How does LUSID categorise instruments into asset classes?

LUSID gives every instrument an asset class, such as Equities, Credit or InterestRates.

Because LUSID works out the asset class for you, you can group and filter holdings, choose market data suppliers and write compliance rules by asset class from day one, without first implementing your own classification.

How LUSID decides the asset class

For most instrument types, the asset class is fixed by the type. Every Bond is Credit, and every FxForward is FX. You cannot change it.

A few instrument types can represent more than one kind of asset, so LUSID takes the asset class from somewhere else:

From a field you set. A Future contract can be on a bond, an interest rate, an equity index, a currency or a commodity, and LUSID cannot tell which from the contract alone. You state it in the contractDetails.assetClass field. A SimpleInstrument works the same way, through its required assetClass field.
From the underlying instrument. A BondForward, BondOption, ToBeAnnouncedOption or ExchangeTradedOption takes the asset class of the instrument it is written on.

If LUSID cannot work out an asset class, it uses Unknown.

Note: If you want to classify instruments in your own way, for example to split Credit into government and corporate, add a custom property to your instruments, for example Instrument/MyScope/AssetClass. You cannot change the asset class LUSID assigns.

Asset classes by instrument type

Asset class	Instrument types
`Commodities`	`CommodityCalendarSwap` `CommodityForward`
`Credit`	`Bond` `CdsIndex` `CdsOption` `ComplexBond` `CreditDefaultSwap` `FlexibleLoan` `LoanFacility` `SimpleCashFlowLoan` `StripBond` `ToBeAnnounced` `WholeLoanFacility`
`Equities`	`CapitalInterest` `ContractForDifference` `Equity` `EquityOption` `EquitySwap` `FundShareClass` `PreferredShare`
`Exotic`	`VolatilitySwap`
`FX`	`FxForward` `FxOption` `FxSwap`
`Inflation`	`InflationLeg` `InflationLinkedBond` `InflationSwap`
`InterestRates`	`CapFloor` `FixedLeg` `FloatingLeg` `FlexibleRepo` `ForwardRateAgreement` `FundingLeg` `InterestRateSwap` `InterestRateSwaption` `Repo` `TermDeposit` `TotalReturnSwap`
`Money`	All currency instruments `CashPerpetual` `FlexibleDeposit`
`Unknown`	`ExoticInstrument` `ReferenceInstrument`

Instrument types whose asset class varies

Instrument type	Where the asset class comes from	If not set
`Future`	The `contractDetails.assetClass` field. You can set any asset class.	`Unknown`
`SimpleInstrument`	The `assetClass` field, which is required. You can set any asset class.	Not applicable
`ExchangeTradedOption`	The instrument in `contractDetails.underlying`. An `Equity` underlying gives `Equities`. A `Future` underlying gives that future's asset class.	`Unknown`, if the underlying is an `ExoticInstrument` placeholder
`BondForward`, `BondOption`	The underlying bond: `Credit` for a `Bond`, `ComplexBond` or `StripBond`, and `Inflation` for an `InflationLinkedBond`.
`ToBeAnnouncedOption`	The underlying `ToBeAnnounced`, so `Credit`.
`MasteredInstrument` reference	The instrument it resolves to.	`Unknown`, if it does not resolve

Where you can use the asset class

Instrument responses. Every instrument returned by the GetInstrument and ListInstruments APIs carries a read-only assetClass field.
Filtering instruments. You can filter on asset class when listing instruments, for example AssetClass eq 'Equities'.
Choosing market data. In a recipe, a market data rule's dependencySourceFilter.assetClass limits the rule to instruments of one asset class. See overriding market data rules for particular instruments.
Valuation and derived properties. The Instrument/AssetClass metric returns the asset class in valuation reports and in derivation formulas.
Compliance. Compliance rules can test the Instrument/default/AssetClass field.