Backoffice

This section is intended for the broker to control the settlement procedure for trades that are settled directly with counterparties.

Important! Although OTC transactions are also displayed in the Daily Operations section, all operations related to them must be processed directly from the settlement trades screens of the Backoffice section.

The section table contains the following fields:

Name	Description
Trade	ID of the trade, for which the settlements are formed in the table.
Settlement ID	ID of settlements in the system.
Order ID	ID of the order that formed the trade.
Status	Current status of settlements on the trade.
Transaction time	Date and time of settlement generation in the platform.
Client profile	Client's profile, on whose account the trade is formed.
Client account	Client's account on which the trade is formed.
Side	Side of the trade.
Exchange	The exchange on which the instrument is traded.
Instrument	Name of the trading instrument in the platform.
Ticker	Ticker of the trading instrument.
ISIN	ISIN of the instrument.
Amount	Amount of the instrument in the trade.
Currency	The quoted currency of the trade.
Price	Price of the instrument in the trade.
Quote amount	Quote amount of the instrument in the trade.
Accrued interest	Accrued coupon income (for bonds).
Gross amount	The amount of the trade in the quoted currency (quoted amount of the trade).
Commission	External commission of the trade (set at the stage of acceptance of the trade).
Tax	Tax set at the stage of trade acceptance.
Net consideration	The amount of the trade in the quoted currency to be paid (to the counterparty) or received (from the counterparty). Calculated considering external fees (selected at the settlement acceptance stage) and including coupon payments (for bonds), but excluding brokerage commissions in the platform.
Counterparty	Profile of the trade counterparty.
Counterparty is broker	Set to “Yes” if the counterparty of the trade is a broker.
Settlement Type	DVP (Delivery versus payment) or FOP (Free of payment).
Counterparty SSI	Set of counterparty details.
Broker SSI	Set of broker's details.
Trade date	Trade date in the system.
Value date	Expected settlement date.
Settlement date	the date of settlement of securities or money.

Filters by settlement Status, Trade date and trade Value date are available in the section.

If the Show settled checkbox is enabled, the table will show settled trades.

Explanation for SSI (Standard Settlement Instructions) fields: they represent the securities and funds (for DVP) or securities and funds (for FOP) details on which the trade will be settled in the platform. It is assumed that the broker cannot make a trade with a regulated counterparty that has not passed KYC. If the counterparty has passed KYC before making any trade - the broker verifies and enters the SSI details in his profile. When the trade appears in the section - the counterparty should already be verified in the platform (with SSI specified). If the details are not available or have been changed before the trade is made - they can be verified in the profile of the counterparty.

Explanation for settlement types: - DVP - settlement of cash and securities trades by the parties is done simultaneously. Settlement of funds and securities takes place in one place and the custodian controls the process. When selling securities - funds are not credited until the securities are debited. When buying - until the funds are debited - the securities will not be credited. The custodian is responsible for the fact of settlement and usually charges a fee. From the system's perspective, in the case of DVP-type settlements, one depository account is specified and both cash and securities settlements take place within it. - FOP is a securities trade in which securities are delivered/received without payment being made for them at the moment. FOP involves settlement risk because delivery is made without a guarantee of payment, unlike DVP settlements, in which securities are transferred only after payment is made. From the system's perspective, in case of FOP type settlements, two accounts should be specified: one is a custodian account for securities settlement and the other is a bank account for cash settlement. One account can be used for these purposes, there is no additional control from the custodian in any case (i.e. if it has orders - it debits money). For FOP, one trade date is specified, but the settlement dates for funds and securities may not match.

Important! At the New and Accepted settlement statuses, the value date can be changed for a trade. For correct work of settlements, it is necessary to manually change it in all related trades: client trade, transfer trade, external commission trade and broker's commission trade (if already formed).

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Three accounts are used for the purposes of trades settlements with a counterparty - client account, counterparty account and custodian account. Counterparty account in the system exists to reflect with which counterparty trades are performed (details and data for reporting are taken from counterparty profiles).

Reminder! There are always two trades in the system - one for the client account and one for the provider account. The client trade remains on the client account during the whole process. Transfers by statuses described further in the article concern only trades on external accounts.

