How to set up autofill of trading orders with execution details?

Introduction

Luna Wealth Platform has a mechanism that helps to set up autofill of trading orders with execution details.

How to make setting for autofill of trading orders with execution details?

1. Every Custodian in the system has 2 (two) attributes DMA and OTC.

System Admin shall indicate if the Custodian supports DMA and/or OTC trading.

2. All information about available Custodians and their execution options is automatically summed up by the system to a special matrix.

The matrix has the following structure:

1. Raws with Custodians Names and columns with Execution option and Instruments asset types.

2. Admin fills in the intersection of the rows and columns with numbers. The intersection of the row and column number defines for the system execution option priority.

Rule: The lower the number, the higher is the priority.

3. If a Custodian doesn’t support some execution option, the system will not allow Admin to fill in its execution priority.

Special cases:

1. If the system found priority, but bank account in the Custodian is not found, the system will proceed checking second lowest priority.

2. If the system cannot find Custodian with available bank account automatically according to the matrix, the order will be sent for manual check up to authorized users.

3. If the system sends order to the found Custodian via DMA, it will automatically set Time- in -Force=GTC ( in case the Custodian supports such type). If “GTC” is not supported, the system will set Time- in -Force=DAY

Use Cases

The system has integration with 3 Custodians.

Custodian 1: supports DMA trading for Equities/ Fixed Income

Custodian 2: supports only OTC trading for Equities/Fixed Income

Custodian 3: doesn’t support DMA or OTC trading

Use case #1

As Admin I want to set up the following:

1. all Equities shall be traded on Custodian 1 via DMA

2. all Fixed incomes shall be traded on Custodian 2 via OTC

The Matrix will display all Custodians and as Admin I set the required priorities.

Result:

1. The system will check the matrix and send all Equity orders to Custodian 1 via DMA, because “1” is lowest priority number according to settings in the matrix. If the system cannot find an available bank account on Custodian 1, it will send all Equity orders to Custodian 2 via OTC, because “5” is the second lowest priority number according to settings in the matrix.

2. The system will send all Fixed Income orders to Custodian 2 via OTC, because “1” is lowest priority number according to settings in the matrix.

Use case #2

As Admin I want all Fixed Incomes traded on Custodian 1 via DMA. And in case there is no available bank account on Custodian 1, the system shall send Fixed Income orders to Custodian 2 via OTC.

The Matrix will display all Custodians and as Admin I set the required priorities.

Result:

1. The system will check the matrix and try to send all Fixed Incomes to Custodian 1 via DMA, because “1” is lowest priority number according to settings in the matrix.

2. If the system cannot find an available bank account on Custodian 1, it will send all Fixed Income orders to Custodian 2 via OTC, because “2” is the second lowest priority number according to settings in the matrix.