When you use cash segregation, you can transfer segregated quantity and you can transfer segregated cash.

Transfer Segregated Units

You can use the interportfolio transfer options to transfer units between custody location

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accounts

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. The Custody Quantity Transfer

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panel allows you to move segregated units of a position from one custodian location to another.

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In the IntraFund Cash Transfer panel, you can transfer cash between cash accounts for an entity. If an entity uses cash segregation, you can use this option to move cash within the entity's custody basis if cash goes into the wrong cash account for a custodian. You can also use this option to move cash in a cash account for the custody basis from one currency to another with a defined FX source. This type of move between cash accounts has no impact on accounting.

To transfer cash within an account manually:

1. In Accounting Center, in the left navigation pane, click Transactions > Cash > Cash Transfers > IntraFund Cash Transfer. 
   You see the IntraFund Cash Transfer panel.
2. Complete the options in the IntraFund Cash Transfer panel.
3. Click Submit.
   You have transferred cash from one cash account to another cash account within an entity.

IntraFund Cash Transfer Panel Options

The following are the options in the IntraFund Cash Transfer panel.

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• Increase Principal
• Increase Income

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• Cash. A cash sub account.
• Short. A short position sub account.
• Margin. A margin sub account.
• Non-Security. A non-security sub account.
• Other. A user-defined sub account.
• Conversion. A conversion sub account.

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In the Run Custody Quantity Transfer panel, you can move units of a full or partial position in the custody basis for an entity that uses position and cash segregation from one custody location to another custody location at a point in time. The system bases entitlements such as corporate actions on the new custody location from that point forward. As of processing reflects the custodian move. This move has no impact on the core accounting position.

To transfer custody quantity between accounts manually:

1. In Accounting Center, in the left navigation pane, click Transactions > Transfers > Manual Interportfolio Transfer > Run Custody Quantity Transfer.
   You see the Run Custody Quantity Transfer panel.
2. Complete the options in the Run Custody Quantity Transfer panel.
3. Click Submit.
   You have transferred the custody quantity.

Run Custody Quantity Transfer Panel Options

The following are the options in the Run Custody Quantity Transfer panel.

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• Cash. A cash sub account.
• Short. A short position sub account.
• Margin. A margin sub account.
• Non-Security. A non-security sub account.
• Other. A user-defined sub account.
• Conversion. A conversion sub account.

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• Cash. A cash sub account.
• Short. A short position sub account.
• Margin. A margin sub account.
• Non-Security. A non-security sub account.
• Other. A user-defined sub account.
• Conversion. A conversion sub account.

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• Quantity. Default. Defines the transfer amount as a quantity.
• Quantity Ratio. Defines the transfer amount as a percentage.

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Specifies the lot selection method the system uses to relieve (sell) lots of a security held by the entity. Options include:

• Ratio Across Lots. The lots are selected and sold based on a proportionate allocation.
• First In First Out (FIFO). Lots acquired first are sold first. The oldest lot is sold first based on the holding date. If you set the accounting basis Cost Basis Covered Indicator field (tag 2818) to Y, unknown cost lots are relieved first. The oldest cost lot is sold first based on the holding date.
• Last In First Out (LIFO). Lots acquired last are sold first. The most recent lot is sold first based on the holding date. If multiple lots share the same holding date, the lot with the greatest event sequence is relieved first. The event sequence, set internally by the system, indicates the processing order of transactions within the same position.
• High Amortized Cost or High Cost (HCLOT). The lots with the highest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the maximum loss or the minimal gain.
• Low Amortized Cost or Low Cost (LCLOT). The lots with the lowest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the minimal loss or the maximum gain.
• High Original Cost (HORIG). The lots with the highest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the maximum loss or the minimal gain.
• Low Original Cost (LORIG). The lots with the lowest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the minimal loss or the maximum gain.
• Identified Lot (IDLOT). The specified lot or lots are sold first, which determines cost and tax implications. You can optimize this option to specific tax situations by selecting the specific lots to be sold. If you select this method, the lower pane in the close trade window displays lot details for each available lot, as determined by the entity's controlling basis. If no controlling basis exists, it displays lots for the primary basis. You must specify the quantity for one or more lots that you want to relieve. The total quantity you specify for the open lots must match the quantity entered for the total close. The close trade relieves the selected lots in each of the entity's accounting bases, and keeps the lot structures in sync. The system uses the lot's Orig Event ID field (tag 457) to match a single open lot in one basis to corresponding multiple open lots in another basis, as needed. This can occur for lots fractured as a result of wash sale processing.
• Best Tax. The lots are selected and sold with the objective of taking losses first (short term then long term) and gains last (long term then short term). Lots are sold in the following order:

1. Short term Losses. Lots that reflect a short term loss are sold first, beginning with lots that generate the greatest short term loss down to the least short term loss.
2. Long term Losses. Lots that reflect a long term loss are sold, beginning with lots that generate the greatest long term loss down to the least long term loss.
3. Short term No Gains or Losses. Short term lots that reflect no gain or loss.
4. Long term No Gains or Losses. Long term lots that reflect no gain or loss.
5. Long Term Gains. Lots that reflect a long term gain, beginning with lots that generate the least long term gain up to the greatest long term gain.
6. Short Term Gains. Lots that reflect a short term gain, beginning with lots that generate the least short term gain up to the greatest short term gain.

• Tax Advantage(TXADV). The lots with the lowest tax liability are sold first to minimize tax liability.
• Versus Purchases (VSP). The lots are selected and sold based on lot purchase characteristics, such as the target purchase date and the target purchase price. This option must be specified at the trade level.
• Tax Efficiency. The lots with the lowest tax liability are sold first to minimize tax liability. The system calculates the tax liability based on the manipulation of entity level tax factors for long and short term gains, long and short term losses, and currency gains. The system also incorporates the wash sale disallowance effect and considers the overall tax implications of closing each individual lot.

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For details, see Transfer Custody Quantity within an Account.

Transfer Segregated Cash

You can use the following cash transfer options to transfer cash between cash accounts with no impact on accounting.

• The Intrafund Cash Transfer panel allows you to move segregated cash from one custodian cash account to another within a portfolio. For details, see Transfer Cash within an Account.

• The IntraFund Cash Transfer Between Custodians panel allows you to transfer cash from one custodian bank to another custodian bank. For details, see Transfer Cash within an Account between Custodians.