Charles River Investment
Management System
U.S. Equity User’s Guide
Charles River Development

Version 7.2 Series
Document Version 1.2
April 25, 2004

Document Version 1.2

Charles River Development
7 New England Executive Park
Burlington, MA 01803
+1 781 238 0099 telephone
+1 781 238 0088 fax www.crd.com U.S. Equity User’s Guide, Version 7.2
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Document Version 1.2

Copyright © 1993-2003
Charles River Systems, Inc.
(d/b/a Charles River Development)
All Rights Reserved
This document is the copyrighted product of Charles River Systems, Inc. and constitutes confidential and proprietary information of Charles River Systems, Inc. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from Charles River Systems, Inc.
The information in this document is subject to change without notice. The software referred to in this document is furnished under a license and may be used only in accordance with the terms of such a license.
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Document History
Document
Version
1.0

Document
Date
12/15/03

1.1

01/15/04

1.2

4/25

Comments
Production
Updated screen capture of the Check Compliance Alert to reflect the fact that this pop-up no longer has a drop-down list in the basket field.
Added section on IPO orders to Chapter 2 – Equity Manager Tasks,
Advanced Topics.

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Document Version 1.2

Chapter 1 – Overview.............................................................................................................................................. 1-1
In This Chapter ..................................................................................................................................................... 1-1
Before You Begin ................................................................................................................................................. 1-1
The Basics............................................................................................................................................................. 1-2
Charles River IMS Processing Cycle ............................................................................................................... 1-2
Charles River IMS Processing Flow Diagram ............................................................................................ 1-2
Batch Processing .............................................................................................................................................. 1-3
Orders & Allocations ....................................................................................................................................... 1-3
Order Baskets .............................................................................................................................................. 1-4
Order Status Codes...................................................................................................................................... 1-4
Compliance Monitoring ................................................................................................................................... 1-6
Trade Execution ............................................................................................................................................... 1-7
Advanced Topics .................................................................................................................................................. 1-8
Account Types ................................................................................................................................................. 1-8
Portfolio....................................................................................................................................................... 1-8
Group........................................................................................................................................................... 1-8
Template...................................................................................................................................................... 1-8
Model .......................................................................................................................................................... 1-8
Omnibus Account........................................................................................................................................ 1-8
User Privileges ................................................................................................................................................. 1-8
Summary............................................................................................................................................................... 1-9
Chapter 2 - Equity Manager Tasks........................................................................................................................ 2-1
In This Chapter ..................................................................................................................................................... 2-1
Before You Begin ................................................................................................................................................. 2-1
The Basics............................................................................................................................................................. 2-2
Equity Manager Task Diagram ........................................................................................................................ 2-2
Create Orders Via Blotter................................................................................................................................. 2-3
Run Pre-Trade Compliance.............................................................................................................................. 2-8
Cancel Orders................................................................................................................................................... 2-9
Delete Orders ................................................................................................................................................. 2-10
Send Orders to Trading .................................................................................................................................. 2-10
View and Query Orders ................................................................................................................................. 2-10
Advanced Topics ................................................................................................................................................ 2-11
Display Relevant Reports............................................................................................................................... 2-11
Track Orders Using Order History Report ..................................................................................................... 2-12
Sample Order History Report.................................................................................................................... 2-13
Creating an Order for an Initial Public Offering (IPO) .................................................................................. 2-14
Summary............................................................................................................................................................. 2-16
Chapter 3 – Equity Trader Tasks .......................................................................................................................... 3-1
In This Chapter ..................................................................................................................................................... 3-1
Before You Begin ................................................................................................................................................. 3-1
The Basics............................................................................................................................................................. 3-2
Equity Trader Task Diagram............................................................................................................................ 3-2
Place Orders For Execution ............................................................................................................................. 3-3
Fill Orders ........................................................................................................................................................ 3-6
Allocate Executed Orders ................................................................................................................................ 3-9
Send Trades To Accounting........................................................................................................................... 3-10
Cancel Send To Accounting...................................................................................................................... 3-11
Replace Cancel Accounting Trades........................................................................................................... 3-11
Cancel Orders................................................................................................................................................. 3-12
Correct Canceled Orders ........................................................................................................................... 3-13
Advanced Topics ................................................................................................................................................ 3-14
Merge Orders ................................................................................................................................................. 3-14
Merge Orders Window – Order Level Tasks ............................................................................................ 3-17
Merge Orders Window – Allocation Level Tasks..................................................................................... 3-17
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Split Orders .................................................................................................................................................... 3-19
Delete Places & Fills...................................................................................................................................... 3-21
Reports & Audit Trails................................................................................................................................... 3-22
Related Topics................................................................................................................................................ 3-22
Summary............................................................................................................................................................. 3-23
Chapter 4 – Targeting Tasks .................................................................................................................................. 4-1
In This Chapter ..................................................................................................................................................... 4-1
Before You Begin ................................................................................................................................................. 4-1
The Basics............................................................................................................................................................. 4-2
Targeting Diagram ........................................................................................................................................... 4-2
Create Orders Via Target Tab .......................................................................................................................... 4-3
Target A Percentage of An Account’s Assets in a Security ............................................................................. 4-7
Examples ..................................................................................................................................................... 4-7
Example #1 - Final ...................................................................................................................................... 4-9
Example #2 - Incremental ......................................................................................................................... 4-11
Example #3 - % of Position....................................................................................................................... 4-13
Spread Total Investment Quantity Of A Security Across Accounts .............................................................. 4-14
Examples ................................................................................................................................................... 4-14
Example #1 - Qty Field ............................................................................................................................. 4-16
Example #2 - Amt Field ............................................................................................................................ 4-17
Targeting Using Level Off ............................................................................................................................. 4-19
Notes .............................................................................................................................................................. 4-20
Advanced Topics ................................................................................................................................................ 4-21
Interpret Order Generation Messages ............................................................................................................ 4-21
Use Buy & Sell If Required Checkboxes....................................................................................................... 4-21
Example #1 - Buy If Required................................................................................................................... 4-23
Example #2 - Sell If Required ................................................................................................................... 4-25
Specify Category Actual Market Value ......................................................................................................... 4-27
Example..................................................................................................................................................... 4-27
Specify Compliance Limits............................................................................................................................ 4-30
Example..................................................................................................................................................... 4-30
Use Styles With Targeting ............................................................................................................................. 4-32
Preliminary Setup Tasks............................................................................................................................ 4-32
Example..................................................................................................................................................... 4-33
Target tab – Styles Message...................................................................................................................... 4-35
Trader Orders ................................................................................................................................................. 4-36
Override System Defaults Via Tgt Opt Tab................................................................................................... 4-37
Example..................................................................................................................................................... 4-38
Summary............................................................................................................................................................. 4-40
Chapter 5 – Rebalancer Tasks................................................................................................................................ 5-1
In This Chapter ..................................................................................................................................................... 5-1
Before You Begin ................................................................................................................................................. 5-1
The Basics............................................................................................................................................................. 5-2
Rebalancer Diagram......................................................................................................................................... 5-2
Access Rebalancer Window............................................................................................................................. 5-3
Generation Tab Fields...................................................................................................................................... 5-4
Use % of Current Denominator........................................................................................................................ 5-5
Rebalancer Buttons .......................................................................................................................................... 5-6
Cash Contributions........................................................................................................................................... 5-6
Rebalance Account Against Itself .................................................................................................................... 5-7
Invest Field Tips.......................................................................................................................................... 5-7
Example #1 – Invest Cash Using Total Market Value ................................................................................ 5-8
Sample Order Generation Messages ......................................................................................................... 5-10
Sample Blotter Output............................................................................................................................... 5-10
View Results In Manager Workbench ...................................................................................................... 5-11
Example #2 – Invest Cash Using Invested Value...................................................................................... 5-12
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Sample Order Generation Messages ......................................................................................................... 5-14
Sample Blotter Output............................................................................................................................... 5-14
View Results In Manager Workbench ...................................................................................................... 5-15
Example #3 – Raise Cash Using Invested Value....................................................................................... 5-16
Sample Order Generation Messages ......................................................................................................... 5-18
Sample Blotter Output) ............................................................................................................................. 5-18
View Results In Manager Workbench ...................................................................................................... 5-19
Rebalance An Account Against A Model, Default Model, or Account ......................................................... 5-20
Example #1 - Rebalance Account Against Model..................................................................................... 5-21
Sample Order Generation Messages ......................................................................................................... 5-23
Sample Blotter Output............................................................................................................................... 5-24
View Results In Manager Workbench ...................................................................................................... 5-24
Example #2 - Rebalance Account Against Default Model........................................................................ 5-25
Sample Blotter Output............................................................................................................................... 5-26
No Default Model - Error Message ........................................................................................................... 5-26
Example #3 - Rebalance Account Against Another Account.................................................................... 5-27
View Results In Manager Workbench ...................................................................................................... 5-28
Advanced Topics ................................................................................................................................................ 5-29
Use Invested Denominator With A Model..................................................................................................... 5-29
Liquidate An Account.................................................................................................................................... 5-31
Sample Order Generation Messages ......................................................................................................... 5-32
Blotter Output............................................................................................................................................ 5-32
View Results In Manager Workbench ...................................................................................................... 5-32
Override System Defaults Via Options Tab................................................................................................... 5-33
Rebalance An Account With Cash Balance & No Securities ........................................................................ 5-34
Example..................................................................................................................................................... 5-34
Sample Order Generation Messages ......................................................................................................... 5-35
Blotter Output............................................................................................................................................ 5-35
View Results In Manager Workbench ...................................................................................................... 5-36
Category Targeting ........................................................................................................................................ 5-37
Category Targeting Section Examples ...................................................................................................... 5-39
Example #1 – Enforce Category Targets................................................................................................... 5-40
Example #1 – View Enforce Category Targets Results In Manager Workbench ..................................... 5-41
Example #2 – Enforce Model Overweight/Underweight .......................................................................... 5-42
Example #2 – View Enforce Model Overweight/Underweight Results In Manager Workbench ............. 5-43
Example #3 –Enforce Model Overweight/Underweight ........................................................................... 5-44
Summary............................................................................................................................................................. 5-45
Chapter 6 - Appendices ........................................................................................................................................... 6-1
Appendix A – Security Setup Tasks ..................................................................................................................... 6-1
Setup Tasks Diagram ....................................................................................................................................... 6-1
Appendix B - Account Setup Tasks...................................................................................................................... 6-2
Setup Tasks Diagram ....................................................................................................................................... 6-2
Appendix C – Trading Setup Tasks ...................................................................................................................... 6-3
Index ..................................................................................................................................................................... 6-4

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Chapter 1 - Overview

CHAPTER 1 – OVERVIEW

The Charles River Investment Management System (IMS) is a global buy-side order management and trading system. It provides Equity Portfolio Managers and Traders with a highly customizable Order Blotter, pre-trade and post-execution compliance monitoring tools, modeling, and what-if analysis tools. Charles River IMS supports numerous interfaces to external accounting systems and electronic trade execution systems.

IN THIS CHAPTER

BEFORE YOU BEGIN

You will learn about:
Charles River IMS. Processing Cycle
Orders & Allocations
Compliance Monitoring

Read the Preface for an explanation of this guide’s conventions.
Work with your system administrator to obtain access to Charles River IMS.

Trade Executions
Account Types
User Privileges

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THE BASICS

CHARLES RIVER IMS PROCESSING CYCLE
The Charles River database imports data from various external sources. For example, Charles River IMS may import accounts, positions, and securities data from an accounting system. Imported securities data may include industries, exchanges, countries, currencies, and ratings.
You may import start-of-day cash balances for the current day. If desired, you can also import expected contributions/withdrawals for the current date or date into the future. Charles River IMS maintains the trade date cash as an account position for each currency.
During the trading day, Equity Managers and Traders log into the Charles River database. Managers create and allocate orders and run compliance tests against those orders. Compliance tests monitor trades and portfolios to ensure that specific account guidelines, regulatory requirements, prospectus guidelines, and risk exposure limits are properly followed.
When orders pass compliance testing, they are sent to the trading desk. The Traders may merge or split orders prior to, or while, placing and filling those orders with the designated broker(s). When an order has been fully allocated and executed, it is sent to Accounting. Throughout the day, the cash balances, positions, and security data are updated within the Charles River database.

Charles River IMS Processing Flow Diagram

Manager

Orders /
Allocations
Created

Orders
Compliance
Checked
Orders
Executed

Trader

Security &
Account
Information

1-2

CRTS
Accounts,
Positions,
Securities,
Cash Updated

Accounting
Updated

Accounting
System

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Chapter 1 - Overview

BATCH PROCESSING
After an exchange closes, you may run Batch Imports, End-of-Day Processing, and Portfolio Compliance jobs against the Charles River database. End-of-Day Processing tasks include sending executed orders to the accounting system, canceling open day orders, processing corporate actions and bank balances, updating open orders and commission targets, saving index security prices, and so forth.
For complete details about the Batch Processing tasks, refer to the Batch Processing Guide.

ORDERS & ALLOCATIONS
An order is an instruction to buy or sell a security. In Charles River IMS, orders start as ‘Manager Orders’ and subsequently become ‘Trader Orders’.
A Manager Order - is created by, or on behalf of, an investment manager and represents the desire to buy or sell a security for one or more accounts. You can create manager orders by directly entering them in the
Blotter, as shown below. Or, you can generate orders using advanced features such as the Manager
Workbench, Targeting and Rebalancer.
A Trader Order - is placed with an external broker, dealer, or counter-party. That party makes one or more fills or executions for that order.
Allocations originate with the Manager Order and are used to describe the assignment of a portion of an order to a specific portfolio. Each order must be allocated to at least one account, and can be allocated to many accounts.
In the example below, the second ‘BUY’ order has a target quantity of 1,100 shares of IBM. This quantity has been allocated to 2 accounts: DOMEQUITY and CRD_FI.

Orders

Allocations

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Orders & Allocations – (continued)
A Trader can add, delete, or change the allocations, provided the trader has sufficient privileges. If an order is deleted, the allocations are deleted automatically.
Charles River IMS uses the term allocation to describe the distribution of the order among accounts, regardless of whether the allocations are preliminary or final at trade execution. Each allocation has a status to depict its current state. In general, the order’s status reflects the worst status of any of its associated allocations.

Order Baskets
An Order Basket is a way to group manager orders so that they can be processed together. When manager orders are created, they are collected in the Order Basket. Compliance monitoring is performed for all of the orders in the basket at the same time. See ‘Compliance Monitoring’ in this chapter.

Order Status Codes
Status codes are assigned to an order as it progresses through the trading cycle within Charles River IMS. These codes reflect who has authority to the order and the types of functions that can be performed on the order. A typical progression is illustrated below:

Creates &
Allocates
Orders

Manager
Order

Runs
Pre-Trade
Compliance

Prelim

PreOK

Sends Orders to Trading

Receives
Orders

Trader
Order

1-4

Places
Orders

Records
Filled
Orders

Allocates
Filled
Orders

Orders sent to Accounting

New

Open

Work

Ready

Acct

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ORDER STATUS CODES

Chapter 1 - Overview

DESCRIPTION

ORDER TYPE

Prelim

A preliminary order. It has been created, but not yet sent to
Trading.

Manager

PreOK

The order passed the pre-trade Charles River Compliance tests.

PreAlert

The order failed the pre-trade ‘alert’ Charles River Compliance tests. See ‘Compliance Monitoring’ in this chapter.

PreWarn

The order failed the pre-trade ‘warning’ Charles River
Compliance tests. See ‘Compliance Monitoring’ in this chapter.

New

The order passed the pre-trade Charles River Compliance tests and was sent to Trading. The order is now visible to other authorized managers and traders.

Open

The trade is acknowledged by Trading. For example, if a broker is assigned to an order in ‘NEW’ status, then the status changes to ‘OPEN’.

Trader

If you change the Trader, Basket, Broker Reason, or User Status on an order in ‘NEW’ Status, then the status changes to ‘OPEN’.
Work

The trade was partially or fully placed.

Pending

The order passed post-execution Charles River Compliance tests.

Ready

The trade was partially filled and allocated, or fully filled.

Acct

The trade was sent to an export file, so that it can be imported to an accounting system.

Cncl

The trade was canceled prior to being exported.

CnclAcct

The trade was canceled after it was exported.

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COMPLIANCE MONITORING
Charles River Compliance monitors trades and portfolios to ensure that specific account guidelines, regulatory requirements, prospectus guidelines, and risk exposure limits are properly followed.
If desired, authorized users can define their own tests. For example, user-defined tests may be created for monitoring concentration levels, weighted averages, bucket counts, and values. Exclusion tests, manual tests, and analytical tests may also be defined. A typical compliance test may require specific data to be excluded from an account.

Sample Compliance Tests
Invest a minimum of 65% in U.S. Technology Stocks.
If as a result of the trade you are testing, all investments do not meet the minimum concentration amount of 65%, then display an alert in the Alerts, Warnings, &
Data Exceptions Window. The trade will not be allowed to continue without corrective action.

