About Pending Transactions

About the Pending Transaction Activity Workflow

When the system receives a transaction from an upstream system for an entity that is eligible for pending transaction activity, if the transaction:

• Meets the criteria specified in a pending trade rule and passes the Message Center panel edits that validate the transaction data, the system sets the transaction's Pending Trade Flag field (tag 3695) to Y, assigns the transaction's Pending Trade Status field (tag 3720) a value of Pending, and routes the transaction to the PENDING_TRADES table in the TRADES database for further evaluation. If you evaluate the transaction and it qualifies for processing, you can release it for processing by the STAR accounting engine. Or if the transaction does not qualify for processing, you can update the transaction with a Hold status, making it ineligible for processing by the STAR accounting engine. If the transaction is not released successfully, the system sends the failed transaction to the Exceptions workspace repair queue. After you repair the failed transaction, you can submit it to the STAR accounting engine as part of normal STAR processing.

• Meets the criteria specified in a pending trade rule but does not pass the Message Center panel edits that validate the transaction data, the system sends the transaction to the Exceptions workspace repair queue with a rejection status of Not Processed. After you repair the transaction, the system routes the transaction to the PENDING_TRADES table for further evaluation before it is processed in the STAR accounting engine.

• Does not meet the criteria specified in a pending trade rule, no pending transaction activity occurs. If the transaction passes the Message Center panel checks that validate the transaction data, the system routes the transaction directly to the STAR accounting engine for processing. Otherwise, it routes the transaction to the Exceptions workspace repair queue as part of normal STAR processing.

• Is already identified as eligible for pending transaction processing because the incoming transaction's Pending Trade Flag field (tag 3695) has a value of Y, the system does not apply pending trade rules and routes the transaction to the PENDING_TRADES table in the TRADES database for further evaluation. If the incoming transaction's Pending Trade Status field (tag 3720) has a value equal to a custom status code value, the system applies the custom status. Otherwise, if no status is provided on the incoming transaction, the system sets the status to Pending.
  When the system processes a pending transaction, it assigns the entity's controlling basis to the transaction first, and then creates corresponding transactions for each additional accounting basis. If no controlling basis exists for the entity, it processes the entity's primary basis first.

You can evaluate pending transactions to determine if they qualify for release to the STAR accounting engine for processing. If a transaction does not quality for release to the STAR accounting engine, you can update the transaction to assign it a Hold status. If it does qualify, you can release it.

About Releasing Pending Transactions

The system provides two methods for releasing pending transactions for processing by the STAR accounting engine. You can use the:

• Edit and Release Pending Trade panel to update and release individual transactions in a single step.

• Batch Release Pending Trades panel to release groups of transactions.

If you need to update transactions prior to release, you can use the Edit Only Pending Trades panel. You can also list and manually delete transactions associated with pending transaction activity. In addition, you can create purge rules to purge data in the Pending Trades tables.

When you manually run the Batch Release Pending Trades panel or you schedule the related procedure to run automatically, you can set up a release interval to improve system performance. This option is called the Interval in Seconds. When the system releases pending transactions to STAR, a database procedure builds STAR messages from the data in the Pending Trades table as well as reference data for the entity and security. You can establish a release interval that fits their processing window or you can release the transactions on demand. The system updates the transactions in such a way that those same transactions cannot be released to STAR again, but the records remain in the Pending Trades table indefinitely for audit purposes. Transactions are not deleted as part of the release process for pending trades. There is no Core purge and archive strategy for the Pending Trades table.

The pending trade release process can release open, close, and cancel transactions together. The pending trades release process orders the release of cancel activity in an optimal way. If you are releasing multiple transactions, the system orders cancels by effective date in a descending order. It orders multiple cancels targeting the same effective date in the same position further, such that closes are cancelled before opens and then within the message type in descending order based on the placement of those targeted transactions in the blob. Basically the system should cancel transactions in reverse. The release database procedure releases cancel activity before it releases other transactions. The cancel activity released first includes those where the target transaction was processed to STAR. The ordering of cancels is by descending order based on effective date, then by target message type in ascending order (closes before opens), and lastly by the targeted transaction’s time stamp in descending order. The time stamp reflects when the targeted transaction was written to STAR’s ESTAR_FINANCIAL_EVENT table which follows the commit to the STAR Cost blob. The effective date on a cancel event is always equal to the effective of the targeted event. If a cancel and its target both exist in the Pending Trades table and they are to be released together, the system orders them using the existing ordering logic for non-cancels and follows cancels that have targets in STAR. The system orders As Of transactions using the current logic and releases them after cancels.

