Cash Adjustments

What is a Cash Adjustment?

A Cash Adjustment is a direct payment made in Atlantis between the Receiver and Payer.  It is not linked to a specific trade in Atlantis, though it is based on specific Docs Agreement details (accounts, exchanges, participants, etc).

Cash adjustments are a convenient way to fix settlement mistakes electronically. Instead of having to send manual wires, firms can settle these discrepancies as easily as normal brokerage fees. 

Why Use a Cash Adjustment?

Before a trade has been approved, fees can be amended and trade facts can be updated to cause recalculation. If a trade is approved and fully settled with an incorrect fee, firms need to use a Cash Adjustment to fix the discrepancy. Common Cash Adjustment use cases include:

• Over/underpayment of brokerage fees
• Rate issues
• Settlements with Incorrect Brokers

How to Submit a Cash Adjustment?

The option to “Post Cash Adjustment” is found on the right side of the Atlantis Summary Screen in the Actions menu for Receivers. 

Where to View Cash Adjustments?

The Summary screen has a pre-set “Cash Adjustments” view that will show all cash adjustments currently unsettled in Atlantis.  Firms can also create custom views in Atlantis or view cash adjustments in any of their current views.  Simply change FEE TYPE in the filters to Cash Adjustment.

Select an aggregate of trades in Summary Screen and it should auto populate the details in the Post Cash Adjustment fields. 

Reference Date, Currency and Amount would need to be manually filled.

Review that the information is correct and hit Post.  This will credit the Receiver and debit the Payer. In this example, the Receiver (HMHLT) will receive 888 USD and Payer (IIMC) will pay 888 USD.

Negative amounts debit the Receiver and credit the Payer; Positive amounts credit the Receiver and debit the Payer

Criteria to Create a Cash Adjustment

The following criteria apply when creating a cash adjustment in Atlantis:

• Only Receivers can create Cash Adjustments. Once posted, the adjustments are automatically affirmed and follow the same workflow as Execution Brokerage on Atlantis.
• Like any fee, a Cash Adjustment must be actioned by the Payer. A Payer can Approve the cash adjustment or Reject it if they do not agree.
• Once Cash Adjustments are Approved, they are Ready to Settle in the next eligible settlement cycle
• If Cash Adjustments are rejected, Receivers CANNOT amend them. Receivers will need to repost a new Cash Adjustment to correct.
• Details must be valid, i.e. if you provide a Clearing Account and an Agreement ID that account MUST appear on that agreement.
• Cannot perform Cash Adjustments with CCYs that Participants have not onboarded on Atlantis

Negative amounts debit the Receiver and credit the Payer; Positive amounts credit the Receiver and debit the Payer

Posting Negative Cash Adjustments

If a Receiver posts a negative Cash Adjustment, this would result in the Receiver being debited and crediting the Payer.  In this example, the Receiver (IIMC) will be paying 5,555 GBP to Payer (HMHLT).

Where to View Cash Adjustments?

The Summary Screen has a pre-set “Cash Adjustments” view that will show all cash adjustments currently unsettled in Atlantis.

Firms can also create custom views in Atlantis or view cash adjustments in any of their current views by simply changing FEE TYPE in the filters to Cash Adjustment.

Cancel Cash Adjustments

If Participants would like to cancel incorrectly posted cash adjustments, they will need to reach out to atlantis.support@fia-tech.com as they cannot be removed otherwise.