Do not invest in the tobacco industry.
If as a result of the trade you are testing, a portfolio invests in the tobacco industry, then display an alert in the Alerts, Warnings, & Data Exceptions Window. The trade will not be allowed to continue without corrective action.

The Alert Monitor displays Compliance Warnings, Alerts, and Data Exceptions to authorized users.
A Compliance Warning is produced when a calculated value is above an upper warning limit or below a lower warning limit. A Compliance Warning is less severe than a Compliance Alert. It indicates that the value has exceeded the warning limits, but has not yet exceeded the alert limits.
A Compliance Alert is produced when a calculated value is above an upper alert limit or below a lower alert limit. An alert is caused when a restriction is broken for a position or trade.
A Data Exception is produced when the underlying data that is required to evaluate the Compliance test is missing. Note: Exclusion test types may also be defined to issue Compliance severity warnings or alerts. For more information about Compliance Warnings, Alerts, and Data Exceptions, refer to the Charles River Compliance
Reference Guide. For information on how to close pre-trade alerts, see Chapter 4, Equity Manager Tasks in this guide. 1-6

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Chapter 1 - Overview

TRADE EXECUTION
When the trader receives a Manager Order, the trader places that order with an external broker, dealer, or counterparty. The trader can:
Merge an order with other ‘like’ orders.
Split an order into multiple orders so that each order may be placed with a different broker.
A fill is the execution of an order at a specific time for a specific quantity and price. It may require more than one transaction for the broker to fill the order. Therefore, an order can be associated with a number of fills. For multiple fills associated with an order, the system calculates a weighted average price.
Suppose there is an order for 17,500 shares of Agilent. The trader places 17,500 shares with Bear Stearns and fills the order as follows:
10,000 shares at $21.92 and 7,500 shares at $21.75.

In this example, the weighted average price is calculated as (21.92 x 10,000 + 21.75 x 7,500 / 17,500 = $21.8741 and is included in the total line on the Place/Fill Window. To track the ongoing progress of filling an order, Charles
River IMS uses the following terms:

Field Name

Description

Unplaced Tgt
Unfilled Plc

The order quantity not yet placed with a broker.
The quantity placed with the broker but not yet executed. In the example above, Unfilled Plc (or Placed minus Filled) is 17,500 - 17,500 = 0 shares.
The Target Quantity of the order minus the Executed Quantity. In the example above, Unfilled Tgt is 17,500 – 17,500 = 0 shares.

Unfilled Tgt

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ADVANCED TOPICS

ACCOUNT TYPES
Charles River IMS supports these account types:
Portfolio

An account comprised of security positions. It is used to manage holdings in the
Charles River database. A portfolio can belong to more than one group.

Group

A collection of Portfolios. Groups represent a set of accounts that are related in some fashion. A Group can own all or a portion of its portfolios. Groups have the following functionality:
•

Charles River Compliance can monitor concentrations at the group level.
For example, no more than 5% of a class of Technology securities should be held in the sum of all portfolios of the Group.

•

Various Charles River IMS reports and the Cash Flow Forecast can display portfolio holdings by Group.

Template

An efficient method of assigning tests in Charles River Compliance. If two accounts are members of the same template, then those accounts inherit the tests that are assigned to that template. Tests are monitored individually for each account.

Model

A sample account used for rebalancing. A Model’s positions are represented in percentages of the Model Account. A Portfolio can be cloned into a Model.

Omnibus Account

A special designation for an account, used to shield the account owner’s personal information from a broker. It mimics a Portfolio and is used in the same way.

USER PRIVILEGES
Charles River System Administration enables system administrators to control user access privileges in Charles
River IMS. Equity Managers and Traders can access only those windows and functions for which they have privileges. User privileges control:
The orders and accounts that can be accessed and viewed.
Data entry tasks (i.e., adding, editing, and/or deleting information).
Specific functions, such as: running compliance, overriding alerts, and sending trades to Accounting.
Access to system functions, such as: running reports and stored queries.

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Document Version 1.2

Chapter 1 - Overview

SUMMARY

Using Charles River IMS, Equity Portfolio Managers can create and allocate orders by directly entering them in the
Blotter. Or, they can generate orders using advanced features such as the Manager Workbench, Targeting and
Rebalancer. If desired, orders and fill executions may be imported directly to Charles River IMS.
When Equity Managers finish running compliance against orders, the orders are sent to Trading. The Equity Traders may merge or split orders, if necessary, to facilitate placement with brokers. Once orders have been allocated and executed, they are sent to Accounting. From there, the orders can be exported to an external accounting system.
Each day, Charles River IMS imports cash balances, accounts, positions, and securities data from the external accounting system. An enhanced version of the Charles River IMS process flow is illustrated below:

Manager Orders

Order
Creation

Security,
Account &
Position
Information

Manager

Compliance
Monitoring

Order
Correction

Accounts,
Positions,
Securities,
Cash

Trader Orders
Order
Placement

Placements

Trader
Fills
Order
Execution and
Allocation

Send to
Accounting

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Trades

Broker /
Dealer

Accounting
System

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Chapter 2 – Equity Manager Tasks

CHAPTER 2 - EQUITY MANAGER TASKS

The Charles River Investment Management System provides various methods for creating orders. For example, you can enter orders directly into the Blotter, or generate orders using advanced features such as the Manager
Workbench, Targeting, and Rebalancer. You can also import orders from another system.

IN THIS CHAPTER

BEFORE YOU BEGIN

You will learn how to:
Create Orders via the Blotter
Run Pre-Trade Compliance
Delete Orders

Read the overview, navigation, and search
& retrieval methods in Chapters 1 – 3.
Work with your system administrator to setup Securities, Issuers, Accounts, and
Account Groups.

Send Orders to Trading
View and Query Orders
Display Relevant Reports
Track Orders Using the Order History
Report

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THE BASICS

EQUITY MANAGER TASK DIAGRAM
The typical process for Equity Managers is illustrated below. In this chapter, you will learn how to create orders, run pre-trade compliance, correct, cancel, and delete orders, and send orders to Trading via the Blotter.

Security &
Account
Information

Manager

Accounting
System

Uses the Blotter,
Manager Workbench,
Targeting, or the
Rebalancer
Create & Allocate
Orders

View/Query
Orders

Run Pre-Trade
Compliance Tests

Correct Orders
&
Re-run Compliance

Cancel/Delete
Orders

Send Orders
In Compliance to Trading

2-2

Trader

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Chapter 2 – Equity Manager Tasks

CREATE ORDERS VIA BLOTTER
Using the Blotter, you can create orders and allocate those orders to accounts.
1.

Select Trader->Blotter to display the Blotter.

2.

Wait a few seconds for the Blotter to display.

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3.

Click the Buy, Sell, Short, or Cover icon. In this example, click the
Order Entry Window.

4.

Note that the following default information displays:

icon to display the New

Fields
Trade Date

Today’s date.

Trd Curr

Default trade currency, as defined in your system parameters.

Basket

Default basket that is assigned to you. Orders are grouped in a basket. When you run pre-trade compliance for this order, all of the orders in this basket will be checked.

Status

2-4

Description

Status code that is assigned to the order. Initially, it defaults to
‘Prelim’ Status.

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5.

Enter the desired security identifier (such as IBM) in the Sec Find field and press the tab Key. Or, click the
Sec Find drop-down list to search for and retrieve a security from the Security Lookup Window.

6.

Note that the corresponding default information displays at the top of the New Order Entry Window.

Fields

Description

Sec Name
Sec Type
Ticker
List Exch
Mkt Price

Issuer of the security.
Code for the type of security, such as Common Stock (COM).
Trading symbol for the security.
Primary exchange on which the security is listed.
Most recent price available for the security. It is last night’s closing price imported at the beginning of the day and updated as trading occurs during the day.
Exchange on which the trade will take place.
Default trader who is assigned to you.
Settlement date. It is based upon exchange and security type.
Target price.
Trading currency.
Order instructions, e.g., MKT (Market), LIM (Limit).

Exch
Trader
Settle Date
Tgt Price
Trade Curr
Order Inst
7.

Complete these entries on the Main tab:
a.

Allocate the order quantity to at least one account or account group. You can click New and select an account from the drop-down list. Or, click Grp to select an account group from the drop-down list.

b.

Enter a Target Quantity in the Target Qty field. Or, enter a Target Amount in the Target Amt field.

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When you enter a Target Quantity, the Target Amount and Trade Cash Leaves values are calculated automatically. (This assumes that the appropriate system parameters are set and that the Cash Info box is checked.) If you enter a Target Amount, then the Target Quantity and Trade Cash Leaves values are calculated automatically.
In this example, 1,000 shares of IBM are allocated to the BARBLRGCAP account.

Note: you can collapse or expand the visible entry criteria for an equity order using this control: only available for equity securities. Here is the collapsed view of the New Order Entry window:

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Click OK to save the order. The order is marked as ‘Prelim’ Status in the Blotter.

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RUN PRE-TRADE COMPLIANCE
Typically, compliance measures how an order will affect concentrations or other benchmarks and rules. Your system may or may not be configured to run pre-trade compliance.
This example assumes that your system is configured to run pre-trade compliance on your local machine prior to sending your orders to trading.
9.

Select an order that has a status of ‘Prelim’ in the Blotter.

10. Ensure that your order has at least one allocation.

11. Click the Check Compliance icon

. When prompted to run compliance against the basket, click OK.

Charles River Compliance checks all orders in the manager’s basket and reports orders that fail compliance tests by creating a compliance warning or alert. Data exceptions may occur when your order is missing data that is required for compliance testing. You should resolve compliance warnings and alerts before you send the orders to trading.
If the orders pass compliance testing, then they will be marked with a status of ‘PreOK’.

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Pre-Trade Compliance Troubleshooting Tips
1.
2.

Close Compliance
Warnings & Alerts.

Enter the correct data.
Click Save.

5.

♦

Tab to the appropriate fields.

4.

Correct Order(s) &
Re-run Compliance.

Position your cursor on the order in the Blotter.

3.

♦

Re-run compliance. When the order passes pre-trade compliance, the status changes to ‘PreOK’.

To close a compliance warning or alert:
1.

Double-click on the warning or alert item in the Alert and Warning
Order Summary Report.

2.

Wait for the Alerts, Warnings, and Data Exceptions Window to display.
In the Response section of the window, click the Status drop-down list.

3.

Select either Closed - Corrected or Closed - No Action and click Save.
This action overrides the warning or alert and allows the order to proceed to a status of ‘PreOK’.

Note: You must have the appropriate user privileges to perform these tasks.

CANCEL ORDERS
You can cancel orders that have a Prelim’, ‘PreOK’, ‘PreAlert’, or ‘PreWarn’ Status.
1.

Position your cursor in the Status field of the order that you want to cancel. Select ‘Cncl’ from the dropdown list.

2.

Click Yes to confirm that you want to cancel the order.

3.

Notice that the letter ‘C’ displays beside the Status field. This indicates that the order has been changed.

4.

Click Save to confirm your edit. The order’s status is now ‘CNCL’.

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DELETE ORDERS
You can delete orders that have a ‘Prelim’, ‘PreOK’, ‘PreAlert’, or ‘PreWarn’ Status.

1.

Select the order in the Blotter that you wish to delete.

2.

Click Delete

3.

Click Yes, at the prompt, to proceed with the deletion process.

.

SEND ORDERS TO TRADING
You can send orders that have a ‘PreOK’ Status to the designated trader.
1.

Select the order in the Blotter.

2.

Click the Send to Trading icon

3.

Note that the order status changes to ‘New’.

.

VIEW AND QUERY ORDERS
You can view orders in the Blotter or by selecting a Stored Query. Although Blotter views are user-specific, the views are usually organized by Security Type or Order Status.
For information about Stored Queries, see the Stored Queries topics in online help.

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ADVANCED TOPICS

DISPLAY RELEVANT REPORTS
A variety of reports are available in Charles River IMS. With the appropriate user privileges, you can display and/or print reports throughout the trading day:
1.

Select the Reports menu:

2.

Highlight the desired report from the menu, or select List. This displays a list of reports along with descriptions: 3.

Click OK.

4.

Enter the desired search criteria in the Search Parameters dialog box.

5.

Click OK to display the results of the report.

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TRACK ORDERS USING ORDER HISTORY REPORT
The Order History report provides an audit trail of changes to an order. It records changes in status codes and actions such as allocation assignment, placement with a broker, merges, splits, cancellations, and so forth. To display the
Order History report for an order:
6.

Right-click on an order in the Order Blotter Frame.

7.

Select Order History from the Navigation Options List.

8.

Click OK. The Order History report displays for the order that you selected in the Blotter.

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Sample Order History Report
The following example depicts how an order progresses through the life cycle. The final status, ‘ACCT’, indicates that the order was sent to Accounting.

Note: If desired, you can use the Audit Configuration feature to record every change made in the database. For more information, refer to the Audit Configuration topic in online help??.

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CREATING AN ORDER FOR AN INITIAL PUBLIC OFFERING (IPO)
You can create an order for an IPO using the New Order Entry window: You designate that an order is for an IPO by clicking the Other tab in the New Order Entry window and selecting Initial Public Offering from the order reason code (Ord Rsn) drop-down list. When you save the order, the IPO Selling Syndicate window is displayed, which lets you enter in fee and broker information.
To create an IPO order:
1.

Display .the New Order Entry window, for example by selecting the Buy icon in the Trading Blotter.

2.

Enter the order criteria and allocate the order.

3.

Click on the Other tab. In the Ord Rsn drop-down list, select IPO.

4.

Return to the Main tab and click OK to save the order.
This displays the IPO Selling Syndicate window.

5.

Click New in the IPO Selling Syndicate window and enter the fee and broker information you want associated with the order.

6.

Click Save. The order is displayed on the Blotter, with the IPO column switched to Yes.

Notes:
IPO Selling Syndicate Fields
Selling Concession - The selling concession is the fee paid to the broker for selling the IPO security. This fee is not a commission, and Charles River IMS treats IPO orders as principal orders.
Amount - All amounts are stated in cents per share (or divided by 100) and in trade currency.
Broker - You can enter as many brokers of each role (Co-Lead, Lead, Member) as you choose, up to 100% of the order. Broker Role - The Lead broker is often the Executing broker on the order.
Privileges
In order to use this window, the user must belong to a user group with full privileges on the IPO Selling Syndicate window (set in the Group Privileges on Windows window).
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Stored Queries
The following four stored queries retrieve IPO orders:
Current User’s Active IPO orders
Active IPO orders
IPO orders without Syndicate Info
Orders Awaiting Export: Standard IPO
Workflow Monitor Queries
The Workflow Monitor displays information on IPO orders matching these queries:
Active IPO Orders with Incomplete Syndicate Info
Current User’s Active IPO Orders
Manager – Active IPO Orders
Compliance
There is a standard compliance test “No IPOs” that uses the IPO compliance parameter, IPO.
Reports
The following IPO reports are available:
IPO Concession by Broker (in trade currency)
IPO Concession by Account (in base account currency)
Database
TSW_ORDER_BROKER - This table stores the Broker Selling syndicate information on IPO orders. Each order
ID could have multiple rows in the table for selling syndicate broker concession/fee assigned to the order from the
IPO Selling Syndicate window.
Standard IPO Export
This export contains a row for each order/selling syndicate broker combination per security. The export is turned off by default. You can enable it using the following command:
UPDATE TS_EXP_DEF SET INCLUDE_IN_BATCH = Y' WHERE EXPORT_ID = 6

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SUMMARY

As an Equity Manager, you are responsible for creating and allocating orders, checking compliance against orders, correcting orders that fail pre-trade compliance, and ultimately, sending orders to authorized Traders.
During the order cycle, Charles River IMS assigns specific status codes to each order. These codes represent where the order is in the life cycle, the types of functions that can be performed on that order, and who has authority to that order. Although most status codes are assigned automatically, there are occasions in which you may manually assign a status code to an order. For example, you can assign the ‘Cncl’ Status to an order in the Blotter at any time.

Manager

Creating /
Allocating
Orders

Prelim

passed
Checking
Compliance of
Orders

failed

Cancel from any status

PreWarn

Viewing/
Querying
Orders

Cncl

PreOK

PreAlert

Correcting
Orders

Sending Orders to Trading

New

Trader

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CHAPTER 3 – EQUITY TRADER TASKS

If you have the appropriate privileges, you can perform Equity Trader tasks via the Blotter. For example, you can select brokers, place and fill orders, and allocate executed orders. If desired, you can also merge orders, split orders, import executions, and run post-execution compliance.
Each night, Charles River IMS automatically sends allocated executions that pass post-execution compliance to your accounting system. If you prefer, you can manually perform this task during the day.

