|
|
|
Unitrex - Proceed Trades
Definitions and Problems
Proceed trades (a.k.a. swaps, cross rolls),
are defined as linking a retail buy using the proceeds, or dollars
created by a liquidation trade. In addition, the client may
want to add in extra money or only roll part of the amount they're
liquidating. Wellington has enhanced our Unitrex Trader Workstation
Product to handle Proceed trades.
Proceed trades are creating huge headaches within the UIT industry,
here is a partial list of reasons why:
- Traders must calculate the proceeds
by hand (entry risk and trade break risk).
- Current systems cannot handle the conversion
on trade date, (traders must remember deals in the future, not
a good thing...)
- Very difficult to post swaps together
on the same day (almost impossible if you're busy), then the
client is out of the market for a day or more.
Wellington has built into the Trader Workstation
a Proceed Trades function, within our original trade entry screen,
that has the following features:
- Trader creates a single retail sell
ticket (Indication of the Interest) that will automatically
estimate and then calculate the actual units based on the proceeds
of the retail liquidation. The trader does not even need
to create the liquidation trade, because Unitrex will create
the liquidation trade automatically on liquidation date.
- You can book the swap whenever your
customer desires
- Customer Sell now, Buy now
- Customer Sell later, Buy later
- Customer Sell now, Buy later
- On the Customer buy ticket, we estimate
the dollar proceeds from the liquidation (using last price),
and then use that to calculate the quantity of units.
If the swap is to move into a new trust that deposits today,
you already know the price and you're done. Once the
price becomes available for the liquidation, the proceeds are
updated, and the buy side ticket dollars are updated.
- If you are using our Unitrex Order
Routing service, the sponsor cover trade will be generated and
sent, as well as the liquidation (sell back).
- You can add moneys to the swap.
- Handles partial sales in both units
or dollars.
- Bottom line advantages:
- Easy to use
- Saves time and effort
- Calculations are accurate
- reduces entry risk and trade break
risk
- Unitrex gets it right the first
time
- We automatically track a running
total Indication of Interest position
- And most important, our proceed trades
function lets you book the trades TODAY! This keeps your
records straight and your clients in the Market.
|
