In Atlantis, if a trade is unable to settle for any reason it is given a Cannot Settle Reason code. These codes help guide brokers regarding how to fix or action trades to move them toward settlement. However, what exactly needs to be done is not always clear. In some cases, firms will need to use a combination of the Cannot Settle Reason and the Fee Calc Failure Reason to push trades towards settlement. Below you will find a breakdown of each Cannot Settle Reason explaining both the cause and the solution.
Cannot Settle Reasons
- Fee Missing Receiver Affirmation
- Cause– Fee has not been Affirmed by the Receiver
- Solution– Receiver needs to Affirm the fee
- Fee Missing Approval
- Cause– Fee was Affirmed by Receiver, but not Approved by Payer
- Solution– Payer needs to Approve the fee
- Fee Amount Missing
- Cause– There are several reasons why a fee amount may be missing on a trade such as:
- No Agreement Found in Docs
- An agreement exists in Docs, however it’s not matching to the trade because:
- Clearing account on trade does not exactly match the clearing account on the Docs agreement
- Trade date does not fall within both the effective date of the agreement and the effective date of the clearing account
- An agreement exists in Docs, and is matching to the trade, but the product/exchange on the trade is not listed on the electronic rate schedule
- Trade matches to multiple Docs agreements that have different rates listed, so Atlantis cannot choose which one to match
- Solution– Receiver/Payer should check the Fee Calc Failure Reason* for the fee and work to resolve issue highlighted
- Cause– There are several reasons why a fee amount may be missing on a trade such as:
* For help with troubleshooting Fee Calc Failure Reasons, please refer to the Troubleshooting Fee Calc Failure Reasons article
- Fee on Hold
- Cause– Fee was Held by Receiver
- Solution– Receiver should review the fee, make any necessary amendments, and then Affirm the fee
- Fee Rejected
- Cause– Fee was Rejected by the Payer
- Solution– Receiver should review fee including Reject reason, make any necessary amendments, and then Affirm the fee
- Note: Fee Rejected will also show on the Payer side review when fees have been Re-Affirmed by Receiver. Users should utilize the “Reviewer” filter to identify fees that are pending their review for Fee Rejected Cannot Settle Reason
- Fee on Payer Hold
- Cause – Fee was Held by Payer
- Solution – Payer should review the fee, and then either Approve or Reject the fee
- Fee Modified During Lock Period
- Cause– Fee was Amended and/or Affirmed after the Receiver Lock
- Solution– Since the fee was modified after Receiver Lock, it will be pushed to the next settlement cycle. The Payer should still Approve the fee as soon as possible, but settlement will not occur until the following cycle
- Pending Clearing Account Addition to Agreement by Payer
- Cause– Receiver has Associated Clearing Account on the trade to a specific Give Up Agreement ID. Associated Clearing Account has not been added to the linked Give Up Agreement ID in Docs.
- Solution– Clearing Broker needs to add Associated Clearing Account* to Docs agreement directly in Docs
- Note: Trades will not fully settle until the Clearing Account is added to the Associated Give Up Agreement in Docs even if the Reviewer state shows as “Complete”
* For help with clearing account addition, please refer to the Clearing Account Best Practices article
- Fee Amount from Unofficial Agreement
- Cause– Fee was generated from a Draft or Prioritized Draft Agreement
- Solution– All parties on the Draft or Prioritized Draft Docs Agreement should complete actions in Docs to fully execute the Agreement. Once the Docs Agreement has been executed, the trade will be able to settle in the next available settlement cycle
- Note: Any trades matching to Draft agreement may un-match and reset actions if the Executed Agreement Effective Date does not cover the Trade Date
- Fee Currency Cannot Settle at Payer
- Cause– The Payer Participant does not have a brokerage settlement bank account in the pricing currency setup with FIA Tech
- Solution– Payer Participant should onboard* the currency not currently set up
* For help with currency onboarding, please reach out to banking.operations@fia-tech.com
- Fee Currency Cannot Settle at Receiver
- Cause– The Receiver Participant does not have a brokerage settlement bank account in the pricing currency setup with FIA Tech
- Solution– Receiver Participant should onboard* the currency not currently set up
* For help with currency onboarding, please reach out to banking.operations@fia-tech.com
Trades with Cannot Settle Reasons below remain on Atlantis but do not affect statistics. FIA Tech does not currently remove any trades fully from Atlantis.
