The video below offers an overview of the order routing service.
To get started with NFM Order Routing we need to configure a few things in BFS but a there are several settings that are already pre-configured.
Counterparty and custody
The counterparty to our orders in the Full Service offering is NFM and we will find that NFM is set up as a legal entity and enabled as a counterparty and with a counterparty account. NFM will also take care of all money transfers for us and keep our fund units in custody. In the House View we will find a custody account created for NFM.
Finally for the house we need to make sure that there is a payment receiver (External Account) that reflects the bank account that NFM owns that we are going to send the cash to so that BFS can keep track of this and also, depending on our custodian, generate transfer instructions.
In the same way as for the Fund Company we set up the investment fund as a legal entity and check the box Fund Entity.
We then need to go into details of the fund entity and select the fund company.
Set up the fund instrument
The last step is setting up the fund instrument with exactly the same information that NFM has on record when it comes to name, ISIN and currency.
To enable trading through NFM we also have to add the trade route (Execution Interface) which is described in the following article Execution Interface NFM. We need to make sure that we select NFM as the counterparty in the Execution Interface and the NFM account as the custody account together with the External Account being the bank account of NFM that we created for the house.
In order for NFM to work automatically the resulting fund instructions must have the status "ready" when they are created in order for them to get automatically sent to NFM at cutoff. This is enabled by navigating to the Global Execution Interface in System Data → Execution Interfaces → NFM and then edit to check the box in the image below.
BFS will conduct the following automated communication with NFM