Nettings settings

Click ADD NETTINGS SETTING to create a new netting setting.

In this section you can also set conversion rules for netting.

The DEFAULT netting setting is used in technical accounts such as Nominal.

General

In the General section, you have to set the Name for your setting, the Base currency - the currency to which all revaluations are set by default, and select the swap type - Close by AVP, Open by AVP or Close by market. It is also possible to specify a particular nominal account for settlements.

Swap types:

• Open by AVP - the rate is selected in such a way that there is a movement of funds at the actual cost of the swap (provided that there were no trades closing/reducing the position on that day).
• Close by AVP - the rate is selected in such a way that there is no movement of funds (provided that there were no trades closing/reducing the position on that day).

Close by AVP swap type cost formula: Close quote amount = position entry price * amount in lots * instrument lot size Open quote amount = Close quote amount - (Lots in position * instrument lot size * MPI * swap rate * days in swap) Swap Cost = Open quote amount + Close quote amount.

• Close by market - Open rollover rate = current rate of the market pair (instrument). Top of the book price is used.
• Close by avp with EOD rate - works similarly to the Open by AVP setting, but if the swap rate is specified in the system as a percentage, the closing price of the day is used to calculate the swap price instead of the AVP of the position.

Base currency additional information: The account base currency does not mean that cash in and cash out can only be done in this currency. The account can be multicurrency.

• Auto-netting enables instant settlement and making nettings, regardless of the actual settlement date. This means that even if the value date is real, the money will be in the account instantly and that the client can withdraw it at any time.

Please note Using the Auto Netting may occur cash gaps, because you top up money to the client account before the value date, the current balance will be changed in the account instantly and the client can withdraw funds at any time.

• Promote external commission - external commissions can either come from the liquidity provider or be defined manually. If this checkbox is enabled - the commission will be created for the client in two separate transactions: with brokerage and external commission. If this checkbox is disabled, the client will receive all external and brokerage commissions as a single transaction, i.e. a trade commission will be created on netting.

• If the option Convert FX to CASH is enabled, trades on FX-instruments will be converted to trades on the corresponding CASH-instruments, the trade on FX-instrument will not be opened and the funds will be immediately transferred to the account balance (section Assets).

Example: you buy 1000 EURUSD at a rate of 1.1, after the order is executed, 1100 USD will be credited from your account and 1000 EUR will be immediately debited to your account.

• Convert CFD FX to CASH - this option is identical to Convert FX to CASH, but applies to Currency CFDs and Cryptocurrency CFDs.

• Intraday Swap - if this option is enabled, the system will ignore the tenor value dates and will swap positions on the trade date.

Triple swap charge

For the .SPOT tenor with Intraday swap enabled, the triple swap will be charged on Wednesday with the value date moved to Monday, with Intraday swap disabled, the triple swap will be charged on Thursday with the value date moved to Monday.

For the .TOM tenor with Intraday swap enabled, the triple swap will accrue on Thursday with the value date moved to Monday, with Intraday swap disabled, the triple swap will accrue on Friday with the value date moved to Monday.

For a tenor .TOD with Intraday swap enabled, the triple swap will accrue on Friday with the value date moved to Monday, with Intraday swap disabled, the triple swap will accrue on Friday with the value date moved to Monday marked “Intraday swap - Yes”. {.is-warning}

Postponed settlements - when checked, mandatory settlements become optional.

Do not settle option premium - the setting enables the logic of non-deliverable options, and the account indicators are changed:

• Assets market price of the account is always zero;
• Future cash flow of the account is equal to the P/L of the position;
• Unrealized P/L is equal to the estimated unrealized P/L of the open position (without the setting enabled, it is zero);
• The type of account positions is changed from Leverage to Margin.

Client conversions rule

This subsection allows you to configure client transfer rules between your accounts.

In order for the rule setting to work, it is necessary to select an account of Nominal type. If conversion is required, this account will reflect each pair of transactions (credit of currency of the sender, debit of currency of the recipient).

Client rate TTL - the validity time of the rate from the moment it is received by the client. Source rate TTL - the client will not receive a rate that exists in the system longer than the specified time.

Please note! If two accounts with different TTL settings are used for a transfer, the settings of the account from which the transfer is made will be used for the operation.

Please note! In order for the configured client conversion rules to work, it is required that the user performing the transfer between accounts has the Client internal transfer permission in his Role.

Conversions

The block displays all the conversion rules configured in the netting configuration:

Click Add new conversion to create new conversion for the netting setting.

The Category of instruments defines for which instruments PL on trades will trigger auto-conversion. The following instrument categories are available for selection:

• CFD
• Cash
• Equity
• Futures
• Bonds
• Options
• Forex
• Unknown category

Select the Netting type - P/L, commission, settlement. For autoconversion to work, it is necessary to have an exchange rate for the currency pair, which contains the settlement currency of the trade and the Asset which is also set in the conversion rule. Dividend and Tax payment netting types are only available for CFD & EQ instrument categories.

Sub type of netting should be selected if there is a need to settle only certain transactions, e.g. commissions.

Category for rates can be Cash, Forex or CFD on Forex. Either 1 or 2 or all at once can be selected, depending on which instruments you have. If all three are selected, the system will search the instruments in all the categories until it finds one.

Here also the Timeout can be set. It defines period of time after which the last arrived quote for the CASH-instrument is valid for auto-conversion.

Use EOD rates fallback - if this option is enabled and the system for some reasons has not found a suitable conversion rate - it will use the previous day's closing rate for this currency pair.

Please note! Once you finish editing the conversion rule, click the ADD RULE button to add it to the current netting setting.

By clicking DUPLICATE a copy of the current setting can be created.

To save new or edited setting click SAVE in the bottom right of the screen, CANCEL to cancel the changes and SHOW USAGE to view on which accounts this setting is used.