Both the Platform and our REST API have a sophisticated logic layer to check the validity of a portfolio. This step is critical during upload, manual entry or API calls. An error will occur when any of the following happens:
- Portfolio lacking cash securities - if a portfolio has only margin securities (*) and user does not provide an explicit net liquidating value (NLV), portfolio will not be created. Portfolio must have at least one cash security (**)
- Portfolio with negative net liquidation value
- Portfolios with more than 250 securities
- Portfolio with a date in the future
- Portfolio with a date in the past that is older than one year from the today.
(*) Short fixed income (Corporate bonds, government bonds, convertibles, exchangeables, term debt), Futures, Short options, Short equities, Swaps (Credit Default Swaps and Interest Rate Swaps)
(**) Long fixed income (Corporate Bonds, government bonds, convertibles, exchangeables, term debt), Long equities, Long options (FX,futures, index, equity)
Examples:
Portfolio without cash securities (one short corporate bond and one credit default swap). User has not provided a net liquidating value (note button to Create Portfolio is greyed out):
User has included a cash security (long 1000 shares of IBM). Note that Everysk will calculate the NLV based on the cash securities only. The Create Portfolio button is activated:
An alternative way create a portfolio when all the securities are traded on margin is to input a Portfolio NLV:
