What are Third Party Payer trades?
In Atlantis, Third Party Payer (TPP) trades are trades that were cleared 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 TPP who needs to make payment either inside or outside of Atlantis.
How do Third Party Payer Trades get identified in Atlantis?
Third Party Payers 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 a TPP that does not settle in Atlantis is the Payer Participant on a set of trades, the Cannot Settle Reason will be “Payer Participant Off Platform”.
How do Payer Participants designate trades with Third Party Payers in Atlantis?
Atlantis Users need to first check if the TPP already has a Participant Code set up in Atlantis. This is found by searching in the Participants section of the Reference Data.
If the Third Party Payer does not already have an Atlantis Participant Code set up, the Atlantis User will need to reach out to firstname.lastname@example.org to set them up. Once the TPP has been set up, Atlantis Users can follow the below process to have trades moved to the correct Payer Participant.
Submit Third Party Payer Rules Template
When a Third Party Payer consistently uses an Atlantis User’s exchange membership to execute trades, the Atlantis User should submit Third Party Payer 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 Third Party Payer 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 a Third Party Payer.
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 full account or account 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 Third Party Payer 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.