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I. Use Case Description

Use Case Name

Index analysis for ETF development

Use Case Identifier

IND-EFT-DEV

Source

IND Content Team

Point of Contact

Creation / Revision Date

7/19/2019

Associated Documents

Requirements documentation, traceability matrix if applicable

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There are a number of usage scenarios that this use case represents.  Common scenarios that institutions perform on a daily basis include:  

  1. Get the value of an Index at any point in time. Optionally the user can seek details of the constituents' contribution to the movement of index value from a particular point in time (e.g. previous day's close) - JIRA Issue IND-86
  2. As a user of the Index service, I need to be able to get all the details of the constituents of the Index including the weighting of constituents and other details - JIRA Issue IND-85, IND-81
  3. Index constituents are changed as conditions require. Whenever this is done there may be a need to "rebalance" the index so that the change in the fundamentals of the constituents does not cause an abrupt discontinuity in the index - JIRA Issue IND-83
  4. There are certain corporate actions of the Index constituents (like stock splits and stock dividends) that require changes to be done to the Index data maintained. Other examples are share issuance and these require adjustments to prevent the value of index from changing. - JIRA Issue IND-84


IV. Competency Questions

  1. What is the value (price) of this index on a certain date?  What are the prices for the constituents of this index as of this date and how are they weighted?
  2. What are the constituents of this index as of a given date?
  3. What indices have a given equity as a constituent as of a given date?

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