- Payer Participant Off Platform
- Cause– Payer Participant does not settle brokerage in Atlantis
- Solution– If Receiver believes trades should actually be settled by an on-platform participant, reach out to atlantis.support@fia-tech.com and the FIA Tech team will investigate. If Receiver agrees that trades should be settled off-platform, no further action is needed
- Note: Trades with this Cannot Settle Reason remain on Atlantis but do not affect statistics. FIA Tech does not currently remove any trades fully from Atlantis
- Receiver Participant Off Platform
- Cause– Receiver Participant does not settle brokerage in Atlantis
- Solution– If Payer believes trades should actually be settled by an on-platform participant, reach out to atlantis.support@fia-tech.com and the FIA Tech team will investigate. If Payer agrees that trades should be settled off-platform, no further action is needed
- Note: Trades with this Cannot Settle Reason remain on Atlantis but do not affect statistics. FIA Tech does not currently remove any trades fully from Atlantis
- Bank Account Missing
- Cause– Currency currently not supported for settlement by FIA Tech
- Solution– Trades with this Cannot Settle Reason remain on Atlantis but do not affect statistics. No action necessary from Participants if they agree these trades are not eligible for settlement.
- Note: If firms would like to settle in a currency not supported by FIA Tech please reach out to atlantis.support@fia-tech.com to raise request
- Payer Participant Missing
- Cause– There are three causes for this Cannot Settle Reason:
- The “Bill To” Docs Party, as determined from matched agreement, is not mapped to an Atlantis Participant Code
- Note: Customers and traders are not currently mapped to Atlantis Participant Codes, so if trades are matching to a Docs agreement that is Bill To Customer or Trader then trades will display “Payer Participant Missing” Cannot Settle Reason
- Fee matches a Docs agreement and a rate schedule that has the exchange/product marked as Direct Bill (in the eModule the Direct Bill Indicator will be "Y")
- Much less commonly, the Exchange Firm Code for the Clearing Broker is not yet mapped to a Participant in Atlantis
- The “Bill To” Docs Party, as determined from matched agreement, is not mapped to an Atlantis Participant Code
- Solution– No action necessary from Participants if they agree these trades are not eligible for Atlantis settlement
- Note: Trades with this Cannot Settle Reason remain on Atlantis but do not affect statistics. FIA Tech does not currently remove any trades fully from Atlantis
- Cause– There are three causes for this Cannot Settle Reason:
- Receiver Participant Missing
- Cause– Exchange Executing Broker Code not mapped to an Atlantis Participant Code
- Solution– No action necessary from Participants if they agree these trades are not eligible for Atlantis settlement
- Note: Trades with this Cannot Settle Reason remain on Atlantis but do not affect statistics. FIA Tech does not currently remove any trades fully from Atlantis
- Receiver and Payer are the Same
- Cause– Trade is an intra-firm give up which will not settle in Atlantis
- Solution– No action necessary from Participants if they agree these trades are not eligible for Atlantis Settlement
- Note: If a Participant would like to set up intrafirm settlement on Atlantis, please reach out to at atlantis.support@fia-tech.com
- Fee Settlement Suppressed by Payer
- Cause– Payer has suppressed settlement for given exchange because they are not live on Atlantis for this exchange
- Solution– If Receiver agrees to settlement suppression, nothing to be done. If Receiver believes trades should be settled in Atlantis, they should reach out to Payer to discuss. Any changes in settlement suppression setup will be done by FIA Tech after confirmation from Payer
- Fee Settlement Suppressed by Receiver
- Cause– Receiver has suppressed settlement for given exchange because they are not live on Atlantis for this exchange
- Solution– If Payer agrees to settlement suppression, nothing to be done. If Payer believes trades should be settled in Atlantis, they should reach out to Receiver to discuss. Any changes in settlement suppression setup will be done by FIA Tech after confirmation from Receiver
- Fee Canceled
- Cause– Fee was canceled by FIA Tech (or at exchange level for CME) and will not settle in Atlantis
- Solution– No action necessary from Participants if they agree these trades are not eligible for Atlantis settlement
Comments
0 comments
Article is closed for comments.