4. Processing an order

When orders have been received they can be processed through different routes. We can navigate to the instrument and see all the active orders for that instrument.

Open

Since the orders are received in the virtual instruments, in this case called “Gold Units” we will have to sum these up and then see how many real gold bars we should buy in the market.

Once we have bought the new gold bars each one should be registered as a new instrument with the id of the gold bar in the name according to the video below.

To be able to enter trades in the new gold bar we also have to define where the gold bar is stored, in which custody account. In this case we are keeping this gold bar at the bank UBS and we need to have UBS set up as a company in the system with a custody account that reflects where the gold is held. The video below shows how to create UBS and the custody account together with the counterparty account for UBS since UBS will be the counterparty to each trade.

The next step is to navigate to the customer and cancel the order in the virtual instrument and enter the correct amount for each physical gold bar according to the video below.