Due to the current trade feed restrictions in Atlantis, sometimes additional actions need to be taken by firms in regards to reversed/cancelled trades. This article walks through how to handle these types of trades appropriately through the Atlantis workflow.
There are four broad categories of cancel-handling and process.
|Exchanges||Responsible Party||User Action|
|Cancel||CME, XEUR, ICE||Exchange||None|
|Reversal||TMX||Exchange*||Settle original + reversal trades|
|No Cancel||OCC, XASX, XSES||Both Brokers||Reach out to FIA Tech|
|CBTS-driven||Other||Clearing Broker||Source Participant to send FeeCancel message on applicable trades|
FIA Tech cancel trades that contain the “RETURN” string within the Clearing and/or Give-up Reference field. The scan runs weekly on Saturdays & cancels trades with a trade date older than 15 days. Trades may age more than 15 days prior to cancellation given the script is weekly.
Cancels (CME, XEUR, ICE Markets)
Due to the real-time messaging queue they use to feed Atlantis data, the CME and XEUR exchanges are able to send cancels directly. ICE Markets are able to do the same on an EOD basis, not real-time. This means that a trade canceled on these exchanges will update Atlantis and mark the trade as cancelled automatically, without any required user action.
A cancelled trade will update with a "Fee Cancelled" Cannot Settle Reason, which will move it out of the Atlantis eligible trade workflow. "Fee Cancelled" trades will not count against your Atlantis stats, but will be preserved within the system for audit and record purposes.
TMX exchange does not have real time messaging. To communicate a cancel to Atlantis they use a reversal indicator. In a reversal, a second trade is sent to Atlantis with a fee that is the inverse of the first, allowing the two trades to cancel one another out. For example, if the initial trade had a fee of $5, the reversal will have a fee of $-5. The reversal trade can be identified through the "Is Reversal Offset" field in Atlantis, which will be set to "Yes" for reversal trades.
To manage these trades, the user must settle both the original trade and the reversal, in order to balance out the net of fees being charged.
No Cancel (OCC, XASX, XSES)
For all other Atlantis connected exchanges, the exchange will not provide any indication of a canceled trade. For these trades, both the Executing and Clearing Brokers on Atlantis must agree that the trade is cancelled, and must confirm this with FIA Tech. FIA Tech will then process the request and mark the trade as cancelled, giving it the "Fee Cancelled" Cannot Settle Reason, which will move it out of the Atlantis eligible trade workflow. "Fee Cancelled" trades will not count against your Atlantis stats, but will be preserved within the system for audit and record purposes.
Firms are requested to send a list of trades to be cancelled along with counterparty approval to email@example.com
For Executing Broker Trade Submission and Clearing Broker Trade Submission trades, the cancelled status is driven by the source broker. Since the Source Broker provides the trade to Atlantis, they are able to update the trade with a cancelled status unilaterally.
- A cancelled trade can be completed by downloading the summary extract of the trade details that need to be cancel. In the first column under “Action” fill in “Cancel” and keep the rest of trade details as they are. Upload details back to Atlantis and check the notifications screen to validate if file has been properly consumed or if any errors with submission. If file was processed successfully, trade will show as "Fee Cancelled" under Cannot Settle Reason, which will move it out of the Atlantis eligible trade workflow. "Fee Cancelled" trades will not count against your Atlantis stats, but will be preserved within the system for audit and record purposes