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Section operation mechanism

When an order is executed (formed from the client terminal or manually from the Dealer section), a pair of trades is formed in the system - one on the client's personal account and the second on the Non accountable account of the counterparty. When trades are formed, in Backoffice section trade settlements are also formed.

In a settlement operation, a Non accountable account is used because there is no accounting of settlements directly with the counterparty: the broker/client pays funds from its currency accounts and receives securities on its custodian accounts or vice versa - depending on the direction of the trade.

During status settlement, the client's trade remains on the client's account and the counterparty's trade is moved from the counterparty's account to the custodian's account. Final settlement takes place on the client's and custodian's accounts.

When opening the settlements for any of the trades in the section the status of settlements can be tracked and changed.

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New status

Trade settlement appears in the New status. It allows to change the counterparty, as well as accept the trade and transfer its settlement to the next status.

Please note! If the broker has a FIX-connection with the provider for execution of such trades, then after sending a trade order to the provider, the system receives execution from the provider to the account from which the order was sent. In fact - order executions from the provider account inside the system are generated on the same account, so the back-officer must manually move the trade to the account of the counterparty with which it is made. If orders are executed manually - through the Dealer section, the counterparty is specified immediately when filling out the order and it is usually not necessary to change it, although it is technically possible.

In this status, the following fields are filled in the trade settlement:

Name	Description
Settlement ID	Generated settlement ID in the system.
Settlement type	DVP (Delivery versus payment) - delivery versus payment or FOP (Free of payment). Set when order is executed through Dealer section or when execution is received from provider.
Instrument	Trading instrument in the trade (set at the stage of order forming).
Currency	Quoted currency of the trade (set automatically from the parameters of the instrument).
ISIN	ISIN of the instrument (set automatically from the instrument parameters).
Counterparty	Trade counterparty profile (can be changed for settlements in this status).
Counterparty is a broker	Set to "Yes" if the counterparty of the trade is a broker (can be set in the trade acceptance sidepage).
Netting date	Date of funds settlement in the system (it is set automatically from the date of trade value date).
Status	Settlement status.

The Commissions and considerations block displays the following indicators:

• Gross amount - the amount of the trade in quoted currency (quoted amount of the trade).
• Net amount - the amount of the trade in quoted currency to be paid (to the counterparty) or to be received (from the counterparty): calculated considering external fees (selected at the stage of settlement acceptance) and coupon payments (for bonds), but excluding the broker's commission in the platform.

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The settlement functionality in this status also allows the back officer to change the counterparty if the counterparty was previously selected incorrectly. The counterparty change sidepage opens by clicking the Change counterparty button on the settlement page. To do this, it is required to specify a new counterparty in the Counterparty account ID field and confirm the changes by clicking on the Change counterparty button in the sidepage:

The back-officer verifies that the counterparty documents are filled out correctly by checking the supporting documentation from the source of the trade.

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When the button Accept trade is clicked, the trade acceptance sidepage opens:

At this stage the system records interaction of broker's back-officer with counterparty's back-officer regarding trade confirmation. To transfer to the next status - Accepted, it is necessary to specify the broker's custodian account, where settlements on securities will take place. The securities will be debited from this account when selling or credited when buying.

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Accepted status

After acceptance, the trade is moved to the Accepted status. In this status the previously set data on Custodian and Provider (custodian profile), as well as SSI of custodian and Broker appear in the settlements.

External fees can be specified for the trade at this stage by clicking the Add fee button and filling in the amount and fee type fields:

All commissions will be taken into account in the Net consideration of settlements with the counterparty. The Exchange fee, External broker fee and Tax will be recharged to the client.

In this and subsequent statuses the button Download PDF allows to download a confirmation to be sent to the counterparty. The confirmation contains all data about the trade and settlements. Information about the broker in the generated confirmation is specified in the Broker's Settings for reports.

The Generate report button allows you to generate a Post-trade report.

After clicking the Confirm trade button, the trade settlements will move to the next status - Confirmed. The confirmation to the counterparty is downloaded automatically.

For the FOP settlements

For such settlements, two accounts must be specified when confirming the trade - for asset settlement (Asset details block) and for cash settlement (Cash details block):

Confirmed status

In this status, the trade can be transferred from the counterparty's account to the custodian's account by clicking Transfer trade.