IN THIS CHAPTER

BEFORE YOU BEGIN

You will learn how to:
Place & Fill Orders
Allocate Executed Orders
Send Trades to Accounting

Read the overview, navigation, and search & retrieval methods in Chapters 1 – 3.
Work with your system administrator to setup Trader Defaults, Commission Defaults,
Brokers, and Broker Rules.

Cancel & Correct Orders
Merge & Split Orders
Delete Places & Fills
Display Reports & Audit Trails

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THE BASICS

EQUITY TRADER TASK DIAGRAM
The typical workflow process for Equity Traders is illustrated below. In this chapter, you will learn how to merge, split, place, fill, and allocate executed orders and send trades to accounting.
Receive Orders
From Portfolio
Manager
Select Broker
Merge & Split
Orders

Trader

Place Orders for Execution

View/Query
Orders

Broker /
Dealer
Fill Orders

Cancel/Delete
Orders

Allocate
Executed Orders

Run
Post-Execution
Compliance
(Optional)

Send Trades to Accounting

Correct Orders
& Re-run
Compliance

Automatically Split
Unexecuted Portions &
Send to Blotter

Export
Trades

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PLACE ORDERS FOR EXECUTION
Important!
To ensure that the timestamps are accurate, place orders in Charles River IMS when they are placed in the market. If you are placing an order over the phone, then make sure that the Charles River IMS order reflects the date/time of the phone call.
You can make a single placement for the full amount of an order or multiple placements of partial amounts. As a trader, you may work on orders that have a ‘New’, ‘Open’, ‘Work’, or ‘Ready’ Status. For a description of these status codes, see Chapter 1, Overview.
For this example:
1.

Select Trader->Blotter to display the Blotter.

2.

Select an order in the Blotter that has a ‘New’ Status. Click the
Place/Fill Window.

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3.

Select a broker from the Broker drop-down list. In this example, the broker is BEAR.

4.

You can continue entering order criteria in the Place grid, for example:
•
•

To place a partial amount, type a quantity in the Place Qty field that is less than the default value. •

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If desired, you can change the value in the Place Date field. It indicates when the order will be placed with the Broker. A system parameter controls whether the Unplaced Target
Quantity (Unplaced Tgt) defaults to the Place Qty field.

•

5.

Select a Broker Reason code, if required, from the Broker Reason drop-down list.

To add more than one partial placement amount, click New for the corresponding row. Then, press the tab key.

and enter the Place Qty

To place the full or partial order amount, click OK. The order status is now ‘Work’.

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Tip: You may use the Place/Fill Frame in the Blotter to enter and adjust place times and quantities.

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FILL ORDERS
As multiple executions occur during the day, you can fill orders completely or partially. Charles River IMS will automatically calculate average fill prices.
To fill an order completely or partially:
Select an order in the Blotter that has a ‘Work’ Status.
Click the

icon. A new record displays underneath the Fill grid.

If desired, you can change the value in the Fill Date field. It indicates when the corresponding Place
Quantity will be filled.
A system parameter controls whether the Place Quantity (Place Qty) defaults to the Fill Qty field.
To enter a partial fill amount, type a quantity in the Fill Qty field that is less than the default value.

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Enter a value in the Fill Price field and press the tab key. The Fill amount displays in the Fill Amt field.

To enter multiple partial fill records in this window, click New, enter the Fill Qty and Fill Price for the corresponding row and press the tab Key.
The Order Total line at the bottom of the window displays the total fill quantity (shares), calculates the average price, and tracks the fill amount.
Tip: You may use the Place/Fill Frame in the Blotter to enter and adjust fill times, quantities, prices, and amounts.

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Click OK to save your entries. The order status changes to ‘Ready’.

Note: If your system is configured to run post-execution compliance, then the order status will be
‘Pending’.

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ALLOCATE EXECUTED ORDERS
Charles River IMS manages the allocation of partial and complete order executions. Depending upon how your system is configured, Charles River IMS may automatically allocate fully filled positions, and partially filled positions when only one account is attached to the order.
If you have a group of accounts assigned to an order that is fully or partially filled, you can select Allocation from the Actions menu to allocate shares across those accounts. This displays an Allocation window:

The system can automatically create final allocations, based upon the original account assignments, by using the methods you select.
In this example, the Execution Quantity will be allocated across the accounts using the Pro-rata method and default round lots.
When you click OK, the quantities are allocated across the accounts, based on the method you specified. The order status on the Blotter changes to ‘Ready’. If you are configured to run post-execution compliance, then the order status changes to ‘Pending’.
Note: See the following online help topics for more information about Allocations
Allocations??
Allocation Methods??

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SEND TRADES TO ACCOUNTING
During the trading day, you can manually send a partially filled order or a completely filled order to Accounting. In this example, you will send an order to accounting via your local machine.
1.

Select an order in the Blotter that has a ‘Ready’ Status.

2.

Select Send to Accounting from the Actions menu or press Ctrl+A. (A system parameter controls the message that will display.)

Click Local if the following prompt displays:

Click ? if the following prompt displays:

Partially filled orders are automatically split. The unfilled portion is assigned to a separate order and marked with a status of ‘Work’.
In the example below, the fully filled order’s status changes to ‘Acct’.

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Cancel Send To Accounting
To cancel an order that you have already sent to Accounting:
1.

Select an order in the Blotter that has an ‘Acct’ Status.

2.

Select Cancel Send To Accounting in the Actions menu.

3.

Click Local at this prompt:

Note: The order status changes to ‘Cncl’ on the Blotter. If you exported the trade prior to the time you selected Cancel Send To Accounting, then the order status changes to ‘CNCLACCT’.

Replace Cancel Accounting Trades
To replace an order that has a ‘CNCLACCT’ Status:
1.

Select an order in the Blotter that has a ‘CNCLACCT’ Status.

2.

Select Replace from the Action menu.

3.

Click Yes at the prompt:

A new order displays in the Blotter. It has the same attributes as the canceled order, but it is assigned a new Order ID and a ‘Ready’ Status.
4.

Send the ‘Ready’ order to Accounting. For instructions, see ‘Send Trades To Accounting’ above.

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CANCEL ORDERS
To cancel an order in the Blotter that has a ‘New’, ‘Open’, ‘Work’, ‘Pending’, or ‘Ready’ Status:
1.

Position your cursor in the Status field of the order that you want to cancel.

2.

Select ‘Cncl’ from the drop-down list.

3.

Respond to the prompt. (A system parameter controls the message that will display.)

Click Yes if the following prompt displays:

Click Cancel if the following prompt displays:

4.
5.

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Notice that the letter ‘C’ displays beside the Status field. This indicates that the order has been changed.
Click Save

to confirm your edit. The order’s status is now ‘CNCL’.

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Correct Canceled Orders
Once you cancel an order, you cannot ‘uncancel’ it unless you have the appropriate privileges. To correct a canceled order: 1.

Position your cursor in the Blotter beside an order that has a ‘Cncl’ Status.

2.

Select ‘Open’ from the Status drop-down list.

3.

Click Yes at the following prompt:

The letter ‘C’ displays beside the Status field and the Status reverts to the order’s last status before it was canceled. For example, if the order’s last status was ‘Work’, then the order status reverts to ‘Work’.
.

4.

Click Save

5.

Make the appropriate corrections to the order directly in the Blotter.

6.

Send the corrected order to Accounting.

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ADVANCED TOPICS

MERGE ORDERS
Merging combines multiple orders into one order, allowing a single placement with one broker. You can merge orders that have the same:
Security
Transaction Type
Order Type
Order Duration
Settle Date
Contingent ID
Manager Limit Price
Value Based Parameter
Available (Unplaced) Quantity
Fully Allocated Order Target Quantity
Ownership according to Split/Merge Privileges
In this example, you will select a Trader Order in the Blotter that has an ‘Open’ Status.

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Select Merge from the Actions menu or press Ctrl+M to display the eligible orders, along with the
Target Order, in the Merge Orders Window.
If you select only one order in the Blotter prior to selecting the Merge action, as in this example, then the Merge Orders window will display all of the orders in the database that are eligible for merging. If you select more than one order in the Blotter prior to selecting the Merge action, then the
Merge Orders window will only display the orders within your selection criteria that are eligible to be merged with the Target Order.

In the Orders To Merge portion of the window, the system automatically calculates the Avail to Merge quantities and the Merge quantities for compatible orders and calculates the Target Order Totals.
In the example above, there is one order that is eligible for merging. The eligible order has a status of
‘New’ and the Target Order has a status of ‘Open’.
The first order has an Avail to Merge quantity of 2000 shares.. If this order is merged with the Target
Order, as the system is recommending, then the Target Order’s quantity will increase from 1,000 shares to a total of 3,000 shares. To merge this quantity, enter 2,000 in the Merge Qty column of the first order.

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Click OK in the Merge Orders window. The results display in the Blotter, as shown below.

A new Target Order, MULTI (2), has been created for 3,000 shares of Agilent. This order is marked with a status of ‘Open’. As you can see, the allocations from the original Target Order and the eligible orders have been re-assigned to this new Target Order.
The eligible order has been marked with a status of ‘Merged’ and no longer has an Unplaced Tgt quantity. ‘Merged’ orders are stored in the database. However, no further action can be performed for these orders. 3-16

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Merge Orders Window – Order Level Tasks
If desired, you can perform any or all of the following order level tasks in the Merge Orders Window.

Orders To Merge Section – Merge Orders Window
Merge Entire Eligible
Order Quantity

Check the Incl box if you want to merge the eligible order’s entire available quantity to the Target Order.

Do Not Merge Eligible
Order Quantity

Make sure the Incl box is unchecked and do not enter a Merge
Qty if you do not want to merge the eligible order with the
Target Order.

Merge A Portion of Eligible
Order Quantity

Make sure the Incl box is unchecked and enter the quantity you desire to merge in the Merge Qty field. Then, press the tab Key.

Merge Orders Window – Allocation Level Tasks
If desired, you can merge quantities at the allocation level. In this case, perform these steps:
1.

Click on an eligible order in the Orders To Merge section of the Merge Orders Window.

2.

Click on the Allocations bar.

3.

Make the appropriate adjustments. (See the table below.)

Allocations Section – Merge Orders Window
Merge Eligible Order’s
Allocation Quantities

Check the Incl box if you want to merge all of the allocation quantities for the Eligible Order to the Target Order.

Do Not Merge Eligible
Order’s Allocation
Quantities

Make sure the Incl box is unchecked if you do not want to merge the allocation(s) with the Target Order.

Merge A Portion of
Eligible Order’s
Allocation Quantities

Enter the allocation quantity to merge in the Merge Qty field.
Then, press the tab key. The system checks the Incl box and the
New Tgt Qty field displays the Cur Tgt Qty minus the Merge
Qty.

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In the example below, only 1000 shares from the bcdtech account will be merged with the Target Order. The eligible order will retain the remaining 2000 shares and will retain an order status of ‘NEW’.

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SPLIT ORDERS
Splitting an order into multiple orders allows for placement with different brokers. You can split orders that have a
‘New’, ‘Open’, ‘Work’, or ‘Ready’ Status.
The Split Orders Window displays the orders that you have currently selected in the Blotter and that are eligible to be split. If you select one order that is eligible to be split, then only that order will display in the Split Orders
Window.
In this example, you will select only one ‘READY’ Status order. This order has a Target Quantity of 5,000 shares of
IBM. As shown in the Place/Fill Frame, this order has been partially placed and filled for 3,000 shares.

1.

Select Split from the Actions menu or press Ctrl+S to display the eligible order in the Split Orders window. 2.

Note that the Avail to Split quantity in the Orders To Split section of the window is 1,000 shares.

3.

Check the Incl box in the Orders To Split section of the window.

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The system automatically adjusts the Split Qty and New Tgt Qty fields in both the order and allocations section of the window.

Tip: If you do not want to split the entire available quantity, then enter the desired value in the Split Qty field and press the tab Key.

5.

Click OK. The results display in the Blotter.

•
•

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The Unplaced Target Quantity (Unplaced Tgt) for the ‘Ready’ Status order has been reduced to zero. This order has now been fully placed and filled.
The Unplaced Target Quantity of 1,000 shares has been assigned to a separate order. The status of that order is marked as ‘New’.

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DELETE PLACES & FILLS
To delete a placement, you will need to delete the fill first. The easiest way to delete places and fills is via the
Place/Fill frame in the Blotter.
1.

Select an order in the Blotter that has a ‘Work’, ‘Pending’, or ‘Ready’ Status.

2.

Display the Place/Fill blotter, if it is not currently visible. Tip: select Place/Fill from the Display menu. 3.

Click in the Fill frame.
a.
b.

Click Delete

c.
4.

Select the Fill row that you want to delete.

Click Yes to confirm that you want to delete that row.

.

Click in the Place frame.
a.
b.

Click Delete

c.
5.

Select the Place row that you want to delete.

Click Yes to confirm that you want to delete that row.

.

Click Save.

Note: If you try to delete the Place Quantity, without first deleting the Fill Quantity, an error displays:

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REPORTS & AUDIT TRAILS
Throughout the trading day, you can display and/or print numerous reports, such as:
Commission Summaries
Equity Trade Summaries
Trade Tickets
Order History Audit Trail
For more information, see Advanced Topics in this guide.

RELATED TOPICS
The following topics are discussed in other manuals:

♦

Run Post-execution Compliance – (Optional)
If your system administrator configured the system to run post-execution compliance, then you may run post-execution compliance against orders that have a ‘Pending’, ‘PostAlert’, or ‘PostWarn’ status. For example, you may run compliance tests that check broker rules, commissions, and so forth. For complete details, refer to the Charles River Compliance Reference Guide.

♦

Export & FAX Routing
Charles River IMS enables you to export trade information in various formats and via different methods. For example, you may export Block Orders and Allocations to brokers in a Block Order
Ticket format and transfer that output via E-Mail, FAX, or a Print File.
For complete details, refer to the on-line Help topics for Export and Fax Routing

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SUMMARY

As an Equity Trader, you are responsible for merging/splitting orders, placing orders for execution, filling orders, allocating executed orders, monitoring post-execution compliance, and ultimately, sending orders to Accounting.
During the order cycle, Charles River IMS assigns specific status codes to each order. These codes represent where the order is in the life cycle, the types of functions that can be performed on that order, and who has authority to that order. New
Merging /Splitting
Orders

Trader
Open

Placing Orders for Execution

Work

Filling
Orders

Broker /
Dealer

Viewing/Querying
Orders

Allocating
Executed Orders

Ready

failed
Monitoring
Compliance of
Trades

PostWarn
PostAlert

Sending Trades to Accounting

Acct

Export
Trades

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Accounting
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CHAPTER 4 – TARGETING TASKS

In previous chapters, you learned how to create orders via the Blotter. Using the Target tab in the New Order Entry window, you can generate orders for a specific security and allocate the investment quantities across multiple accounts, an account group, or an investment objective (i.e., style). Or, you can choose to increase or decrease the percentage of a security holding in one account.
Orders and allocations are generated automatically based upon the criteria you specify in the Target tab. For example, you can base calculations upon an account’s current total market value, total asset value, total net asset value, or invested value, excluding cash. Or, you can specify a category, such as the actual market value or the target market value of the account’s Equity Investment Class.

IN THIS CHAPTER

BEFORE YOU BEGIN

You will learn how to:
Create Orders via the Target Tab
Target a Percentage of an Account’s
Assets in a Security

Read the overview, navigation, and search
& retrieval methods in Chapters 1 – 3.
Work with your system administrator to setup Securities, Issuers, Accounts, Styles, and Account Groups.

Spread the Total Investment Quantity of a Security Across Accounts
Use the Level Off targeting option to include an account's current position in the targeted security as part of the allocation calculation
Interpret Order Generation Messages
Use the Buy & Sell If Required
Checkboxes
Use the Category Actual Market Value
Option
Specify Compliance Limits
Use Styles with Targeting
Override System Defaults via the
Tgt Opt Tab

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THE BASICS

TARGETING DIAGRAM
You can use the Target tab in the New Order Entry window to quickly generate buy and sell orders for a security.
Targeting is ideal for generating orders for a single security and allocating them across multiple accounts, an account group, or an investment objective (i.e., style). For example, you can purchase 30,000 shares of IBM and allocate the quantity among three accounts. If an account does not currently hold the security, then Targeting will generate the corresponding allocation automatically.
Or, you can use Targeting to increase or decrease the percentage of a security’s holding in a single account or in an investment objective. For example, you can target to increase the IBM holdings in the DOMEQUITY account from
4% to 8%.
Orders and allocations are calculated based upon the criteria that you specify in the Target tab. You can allocate quantities, amounts, or percentages of a security based upon the target account’s current total market value, total asset value, net asset value, or invested value excluding cash. Or, you can select a category, such as Equity
Investment Class, on which to base the calculation.
If desired, you can specify compliance limits in the Target tab. In this case, Targeting automatically runs pre-trade compliance during the order generation process. Orders that pass pre-trade compliance are assigned a PreOK Status in the Blotter. Orders that are generated without running pre-trade compliance are assigned a Prelim Status.
As illustrated below, Targeting relies on account, position, security, and existing order information to generate orders and allocations correctly.

