Settlement types for internal orders
When working with Internal orders it is possible to define something called Settlement Type. The settlement type decides when an order will be settled since an internal order is placed with a house account as the counterparty. There are three settlement types as described below:
Settlement type | Description |
|---|---|
Payment | The type Payment means that the internal order will not be executed or settled automatically by BFS until payment for the order has been made or received from a linked External order. |
Confirmation | The type Confirmation means that the internal order will be executed and settled when trade confirmation is received for an associated External order. When working with Netting of internal orders it is possible that the size of the internal orders for a Netting instance is too small to trigger any external orders and thus would never be executed. In the Execution Interface Internal there is a setting to be made called Change To Price Allowed and is described here. |
Price | The type Price means that the internal order will be executed and settled when a new NAV price is received for the instrument in BFS. |
In the back office GUI of BFS this selection can be made in a trade ticket:
There are also various API calls like CreateTradeOrders and CreateSwitchOrders that offer these inputs.
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