Omgeo Central Trade ManagerSM
A DTCC | Thomson Reuters Company
www.omgeo.com
Allocation-Confirmation Workflow: Questions and
Answers
This document answers the questions that clients most commonly ask about the allocation-confirmation
workflow for Omgeo Central Trade ManagerSM (Omgeo CTM).
To describe the allocation-confirmation workflow, this document refers to XML elements in the
TradeDetail message. See the XML Message Specification: Debt/Equity and Common Messages for the message
layout. Table 1 outlines where to find corresponding information for the other Omgeo CTM interfaces.
Table 1 Documentation for Mapping XML to Other Omgeo CTM Interfaces
Omgeo CTM
Interface
Trade
Side
Trade
Component
Document Title
Document Section
Investment
Manager
Allocation
FIX 4.4 Interface Message Specification:
Investment Managers
Allocation Instruction (J)
Confirmation
FIX 4.4 Interface Message Specification:
Broker/Dealers
Confirm (AS) and Ack (AT)—
Fixed Income Messages
Financial eXchange
Broker/Dealer
Information Interface
(FIX)
Confirm (AK) and Ack (AU)—
Equity Messages
Message Translation
Interface (MTI)
Trade Blotter1
1.
Investment
Manager
Allocation
Message Translation Interface Specification: Outbound File—Submitting New
Investment Managers
or Amended Allocations
Broker/Dealer
Contract
Message Translation Interface Specification: Importing Contracts to Omgeo
Broker/Dealers
Investment
Manager
Allocation
Trade Blotter Reference:
Investment Managers
Create Allocations Without an
Associated Block (ACWF)
Broker/Dealer
Confirmation
Trade Blotter Reference:
Broker/Dealers
Create Confirmations Without
an Associated Block (ACWF)
You can usually obtain the name of a trade blotter field by putting spaces in between the words of an XML element. For example, the
“CTMTradeSideId” element in XML is the “CTM Trade Side ID” field in the trade blotter.
What is the allocation-confirmation workflow?
The allocation-confirmation workflow is a process for submitting and matching only on allocation and
confirmation information. In this workflow, Omgeo CTM does not accept a separate block submission from
either party. For example, in the direct XML interface, a TradeLevel submission is rejected. Parties must
provide block-type information on the allocation or confirmation only.
Allocation-Confirmation Workflow: Questions and Answers—June 6, 2013
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How do I know if it is appropriate for my firm to use the allocation-confirmation workflow?
The allocation-confirmation workflow is a viable solution for clients who trade in an execution or tick-bytick market.
Does the allocation-confirmation workflow support all asset class transactions?
Omgeo applies separate logic and workflow support for asset classes as follows:
•
•
Debt and Equity—Clients can choose the block-level workflow or the allocation-confirmation
workflow.
Futures and Options—The XML Message Specification: Exchange Traded Derivatives outlines the
executing and clearing trade flows for futures and options. The clearing flow is similar to the
allocation-confirmation workflow because you only submit allocations or confirmations. Review
Chapter 1 of that document to determine which workflow is appropriate for your firm.
Is there a subscription requirement to use allocation-confirmation workflow?
Yes. When you review your business requirements with an Omgeo Integration Consultant, ensure that you
subscribe to Omgeo CTM Allocation Confirmation Workflow (ACWF).
Does my counterparty require a subscription?
Yes. Your counterparty must use Omgeo CTM and subscribe to Omgeo CTM Allocation Confirmation
Workflow (ACWF).
If I subscribe to the Omgeo CTM Allocation Confirmation Workflow (ACWF), can I also use
the block-level workflow with my counterparties?
That depends on which side of the trade you are on:
•
•
Investment managers can subscribe only to a single workflow from a given Business Identifier Code
(BIC). Another subscription is required to use the block-level workflow.
Broker/dealers can subscribe to Omgeo CTM Allocation Confirmation Workflow (ACWF) and the
block-level workflow subscription option, Omgeo CTM Block Allocation Confirmation Workflow
(BACW).
Does the allocation-confirmation workflow use the same central matching process as blocklevel trades?
Omgeo CTM enforces matching rules on the same fields. However, since an allocation or confirmation
constitutes an entire trade side, Omgeo applies minor changes to the three major matching statuses. Table 2
describes those statuses for the allocation-confirmation workflow.
Table 2 Matching Status Fields for Allocation-Confirmation Workflow Trades
Status
Description
XML Field
Trade Blotter Field
Match
If the TradeDetails are MATCHED, then the trade sides are
automatically MATCH AGREED.
TDMatchStatus
Investment Managers: Alloc Status
Broker/Dealers: Confirm Status
Complete
Omgeo CTM persistently sets the trade side value to COMPLETE.