Manager

Accounts /
Positions
Accounts

Target
Mode &
Criteria

Cash
Positions

Manager's
Order
Basket

Security
Master

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Targeting
Existing
Orders

Preliminary
Orders /
Allocations

Manager's
Order
Basket
Updated
Security
Type &
Information

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CREATE ORDERS VIA TARGET TAB
To display the Target tab and generate an order:
1.

Select Trader->Blotter.

2.

Click the Buy, Sell, Short, or Cover icon to display the New Order Entry window.

3.

Enter the desired security identifier (such as IBM) in the Sec Find field and press the Tab key. Or, click the
Sec Find drop-down list to search for and retrieve a security from the Security Lookup window.
For information about the fields on the Main tab, see Chapter 2 - Equity Manager Tasks.

4.

Click New and select an account from the drop-down list. Or, click Grp to select an account group from the drop-down list.

Note: If you plan to use styles, leave the Account fields blank. See Use Styles With Targeting at the end of this chapter.

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5.

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Click the Target tab.
The security that you specified on the Main tab displays at the top of this window. The default selections that display in the middle of this window are controlled by system parameters.
Target percent of account assets in a security - generates orders that will increase or decrease the percentage of the security held in the target account(s).

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Spread total investment quantity of a security across accts – generates orders for the security and allocates the quantity/amount across the target accounts. (See the illustration below.)

The fields for both targeting methods are described on the next page. Examples are also provided in this chapter.
6.

Complete the fields on the Target tab and click Gen allocations in the Blotter.

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Target Fields

Field Description

Target Method

Target %
% Type

The target percentage that will be used for the calculation.
The type of calculation to be performed. For a description of Final,
Incremental, and % of Position, see ‘Target Percentage of Account
Assets In A Security’ in this chapter.
The boundaries of the calculation, if any. You can enter a value in either the Floor % or the Ceiling % field. Or, you can enter a value in both fields. Leave these fields blank for Final % Type, because they do not apply.
This field is used to designate the number of shares that will be allocated to the target accounts. When you press the tab Key, the system calculates the Amt field value.
This field is used to designate the dollar amount of the security that will be allocated to the target accounts. When you press the tab Key, the system calculates the Qty field value.
Calculates the order or allocation as a percentage of the account’s
Total Market Value, Total Asset Value, Net Asset Value, or Invested
Value, Excluding Cash. If you specify a target category, then the order or allocation is calculated as a percentage of the category’s actual or target market value. See ‘Advanced Topics’ in this chapter.
If you specify % within Group, then you are required to select an account group from the Group drop-down list.

Target Percent of
Account Assets In A
Security

Floor % &
Ceiling %

Qty

Amt

Use % of current Compliance
Limits
Targ. Category
& Value

Sell If Required
Buy If
Required &
Buy If Not
Held
Include Basket
Orders
Level Off
Reprice
Use Styles

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The compliance limits, if any, which are imposed upon the calculation result. See ‘Advanced Topics’ in this chapter for details.
The target category and corresponding value that are to be used in the calculation. Valid choices display in drop-down lists.
Note: These drop-down lists are available only when you select
Category Actual Mkt Value or Category Target Mkt Value from the Use % of current drop-down list.
Applies to a Buy order. When you select this option, Targeting generates a sell order, if necessary, to satisfy the calculation.
These fields are not shown in the illustration above. They only display for Sell orders. When you select these two options, Targeting generates a buy, if necessary, to satisfy the calculation and purchases the security even if it is not currently held in the account.
If selected, all orders currently in your basket will be included in the calculation. If selected, the amount invested is spread across all accounts so that each account holds the same percentage of the security.
If selected, reprices the accounts on the order automatically.
If selected, enables you to target specific investment objectives (e.g.,
LRGCAP and TECH styles). See ‘Advanced Topics’ in this chapter for details. Spread Total
Investment Quantity of a Security Across
Accounts

Both

Spread Total
Investment Quantity of a Security Across
Accounts
Both
Both
Both

Both
Both

Both
Both
Both
Both

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TARGET A PERCENTAGE OF AN ACCOUNT’S ASSETS IN A SECURITY
You can generate orders that will increase or decrease the percentage of a security held in the target account(s). To accomplish this task, you are required to:
1.

Select Target percent of account assets in a security on the Target tab.

2.

Enter a percentage in the Target % field.

3.

Select a value from the % Type drop-down list.

% Type Choices

Description

Examples

♦

Final

Generates a buy or a sell order to bring your total holding to the percentage specified in the Target % field. See Example #1

♦

Incremental

Generates a buy or sell order to increase or decrease your total holding by the percentage specified in the
Target % field.

See Example #2

♦

% of Position

Bases the calculation on your current position. Note that
100% is the amount you currently own in all accounts.
Therefore, enter a value above or below 100%.

See Example #3

If you enter a value that exceeds 100 in the Target % field, then a buy order is generated. If you enter a value that is less than 100, then a sell order is generated.

4.

Select a calculation option from the Use % of current drop-down list. This drop-down list is not relevant for the % of Position.

Examples
The Final, Incremental, and % Of Position examples that appear in this chapter target the DOMEQUITY account.
As illustrated below, the Cur Pos Qty and New %MV fields reflect the total number of IBM shares that are currently held in the account and the market value of those shares.

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Currently, the account holds 5,000 shares of IBM (worth $451.5K). The account’s current total market value is
$11,287,050. and the IBM shares represent 4% of that value.

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Example #1 - Final
In this example, you will invest 10% of the DOMEQUITY account’s total market value in IBM.
1.

Select Target percent of account assets in a security on the Target tab.

2.

Enter 10 in the Target % field.

3.

Select Final from the % Type drop-down list.

4.

Select Total Mkt Value from the Use% of current drop-down list.

5.

Select None from the Compliance Limits drop-down list.

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6.

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Click Gen to generate a Prelim order in the Blotter. To bring the total IBM holding to 10% of the
DOMEQUITY account’s current market value, Targeting generated an order for $677,250
(i.e., 7,500 shares @$90.3 per share).

Targeting Calculation

($11,287,050 x 10%) - ($451.5K) = $677,250
(DOMEQUITY account’s current total market value) x (Final %) – (current IBM holding amount) = (new order amount)
Note: Based on this calculation, the order quantity should be approximately 7,500 shares
If the order quantity does not conform to default lot sizes, the system applies round lot rules to the calculation.

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Example #2 - Incremental
In this example, you will increase the IBM holdings by an additional 3%, but ensure that the security’s value does not exceed 6% of the DOMEQUITY account’s total market value.
1.

Select Target percent of account assets in a security on the Target tab.

2.

Enter 3 in the Target % field.

3.

Select Incremental from the % Type drop-down list.

4.

Enter 6 in the Ceiling % field.

5.

Select Total Mkt Value from the Use% of current drop-down list.

6.

Select None from the Compliance Limits drop-down list.

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to generate a Prelim order in the Blotter. To keep the IBM holding within the
Click Gen ceiling limit (i.e., 6% of the DOMEQUITY account’s current market value), Targeting generated an order for $225.75K. This equates to 2,500 shares @$90.30 per share.

Targeting Calculation

If (4% + 3%) > 6%, then calculate as: ($11,287,050 x 6%) - ($451.5K) = $225,750.
If (account’s current total market value %) + (Incremental %) > (Ceiling %), then calculate as: ((DOMEQUITY account’s current total market value) x (Ceiling %))
– (current IBM holding amount) = (new order amount)
Note: Based on this calculation, the order quantity should be approximately 2,500 shares
If the order quantity does not conform to default lot sizes, the system applies round lot rules to the calculation.

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Example #3 - % of Position
Currently, the DOMEQUITY account holds $451.5K worth of IBM shares, which represents 4% of the account’s current total market value. In this example, you will double the IBM holding in the DOMEQUITY4 account to represent 8% of the account’s total market value.
1.

Select Target percent of account assets in a security on the Target tab.

2.

Enter 200 in the Target % field.

3.

Select % of Position from the % Type drop-down list.

4.

Select None from the Compliance Limits drop-down list.

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5.

Click Gen

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to generate a Prelim order in the Blotter.

Targeting generated an order for $451.5K (i.e., 5,000 shares @$90.3 per share). As a result of this order, the DOMEQUITY4 account now holds $903,000 worth of IBM shares. This total represents 200% of the security’s original market value and 8% of the account’s total market value.

SPREAD TOTAL INVESTMENT QUANTITY OF A SECURITY ACROSS ACCOUNTS
You can generate orders for a security and allocate the investment quantity across multiple accounts, an account group, or an investment objective (i.e., style). To accomplish this task, you are required to:
1.

Select Spread total investment quantity of a security across accts on the Target tab.

2.

Enter a quantity in the Qty field. Or, enter a dollar amount in the Amt field.

3.

Select a calculation option from the Use % of current drop-down list.

Examples
The Qty Field and the Amt Field examples that appear in this chapter target three accounts.

Target Accounts

Account’s Current Total
Market Value

Current Position

%Market Value

DOMEQUITY

$11,287,050

5,000

4%

DOMEQUITY2

•

$11,513,200

15,300

12%

DOMEQUITY3

4-14

•

•

$7,716,545

9,400

11%

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As illustrated below, the Cur Pos Qty and New %MV fields reflect the total number of IBM shares that are currently held in each account and the market value of those shares. For example, there are 5,000 shares of IBM held in the
DOMEQUITY account and the shares are worth $451.5K. This total represents 4% of the DOMEQUITY account’s current total market value.

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Example #1 - Qty Field
In this example, you will purchase 40,000 shares of IBM and allocate the amount to the DOMEQUITY,
DOMEQUITY2 and DOMEQUITY3 accounts based upon each account’s total market value.
1.
2.

Enter 40000 or 40k in the Qty field and press the Tab key. The corresponding purchase amount automatically displays in the Amt field.

3.

Select Total Mkt Value from the Use% of current drop-down list.

4.

Select None from the Compliance Limits drop-down list.

5.

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Click Spread total investment quantity of a security across accts on the Target tab.

Click Gen to generate a Prelim order in the Blotter. The purchase quantity is allocated among all three accounts based upon each account’s total market value.

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Example #2 - Amt Field
In this example, you will purchase $150,000 worth of IBM shares and allocate the amount to the DOMEQUITY3,
DOMESTICEQUITY, and DOMEQUITY4 accounts based upon each account’s total market value.
1.

Click Spread total investment quantity of a security across accts on the Target tab.

2.

Enter 150000 or 150k in the Amt field and press the tab Key.

3.

Click Yes if you want to override the round lot rules.

If you had clicked No in the prompt above, then the system would have adjusted the amount to conform to the round lot rules.

4.

Select Total Mkt Value from the Use% of current drop-down list.

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5.

6.

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Select None from the Compliance Limits drop-down list.

Click Gen to generate a Prelim order in the Blotter. The purchase amount is allocated among all three accounts based upon each account’s total market value.

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TARGETING USING LEVEL OFF
You can use the Level Off targeting option to include an account's current position in the targeted security as part of the allocation calculation.

When Level Off is not used, the amount to be spread is prorated across the accounts based on what is indicated by
Use % of current. On the above screen, Ford Motor shares would be spread across the allocations based on the total market value of each portfolio. An allocation's current holding in Ford does not impact the calculation as only the portfolio's total market value is used for determining the allocation amount.
If Level Off is checked, the investment spreading is broken into two steps. First, the amount invested is used to bring all the portfolios to the same percentage, starting with the lowest percentage. Once they are all at the same percentage, the second step prorates the remaining un-spread amount. If three accounts each have 1%, 2% and 3% in
Ford, first, the account with 1 % would be brought to 2%, then the two accounts with 2% would be brought to 3%, and assuming there was still some unallocated portion of the order to be spread, the remaining amount would be prorated across all three accounts.
The following example shows an order being allocated to two identically sized portfolios. It highlights the differences between spreading with and without "level off".

Portfolio A

Portfolio B

Comment

Total Market Value

$100,000,000

$100,000,000

Portfolios are the same size

Market Value of current position for Security X

$1,000,000
1%

$500,000
.5%

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Spread $2,000,000 on an order for Security X No
Level Off

$1,000,000

$1,000,000

Portfolio A’s allocation is the same as Portfolio B’s

New position without level off.

$2,000,000
2%

$1,500,000
1.5%

Final positions are different percentages. Spread $2,000,000 with Level off.

$750,000

$1,250,000

Allocations are different.

New position with “level off order”

$1,750,000
1.75%

$1,750,000
1.75%

Final percentages are the same. NOTES
If "level off" is used and there is not enough on the order to bring all the portfolios up to the same percentage, some portfolios will not be allocated any shares and will be dropped from the order.

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ADVANCED TOPICS

INTERPRET ORDER GENERATION MESSAGES
The Order Generation Messages Window alerts you of any warnings and/or errors that occurred during the order generation process. Suppose the DOMEQUITY account has a maximum order limit of 1,000 shares and you try to purchase 2,000 shares of IBM. In this case, the following messages display:
Warn Maximum order quantity exceeded. Max = 1,000, Actual = 2,000
Setting to Maximum Quantity.
Msg

Order Generation Results: 1 order and 1 allocation created for this profile. 1 warning and 2 messages produced.

Msg

Order Generation Mode is AutoGenerated on 6/25/2002 16:51:32 by TM_DEV
Buy 2,000 shares/par for a set of accounts.

As indicated in the warning message, the system automatically adjusts the allocation quantity from 2,000 shares to the maximum order quantity of 1,000 shares. The messages, shown above, confirm that one order was created and allocated to the DOMEQUITY account.

USE BUY & SELL IF REQUIRED CHECKBOXES
If you click on either the Buy If Required or Sell If Required checkboxes on the Target tab, then the system generates a buy order or a sell order, if necessary, to satisfy the calculation.

To Display This Checkbox
♦

Buy If Required

♦

Click These Blotter Icons

Sell If Required

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The Buy If Required and the Sell If Required examples that appear in this chapter target the DOMEQUITY4 and
DOMEQUITY3 accounts. Suppose you want to change the IBM holding in both accounts to 9% of each account’s current total market value.
In this case, Targeting will calculate the order quantity as:
(account total market value x 9%) - (dollar value of IBM shares) = (order amount)
(order amount) divided by (market price $135) = (total number of shares to purchase or sell)

Target Accounts
♦

Expected Target Results

DOMEQUITY4 Account

♦

Buy order = 6,253 shares

♦

Sell order = 2,733 shares

Account Total Market Value = $16,880,051
Current Holding Dollar value of IBM shares = $675K
Current # of IBM shares = 5,000
IBM shares represent 4% of the account’s total market value
Need to buy 5%

♦

DOMEQUITY3 Account
Account Total Market Value = $10,000,000
Current Holding Dollar value of IBM shares = $1,269,000
Current # of IBM shares = 9,400
IBM shares represent 12.69% of the account’s total market value
Need to sell 3.6%

To understand how the Buy If Required and Sell If Required checkboxes function in this scenario, refer to the two examples below. Note that round lot rules are applied to the calculation.
Tip: The results of the Buy If Required and Sell If Required examples are the same. It does not matter whether you start with a buy or a sell transaction. In the end, the resulting trades are identical.

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Example #1 - Buy If Required
In this example, you will change the IBM holding to 9% of each account’s current total market value.

1.

Click the Sell icon in the Blotter and complete the entries on the Main tab.

2.

Select Target percent of account assets in a security on the Target tab.

3.

Enter 9 in the Target % field.

4.

Select Final from the % Type drop-down list.

5.

Select Total Mkt Value from the Use% of current drop-down list.

6.

Select None from the Compliance Limits drop-down list.

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Click the Buy If Required checkbox to generate the buy orders, when necessary, to satisfy the calculation.

Note: If the security is not currently held in an account, then click the Buy If Not Held checkbox.
Otherwise, Targeting will not generate the corresponding allocation for that account.

8.

Click Gen to generate the Prelim orders in the Blotter. Targeting generated an order to sell 2,700 shares of
IBM for the DOMEQUITY3 account and an order to purchase 6,300 shares of IBM for the DOMEQUITY4 account. Round lot rules were applied to these calculations.

Note: The buy order will not be created unless you check the Buy If Required box.

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Example #2 - Sell If Required
In this example, you will change the IBM holding to 9% of each account’s current total market value.

1.

Click the Buy icon in the Blotter and complete the entries on the Main tab.

2.

Select Target percent of account assets in a security on the Target tab.

3.

Enter 9 in the Target % field.

4.

Select Final from the % Type drop-down list.

5.

Select Total Mkt Value from the Use% of current drop-down list.

6.

Select None from the Compliance Limits drop-down list.

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7.

Click the Sell If Required checkbox to generate the sell orders, when necessary, to satisfy the calculation.

8.

Click Gen to generate a Prelim order in the Blotter. Targeting generated an order to sell 2,700 shares of
IBM for the DOMEQUITY3 account and an order to purchase 6,300 shares of IBM for the DOMEQUITY4 account. Round lot rules were applied to these calculations.

Note: The sell order will not be created unless you check the Sell If Required box.
To summarize, the results of the Buy If Required and Sell If Required examples are the same. It does not matter whether you start with a buy or a sell transaction. In the end, the resulting trades are identical.

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SPECIFY CATEGORY ACTUAL MARKET VALUE
You can use a category’s actual market value, instead of the target account’s actual market value, as the basis for calculating orders and allocations. For example, you can purchase shares in the DOMEQUITY5 account based upon the Equity Investment Class’ actual market value instead of the account’s total market value.
When you select Category Actual Mkt Value from the Use % of current drop-down list on the Target tab, you are required to select values from the Targ. Category and Value drop-down lists. The Targ. Category provides the following choices:
•
•
•
•
•
•
•
•
•
•

Issue Country
Coupon Rate
Asset Currency
Security Issuer
Security Type
Issue State
Product Code
Production Year
Investment Class
Term

The choices that display in the Value drop-down list correspond to the value that you selected in the Targ. Category.
For example, when you select Investment Class from the Targ. Category drop-down list, the Value drop-down list choices are: Currency/Cash, Debt, Derivative, Equity, Other, and Unit Trusts.

Example
In this example, you will purchase Microsoft shares for the DOMEQUITY5 account. This purchase should represent
10% of the Equity Investment Class’ actual market value.

DOMEQUITY5 Account’s Current Status
100 shares of IBM = $13,500
2,900 shares of AT&T = $290,000
Equity Investment Class Total = $303,500
DOMEQUITY5 Account Total = $10,000,000

Expected Target Results
♦

Buy order for 303.5 shares of Microsoft @ $100 per share, to represent $30,350 or 10% of the Equity Investment Class total.

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1.
2.

Enter 10 in the Target% field.

3.

Select Final from the % Type drop-down list.

4.

Select Category Actual Mkt Value from the Use% of current drop-down list.

5.

Select the Investment Class category from the Targ. Category drop-down list.

6.

Select Equity from the Value drop-down list.

7.

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Click Target percent of account assets in a security on the Target tab.

Select None from the Compliance Limits drop-down list.

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Click Gen to generate a Prelim order in the Blotter. Targeting will generate an order to purchase 300 shares @$100 per share of Microsoft, worth $30K.
In this case, the system applied the round lot rules for the DOMEQUITY5 account to the calculation. The
DOMEQUITY5 account has a round lot rule of 100 shares. Consequently, the target quantity for this order is 300 shares instead of 303.5 shares.

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SPECIFY COMPLIANCE LIMITS
Typically, compliance measures how an order will affect concentrations or other benchmarks and rules. The options in the Compliance Limits drop-down list control whether pre-trade compliance is run during the order generation process and how compliance limits are enforced.

Example
Suppose you have a compliance test assigned to the DOMEQUITY4 account, indicating that you cannot invest more than 5% of the account’s total market value in shares of American Express.
Let’s assume that the DOMEQUITY4 account does not currently hold any shares of American Express and that you are using the following Target tab criteria:
Target percent of account assets in a security.
Target % = 6.0.
% Type = Final.
Use % of current = Total Mkt Value

The results of the Target tab Compliance Limits scenarios are described below.

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Target Tab
Compliance Limits
♦

None

Chapter 4 - Targeting Tasks

Targeting Results

Pre-trade compliance will not run.
The compliance rules for the DOMEQUITY4 account will be ignored. A buy order will be generated based upon the criteria specified in the Target tab. In other words, an order will be generated to purchase American Express shares, representing 6% of the
DOMEQUITY4 account’s total market value.
The order will be assigned a Prelim Status in the Blotter.

♦

Keep within limits

Pre-trade compliance will run.
The compliance rules for the DOMEQUITY4 account will be considered. Targeting will adjust the order quantity only if the compliance limit is exceeded.
In this example, the system will not use the Target % field value of 6 to generate the buy order. Targeting will calculate the order quantity using the compliance limit of 5%.
Suppose you entered 4 instead of 6 in the Target % field. In this case, the system will calculate the order quantity using the Target
% of 4. (The Target % of 4 is within the compliance limit.)
Assuming no other compliance rules are broken, the order will be assigned a PreOK Status in the Blotter.

♦

Take to the limit

Pre-trade compliance will run.
The most restrictive compliance limit for the DOMEQUITY4 account will be used. In this example, the most restrictive compliance limit is 5%.
To ensure that the most restrictive compliance limit is used,
Targeting will change the Target % field value to 100.
Suppose you entered 4 instead of 6 in the Target % field. In this case, the Targeting results will be identical. In other words, the system will change the Target % field to 100 and base the targeting calculation on the most restrictive compliance limit
(i.e., 5%).
Assuming no other compliance rules are broken, the order will be assigned a PreOK Status in the Blotter.

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USE STYLES WITH TARGETING
Styles describe the investment objective of a portfolio. For example LRGCAP could represent investments in Large
Companies and TECH could represent Technology Companies and/or Funds. If you have styles assigned to your accounts in Charles River IMS, you can select the Use Styles checkbox on the Target tab for either targeting method: Spread total investment quantity of a security across accts
Target percent of account assets in a security
When you designate a Style on the Target tab, Charles River IMS will generate orders for only the accounts that are assigned to that style and only the accounts to which you have privilege. Suppose 7 accounts are assigned to the
LRGCAP Style, but you have privilege to only 3 of those accounts. In this case, when you generate an order for the
LRGCAP Style, Targeting will allocate the order to only the 3 accounts to which you have privilege.

Preliminary Setup Tasks
Typically, your system administrator will be responsible for defining and assigning style codes in Charles River
IMS. Style codes are defined as Code Type USRCLASS1 in Setup->Reference ->Codes and Descriptions and are assigned to accounts in the Setup ->Accounts & Positions ->Accounts window. As shown below, the LRGCAP style is assigned to the DOMEQUITY4 account.

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Example
For this example, assume that you are targeting the IBM securities in the LRGCAP and TECH Styles. These styles are assigned to three accounts, as shown below.

Styles

Account’s Current
Total Market Value

Current % of IBM Shares
Held In The Account

♦

LRGCAP

DOMEQUITY4 - $16,880,051

4% (5,000 shares = $675K)

♦

TECH

DOMESTICEQUITY - $16,192,620

12.76% (15,300 shares)

DOMEQUITY3 - $10,000,000

12.69% (9,400 shares)

To increase the total market value of IBM shares in the LRGCAP and TECH styles:
1.

Go directly to the Target tab and specify the IBM security. (You do not need to specify an account or an account group on the Main tab of the New Order Entry window.)

2.

Select Target percent of account assets in a security.

3.

Click Use Styles. The styles that are defined in Charles River IMS automatically display.

4.

Enter 10 in the LRGCAP Target % field. Select Final from the % Type drop-down list.

5.

Enter 3 in the TECH Target % field. Select Incremental from the % Type drop-down list.

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6.

Select Total Mkt Value from the Use % of current drop-down list.

7.

Select None from the Compliance Limits drop-down list.

8.

Click Gen to generate the corresponding order and allocations in the Blotter.

As a result of this order, the IBM holdings will represent 10% of the DOMEQUITY4 account’s current total market value and the IBM holdings in both the DOMESTICEQUITY and DOMEQUITY3 accounts will increase by 3%. The Targeting calculations are described in the table below.

Targeting Calculations
♦

DOMEQUITY4 Account
The Target will be: ($16,880,051 x 10%) - ($675K) = $1,013,005
(account’s current total market value) x (Final %)) – (current IBM amount) = (new order amount)
Note: The order amount is $1,012,818.90.

♦

DOMESTICEQUITY Account
The Target will be: $16,192,620 x 3% = 485,778.60
(account’s current total market value) x (Incremental %) = (new order amount)
Note: The order amount is $485,778.60.

♦

DOMEQUITY3 Account
The Target will be: $10,000,000 x 3% = $300,000
(account’s current total market value) x (Incremental %) = (new order amount)
Note: The order amount is $300K.

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Target tab – Styles Message
Suppose you specify an account or an account group on the Main tab of the New Order Entry Window and choose a
Style on the Target tab. When you click Gen on the Target tab, then you may receive the following message:

This message indicates that at least one account that you specified on the Main tab does not belong to the Styles that you designated on the Target tab.
Click Yes to proceed with generating the order. In this case, Targeting will remove the accounts that do not belong to the designated Styles from the order.
Click No to return to the Target tab and adjust your targeting criteria.

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TRADER ORDERS
Traders can use the Target tab in the Order Detail window to change order quantities and regenerate orders. This includes orders that have a status of ‘OPEN’, ‘WORK’, ‘PENDING’, and ‘READY’.

Note: Traders must have the appropriate privileges to change order quantities and the new target order quantity must be greater than the amount executed or placed.

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OVERRIDE SYSTEM DEFAULTS VIA TGT OPT TAB
You can use the Tgt Opt tab in conjunction with the Target tab to generate one-time orders that will override your portfolio and system default settings. You can choose to override:
Negative Cash - Allow or disallow negative cash, or turn off cash checking.
Round Lots - Change the default round lot size or turn off checking for round lots.
Order Size - Change minimum and maximum order size and how the size is judged, by quantity or amount.
Tolerance – Establish thresholds to limit changes in position based on percentage or market value.
Tax Lots - Designates tax lots for Sell and Cover orders when the Designate Tax Lots box is checked. By default, this option is checked. If you choose a tax lot convention from the Convention drop-down list, this overrides account-level tax lot conventions.
Note: For the Order Size settings to be effective, you must deselect the Use Portfolio Defaults checkbox.

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Example
Suppose the DOMEQUITY5 account has a minimum order quantity of 100 shares and a maximum order quantity of
1,000 shares, as defined in the Accounts window.

You can use the Tgt Opt tab in the New Order Entry window to override the maximum order size and generate a
‘one-time’ order for 3,000 shares for the DOMEQUITY5 account.

1.

In the New Order Entry window, click the Target tab and enter the Targeting criteria:
a.
b.

Enter 3000 or 3k in the Qty field. Press the tab Key.

c.

Select Total Mkt Value from the Use % of current drop-down list.

d.

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Select Spread total investment quantity of a security across accts on the Target tab.

Select None from the Compliance Limits drop-down list.

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2.

Click the Tgt Opt tab.

3.

Deselect the Use Portfolio Defaults checkbox in the Order Size section of the Tgt Opt tab window.

4.

Click Gen to generate the ‘one-time’ target order for 3,000 shares of IBM. The Prelim order displays in the
Blotter.

Note: If you had not ‘deselected’ the Use Portfolio Defaults checkbox, then Targeting would have generated an order for 1,000 shares vs. 3,000 shares.

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SUMMARY

Using the Target tab in the New Order Entry Window, you can easily generate orders for a specific security and allocate the investment quantities across multiple accounts or an account group. Or, you can choose to increase or decrease the percentage of a security holding in one account.
Provided styles are defined in Charles River IMS and assigned to accounts, you can also use the Target tab to generate orders and allocations for specific investment objectives (e.g., LRGCAP style, TECH style, etc.).

Blotter

New Order Entry

Select order type Identify security New Order Entry

If using styles Select account(s) Select targeting mode

Target Tab

If not using styles

Target Tab

Target Tab

Select styles Select targeting mode

Orders and allocations are calculated based upon the criteria that you specify in the Target tab.

If you select the Spread total investment quantity of a security across accts method, then you are required to specify a quantity or amount.
If you select the Target percent of account assets in a security method, then you are required to designate a percentage and type (i.e., Final, Incremental, or % of Position).

You can allocate quantities, amounts, or percentages of a security based upon the target account’s current total market value, total asset value, net asset value, or invested value excluding cash. Or, you can select a category, such as Equity Investment Class, on which to base the calculation.
If desired, you can run pre-trade compliance during the order generation process. Orders that pass pre-trade compliance are assigned a ‘PreOK’ Status in the Blotter. Orders that are generated without running pre-trade compliance are assigned a ‘Prelim’ Status.

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Chapter 5 – Rebalancer Tasks

CHAPTER 5 – REBALANCER TASKS

In previous chapters, you learned how to create orders via the Blotter and the Target Tab. You can use the
Rebalancer to generate a large number of orders simultaneously for a specific account.
Rebalancer is ideal for anticipating cash flows in and out of an account, investing or raising cash, changing an account’s value by a percentage, or liquidating an account. You can also rebalance an account to a benchmark model, default model, or another portfolio. Models help to ensure that your accounts do not deviate from the investment objective of the prospectus.

IN THIS CHAPTER

BEFORE YOU BEGIN

You will learn how to:
Access the Rebalancer Window
Rebalance an Account Against Itself
Rebalance an Account Against a Model, a Default Model, or Another Account

Read the overview, navigation, and search
& retrieval methods in Chapters 1 – 3.
Work with your system administrator to setup Securities, Issuers, Accounts,
Account Groups, Models, Default Models, and Category Targets.

Use the Invested Denominator with a
Model
Liquidate an Account
Override System Defaults Via Options
Tab
Rebalance an Account with a Cash
Balance & No Securities
Enforce Category Targeting Options

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THE BASICS

REBALANCER DIAGRAM
The Rebalancer provides similar functionality to the Target tab in the New Order Entry Window. However, the
Rebalancer is designed to perform tasks at the account level vs. the security level. You can rebalance an account against itself, a model, default model, or another portfolio.
Rebalancing an account against itself is ideal for:
Anticipating cash flows in and out of the account.
Investing or raising cash in the account.
Liquidating the account.
Changing the account’s value by a percentage.
Orders and allocations are generated based upon the criteria that you specify in the Rebalancer Generation tab.
Typically, you will calculate orders based upon the account’s market value or invested value. To generate orders and allocations correctly, the Rebalancer relies on account, position, security, and existing order information.

Manager

Accounts /
Positions

Rebalancer
Criteria
Accounts
Cash
Positions

Manager's
Order
Basket

Security
Master

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Rebalancer
Existing
Orders

Preliminary
Orders /
Allocations

Manager's
Order
Basket
Updated
Security
Type &
Information

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ACCESS REBALANCER WINDOW
To access the Rebalancer – Order Generator window, select Manager->Rebalancer.
Click New on the Generation tab and define your criteria.

The default values that display on this tab are based upon your system parameter settings. To complete the entries, refer to the field descriptions on the next page. Examples are also provided in this chapter.
Tip: You should save your Rebalancer criteria for future use. This is beneficial especially if you want to rebalance certain accounts against the same model each month. For example, if you have a model for the S&P 500 Index and you know that there are certain accounts that should be rebalanced against that model, then save your rebalancing criteria. That way, you can easily retrieve the definitions and click Generate Orders to complete the rebalancing tasks. U.S. Equity User’s Guide, Version 7.2
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GENERATION TAB FIELDS
Field Names

Field Description

Mode

The benchmark method that will be used to generate orders and allocations. There are four modes:
Rebalance account against itself
Rebalance against a model
Rebalance against default model
Rebalance against another account

Basket
Model or Model Acct

Acct/Grp
Acct Filter
Reprice Acct/Group

Include Basket
Orders

Use % of current

Add

Invest
Category Targeting
Fields
Category 1,2,3
& Value 1,2, 3

Buys
Buy If Not Held

Sells
Sell If Not In Model

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See ‘Rebalance Account Against Itself’ and ‘Rebalance Account Against A Model,
Default Model, Or Account’ in this chapter.
The basket to which the orders will be assigned.
The benchmark model or portfolio that will be used to rebalance the account. This field is not relevant for Rebalance account against itself and Rebalance against default model.
The account or account group that will be rebalanced.
List available account filters. See the Account Filters topic in online help for more information about account filters
If selected, Rebalancer will recalculate the value of each security held in the account and update the account’s total market value. You should select this option because it will ensure more accurate order generation.
If selected, all of the orders in the basket are included in the calculation. If you do not select this option, then any Manager Orders that already exist in the basket will be ignored. In either case, if there are Manager Orders in the Blotter, you will be prompted to add or replace the orders in the basket.
The calculation method used for generating orders and allocations. Typically, you will select either Total Mkt Value or Invested. See ‘Use % of Current Denominator’ in this chapter.
This field displays when you are rebalancing an account to a model, default model, or another portfolio. You can leave this field blank. To invest cash, enter a positive amount. To raise cash, enter a negative value.
If your account only has a Cash position, you can enter a negative value to retain some money in the Cash position. See ‘Advanced Topics’ in this chapter.
For a description of this field, see ‘Rebalance Account Against Itself’ in this chapter.
For a description of the Enforce, Targ Category, and Value fields, see ‘Advanced
Topics’ in this chapter.
These fields enable you to rebalance a subset of the account, such as the Equity
Investment Class. The choices that display in the Value drop-down lists correspond to your Category drop-down list selections. You can choose multiple values for the same category (by entering the same category in more than one field) and rebalance your portfolio against those category values.
If selected, this option generates buy orders to satisfy the calculation.
If selected, this option generates buy orders for any securities that are not held in account, but that are held in the benchmark model or portfolio. This field is not relevant for Rebalance account against itself.
If selected, this option generates sell orders to satisfy the calculation.
If selected, this option generates sell orders for any securities that are not held in the benchmark model or portfolio, but that are held in the account. This field is not relevant for Rebalance account against itself.

