OpenIM The Open Investment Model

SD-12.1 — Investment Book of Record (IBOR)

Business Domain: BD-12 Investment Operations & Servicing (Back office) · Applies: BOTH

Purpose

Maintains the real-time, intraday view of positions, cash and exposures the front office trades and manages against. The IBOR is one of the two books of record the buy-side keeps: the current, transaction-aware statement of what every portfolio holds, updated as orders fill and events occur, available start-of-day and refreshed through the day. It exists so portfolio managers, traders and risk see a position that reflects every committed trade now — not the accounting-basis position struck for the prior close. It is not the official accounting book — that is SD-12.2 ABOR — and it is not where the value of a holding is determined — that is SD-08. The IBOR keeps the position; SD-08 prices it; SD-12.2 keeps its accounting-basis twin.

Service Operations

  • Position keeping — maintain the current quantity, commitment and value of every holding in every portfolio, as a continuously-updated record on the ibor book.
  • Transaction posting — apply each investment event — trade, subscription, capital call, distribution, corporate action, transfer — to the affected positions as it is captured, so the book reflects committed activity in near real time.
  • Start-of-day position generation — strike the opening position for every portfolio at the start of the trading day, the baseline the desk and pre-trade compliance work from.
  • Intraday position update — refresh positions through the day as executions, allocations and cash movements arrive, so the front office sees the effect of its own activity.
  • Cash and exposure projection — maintain the projected cash balance and exposure for each portfolio, including the cash impact of unsettled trades, so the desk trades against an accurate available-cash figure.
  • Pending-activity tracking — hold trades that are agreed but not yet settled, and corporate actions and income announced but not yet paid, as projected adjustments to the current position.
  • Position-data distribution — publish the IBOR position to the front-office, risk and compliance domains that read it as their picture of what the firm owns.

Inputs and outputs

  • Inputs: transactions from SD-06 Trading & Execution (executed and allocated trades), SD-12.8 (capital calls and distributions), SD-12.6 (corporate-action effects); valuations from SD-08; the prior book close from SD-12.2.
  • Outputs: the real-time IBOR position, cash and exposure record — consumed by SD-05.2 Portfolio Management & Monitoring, SD-06.1 Order Management (pre-trade position check), SD-07 Investment Risk (all domains), SD-10.1 Investment Guideline Monitoring, SD-12.10 Reconciliation (the IBOR side of the reconciliation), and SD-13.10 Investment Reporting & Dashboards.

Entities

  • Consumes: E-07 Valuation (any method — IBOR applies whichever valuation method is current for each position), E-08 Price & Market Data, E-03 Portfolio / Mandate; FO-04 Dealing Order (settled dealing orders from the fund’s transfer-agency window — the cash and position effects of settled subscriptions, redemptions and switches enter the IBOR book as fund-units-held changes and cash flows); FO-10 ETF Creation/Redemption Order (settled ETF primary-market creation/redemption events — the basket-securities inventory effects enter the IBOR book as in-kind receipts or deliveries when the creation/redemption settles); FO-11 ETF Creation Basket (reads the basket composition to identify the instruments and quantities to book as in-kind receipts or deliveries at the point a creation/redemption settles; the basket definition is the IBOR’s posting reference for the in-specie securities movements); FO-12 ETF Authorised-Participant Agreement (reads the AP Agreement to confirm the AP’s authorised status before booking the securities effects of a settled creation/redemption); the SD-12.2 prior book close; transactions from SD-06 Trading & Execution (executed and allocated trades), SD-12.8 (capital calls and distributions), SD-12.6 (corporate-action effects).
  • Owns: E-04 Holding / Position on the book = ibor partition (co-equal with SD-12.2 on the book = abor partition; the key-partitioned pattern is recorded in ownership-map.md) — SD-12.1 is the authoritative source for the real-time position on the IBOR book. Also owns E-05 Transaction (transactions update the book of record), E-06 Cash Flow Event (the granular event and cash records the book is built from), and PM-09 Fund Investment — the LP’s holding in a fund, which is a Holding / Position specialisation maintained on the IBOR book.
  • Open question: the IBOR / ABOR reconciliation model — how the two books’ positions of E-04 differ and how breaks between them are represented — is flagged on E-04 itself; it bears on both SD-12.1 and SD-12.2.

Standards

  • No single external standard governs the IBOR; it is an industry operating-model concept rather than a published standard. ISO 20022 and ISO 15022 messaging carry the transactions and events the book is updated from.
  • The IBOR / ABOR distinction is itself a recognised buy-side architecture pattern — articulated across the major operating-model literature and reflected in the platform vendor stacks (Aladdin, SimCorp, State Street Alpha / Charles River).

Open extensions

  • The Service-Operation-level input/output contracts.
  • The IBOR / ABOR reconciliation sub-model — the E-04 open question above.
  • The treatment of multi-asset positions — listed instrument, fund interest, OTC derivative, directly-held real asset — on a single book.

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