Compliance Reporting

Compliance Reporting

Arbor holds positions in Strategies, Books, Sectors, Classifications, Underlyers and Weightings. When connected to third party market data, users can also set rules in Liquidity, % Shares Outstanding, % Debt Outstanding, Market Cap and Beta/Delta Adjusted Exposure. The compliance rules can be applied to all of these groupings or at the individual position level.

The same rules can be set to apply to pre-trade, post-trade or both. Compliance rules are user defined and Arbor can come pre-loaded with a set of rules based on user requirements. Rules also have levels ranging from soft to hard, and in combination with entitlements, users can allow specific compliance rules to be overridden by certain individuals.

Pre-Trade Compliance

Orders can be submitted to Arbor as single or block orders. Orders can be entered manually, directly from the Portfolio Rebalancing page or imported from a spreadsheet. Once entered, Arbor will create a proposed portfolio which can be used to compare against the compliance rules. A block order will fail if a single order in the block breaks a rule. Cash movements resulting from proposed orders are also modeled as users can define cash rules.

OMS Compliance AllocationWhen rules are broken, users will see an alert on the screen that shows both new breaks related to this transaction, as well as breaks outstanding from previous transactions. If a rule is broken, users have the ability to amend the order or cancel the order and start again. With the highest entitlements, certain users can submit an order even if the compliance rules are broken. Entitlements are user defined and this feature is optional. All orders are logged and the compliance status can be easily recalled at all times, allowing users to quickly see which rules were broken.

Order Management System - Compliance ReportingPost-Trade Compliance

Post-trade compliance applies to existing positions held within the fund. Rules are continually monitored against the compliance rules set by the user. If a rule is breached, either by trading or price movement, a message is sent detailing the break. If the user is connected to real time market data, Arbor will use these live prices when checking for breaks. All compliance breaks are logged in the database and can be easily retrieved from the Alert page.

OMS Trade Compliance RuleFor more information, please view our OMS (Order Management System) video here.

  • Testimonial

    Nectar Capital undertook a broad anlaysis of what was currently available in the market place and we selected Arbor FS for a number of reasons. Primarily, being an Alpha generative organisation we liked Arbor’s ability to present our portfolio in several ways, including fully customisable views for each user. Such functionality allows our portfolio managers to drill down on relevant exposures in the portfolio and helps them make optimal investment decisions.
    From an operations perspective Arbor automates many of our processes and procedures, therefore reduces the time and cost of our middle and back-office undertakings. We liked the platform’s ability to pull data from our Custodian and highlight differences that may exist. We liked the ability to extract historic trade information in a meaningful manner, and we liked the ability to adjust many of the variables in the system to our internal preferences. Additionally the interaction and file upload to our Administrator is fully automated.
    Finally, we believed (and still believe) Arbor to be a client focused business with a client focused structure. These are business oriented people helping us to facilitate our own successful business.

    Robin Grant, COO, Nectar Capital