Post-trade Allocation

A post-trade allocation is an action completed after a trade has been executed whereby the user allocates the currency traded into one or more accounts. The post trade allocations interface allows sales dealers to perform a single FX trade and later split it across several accounts at the locked-in rate.

This page provides an overview of Post-trade Allocation. For information on implementing Post-trade Allocation in your FX Sales deployment, see Implementing Post-trade Allocation.

Features

FX Sales supports the following post-trade actions:

  • Allocate spot and forward trades.

  • Allocate a trade to one or more accounts belonging to the original client.

  • Allocate a trade to one or more accounts belonging to other clients.

  • Change the direction (buy/sell) of individual allocations.

  • Specify allocation amounts manually or let FX Sales allocate the trade evenly across selected accounts.

Requirements

This feature has the following requirements:

  • Front end: FX Sales 2.14.0 or greater

  • Back end: an integration adapter with a registered implementation of the FX Integration API’s AllocateTradeListener interface (FX Integration API 3.52+).

For information on implementing Post-trade Allocation in your FX Sales deployment, see Implementing Post-trade Allocation.

Overview

When the back-end trading system supports allocation of an executed trade, the More Actions menu of the trade’s confirmation ticket includes the option Allocate:

st pta more actions

Click More Actions > Allocate to open the Post-Trade Allocation ticket:

st pta ticket

The ticket displays details about the original trade and a table of allocations.

Allocated and Unallocated totals

The Allocated and Unallocated totals update dynamically as you edit the ticket:

  • Allocation amounts in the same direction as the original trade are added to the Allocated total.

  • Allocation amounts in the opposite direction to the original trade are subtracted from the Allocated total.

When the Unallocated total is positive, a warning icon ( exclamation circle ) is displayed next to the total.

When the Allocated total is negative, a warning icon ( exclamation circle ) is displayed next to the total.

Ticket status

The ticket status is displayed next to the Unallocated total and can have one of three values:

Ticket status
  Description

Editing

The ticket is partially complete, and all completed fields pass validation.

Error

One or more fields fail validation.

Ready

The ticket is complete, and no fields fail validation.

Allocation amounts are validated when all Amount cells in the allocation table have a value.

When the ticket is in the Ready state, you may submit the ticket. See Submitting the allocation request.

Adding and removing allocations

When the Allocation ticket is opened, only one allocation row is shown.

  • To add another allocation row, click Add Allocation.

  • To remove an allocation row, click the row’s delete icon ()

  • To reset the ticket, click Clear All.

Editing allocations

To change the direction of an allocation, click the Direction cell and toggle between directions.

To change the client of an allocation, click the Client cell and select a different client. You are free to select any client that you are permitted to trade on behalf of, but your trading system may reject the allocation if there is no relationship between the selected client and the original trade’s client.

To hide the Client column and prevent users from allocating amounts to a different client, set the configuration option CAPLIN.PTA.ENTITY_SEARCH.ENABLED to false.

To change the amount of an allocation, click the Amount cell and type an amount.

When all allocation rows are in the same direction (buy/sell) as the original trade, you can click Split to allocate amounts evenly across all rows. This overwrites any manually allocated amounts. The distribution algorithm respects the number of decimal places in the base currency and distributes any division remainder over as many allocation rows as possible.

Submitting the allocation request

When you have allocated all funds, and the ticket is in the Ready state, click Allocate to submit your allocation request.

The allocation ticket reports one of three server responses:

  • Allocated: the allocation was accepted

  • Rejected: the allocation was rejected

  • Error: there was an error processing the request

If your submission was accepted, then the status of the original trade changes from Completed to Allocated (a status equivalent to Cancelled). Each allocation in your submission is created as a new trade. You can open these new trades from the blotter, and allocate them in turn (if supported by your trading system).

If your submission was rejected or raised an error, then the status of the original trade does not change, and the trade remains in the Execution blotter. You can re-attempt the allocation now or in the future.


See also: