Table of Contents
Entities
What is a transaction type?
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What is a transaction type?
A transaction type is one of the most important data structures in LUSID. It
de nes the precise economic impact of all the transactions belonging to that
type on holdings.
Note the following:
A transaction must have a transaction type. If it does not, it can be
stored in LUSID but has no economic impact. To ensure that transactions
upserted into LUSID resolve to known transaction types, increase the
level of validation.
A transaction type consists of a set of nested components: aliases,
calculations, movements and sides.
A transaction type is grouped in both a source and a scope.
When you generate a holdings report for a portfolio, LUSID replays the
stored history of transactions in date order and, for each, updates the
quantity and/or cost of one or more holdings according to the
speci cation in the transaction type. A holding in LUSID is thus
an ephemeral object that is the aggregation of a set of transactions in
an underlying instrument (for example, VOD or GBP) at a point in time.
By default, LUSID generates one holding per instrument per settlement
currency, but you can split a holding into strategies using sub-holding
keys (SHKs) or custodian accounts.
LUSID has a set of built-in transaction types. These are useful to get
started, but we recommend creating your own universe of custom
transaction types for a production system.
You can design a transaction type to have any economic impact you like. The
following diagrams illustrate how the components t together, and suggest
some ways in which they might be used. For a more in-depth explanation, see
this article on how LUSID uses transaction types to generate holdings.
Transfer funds into a portfolio
For each transaction, the single movement increases the core cash balance in
the transaction currency by the amount transferred.
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Purchase an asset
This transaction type has two movements. For each transaction:
The rst movement increases the quantity of a 'stock' (that is, noncurrency instrument) by the number of units purchased.
The second movement decreases the core cash balance in the
transaction currency by the cost.
The built-in Buy transaction type implements this scenario. See a detailed
explanation.
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Purchase an asset and account for commission
This transaction type has three movements. For each transaction:
The rst movement increases the quantity of a stock by the number of
units purchased.
The second movement decreases the core cash balance in the
transaction currency by the cost.
The third movement maps a fee (stored as a custom property) to a SHK
to break out commission as a separate cash holding.
See how to set this scenario up.
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