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USE % OF CURRENT DENOMINATOR
To generate orders and allocations correctly, the Rebalancer uses a mathematical formula. The Use % of current drop-down list value serves as the denominator and the market value of the corresponding security serves as the numerator. Use % of current
Choices

Description

Calculated
In Charles
River IMS

Total Mkt Value

The total market value includes cash, equity, debt, and all other security types. Select this option to allocate trades across all of the holdings in the account, including cash, based upon the account’s total market value. Yes

Total Assets

The account’s total assets. This data is imported to
Charles River IMS.

No

Net Assets

The account’s net assets (i.e., total value of the account minus liabilities). This data is imported to
Charles River IMS.

No

Invested

The total invested value, excluding cash. Select this option to deduct the amount from the Cash position and allocate trades against the invested portion (i.e., securities) of the account.

Yes

Category Actual Mkt Value

The total market value of the category specified in the
Targ. Category and Value fields in the Generation tab. Yes

For example, you can select this option to allocate trades against the account based upon the actual market value of the account’s Equity Investment
Class.
Category Target Mkt Value

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REBALANCER BUTTONS
The buttons that display on the right side of the Rebalancer Window tabs enable you to perform various tasks.
♦

Generate Orders

Creates the orders and allocations based upon your criteria. The generated orders are sent to the Blotter and assigned a Prelim Status.

♦

Messages

Displays the results of the order generation process, including any warnings or errors that occurred, in the Order Generation Messages Window. If the process is successful, then the total number of orders and allocations displays.

♦

Models

Displays the Model Portfolios Window. If you specify a model in the Model field and click this button, then the positions for that model automatically display in the Model Portfolios Window.

♦

Acct Groups

Displays the Account Groups/Templates Window. This button is active only if you have specified a group account in the Rebalancer Generation tab. It is not active when you are retrieving Rebalancer records for non-group accounts.

♦

Category Targets

Displays the Category Targets Window. If you have defined category targets for an account, you can click this button to display the corresponding definitions in the Category Targets Window.

♦

Blotter

Displays the results of the order generation process in the Blotter.

CASH CONTRIBUTIONS
The account that you want to rebalance must have a Cash position in Charles River IMS. If a cash deposit was entered into the accounting system on the previous day, then it should be in the Charles River IMS account. In this case, do not enter a cash contribution (FTC) for the same amount prior to rebalancing. Otherwise, you will invest more than you really have.
If the cash contribution was not updated previously, then enter it via the Bank Balances/Contributions/Withdrawals
Window.

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REBALANCE ACCOUNT AGAINST ITSELF
You use this mode to anticipate cash flows in and out of an account, invest or raise cash, increase or decrease an account’s value by a percentage, or liquidate an account. (Examples are provided in this chapter.)

To accomplish these tasks:
1.

Click New on the Rebalancer Generation tab and define your criteria:
a.
b.

Select a basket from the Basket drop-down list.

c.

Select the account or account group that you wish to rebalance from the Acct/Grp drop-down list.

d.

Select Reprice Acct/Group.

e.

Select Total Mkt Value or Invested from the Use % of current drop-down list.

f.

Select Amt or % of basis from the Invest drop-down list and enter a dollar amount or percentage. Do not enter a dollar sign ($) or percent sign (%) in this field. A positive value reflects an investment of cash. A negative number reflects a raising of cash.

g.
2.

Select Rebalance account against itself from the Mode drop-down list.

Click Buys and Sells to ensure that the appropriate orders are generated.

Click Save.

Invest Field Tips
Use Invest Amt to anticipate cash flows, invest cash, or raise cash. The value that you select in the Use % of current drop-down list determines where the investing/divesting will be performed. See the examples below. Use Invest % of basis to increase or decrease the account’s value by a specific percentage. During the order generation process, the Rebalancer includes any trades in Trader Status (i.e., New through Ready) in the calculation. See ‘Liquidate An Account’ in this chapter.

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Example #1 – Invest Cash Using Total Market Value
Typically, you will use the Rebalancer for large portfolios. To make it easy for you to understand how the
Rebalancer functions, let’s use a small portfolio that has only three positions.
As shown below in Manager Workbench, the DOMEQUITY6 account’s total market value is $9,998,757.
The Cash position represents 69.996% of the account’s total market value.
The securities represent 30.004% of the account’s total market value.

In this example, you will invest $1,000,000 in the DOMEQUITY6 account and use the account’s total market value as the basis for rebalancing the account. As you will learn, the percentage held of the Cash position will decrease and the percentage held of the securities will increase.

1.

Click New on the Rebalancer Generation tab and define your criteria.
a.
b.

Select SINGLEt from the Basket drop-down list.

c.

Select DOMEQUITY6 from the Acct/Grp drop-down list.

d.

Select Reprice Acct/Group.

e.

Select Total Mkt Value from the Use % of current drop-down list.

f.

Select Amt from the Invest drop-down list. Enter 1M or 1,000,000.

g.

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Select Rebalance account against itself from the Mode drop-down list.

Click Buys.

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In this example, you are not required to click Sells. Clicking Sells has no effect in an investing scenario.

2.

Click Save.

3.

Click Generate Orders. The results display in the Order Generation Progress dialog box.

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Sample Order Generation Messages
As illustrated below, the Rebalancer created 2 orders and 2 allocations for the DOMEQUITY6 account.

Sample Blotter Output
The buy orders are assigned a Prelim Status in the Blotter.

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View Results In Manager Workbench
You can view the results in Manager Workbench. As shown in the New %, Prelim Qty, and Prelim Amt columns, the
Rebalancer allocated $300,037 from the Cash position to purchase $300,037 worth of additional shares of Computer
Associates Intl and IBM.

The calculations were based upon the original percentage held of each security in the DOMEQUITY6 account and the account’s total market value. As shown in the Cur % column above, the Investments Category represented 30% of the account’s total market value prior to rebalancing the account.

Calculation
(Investment Amount) x (Percentage Held of Current Investments) = Total Amount To Invest
($1M x 30%) = $300K
Result
Decrease Cash by $300K
Purchase $100K of Computer Associates Intl = ($1M x 10%)
Purchase $200K of IBM = ($1M x 20%)

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Example #2 – Invest Cash Using Invested Value
Typically, you will use the Rebalancer for large portfolios. To make it easy for you to understand how the
Rebalancer functions, let’s use a small portfolio that has only three positions.
As shown below in Manager Workbench, the DOMEQUITY6 account’s total invested value is $3,000,000.
The Computer Associates Intl security represents 33.333% of the account’s total invested value.
The IBM security represents 66.667% of the account’s total invested value.

In this example, you will invest $1,000,000 in the DOMEQUITY6 account and use the account’s invested value as the basis for rebalancing the account. As you will learn, the percentage held of the Cash position will decrease, but the percentage held of the securities will not change.

1.

Click New on the Rebalancer Generation tab and define your criteria.
a.
b.

Select SINGLE from the Basket drop-down list.

c.

Select DOMEQUITY6 from the Acct/Grp drop-down list.

d.

Select Reprice Acct/Group.

e.

Select Invested from the Use % of current drop-down list.

f.

Select Amt from the Invest drop-down list. Enter 1M or 1,000,000.

g.

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Select Rebalance account against itself from the Mode drop-down list.

Click Buys.

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In this example, you are not required to click Sells. Clicking Sells has no effect in an investing scenario.

2.

Click Save.

3.

Click Generate Orders. The results display in the Order Generation Progress dialog box.

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Sample Order Generation Messages
The Rebalancer created 2 orders and 2 allocations for the DOMEQUITY6 account. An Order Generation Messages window displays the following messages:
Msg

Order Generation Results: 2 orders and two allocations created for this profile and 2 messages produced.

Msg

Order Generation Mode is Autogenerated on by TM_DEV
Rebalance account DOMEQUITY6 against itself decreasing cash by 1,000,000.

Sample Blotter Output
The buy orders are assigned a Prelim Status in the Blotter.

Note: The target quantities, shown above, are higher than in the previous example. In Example #1, the quantities were calculated based upon the account’s total market value. Here, they are calculated based upon the account’s invested value (i.e., security holdings, excluding cash).

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View Results In Manager Workbench
You can view the results in Manager Workbench. As shown in the New %, Prelim Qty, and Prelim Amt columns, the Rebalancer allocated $1,000,000 from the Cash position to purchase $1,000,000 worth of additional shares of
Computer Associates Intl and IBM.

The calculations were based upon the original percentage held of each security in the DOMEQUITY6 account and the account’s total invested value. Prior to rebalancing the account, Computer Associates Intl represented 33.333% and
IBM represented 66.667% of the account’s total invested value. (See the Cur % column at the beginning of this example.) After rebalancing the account, note that the New % column, shown above, reflects the same percentages for these two securities. Calculation
(Investment Amount) x (Percentage Held of Current Investments) = Total Amount To Invest
Result
Decrease Cash by $1M
Purchase $333,333 of Computer Associates Intl = ($1M x 33.333%)
Purchase $666,667 of IBM = ($1M x 66.667%)

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Example #3 – Raise Cash Using Invested Value
Typically, you will use the Rebalancer for large portfolios. To make it easy for you to understand how the
Rebalancer functions, let’s use a small portfolio that has only three positions.
As shown below in Manager Workbench, the DOMEQUITY6 account has invested $3,000,000 in shares of
Computer Associates Intl and IBM.

In this example, the Rebalancer will raise $1,000,000 in Cash by selling shares from the DOMEQUITY6 account.
As you will learn, the percentage held of the Cash position will increase, but the percentage held of the securities will not change.

1.

Click New on the Rebalancer Generation tab and define your criteria.
a.
b.

Select SINGLE from the Basket drop-down list.

c.

Select DOMEQUITY6 from the Acct/Grp drop-down list.

d.

Select Reprice Acct/Group.

e.

Select Invested from the Use % of current drop-down list.

f.

Select Amt from the Invest drop-down list. Enter -1M or -1,000,000.

g.

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Select Rebalance account against itself from the Mode drop-down list.

Click Sells.

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In this example, you are not required to click Buys. Clicking Buys has no effect in a raising cash scenario.

2.

Click Save.

3.

Click Generate Orders. The results display in the Order Generation Progress dialog box.

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Sample Order Generation Messages
The Order Generation messages window indicates that the Rebalancer created 2 orders and 2 allocations for the
DOMEQUITY6 account:
Msg

Order Generation Results: 2 orders and 2 allocations created for this profile and 2 messages produced.

Msg

Order Generation Mode is Autogenerated on by TM_DEV
Rebalance account DOMEQUITY6 against itself increasing cash by 1,000,000.

Sample Blotter Output)
The sell orders are assigned a Prelim Status in the Blotter.

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View Results In Manager Workbench
You can view the results in Manager Workbench. As shown in the New %, Prelim Qty, and Prelim Amt columns, the
Rebalancer increased the Cash position by $1,000,000. To raise this amount, the Rebalancer sold $1,000,000 worth of shares from the DOMEQUITY6 account.

The calculations were based upon the original percentage held of each security in the DOMEQUITY6 account and the account’s total invested value. Prior to rebalancing the account, Computer Associates Intl represented 33.333% and
IBM represented 66.667% of the account’s total invested value. (See the Cur % column at the beginning of this example.) After rebalancing the account, note that the New % column, shown above, reflects the same percentages for these two securities. Calculation
(Investment Amount) x (Percentage Held of Current Investments) = Total Amount To Invest
Result
Sell $333,333 of Computer Associates Intl = ($-1M x 33.333%)
Sell $666,667 of IBM = ($-1M x 66.667%)
Increase Cash by $1M

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REBALANCE AN ACCOUNT AGAINST A MODEL, DEFAULT MODEL, OR ACCOUNT
You can rebalance an account against a model, default model, or an account. To accomplish this task:
1.

Click New on the Rebalancer Generation tab and define your criteria.
a.

Select a mode from the Mode drop-down list.

♦

Rebalance against a model

Generates orders that will bring the account in line with the allocations in the model. You designate the model in the Rebalancer
Generation tab. See Example #1.

♦

Rebalance against default model

Generates orders that will bring the account in line with the allocations in the default model.
You assign default models in the Accounts window. See Example #2.

♦

Rebalance against another account

Generates orders that will bring the account in line with the allocations in another portfolio.
You designate the portfolio in the Rebalancer
Generation tab. See Example #3.

b.
c.

Select the account or account group that you wish to rebalance from the Acct/Grp drop-down list.

e.

Select Reprice Acct/Group.

f.

Select Total Mkt Value or Invested from the Use % of current drop-down list.

g.

Leave the Add Amt field blank. Or, enter a contribution or withdrawal amount. Precede withdrawals with a minus sign.

h.

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Select a value from the Model/Model Acct drop-down list. This value identifies the model or portfolio that will be used as the benchmark. (This field is not relevant for Rebalance against default model.)

d.

2.

Select the basket from the Basket drop-down list.

Click Buys, Buy If Not Held, Sells, and Sell If Not In Model to ensure that the appropriate orders are generated. Click Save.

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Example #1 - Rebalance Account Against Model
In this example, you will rebalance the DOMEQUITY6 account against the TESTEQUITY2 model. Currently, the
DOMEQUITY6 account has a market value of $9,998,757. It holds three positions:

DOMEQUITY6
Account’s Positions

Position Represents % of
Account’s Total Market Value

Position’s
Actual Market Value

Cash

69.996%

$6,998,757

Computer Associates Intl

10.001%

$1,000,000

IBM

20.002%

$2,000,000

3.

Click the Models button in the Rebalancer Generation tab to display the Model Portfolios Window. As illustrated below, there are five positions in the TESTEQUITY2 model.

4.

Click New on the Rebalancer Generation tab and define your criteria.
a.

Select Rebalance against a model from the Mode drop-down list.

b.

Select SINGLE from the Basket drop-down list.

c.

Select TESTEQUITY2 from the Model drop-down list.

d.

Select DOMEQUITY6 from the Acct/Grp drop-down list.

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e.

Select Reprice Acct/Group.

f.

Select Total Mkt Value from the Use % of current drop-down list.

g.

Leave the Add Amt field blank.

When You Click:

Rebalancer Will Generate:

Buys

An order to purchase additional shares of IBM to increase the holdings to 30% of the account’s total market value.

Buy If Not Held

Four orders to purchase the securities that are currently held in the model, but not in the account.
Dell, Intel, and Microsoft securities will each represent 20% of the
DOMEQUITY6 account’s total market value. Juniper will represent 10% of the DOMEQUITY6 account’s total market value. Sells
Sell If Not In Model

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No orders.
An order to sell all of the Computer Associates Intl shares.

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5.

Click Save.

6.

Click Generate Orders. The results display in the Order Generation Progress dialog box.

Sample Order Generation Messages
The Order Generation Messages window indicates that the Rebalancer created 6 orders and 6 allocations for the
DOMEQUITY6 account with these messages:
Msg

Order Generation Results: 6 orders and 6 allocations created for this profile and 2 messages produced.

Msg

Order Generation Mode is Autogenerated on by TM_DEV
Rebalance account DOMEQUITY6 against the model TESTEQUITY2.

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Sample Blotter Output
The buy and sell orders are assigned a Prelim Status in the Blotter.

View Results In Manager Workbench
You can view the results in Manager Workbench. When you compare the Mod % and New % columns, you can see that the DOMEQUITY6 account has been rebalanced to mat
The Mod % column represents the percentage of the security held in the TESTEQUITY2 model. The New % column represents the percentage of the security held in the DOMEQUITY6 account. As you can see, the
DOMEQUITY6 account’s Cash position has been reduced to 0%. (The model does not hold any Cash.)

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Example #2 - Rebalance Account Against Default Model
You can rebalance an account to a default model provided a default model has been assigned to that account.
Default models are assigned in the Trd Param tab of the Accounts window.
Let’s assume that the TESTEQUITY2 model is the default model for the DOMEQUITY6 account.
The criteria that you select on the Rebalancer Generation tab will vary slightly from the Rebalance against a model mode. The differences are explained below.

1.

Select Rebalance against default model from the Mode drop-down list.

2.

Note that you are not required to specify a model. Rebalancer will use the default model that is assigned to the account. In this example, the default model is TESTEQUITY2.

3.

Select an account from the Acct/Grp drop-down list that has a default model assigned to it.
In this example, the account is DOMEQUITY6.

In this example, assume that the positions held in the DOMEQUITY6 account and TESTEQUITY2 model have not changed from the prior example. (Refer to the beginning of the topic entitled ‘Example #1 – Rebalance Account
Against Model’ above.)