When you set up pending trade rules, you can use the PT Review Required option to create rules that identify pending transactions that require individual review. Pending transactions that meet the rule criteria require review in the Pending Trades table prior to processing in the STAR accounting engine, such that you must release the trade individually and cannot release it as part of a batch, or a group of pending trades.

How Cancel Transactions Affect Pending Transaction Activity

You can include cancel transactions in the pending transaction workflow. This affects transactions with a Message Type of MTCANCEL and an Event Type of CANCEL. 

After you receive a pending transaction from an upstream system, process it with the pending transaction workflow, and submit it to the STAR accounting engine, you may later cancel that transaction. The cancellation can occur as a result of rollback and replay activity, or as a result of an automated or manual Cancel Trade event. Depending on the reason for the cancellation, you may want the trade to return to its pending transaction workflow, so you can re-evaluate and reprocess it. Or you may not want the system to update the Pending Trades table to reflect the cancellation.

If you do not use pending trade rules to enable the system to pend transactions, you can bring in an incoming cancel transaction, with a Message Type of MTCANCEL, where you set the Pending Trade Indicator (tag 3695) to Y on the event. In that case the system routes the transaction to the Pending Trades table. 

If you want to use pending trade rules to manage cancel transactions in pending trade activity:

• Just as you set up pending trade rules to direct open and close transactions to the Pending Trades table based on predetermined criteria, you can set up pending trade rules to automatically route cancel trades to the Pending Trades table based on predetermined criteria. You can create pending trade rules that apply to a Message Type of MTCANCEL, which include settings that apply to managing automated and/or manual cancellations, and ensure that that the entities that use the rules during processing are eligible for pending trade activity. Pending trade rules for MTCANCEL transactions can affect both manually processed trades sent through Accounting Center, as well as those MTCANCEL transactions that you process automatically. 

• You can set up the pending trade rule to insert all incoming cancel events into the Pending Trades table, insert cancel events only if the targeted transaction is in the Pending Trades table in a pending status, or not insert any incoming cancel events. The Cancel Strategy field provides these options. You can based the pending trade rules on criteria such as security, security type, Message Type, and Event Type. You can set up general criteria, or apply criteria to existing positions.

• If you insert some/all cancel events into the Pending Trades table, you have the option to either release both the pending trade and the cancel to the STAR accounting engine, or to assign both trades to the CANCELED status in the Pending Trades table. Use the CXL & Target Release Strategy field for this purpose.

• You can set up pending trade rules to specify how to handle manual cancel events associated with pending transactions. Using the Manual Cancel Strategy option, you can specify whether to insert any targeted transaction of a manually booked cancel event into the Pending Trades table for review. This allows you to monitor any manually canceled transactions that may have been done in error. If you cancelled the transaction in error, this process enables you to evaluate the transaction and release it to the STAR accounting engine for processing, if appropriate. 

When you cancel trades manually, the Cancel Trade panel allows you to look up the targeted transaction in the Pending Trades table if the entity is Pending Trade Eligible and the targeted transaction is not in accounting. In the panel used to create pending trade rule details, this option for the Cancel Strategy field is called Pend Only If Target Is Pending. If the cancel strategy is Pend All Cancel Trades to insert incoming cancels, you can either release the cancel and targeted transaction to STAR's accounting engine or not.

About Pending Transactions Generated by Fund of Funds Cash Allocations

The fund of funds cash allocation process available in Eagle’s mutual fund accounting solution enables you to allocate a master fund’s cash inflows and outflows across its underlying fund investments. You can use a fund of funds structure when a fund buys into a mutual fund, for example. The system puts the trades created by the fund of funds allocation process into a pending transaction status, and you have to manually release the trades to the STAR accounting engine after you review them. For more information, see Manage Fund of Funds Cash Allocations.

While a pending transaction received from an upstream system has a Transaction Status value of Pending, a pending trade generated by the fund of funds cash allocation process has a Transaction Status value of FOF_ALLOCATION. You can then evaluate pending transactions generated by the fund of funds allocation process to determine if they qualify for release to the STAR accounting engine for processing. If a transaction does not quality for release to the STAR accounting engine, you can update the transaction to assign it a Hold status. If it does qualify, you can release it. As a result, the transaction can later have a Transaction Status value of Hold, Processing, Released, Failed, or Canceled, based on its pending transaction activity.