How does the composites service work?

The composites service provides constituent weightings to your FundApps position file. The service works for both clients that produce their own XML positions file or have data enrichment via Data Adapter:

Both XML and Data Adapter clients send position files to the standard POST /v3/data/positions/upload endpoint - no separate endpoint is required
How the service works is - It scans through the <Instruments> block of any processed XML, searching for the below types, which have a valid matching identifier:
- <Units>
- <Index>
- <StructuredProduct>

So, basically it pulls the information from BYOD file and adds to the original position file.

Example of an Index instrument referencing an ISIN

<Index InstrumentId="ESTXE50" InstrumentName="EURO STOXX 50 (Performance)" InstrumentCurrency="EUR" ISIN="EU0009658152" />

It will then add components to these instruments based on:
- Has the client supplied Bring your own data (BYOD) to us which matches one of the Instrument codes in the XML <Index>, <Unit> or <StructuredProduct> - see Bring your own data (BYOD) guide for details
- For ETF library, it checks if there is an ISIN code match;
  - First checking by ETF Benchmark ISIN
  - Then checking by ETF ISIN
Where composite components are eligible for enrichment, the service will check if data has been supplied for the underlying component
For XML clients we are unable to source additional market data on your behalf, so it will only enrich instrument components that you have specified underlying data for.
For Data Adapter clients we do not currently support additional instrument components being sourced as part of composite enrichment

Example (simplified)

<Instruments>

    <Equity InstrumentName="Nestle" InstrumentId="CH0038863350" .../>

    <Option InstrumentId="ESTXE50Options" InstrumentName="EURO STOXX 50® Call Index Options (OESX)">
        <Component InstrumentID="ESTXE50">
    </Option>

    <Index InstrumentId="ESTXE50" InstrumentName="EURO STOXX 50 (Performance)" InstrumentCurrency="EUR" ISIN="EU0009658152" />

</Instruments>

💡 In this simplified example, the composites service would detect the EURO STOXX 50 Index, match in the ETF library by the Benchmark ISIN code supplied and enrich a constituent of Nestle to the Index. As no other underlying data is specified up front, the remaining constituents are discarded

Finally once enrichment is complete, the service will pass the enriched XML file onto the FundApps engine and upload on your behalf as normal.