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Sample Blotter Output
As illustrated below, the Blotter results are identical to the previous example. If a different default model had been assigned to the DOMEQUITY6 account, then the results would be different.

No Default Model - Error Message
If you attempt to generate orders for an account that does not have a default model, then a warning message, similar to the one below, displays in the Order Generation Messages window.
Warn Account has no default model. No orders generated for this account.

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Example #3 - Rebalance Account Against Another Account
In this example, you will rebalance the DOMEQUITY6 account against the DOMEQUITY4 portfolio. As shown below in Manager Workbench:
The Mod % column identifies the percentage of each position held in the DOMEQUITY4 portfolio.
The Cur % column identifies the percentage of each position held in the DOMEQUITY6 account.

The procedures for rebalancing an account to another portfolio are almost identical to the Rebalance against a model mode.
The differences are explained below.
1.

Select Rebalance against another account from the Mode drop-down list.

2.

Select the portfolio that is to be used as the benchmark from the Model Acct drop-down list.

3.

Select the account that you wish to rebalance from the Account drop-down list.

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In this example, the DOMEQUITY6 account will be rebalanced against the DOMEQUITY4 portfolio.

View Results In Manager Workbench
You can view the results in Manager Workbench. When you compare the New% and Mod% columns, you can see that the DOMEQUITY6 account has been rebalanced to match the DOMEQUITY4 portfolio.

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ADVANCED TOPICS

USE INVESTED DENOMINATOR WITH A MODEL
When you rebalance an account against a model, you can use the Invested denominator instead of the Total Market
Value.

1.

Click New on the Rebalancer Generation tab and define your criteria.
a.

Select Rebalance against a model from the Mode drop-down list.

b.

Select a basket from the Basket drop-down list.

c.

Select a model from the Model drop-down list.

d.

Select an account from the Acct/Grp drop-down list.

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e.

Select Reprice Acct/Group.

f.

Select Invested from the Use % of current drop-down list.

g.

Leave the Add Amt field blank.

h.

Click Buys, Buy If Not Held, Sells, and Sell If Not In Model.

2.

Click Save.

3.

Click Generate Orders. The results display in the Order Generation Progress dialog box.

4.

The Buy and Sell orders are assigned a Prelim Status in the Blotter.

Note: If you view the results in the Manager Workbench, you will notice in the New % and Mod % columns that only the invested portion of the account was rebalanced to reach the model’s percentile allocations. In other words, the Cash position did not change. If you had selected Total Market Value instead of Invested, then the Cash position would have been reduced to 0% because the model does not have a Cash position.

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LIQUIDATE AN ACCOUNT
You can use the Rebalancer to liquidate an account. In this case, the Rebalancer will generate sell orders for every security held in the account and allocate the sale amount to the Cash position.
Currently, the DOMEQUITY6 account has a market value of $9,998,757. It holds three positions:
DOMEQUITY6
Account’s Positions

Position Represents % of
Account’s Total Market Value

Position’s
Actual Market Value

Cash

69.996%

$6,998,757

Computer Associates Intl

10.001%

$1,000,000

IBM

20.002%

$2,000,000

To liquidate this account:
1.

Click New on the Rebalancer Generation tab and define your criteria.
a.
b.

Select SINGLE from the Basket drop-down list.

c.

Select DOMEQUITY6 from the Acct/Grp drop-down list.

d.

Select Reprice Acct/Group.

e.

Select Total Mkt Value from the Use % of current drop-down list.

f.

Select % of basis from the Invest drop-down list. Enter -1h or -100 (include the minus sign) to sell off all of the securities.

g.

2.

Select Rebalance account against itself from the Mode drop-down list.

Click Sells.

Click the Options tab and select No Round Lots to override the round lot rules and liquidate any odd lots.

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3.

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Click Generate Orders. The results display in the Order Generation Progress dialog box.

Sample Order Generation Messages
For this example, the Order Generation Messages window indicates that the Rebalancer created 2 orders and 2 allocations for the DOMEQUITY6 account by displaying these messages:
Msg

Order Generatio Results: 2 orders and 2 allocations created for this profile and 2 messages produced.

Msg

Order Generation Mode is AutoGenerated on by TM_DEV
Rebalance account DOMEQUITY6 against itself increasing cash by 100%.

Blotter Output
The sell orders are assigned a ‘PRELIM’ Status in the Blotter.

View Results In Manager Workbench
If you view the results in Manager Workbench, you will notice n in the New %, Prelim Qty, and Prelim Amt columns, that the Rebalancer allocated the sale of the securities to the Cash position.

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OVERRIDE SYSTEM DEFAULTS VIA OPTIONS TAB
As illustrated in the ‘Liquidate An Account’ topic, you can use the Options tab to generate one-time orders that will override your portfolio and system default settings.
You can choose to override the order size, order settings, round lots, or tolerance.

Order Size - Change minimum and maximum order size and how the size is judged, by quantity or amount.
For the Order Size settings to be effective, you must deselect the Use Portfolio Defaults checkbox.
Order Settings - Identify the trader, broker, broker reason, order reason, and order type (duration) that will be used for the generated orders.
Round Lots - Change the default round lot size or turn off checking for round lots.
Tolerance - Establish thresholds to limit changes in position based on percentage or market value.
Comments – Enter comments, if desired. They will display in the Comments field in the Target Tab of the
Order Detail Window.

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REBALANCE AN ACCOUNT WITH CASH BALANCE & NO SECURITIES
You can rebalance an account that has only a Cash position against a model, default model, or another portfolio.
Typically, you will perform this task as soon as you create a new account.

Example
In this example, you will rebalance the CASH account to the TESTEQUITY2 model. The CASH account has
$10,000,000 in cash and no securities. As illustrated below, there are five positions in the TESTEQUITY2 model.

1.

Click New on the Rebalancer Generation tab and define your criteria.
a.

Select Rebalance against a model from the Mode drop-down list.

b.

Select SINGLE from the Basket drop-down list.

c.

Select TESTEQUITY2 from the Model drop-down list.

d.

Select the CASH account from the Acct/Grp drop-down list.

e.

Select Reprice Acct/Group.

f.

Select Total Mkt Value from the Use % of current drop-down list.

g.

Leave the Add Amt field blank to invest all of the cash in the account.
Note: If you want to retain some money in the Cash position, then enter that value in the Add Amt field and precede it with a minus sign. For example, to retain 1,000,000 in the Cash position, enter
-1M or -1,000,000.

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h.

Chapter 5 – Rebalancer Tasks

Click Buys and Buy If Not Held.

2.

Click Save.

3.

Click Generate Orders. The results display in the Order Generation Progress dialog box.

Sample Order Generation Messages
The Order Generation Messages window indicates that the Rebalancer created 5 orders and 5 allocations for the
CASH account by displaying these messages:
Msg

Order Generation Results: 5 orders and 5 allocations created for this profile and 2 messages produced.

Msg

Order Generation Mode is AutoGenerated on by TM_DEV
Rebalance account CASH against the model TESTEQUITY2.

Blotter Output
The buy orders are assigned a Prelim Status in the Blotter.

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View Results In Manager Workbench
If you view the results in Manager Workbench, you will notice that in the New %, Prelim Qty, and Prelim Amt columns, the CASH account has been rebalanced to match the TESTEQUITY2 model’s holdings. In other words,
$10,000,000 was allocated from the Cash position and used to invest in 5 securities.
When you compare the portfolio’s holdings to the model’s holdings, the percentage holdings are identical.

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CATEGORY TARGETING
You define Category Targets in the Category Targets window. To display this window from the Rebalancer
Generation tab, click the Category Targets button.
As shown below, ACCOUNT11 has two category values defined for the Investment Class Category.
The Target % for the Currency/Cash Category Value is 20%.
The Target% for the Equity Category Value is 80%.
The Overweight/Underweight Model % for both Category Values is 10%.

Rebalancer uses the Target % and Overweight/Underweight Model % criteria that is assigned to the Currency/Cash and Equity values as the basis for generating orders and allocations. Refer to the examples later in this chapter.

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The Category Targeting section of the Rebalancer Generation tab is relevant only if you have defined category targets and model over/underweight percentages for an account.

In the Category Targeting section of the Rebalancer Generation tab:
1.

Select one of the choices from the Enforce drop-down list.

Enforce Field Choices

Results

♦

Category Targets

Rebalancer generates orders and allocations based upon the
Category Target percentages that are assigned to the account.
See Example #1 below.

♦

Model Over/Underweight

Rebalancer generates orders and allocations based upon the
Over/Underweight Model percentages that are assigned to the account. These orders will exceed (overweight) or will not meet
(underweight) the corresponding model’s category percentiles.
See Example #2 and Example #3 below.
Note: This option is only valid when you are rebalancing against a model, default model, or another portfolio.

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Chapter 5 – Rebalancer Tasks

Select a category from the Targ. Category drop-down list. Valid choices are:
Issue Country
Coupon Rate
Asset Currency
Security Issuer
Security Type
Issue State
Investment Class
Term
Product Code
Production Year

3.

Select a value from the Value drop-down list. The choices that display correspond to your Targ. Category selection. For example, when you select Investment Class as the Targ. Category, the Value drop-down list choices are:
Currency/Cash
Debt
Derivative
Equity
Other
Unit Trusts

Note: You can use the Rebalance subset of Portfolio Category fields to enforce more than one category target at a time. For example, if you choose to enforce category targeting for the Equity Investment Class, then you can use the
Rebalance subset of Portfolio fields to enforce a category (e.g., Security Classification – Bloomberg Industry
Groups) within the Equity Investment Class.

Category Targeting Section Examples
To understand how the Category Targeting section of the Rebalancer Generation tab functions, the next three examples will use ACCOUNT11 and the TESTEQUITY2 model. As shown in Manager Workbench below, the Mod % column identifies the positions that are held in the TESTEQUITY2 model and the Cur % column identifies the positions that are held in ACCOUNT11.

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Example #1 – Enforce Category Targets
In this example, you will rebalance ACCOUNT11 against the TESTEQUITY2 model and generate orders and allocations based upon the account’s Equity category target definition (i.e., Target % = 80).
By now, you should be familiar with the procedures required to rebalance an account against a model. Enter the criteria in the Category Targeting section of the Rebalancer Generation tab, as shown below.

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Example #1 – View Enforce Category Targets Results In Manager Workbench
You can view the results in Manager Workbench. As shown in the New %, Prelim Qty, and Prelim Amt columns, the Rebalancer generated:
Sell orders for America Online and Dell Computer.
Buy orders for Intel, IBM, Juniper, and Microsoft.
To calculate the order quantities, the account’s Equity category target definition (i.e., Target % = 80) was used.
These allocations represent 80% of the Equity Investment Class Category as well as 80% of the model’s allocations.
The remaining 20% is held in Cash.

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Example #2 – Enforce Model Overweight/Underweight
In this example, you will rebalance ACCOUNT11 against the TESTEQUITY2 model and generate orders and allocations based upon the account’s Equity category target (i.e., Overweight/Underweight Model % = 10).
By now, you should be familiar with the procedures required to rebalance an account against a model. Enter the criteria in the Category Targeting section of the Rebalancer Generation tab, as shown below.

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Example #2 – View Enforce Model Overweight/Underweight Results In Manager Workbench
You can view the results in Manager Workbench. As shown in the New %, Prelim Qty, and Prelim Amt columns, the Rebalancer generated:
Sell order for America Online.
Buy orders for Dell, Intel, IBM, Juniper, and Microsoft.
To calculate the order quantities, the account’s Equity category target definition (i.e., Overweight/Underweight
Model % = 10) was used. These allocations exceed the model’s allocations by 10%.

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Example #3 –Enforce Model Overweight/Underweight
Suppose you change the Overweight/Underweight Model % to negative 10 for the Equity Category.

In this case, the Rebalancer generates sell orders for America Online and Dell Computer and buy orders for Intel,
IBM, Juniper, and Microsoft. These allocations are under the model’s allocations by 10%.

5-44

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Document Version 1.2

Chapter 5 – Rebalancer Tasks

SUMMARY

The Rebalancer is ideal for generating a large number of buy and/or sell orders simultaneously. Provided your account has a Cash position, you can rebalance an account against itself. Or, you can rebalance the account to a benchmark model, default model, or another portfolio.
Rebalancing an account against itself enables you to:
Anticipate cash flows in and out of the account.
Invest or raise cash in the account.
Liquidate the account.
Change the account’s value by a percentage.
When you rebalance an account to a model, you help to ensure that your account is aligned with the investment objectives of the prospectus.
During the order generation process, the Rebalancer calculates orders and allocations based upon the criteria that you specify in the Generation tab. For example, you can calculate allocations based upon the account’s total market value or invested value. If you have defined category targets for an account, you can choose to enforce them during the order generation process. Especially when liquidating an account, you can use the Options tab to override portfolio and system default settings, such as round lot rules.
The results of the order generation process display in the Order Generation Progress dialog box and in the Order
Generation Messages Window. To display the orders and allocations, you can go directly to the Blotter. Orders are assigned a ‘PRELIM’ Status in the Blotter.

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

5-45

Document Version 1.2

Index

CHAPTER 6 - APPENDICES
APPENDIX A – SECURITY SETUP TASKS
The Charles River Investment Management System (IMS) enables you to easily create orders, execute trades, and manage your investment portfolios. Whether you elect to use the Blotter, Manager Workbench, Targeting Tab, or
Rebalancer, Charles River IMS requires securities, accounts, and positions data.
For more information see the Securities for Equity Trading on-line help topic.

SETUP TASKS DIAGRAM
To generate orders and process trades in CRTS, you are required to supply security, account, and position data.

Manager

Accounts /
Positions
Accounts
Cash
Positions

Charles River
IMS

Preliminary
Orders /
Allocations

Manager's
Order
Basket
Updated
Security
Master

Security
Type &
Information

The sequence in which you setup security, account, and position data is important. For example, in order to assign positions to accounts, you must have already defined your securities and your accounts. The topics in this chapter are organized in the sequence in which you should complete the security setup tasks.

Setup Task Sequence
1.

Issuers

2.
3.
4.

Securities
Security Classifications
Security Ratings

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

CRTS Menu Option
Setup->Securities & Parties->Parties->Parties (Issuers, Obligors,
Counterparties, etc.)
Setup->Securities & Parties->Securities
Setup->Securities & Parties->Security Classifications
Setup->Securities & Parties->Security Ratings

6-1

Index

Document Version 1.2

APPENDIX B - ACCOUNT SETUP TASKS
The Charles River Investment Management System (IMS) enables you to easily create orders, execute trades, and manage your investment portfolios. Whether you elect to use the Blotter, Manager Workbench, Targeting Tab, or
Rebalancer, Charles River IMS requires securities, accounts, and positions data.
For more information see the Account Setup on-line help topic.

SETUP TASKS DIAGRAM
To generate orders and process trades in CRTS, you are required to supply security, account, and position data.

Manager

Accounts /
Positions
Accounts
Cash
Positions

Charles River
IMS

Preliminary
Orders /
Allocations

Manager's
Order
Basket
Updated
Security
Master

Security
Type &
Information

The sequence in which you setup security, account, and position data is important. For example, in order to assign positions to accounts, you must have already defined your securities and your accounts. The topics in this chapter are organized in the sequence in which you should complete the account setup tasks.

Setup Task Sequence
1.
2.
3.
4.
5.

6-2

Accounts
Account Groups
Account Positions
Models
Category Targets

CRTS Menu Option
Setup->Accounts& Positions ->Accounts
Setup ->Accounts& Positions->Account Groups/Templates
Setup -> Accounts& Positions ->Positions
Setup -> Accounts& Positions ->Model Portfolios
Setup -> Accounts& Positions ->Category Targets

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Document Version 1.2

Index

APPENDIX C – TRADING SETUP TASKS
The Charles River Investment Management System (IMS) enables you to easily create orders, execute trades, and manage your investment portfolios. Whether you elect to use the Blotter, Manager Workbench, Targeting Tab, or
Rebalancer, Charles River IMS requires securities, accounts, and positions data.
Using the Setup ->Trading menu, you can define trader, settlement date, settlement fee, and commission defaults. In addition, you can use this menu to define brokers and broker rules.
Certain tasks are dependent upon the completion of other tasks. For example, you are required to assign a broker to a broker rule. Consequently, you should create broker definitions before broker rules.
For more information see the Trading Setup on-line help topic.