CompleteStatus
Both trade sides: Complete
Match Agreed Omgeo CTM processes the TradeDetail as an entire trade side so MatchAgreedStatus Both trade sides: Match Agrd
that a MATCH AGREED trade is the end point for a successful
trade.
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Omgeo Central Trade Manager
How does Omgeo CTM handle L1 pairing and L2 matching for Price in the allocationconfirmation workflow?
Price is a potential L1 pairing field, L1 tie-breaker, or eligible L2 matching field. See L1 Pairing and L2
Matching: Questions and Answers.
How does Omgeo CTM handle L1 pairing and L2 matching for total values in the allocationconfirmation workflow?
In the allocation-confirmation workflow, you and your counterparty include block type information in the
TradeLevelInformation composite of each allocation or confirmation (TradeDetail). This composite
provides Omgeo CTM with all of the information required to perform L1 pairing and L2 matching.
Note
For allocation-confirmation workflow trades, Omgeo CTM always sets the TLMatchStatus and
TDMatchStatus elements to the same value. A trade side has one component: the allocation or
confirmation, which the TradeDetail represents.
In the allocation-confirmation workflow, Omgeo CTM does not match on the following fields:
•
•
•
•
•
TotalTradeAmount
TotalAccruedInterestAmount
TradeChargesOrTaxes
TradeCommissions
TotalNetCashAmount
See L1 Pairing and L2 Matching: Questions and Answers for the complete list of available matching fields.
Does Omgeo CTM map any of the block fields to the allocation or confirmation fields?
Because a TradeDetail represents your entire trade side, Omgeo CTM uses the allocation or confirmation
fields and block-type fields in Table 3 equally:
Table 3 Equivalent TradeDetail and TradeLevel Fields in Allocation-Confirmation Workflow Trades
Allocation or Confirmation Fields (TradeDetail)
Block Type Fields (TradeLevel)
TradeDetailReferences/ClientAllocationReference
TradeLevelReferences/MasterReference
TradeDetailReferences/CTMTradeDetailID
TradeLevelReferences/CTMTradeSideId
TradeDetailData/QuantityAllocated
TradeLevelInformation/QuantityOfTheBlockTrade
TradeDetailData/TradeAmount
TradeLevelInformation/TotalTradeAmount
How do I identify my direct XML message trades without any block type identifiers?
If you require block type identifiers, use the following guidelines when you submit XML messages:
•
New Trades—When you submit a new allocation-confirmation workflow trade, such as a
TradeDetail where FunctionOfTheMessage=NEWM, follow these trade identifier guidelines:
•
•
•
The Omgeo best practice is to submit a MasterReference that is identical to the
ClientAllocationReference.
Conversely, if you submit a ClientAllocationReference, submit an identical MasterReference.
If you do not submit a MasterReference, then do not submit a ClientAllocationReference.
Conversely, if you do not submit a ClientAllocationReference, do not submit a MasterReference.
If you do not want to submit a MasterReference or ClientAllocationReference, omit both fields
from the TradeDetail.
Allocation-Confirmation Workflow: Questions and Answers—June 6, 2013
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•
Existing Trades—When you submit a message for an existing trade, such as a TradeDetail where
FunctionOfTheMessage=REPC, follow these guidelines:
•
Submit a MasterReference or CTMTradeSideId
or
Submit a ClientAllocationReference or CTMTradeDetailID
or a combination of the following:
•
Submit a MasterReference or CTMTradeSideId
and
Submit a ClientAllocationReference or CTMTradeDetailID
How do I match on Execution (Fill) or Average price in the allocation-confirmation workflow?
Omgeo CTM investment managers can match on execution (fill) or average price for TradeDetails.
Figure 1 shows an example of execution (fill) price matching.
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Figure 1 Matching on TradeDetail Execution (Fill) Price
Table 4 describes the workflow steps in Figure 1 on page 4, which is an example and not intended to
represent all allocation-confirmation workflow implementations.
Table 4 Matching on Execution (Fill) Price for Allocations and Confirmations
Step Description
1
Before Omgeo CTM enters the workflow, an investment manager places an order for 100,000 shares of ABC Security.
2
The broker/dealer responds with two Notices of Execution (NOEs). In this example, the broker/dealer provides the execution (fill) price
for each NOE. The broker/dealer can also provide NOEs for average price.
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Omgeo Central Trade Manager
Table 4 Matching on Execution (Fill) Price for Allocations and Confirmations (Continued)
Step Description
3
On the trade side’s internal systems:
• The investment manager processes the NOEs in a 60:40 breakdown between two funds.
• The broker/dealer processes the NOEs it sent to the investment manager in Step 2.
4
5
Broker/dealers can use both an allocation-confirmation workflow and block-level workflow, but investment managers can only use one
of the workflows.
The investment manager submits four allocations (TradeDetails) to Omgeo CTM, each representing a single allocation. The TypeOfPrice
field is set to EXEC to indicate executing price (not average price).
