updated back to the normal valuation logic.

All this will be enforced in the Risk management modules (Mark to Market, P&L Insight, Position and Unrealized P&L), so it will not affect the Risk tab.

If an asset has updated values for position, valuation period and reporting period, it will be visible in Risk management screens:

Position: Only position and reporting period on the main screen and the details screens.

The new calculated results would only be visible only in the screens that show them which are Mark to Market, P&L Insight and Results per Contract. The fields that are impacted are: