WRITERS NOTE: NEW. this format is based on mixed cost basis but do not have access to exact hierarchy used in matching. add event type? pending trade status/custom status?
When you use the pending trade workflow, the Eagle Accounting system can send eligible incoming transactions into the Pending Trade table for review before you release those transactions for processing in the STAR accounting engine. Pending trade rules allow you to establish the criteria for identifying pending transactions that includes processing security type (PST), security type, security type, message type, event type, and asset ID, as well as by using each of these criteria in combination with a specified entity. You can also use additional criteria in pending trade rules to identify the transactions to apply to those rules.
About the Pending Trade Rule Hierarchy
To set up pending trade rules, you create a name for a pending trade rule and then define pending trade rule details for that rule. Each set of pending trade rule details for a pending trade rule includes rule option values, along with the criteria used to apply those values to a transaction. You assign the pending trade rule to each entity that uses that rule.
Pending trade rules work in a manner similar to mixed cost basis rules, where you can define rules at both a broad and/or at a more granular level. When you submit a transaction, the system determines whether the transaction has a pending trade rule assigned, and if so, determines whether the transaction meets the criteria specified in the pending trade rule details. If the system finds a match, it applies the pending trade workflow to the transaction according to the rule criteria. The system tries to match the transaction to the most narrowly defined pending trade rule details for the rule first, and then checks progressively broader pending trade rule details, using the following hierarchy:
- Entity and Asset ID
- Entity ID and Security Type
- Entity ID and Processing Security Type
- Asset ID
- Security Type
- Processing Security Type
Associate Pending Trade Rules with Additional Transaction Criteria
Each pending trade rule detail must apply to an entity, security, message type, event type, or some combination of those attributes. In addition, you can assign several types of additional criteria to a pending trade rule to restrict the transaction to which it applies.
- Pending Trade Rule Name. If you associate the the pending trade rule detail with a rule name, the system applies the detail rule only to entities associated with that rule name. If you leave this option blank, creating a generic rule, the system applies the detail rule only to entities that you did not associate with a rule name.
- Message Types and Event Types. When you set up pending trade rules for transactions eligible for the pending trade workflow, you can set up a rules to apply to transactions associated with a specific message type and/or a specific event type. You can apply rules to message types of MTOPEN, MTCLOSE, MTCANCEL, and MTADJUST, Within each message type, you can restrict the rule to specific event types, such as BUY or SELL. You can create pending trade rules that apply to transactions for swap trades, interportfolio transfers, and limited partnerships.
- Tolerance Thresholds. You can set up pending trade rules to apply tolerance thresholds based on Total Net Amount or Percentage of Net Assets for routing trades to the Pending Trades table. Any time an incoming transaction exceeds the established thresholds in a pending trade rule, the system sends the transaction to the Pending Trades table for review before processing it in the STAR accounting engine. You can use the PT Tolerance Check option, along with the Tolerance Percentage or PT Net Amount Tolerance option to do so.
- Pending Trade Status. You can associate a custom status for pending transactions with a specific pending trade rule. By default a pending trade rule detail applies to transactions with a PENDING status. If you set up custom statuses for your pending trade workflow, you can create rules that apply only to transactions with a given custom status. You can use the Trade Status option to identify the custom status.
- Manual/Automated Transaction Source. You can create pending trade rules with criteria that enables the system to pend only manually entered transactions, to pend only automated transactions, or to pend both manual and automated transactions. You can use the PT Transaction Type option to identify the transaction source for the rule.
- Cancel Strategy. Determines which, if any, cancel transactions associated with the pending trade rule detail to pend during automated processing.
Set Up Pending Trade Rules to Affect Workflow Behavior
The following pending trade rule detail criteria specify how the system manages a transaction after it enters the pending trade workflow.
- Manual Release Requirement. Pending trades are eligible for release to the STAR accounting engine through a batch release where you release a group of transactions at a time. You can set up pending trade rules to exempt transactions meeting specific criteria from inclusion in the batch release process. Exempt transactions require you to manually release the trades on an individual basis and ensure a thorough review has taken place prior to processing. You can use the PT Review Required option to identify the types of transactions that require individual review.
- Cancels and Target Release Strategy. You can set up rules that determine whether the system releases pending cancel transactions and their target transaction to the STAR accounting engine during automated processing for cancellation. You can use the CXL & Target Release Strategy field when you set up the rule.
Manual Cancel Strategy. You can create pending trade rules that specify whether to duplicate the target trade related to a cancel transaction during a manual cancel trade so you can possibly resubmit it as a pending transaction.
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