When combined, the allocations satisfy the broker/dealer’s two NOEs.
The broker/dealer learns about the investment manager’s allocations by the following actions:
• Sending a query message, such as the InfoRequest or MultiTradeDetailRequest.
• Receiving an event-push notification.
• Viewing the Alleged ACWF Allocations in the trade blotter.
• Communicating the information outside of Omgeo CTM.
The broker/dealer reviews the AccountID, MatchingSecurityCode, MatchAgreedStatus, and other trade data. The broker/dealer
responds to each allocation with a confirmation (TradeDetail) for each allocation that the investment manager submits.
I must link my allocations and confirmations into groups. Can I use the allocationconfirmation workflow?
Yes. As long as you do not require separate matching on block type information, Omgeo CTM provides
linking of allocations or confirmations. To link each of the allocations or confirmations from Figure 1, set
the following fields in the TradeDetailLinkages composite:
•
•
TDReferenceType=COMM
TDReferenceValue=Same identifier in each linked allocation or confirmation
Figure 2 shows TDReferenceType and TDReferenceValue elements for one linked allocation (TradeDetail)
in Figure 1. To link all four allocations or confirmations, provide the same value in the TDReferenceType
and TDReferenceValue elements for all four allocations or confirmations.
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Figure 2 Linking Allocations or Confirmations
Allocation-Confirmation Workflow: Questions and Answers—June 6, 2013
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Is settlement instruction enrichment available for allocation-confirmation workflow trades?
Yes. Settlement instruction enrichment in the allocation-confirmation workflow is the same as enrichment
for the block-level workflow, except enrichment is on the allocation. The direct XML interface provides
enrichment on information you provide in the TradeDetail.
Include settlement instructions in TradeDetail messages so that the financial and settlement information is
together in one message. Settlement information includes standing settlement instruction (SSI) enrichment
from Omgeo ALERTSM. See the Settlement Services Reference: SWIFT MT541/543 and CSV Mapping for
more information about how to supply settlement instructions on your trades.
Can I use broker matching groups in the allocation-confirmation workflow?
Omgeo recommends against using broker matching groups in the allocation-confirmation workflow. Using
broker matching groups prevents the executing broker from viewing an investment manager’s alleged
allocation. Omgeo recommends that investment managers submit trades using their broker/dealer's Omgeo
CTM Business Identifier Code (BIC).
Are all of the XML messages available to me in the allocation-confirmation workflow?
All of the XML messages, except the following, are available for allocation-confirmation workflow trades:
•
•
•
•
TradeLevel (block message)
MultiTradeLevelIDResponse
MultiTradeLevelRequest
MultiTradeLevelResponse
Can I process trade exceptions in the allocation-confirmation workflow?
Omgeo CTM provides exception processing for allocation-confirmation workflow trades. Table 5 lists the
locations in the XML Message Specification: Debt/Equity and Common Messages where you can learn more
about exception processing.
Table 5 Exception Processing on Allocations and Confirmations
TradeDetail Message and Action
Message Category
Amend
Trade Messages
Cancel, CloseError, ForceMatch, RejectCancel, RejectComponent
Management Messages
HistoryRequest, HistoryResponse
Query and Response Messages
What is Omgeo’s recommendation regarding the investment manager’s allocations for new
clients implementing Omgeo CTM ACWF?
Omgeo recommends sending allocations directly to Omgeo CTM to communicate to broker/dealers as
long as they can support this workflow. The investment manager provides a common block reference on
each allocation to allow the broker/dealer to identify the components of a single executed block.
Changes in this Version
This version includes the following:
•
•
Removes all instances of OASYS GlobalSM, which Omgeo plans to retire on June 30, 2013.
Updates the link to the Client Contact Center, which provides additional features and usability
enhancements and launches on June 17, 2013.
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Omgeo Central Trade Manager
More Questions
Omgeo’s Client Contact Center (CCC) provides general assistance and technical help. Visit
www.omgeo.com/ServiceCentral to:
•
•
•
•
Enter a service request or check the status of an existing service request
Search our knowledge base
Access our library of documentation
Obtain contact information
Omgeo also offers training to clients on how our products work and how to use them. Course information
and a calendar of offerings are available at www.omgeo.com/training.
Copyright© 2013 Omgeo LLC. All rights reserved. Omgeo® and the Omgeo logo are registered service marks of Omgeo LLC. All names of
Omgeo services appearing herein are either registered service marks or service marks of Omgeo LLC in the United States and elsewhere. The U.S.
Securities and Exchange Commission regulates several Omgeo services. For more information, visit www.Omgeo.com/regulation.Omgeo has
approved this document for public distribution. The examples, pictures, and data are for illustrative purposes only. This document contains no actual
trade data.
Allocation-Confirmation Workflow: Questions and Answers—June 6, 2013
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