Generate Pending Trades during Fund of Funds Allocations

In the sixth part of the fund of funds allocation process, the system creates pending trades as the end result of the fund of funds allocation process. Pending transactions require further evaluation prior to processing by the STAR accounting engine. 

When the system creates fund of funds trades, it uses the NAV Price option selected for the fund's fund of funds allocation rule, as described in Create Fund of Funds Allocation Rules. This election determines whether the system creates the resulting fund of fund trades using the prior or the current day security price. You can use the prior day security price only if you use the Security Level Target with Rebalance allocation method.

For most clients that process fund of fund allocations and create fund of fund trades using the prior day security price, the system uses a one-step process to create the pending trades as part of the fund of funds allocation process. For those clients that process fund of fund allocations and create fund of fund trades using the current day security price, an additional step is needed to generate pending trades. This occurs because you run the cash flow in the morning but the system cannot process the pending trades until you receive current day prices at the end of day. You use a two-step process to process allocations and then create pending trades.

If prices are missing from new securities, the system uses the trade price. You can rerun pending trades if the cash flow has changed, causing the amount of allocation to each underlying fund to change. The system creates an error message to prevent you from accidentally rerunning trades unless you change the Rerun Pending Trades field value to Yes. Re-executing pending trades does not delete the previously created trades.

After the system generates pending trades:

• You can review the pending trades created by selecting a value of FOF_ALLOCATION for the Trade status field (tag 3720). For more information, see List Pending Trades for Fund of Funds Allocations.

• You can review the pending trades' loopbacks in the Global Processes workspace. For more information, see View Loopbacks for Fund of Funds Pending Trades.

• You can then evaluate pending transactions, update them as needed, and, optionally, manually release them for processing by the STAR accounting engine. For general information about working with pending transactions, see Manage Pending Trades.

Be aware that when you work with pending transactions generated by Eagle's fund of funds allocation process, you do not need to enable the Pending Trade Eligible Indicator field at the entity level and you do not need to create pending trade rules Those options are used in scenarios where the system pends transactions received from upstream systems and you define the criteria used to pend transactions.