“If the trade is to be allocated over different accounts, the method to be used needs to be recorded. This can either be trade specific or a general principle (e.g. allocation proportionate to assets in accounts) that is documented in the Hedge Fund manager’s operations manual. Operational procedures should be in place to ensure that the methodology is followed. ”

AIMA CANADA,
Sound Practices for
Canadian Hedge Fund Managers, 2004

 

Trade Capture and Allocation

An important element in maintaining the accuracy of trade records and facilitating efficient settlement is capturing the trade details when the trade is done. Keying in numerous trades at the end of the day is often a source of errors.

The system provides FIX connectivity to over 600 sell side firms so that trade details can be transmitted electronically, saving time and reducing errors from manual keying.

By making the trade entry fast, and reflecting the results of any trades immediately in the portfolio, the system facilitates accurate and timely trade reporting to the custodian, and true position keeping.

The system includes several algorithms for automatically allocating trades between multiple portfolios, or this can be done manually if desired. Likewise, the system can be used to calculate order quantities to achieve a particular target weight of a security. Trades can be allocated when it is first entered, or later on when the fills are finalized with the executing broker.