Buy a prepaid mutual fund (MFEX)

In this article, we explain how to manage funds orders via MFEX. Some of the steps are handled automatically but we will anyway show all the steps in BFS, which also can be done manually. 

Settle the Fund Batch Order is the only manual job the back office administrators must do, everything else is handled by automatic jobs (see italic text)

The example below will show buying a prepaid mutual fund. 

Buy a prepaid mutual fund (MFEX) 

In the action menu on the account select Trade Order.

Open

Fill the ticket with relevant information and click Confirm. 

Settlement Account: Selected Account or External Account (Autogiro)
Direction: Buy or Sell
Amount: Amount, how much should we place an order for. 

Open

A client order and reservation are now created and assets are reserved in the account. 

Create Fund Batch Order

There are different ways to create a fund batch order, for example, go to the top section and choose Order Management > Mutual Funds to create a fund batch order with all orders of the same instrument with the direction Buy. 

On the order tab, you can select to create the fund batch order from the individual orders by clicking on the action menu.

You can also create batch orders by clicking on the action menu Create Batch orders.

A batch order is now created and can be viewed Order Management > Mutual Funds > Batch Orders.

Click on the button with a G to view the batch order or group order.

The batch order contains client orders of the same instrument with the same direction Buy or Sell.

• The next step is to send the batch orders to MFEX and this is an automatic job. The orders get status Sent. 
  
  

• If you want to handle the order manually and not send it to MFEX, you can select Send Manually.
  
  

  
  
  

• The next automatic step is to get order confirmations (Confirm) from MFEX.
  
  
  
  
  

• Settle is a manual job, can either be done from the Batch Order OR from Order Management > Mutual Funds > Batch Orders
  
  Fill the ticket with relevant information and click Confirm. 
  Settlement Date: the date when the trade is settled
  Value Date: is the day when cash starts earning interest.
  
  These four fields collect information from the settings that are set at the execution interface (EI) at the instrument. 
  Counterparty: counterparty, depends on what is set in the EI.
  Counterparty Account: counterparty account in BFS. The ticket collects the settings that are set in the execution interface at the instrument.
  Custody Account (for SEK): is prefilled and depends of what currency is set in the EI for the instrument. 
  Custody Account (for the fund):  custody account in BFS depending of the instrument.
  
  
  The batch order is now settled.
  
  
  
  
  

• The last step is run automatically and that is to get executions from MFEX. (Execute Order)
  
  
  
  The order is now finished and the customer now has positions in the fund.