What are Order Passing Broker trades?
In Atlantis, Order Passing Broker (OPB) trades are trades that were executed by a third party broker using the exchange membership of an Atlantis Participant. When the trades arrive in Atlantis they appear as trades of the Atlantis Participant due to the broker codes used; however, they really belong to the OPB who needs to be paid either inside or outside of Atlantis.
How do Order Passing Broker Trades get identified in Atlantis?
Order Passing Brokers are set up in Atlantis as Participants. These Participants can be setup both for firms who use and settle brokerage in Atlantis and also for brokers who do not settle in Atlantis. If an OPB that does not settle in Atlantis is the Receiver Participant on a set of trades, the Cannot Settle Reason will be “Receiver Participant Off Platform”.
How do Receiver Participants designate trades with Order Passing Brokers in Atlantis?
Atlantis Users need to first check if the OPB already has a Participant Code set up in Atlantis. This is found by searching in the Participants section of the Reference Data.
If the Order Passing Broker does not already have an Atlantis Participant Code set up, the Atlantis User will need to reach out to email@example.com to set them up. Once the OPB has been set up, Atlantis Users have two options of how to update the Receiving Participant on their trades.
Option 1 – Manually update Receiver Participant Code
The Receiver on the trades can manually amend the Receiver Participant Code to the Order Passing Broker’s Participant Code. This will move the trades out of the original Receiver’s queue and into the OPB's Participant queue. If the OPB Participant does not settle brokerage in Atlantis, then these trades will generate the Cannot Settle Reason of Receiver Participant Off Platform.
This option is best for either one-off situations where the account numbers on the trade(s) are incorrect or when a quick fix is needed (updating on Receiver Lock Day). For a more long-term solution, Atlantis Users should follow Option 2.
Option 2 – Submit Order Passing Broker Rules Template
When an Order Passing Broker consistently uses an Atlantis User’s exchange membership to execute trades, the Atlantis User should submit Order Passing Broker Rules to Atlantis Support using the Template reviewed below. If an Atlantis User needs a copy of the Rules Template, they should reach out to Atlantis Support
The Order Passing Broker Rules Template (attachment to this article) is an Excel spreadsheet that Atlantis Users will fill out with broker code, exchange and account information that can be applied consistently to move trades to an Order Passing Broker.
Filling out the spreadsheet:
- Green columns in the template are mandatory and help FIA Tech identify the parameters of the rules
- Yellow columns are used to indicate the account or prefix/suffix of the trades that you’d like us to update. You must fill in ONLY ONE of these yellow fields: account OR account prefix OR account suffix.
- Red columns are not mandatory, and most rules do not contain these data points. However if firms want to create rules dependent on clearing and executing account combinations, then firms should enter data in these columns.
- Columns O-R are for FIA Tech use only.
- If you would like this rule to apply to all exchanges, just indicate “all” in column C.
- If the Order Passing Broker that you wish to move the trades to does not yet exist in Atlantis, please just provide the party name (column F) and skip column E.
- If you are submitting rules on behalf of your counterparty (to move trades from their participant to another participant), we require their confirmation before entering in Atlantis.
- Once the rules are added in Atlantis they will apply to all future trades that feed the system going forward. FIA Tech will also need to go back and apply the rules to past trades – this update may take FIA Tech 1-2 weeks to process.
- Additionally, FIA Tech will NOT process historical trade moves between Receiver Lock and Settlement Cycle Close.