After clicking the button, the status Transferred is assigned to the trade settlement:

Transferred status

At the moment of transition to this status, an opposite trade is formed on the counterparty's account and it is zeroed. The current trade is moved to the custodian's account and awaits settlement.

Comment on settlements on a trade in the Transferred status: In reality, settlements may take place with a delay rather than on the value date. Example of system operation:

The planned settlement date of the trade is 24.06, the counterparty actually delivers the securities on 27.06. There is an option Delayed settlements in the Trading settings ➝ Netting settings section. It must be enabled for custodian and client accounts. In this case, the system will allow closing the settlement day even if settlement has not actually occurred. Also in the Daily operations will be settlements available for making (before they are actually made), but they can be made only in this section from the settlements for a particular trade. The Settle asset shorts option must also be enabled in Netting settings for correct settlement of trades.

Clicking the Settle trade button will open a sidepage, where the actual settlement date of the trade should be specified and Settle trade button must be clickefd in the sidepage to move the settlement to one of the final statuses.

• If DVP settlement type has been selected, the transfer puts the settlement into Settled status. Thus, the broker confirms receipt of settlement confirmation from the custodian. Then the trade will be settled and crediting/debiting of funds/securities and settlement of commissions will take place. The Settled status is the final status for settlement of the trade. Two-way transactions occur when such status is assigned.

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• If the FOP settlement type has been selected, the transfer of funds and securities may take place on different days. Accordingly, the trade may move to one of the statuses: Asset settled - if only securities have been settled at the moment. Cash settled - if only cash has been settled at the moment. At transition to any of these statuses one corresponding transaction is created in the system. Also the value date on the first part of settlements is displayed in settlements.

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Active settled status (for FOP settlements)

Transfer to this status is possible only for settlements of FOP type, if during the transfer from the Transferred status the Cash settlement type was selected:

Clicking the Settle trade button will open a sidepage, in which you should specify the actual date of settlement of assets under the trade and click the Settle trade button in the sidepage to move the settlement to the final Settled status.

Cash settled status (for FOP settlements)

Transfer to this status is possible only for FOP type settlements, if Active settlement type was selected during transfer from Transferred status:

Clicking the Settle trade button will open a sidepage, in which you should specify the actual date of settlement of cash under the trade and click the Settle trade button in the sidepage to move the settlement to the final Settled status.

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After the second part of the trade settlement has been performed, it can be moved to the Settled status. Two value dates will be displayed in the trade settlements: one is for the first transaction (Currency value date or Asset value date), the second one is set for the second transaction settlements and is the final one. As a result, the transaction of settlements on the second side of the trade is formed and settlements move to the final status Settled.

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The section tabs described below are intended for informational purposes.

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Client trade

The tab displays all information about the client trade related to the settlement:

Details about the trades functionality are described in the Trades article.

Additional info

The tab contains additional information about the settlements:

Name	Description
Counterparty	Link to the account of the counterparty involved in the settlement.
Payment date	Date of delivery of funds.
Delivery date	Date of delivery of securities.

Payment methods

The tab contains information about the broker and counterparty payment methods used for cash settlement in DVP settlements.

Detailed information about payment methods and their creation can be found in the Broker payment methods article. Creation and customization of counterparty's payment methods is performed in its Profile similarly to the broker's.

Custodian accounts

The tab contains information about the custodial accounts of counterparties where securities are held:

Creating of custodian accounts in the system is described in the article Custodian accounts. Creation and setting up of custodian accounts of a counterparty is performed in its Profile similarly to setting them up in a broker.

Transactions

The tab contains the list of all generated transactions that occurred during the settlement procedure.

This tab contains a list of all generated transactions that occurred during the settlement operation. Details about the transaction functionality are described in the articles History ➝ Transactions and Account ➝ Transactions.

History

The tab contains information about the history of changes in the settlement statuses:

The table contains the following data:

Name	Description
User	User in the system who made changes.
Profile	Broker's profile, in which the changes were made.
Status	Status assigned to the settlement as a result of changes made by the user.
Update time	Date and time of status change.