MMEX Stock v2 - Preview and Changes

Posted March 28, 2025 by MMEX ‐ 4 min read

MMEX Stock v2 introduces significant changes, including the deprecation of shared accounts, a new cash ledger system, and enhanced commission tracking.

Overview

MMEX Stock v2 brings significant improvements to how investment accounts and stock trading are managed. This update enhances financial tracking by introducing a new cash ledger system, refining trade transactions, and deprecating outdated concepts. Below are the key changes:

Key Changes in MMEX Stock v2

1. Deprecation of Shares Account

Previously, MMEX used a Shares Account to handle cash transactions related to stock investments. This approach linked stock transactions to cash in a somewhat tricky manner, requiring additional manual tracking.

In Stock v2, this structure is deprecated. Instead, each Investment Account now includes a Cash Ledger that directly records all cash movements related to stock trades, providing a more transparent and structured system.

2. Historical Share Accounts Coexist with Cash Ledger

To maintain backward compatibility, historical Share Accounts will still be displayed alongside the new Cash Ledger. This ensures users can access their past investment records without disruption.

For users migrating to Stock v2, transactions within Share Accounts can be updated by modifying their Transaction Account ID to the corresponding Investment Account ID. This allows for seamless integration with the new system while preserving historical data. Additionally, if the original Share Accounts had non-zero initial balances, users should also update the initial balances of the corresponding Investment Accounts to reflect those amounts accurately.

3. Stock Trading with Buy/Sell Transactions

Stock transactions are now structured using Buy and Sell operations. However, the Cash Ledger still records these movements using Withdrawals and Deposits, ensuring consistency with previous cash tracking methods.

4. Deductible Commission Splits

A major improvement is the support for deductible commission splits. This allows for more accurate tracking of stock purchase prices by properly accounting for commission fees. This ensures a precise cost basis for stock positions.

5. Refinement of “Transfer” Concept

The “Transfer” concept has been refined for greater clarity and accuracy. Now, all position trades directly update the Cash Ledger with actual values, providing a more precise reflection of real cash flow movements.

To enhance investment accuracy, MMEX Stock v2 introduces LOT-based trade tracking. This method allows investors to manage stock positions on a per-lot basis, improving capital gains calculations and trade history tracking. Benefits include:

  • Accurate Profit Calculation: Tracks specific lots for capital gains tax reporting.
  • Better Cost Basis Management: Identifies the purchase price of each lot when selling.
  • Flexible Selling Strategies: Enables FIFO (First In, First Out), LIFO (Last In, First Out) by specific lot selection for stock sales.

By adopting LOT-based trade tracking, users can better manage their investment performance and tax liabilities.

Example Scenarios

Buying Stocks

  1. Buy Order Execution

    • A stock purchase is recorded using a Buy transaction.
    • The cash required for the purchase is withdrawn from the Cash Ledger.
    • Any commission fees are split and deducted appropriately.

  2. Cash Ledger Update

    • The transaction results in a withdrawal from the cash ledger, reducing available funds.

Selling Stocks

  1. Sell Order Execution

    • A stock sale is recorded using a Sell transaction.
    • Proceeds from the sale are deposited into the Cash Ledger.
    • Any commission fees are deducted accordingly.

  2. Cash Ledger Update

    • The transaction results in a deposit into the cash ledger, increasing available funds.

Conclusion

The MMEX Stock v2 update improves investment tracking by:

  • Replacing Shared Accounts with Cash Ledgers for each Investment Account.
  • Maintaining Historical Share Accounts alongside the new system for backward compatibility.
  • Allowing Data Migration by updating Transaction Account IDs to link historical transactions and initial balances to new Investment Accounts.
  • Standardizing Buy/Sell Transactions while maintaining cash tracking through withdrawals and deposits.
  • Introducing Deductible Commission Splits for accurate stock cost calculation.
  • Simplifying the model by refining the Transfer concept, so that every position trade directly affects cash flow.
  • Recommending LOT-based Trade Tracking, enhancing cost basis calculations and tax reporting.

These changes provide clearer financial records, improved cost tracking, and better investment management within MMEX.

References

  1. MMEX Stocks and Shares Guide