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

6-3

Index

Document Version 1.2

INDEX
% Type Field, 4-6, 4-7
% Within Group, 4-6
Account Detail Window, 4-32, 5-25
Account Field, 2-5, 4-3
Account Group Field, 2-5, 4-3
Account Groups, 4-40
Rebalancer, 5-4
Target Tab, 4-2
Targeting, 4-35
Account Groups/Templates Window, 5-6
Account Privileges, 4-32
Account Types, 1-8
Group, 1-8
Model, 1-8
Omnibus Account, 1-8
Portfolio, 1-8
Template, 1-8
Accounts
Liquidate Via Rebalancer, 5-2, 5-7, 5-31, 5-45
Acct Groups Button, 5-6
Acct/Grp Field, 5-4
Add Field, 5-4
Alert and Warning Order Summary Report, 2-9
Alerts
Compliance, 1-6, 2-8, 2-9
Monitor, 1-6
Alerts & Warnings & Data Exceptions Window, 2-9
Allocate Executed Orders, 3-2, 3-9
Allocate Orders, 1-2, 1-9, 2-2, 2-5, 2-16, 4-2
Allocation Icon, 3-9
Allocations, 1-3
Add, 1-4
Delete, 1-4
Display In Blotter, 5-6
Rebalancer, 5-5
Status, 1-4
User Privileges, 1-8
Amt Field, 4-6, 4-14, 4-16, 4-17
Asset Currency, 4-27, 5-39
Assign Default Models, 5-25
Assign Styles Codes, 4-32
Audit Configuration, 2-13
Audit Trail
Orders, 2-12, 3-22
Auditing Database Changes, 2-13
Avail To Split Field, 3-19
Available Unplaced Quantity, 3-14
Bank Balances Window, 5-6
Basket Field, 2-4, 5-4
Baskets, 1-4, 4-6, 5-4
Batch Processing, 1-3

6-4

Blotter, 1-3, 1-9
Buy Button, 2-4, 4-3, 4-21
Cover Button, 2-4, 4-3, 4-21
Create Orders, 2-2, 2-3, 2-16
Customized Views, 2-10
Delete Button, 2-10
Display, 2-3, 5-6
Place Fill Button, 3-3, 3-6
Place/Fill Frame, 3-5, 3-7
Sell Button, 2-4, 4-3, 4-21
Short Button, 2-4, 4-3, 4-21
Blotter Button, 5-6
Broker, 1-3
Broker Field, 3-4
Broker Override, 5-33
Broker Reason Override, 5-33
Broker Rsn Field, 3-4
Buy, 1-3, 2-4, 4-3, 4-21
Buy Field, 5-4, 5-22
Buy If Not Held Field, 4-6, 4-24, 5-4, 5-22
Buy If Required Field, 4-6, 4-21, 4-23, 4-24
Calculate
Weighted Average Price, 1-7
Cancel
Send To Accounting, 3-11
Cancel Send To Accounting Icon, 3-11
Canceled Orders, 1-5, 2-9, 2-16, 3-12
Cash Account
Rebalancer, 5-34
Cash Contributions, 5-6
Cash Flow Forecast, 1-8
Cash Flows
Rebalancer, 5-2, 5-7, 5-45
Category Actual Market Value, 4-27, 5-5
Category Field, 5-4
Category Targeting, 5-37
Category Targets, 5-38
Category Targets Button, 5-6, 5-37
Category Targets Window, 5-6, 5-37
Ceiling % Field, 4-6
Charles River Trading System, 1-1, 1-2
Check Compliance Icon, 2-8
Code Type
USRCLASS1, 4-32
Codes & Descriptions Window, 4-32
Commission Summaries, 3-22
Compliance, 1-9
Alert Monitor, 1-6
Alerts, 1-6
Close Alerts, 2-9
Close Warnings, 2-9

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Index

Data Exceptions, 1-6, 2-8
No IPOs test, 2-15
Overview, 1-2, 1-6
Post-Trade Tests, 3-2, 3-22
Pre-Trade Alert, 1-5
Pre-Trade Tests, 1-5, 2-2, 2-8, 2-16, 4-2, 4-6, 430, 4-40
Pre-Trade Warning, 1-5
Sample Tests, 1-6
Warnings, 1-6
Compliance Limits Field, 4-6
Contingent ID, 3-14
Correct Canceled Orders, 3-13
Correct Orders, 2-2, 2-9, 2-16
Counter-party, 1-3
Coupon Rate, 4-27, 5-39
Cover, 2-4, 4-3, 4-21
Create Orders, 1-2, 1-9, 2-2, 2-3, 2-16, 4-2, 4-3, 5-3
CRTS Processing Cycle, 1-2
Cur Pos Qty Field, 4-8, 4-15
Currency/Cash, 4-27, 5-39
Data Entry
User Privileges, 1-8
Data Exceptions, 2-8
Compliance, 1-6
Database Auditing, 2-13
Dealer, 1-3
Debt, 4-27, 5-39
Default Models
Assignment, 5-25
Rebalancer, 5-2, 5-4, 5-20, 5-25, 5-34, 5-45
Trd Param Tab, 5-25
Default Settings
Target Tab, 4-4
Default Trader, 2-5
Define Styles Codes, 4-32
Delete
Orders, 2-10
Places & Fills, 3-21
Delete Button, 2-10
Delete Place Quantity Error Message, 3-21
Derivative, 4-27, 5-39
End of Day Processing
Cancel Day Orders, 1-3
Process Bank Balances, 1-3
Process Corporate Actions, 1-3
Save Index Security Prices, 1-3
Update Commission Targets, 1-3
Update Open Orders, 1-3
Enforce
Category Targets, 5-40
Model Overweight/Underweight, 5-42
Enforce Field, 5-4, 5-38
Equity, 4-27, 5-39
Equity Trade Summaries, 3-22
Exch Field, 2-5
6-2

Document Version 1.2

Exchange, 2-5
Executed Orders, 1-3, 1-7
Expired Orders, 1-3
Export File, 1-5
Export Trades, 3-2, 3-22
Fields
% Type, 4-6, 4-7
Account, 2-5, 4-3
Account Group, 2-5, 4-3
Acct/Grp, 5-4
Add, 5-4
Amt, 4-6, 4-14, 4-16, 4-17
Avail To Split, 3-19
Basket, 2-4, 5-4
Broker, 3-4
Broker Rsn, 3-4
Buy, 5-4, 5-22
Buy If Not Held, 4-6, 4-24, 5-4, 5-22
Buy If Required, 4-6, 4-21, 4-23, 4-24
Category, 5-4
Category Actual Mkt Value, 4-27, 5-5
Ceiling %, 4-6
Compliance Limits, 4-6
Cur Pos Qty, 4-8, 4-15
Enforce, 5-4, 5-38
Exch, 2-5
Fill Amt, 3-7
Fill Qty, 3-6, 3-7
Fill Time, 3-6
Floor %, 4-6
Group, 4-6
Incl Checkbox, 3-20
Include Basket Orders, 4-6, 5-4
Invest, 5-4, 5-7
List Exch, 2-5
Mkt Price, 2-5
Mode, 5-4
Model, 5-4
Model Acct, 5-4
New %MV, 4-8, 4-15
Order Total, 3-7
Place Qty, 3-6
Price, 3-7
Qty, 4-6, 4-14, 4-16, 4-17
Reprice, 4-6
Reprice Acct/Group, 5-4
Sec Find, 2-5, 4-3
Sec Name, 2-5
Sec Type, 2-5
Sell If Not In Model, 5-4, 5-22
Sell If Required, 4-6, 4-21, 4-25, 4-26
Sells, 5-4, 5-22
Settle Date, 2-5
Split Qty, 3-20
Status, 2-4, 3-12
Targ Category, 4-6, 4-27
U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Document Version 1.2

Target %, 4-6, 4-7
Target Amt, 2-5
Target Qty, 2-5
Tgt Price, 2-5
Ticker, 2-5
Trade Cash Leaves, 2-5
Trade Curr, 2-5
Trade Date, 2-4
Trader, 2-5
Use % Of Current, 4-6, 4-7, 4-14, 4-27, 5-4, 5-5,
5-8, 5-12, 5-16, 5-31
Use Styles, 4-6, 4-35
Value, 4-6, 4-27, 5-4
Fill Amt Field, 3-7
Fill Orders, 1-2, 1-5, 1-7, 3-2, 3-6
Fill Qty Field, 3-6, 3-7
Fill Time Field, 3-6
Floor % Field, 4-6
Full Placement, 1-5
Fully Allocated Order Target Quantity, 3-14
Function Privileges, 1-8
Gen Button, 4-5
Generate Orders Button, 5-6
Generation Tab
Rebalancer, 5-2, 5-3, 5-7, 5-20, 5-29, 5-31, 5-34,
5-37, 5-45
Group, 1-8
Group Field, 4-6
Import
Accounts, 1-2, 1-9
Cash Balances, 1-2, 1-9
Positions, 1-2, 1-9
Securities, 1-2, 1-9
Import Orders, 1-9
Incl Checkbox Field, 3-20
Include Basket Orders Field, 4-6, 5-4
Invest Cash
Rebalancer, 5-2, 5-7, 5-8, 5-12, 5-45
Invest Field, 5-4, 5-7
Invested Value Excluding Cash, 4-6, 5-5
Investment Class, 4-27, 5-39
Investment Objectives, 4-32
IPO Compliance test, 2-15
IPO Export, 2-15
IPO Reports, 2-15
IPO Selling Syndicate window, 2-14
IPO Stored Queries, 2-15
IPO Workflow Monitor Queries, 2-15
Issue Country, 4-27, 5-39
Issue State, 4-27, 5-39
Issuer, 2-5
Keep Within Limits
Compliance Limit On Target Tab, 4-31
Liquidate Accounts Cash
Rebalancer, 5-2, 5-7, 5-31, 5-45
List Exch Field, 2-5
U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Index

Manager Limit Price, 3-14
Manager Orders, 1-3, 1-9
CNCL Status, 2-9, 2-16
Display Relevant Reports, 2-11
PREALERT Status, 1-5, 2-9, 2-10, 2-16
PRELIM Status, 1-5, 2-4, 2-7, 2-9, 2-10, 2-16, 42, 4-31, 4-40, 5-6, 5-45
PREOK Status, 1-5, 2-9, 2-10, 2-16, 4-2, 4-31, 440
PREWARN Status, 1-5, 2-9, 2-10, 2-16
Process Flow, 2-2, 2-16
Manager Privileges, 1-8
Manager Workbench, 1-3, 1-9
Merge Icon, 3-15
Merge Orders, 1-2, 1-7, 1-9, 3-2, 3-14, 3-23
Merge Orders Window
Allocation Level Tasks, 3-17
Incl Box, 3-15
Order Level Tasks, 3-17
Messages
Target Tab Order Generation, 4-21, 4-35
Messages Button, 5-6
Mkt Price Field, 2-5
Mode Field, 5-4
Model, 1-8
Model Acct Field, 5-4
Model Field, 5-4
Model Portfolios Window, 5-6
Models
Overweight, 5-38
Rebalancer, 5-2, 5-4, 5-20, 5-29, 5-34, 5-45
Underweight, 5-38
Models Button, 5-6
Navigation Options List, 2-12
Negative Cash, 4-37
Net Asset Value, 4-6, 5-5
New %MV Field, 4-8, 4-15
New Order Entry Window, 2-4, 2-5, 4-3
Target Tab, 4-2, 4-3, 4-4, 4-40, 5-2
Tgt Opt Tab, 4-37
None
Compliance Limit On Target Tab, 4-31
Omnibus Account, 1-8
Options Tab, 5-33
Comments, 5-33
Override Order Settings, 5-33
Override Order Size, 5-33
Override Round Lots, 5-33
Override Tolerance, 5-33
Rebalancer, 5-45
Order Duration, 3-14
Order Entry
Blotter, 1-3, 1-9
Manager Workbench, 1-3, 1-9
Rebalancer, 1-3, 1-9, 5-6
Targeting, 1-3, 1-9
6-3

Index

Order Generation Messages, 4-21, 5-6
Order History Report, 2-12, 3-22
Order Reason Override, 5-33
Order Settings, 5-33
Order Size, 4-37, 5-33
Order Total Field, 3-7
Order Type, 3-14
Orders
ACCT Status, 1-5, 2-13, 3-10, 3-11
Allocate, 1-2, 1-9, 2-2, 2-5, 2-16, 4-2
Allocate Executed, 3-2, 3-9
Allocations, 1-3
Baskets, 1-4
Canceled, 2-9, 2-16, 3-12
Canceled After Export, 1-5
Canceled Before Export, 1-5
Cash Contributions, 5-6
CNCL Status, 1-5, 2-9, 2-16, 3-11, 3-12, 3-13
CNCLACCT Status, 1-5, 3-11
Correct, 2-2, 2-9, 2-16
Correct Canceled, 3-13
Create, 1-2, 1-9, 2-2, 2-3, 2-16, 4-2, 4-3, 5-3
Creating IPO Orders, 2-14
Delete, 2-10
Executed, 1-3, 1-7
Expired, 1-3
Export, 1-5
Fill, 1-2, 1-5, 1-7, 3-2, 3-6
Import, 1-9
Manager Orders, 1-3
Merge, 1-2, 1-7, 1-9, 3-2, 3-14, 3-23
MERGED Status, 3-16
NEW Status, 1-5, 2-10, 2-16, 3-3, 3-12, 3-19, 5-7
OPEN Status, 1-5, 3-3, 3-12, 3-13, 3-14, 3-19
Options Tab, 5-33
Partial Fill, 3-6, 3-10
Partial Split, 3-20
Partially Filled, 1-3
PENDING Status, 3-8, 3-12, 3-21, 3-22
Place, 1-2, 1-5, 1-7, 3-2, 3-3
Portfolio Assignment, 1-3
POSTALERT Status, 3-22
POSTWARN Status, 3-22
PREALERT Status, 1-5, 2-9, 2-10, 2-16
PRELIM Status, 1-5, 2-4, 2-7, 2-9, 2-10, 2-16, 42, 4-31, 4-40, 5-6, 5-45
PREOK Status, 1-5, 2-9, 2-10, 2-16, 4-2, 4-31, 440
Pre-Trade Alert, 1-5
Pre-Trade Compliance, 1-5, 2-2, 2-8, 4-2, 4-30, 440
Pre-Trade Warning, 1-5
PREWARN Status, 1-5, 2-9, 2-10, 2-16
Query, 2-2, 2-10, 2-16, 3-2
READY Status, 1-5, 3-3, 3-8, 3-10, 3-11, 3-12, 319, 3-21, 5-7
6-4

Document Version 1.2

Rebalancer, 5-5
Run Compliance, 1-2, 1-9
Send Corrected Trade To Accounting, 3-13
Send To Accounting, 1-2, 1-9, 3-2, 3-10
Sent To Trading, 1-5, 1-9, 2-2, 2-10, 2-16
Split, 1-2, 1-7, 1-9, 3-2, 3-19
Status, 1-4
Target Tab, 4-4
Tgt Opt Tab, 4-37
Track Using Order History Report, 2-12, 3-22
Trader Orders, 1-3
Unfilled, 3-10
Unfilled Place, 1-7
Unfilled Target, 1-7
Unplaced Target, 1-7
User Privileges, 1-8
View, 2-2, 2-10, 2-16, 3-2
What-If Order, 1-5
WORK Status, 1-5, 3-3, 3-6, 3-10, 3-12, 3-13, 319, 3-21
Override
Broker, 5-33
Broker Reason, 5-33
Duration, 5-33
Negative Cash, 4-37
Order Quantities, 4-37, 5-33
Order Reason, 5-33
Order Settings, 5-33
Order Size, 5-33
Round Lot Rules, 4-37, 5-33
System Defaults In Rebalancer, 5-33
System Defaults Via Tgt Opt Tab, 4-37
Target Tab, 4-37
Tolerances, 4-37, 5-33
Trader, 5-33
Overview
Charles River Trading System, 1-1
CRTS Processing Cycle, 1-2
Equity Manager Tasks, 2-2, 2-16
Equity Trader Tasks, 3-2, 3-23
Rebalancer Tasks, 5-2
Targeting Tasks, 4-2
Ownership Privileges, 3-14
Partial Fill, 1-5
Partial Placement, 1-5
Partial Split, 3-20
Partially Filled Orders, 1-3
Place Fill Window, 3-3, 3-6
Place Orders, 1-2, 3-2, 3-3
Place Qty Field, 3-6
Place Trades, 1-7
Place/Fill Frame, 3-5, 3-7
Portfolio, 1-8
Price, 2-5
Price Field, 3-7
Primary Exchange, 2-5
U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Document Version 1.2

Process Bank Balances, 1-3
Qty Field, 4-6, 4-14, 4-16, 4-17
Raise Cash
Rebalancer, 5-2, 5-7, 5-16, 5-45
Rebalance Accounts
Against Default Model, 5-2, 5-4, 5-20, 5-25, 5-34,
5-45
Against Itself, 5-2, 5-4, 5-7, 5-45
Against Model, 5-2, 5-4, 5-20, 5-21, 5-34, 5-45
Against Portfolio, 5-2, 5-4, 5-20, 5-27, 5-34, 5-45
Rebalance Cash Account, 5-34
Rebalancer, 1-3, 1-9
Acct Groups Button, 5-6
Anticipate Cash Flows, 5-2, 5-7, 5-45
Blotter Button, 5-6
Cash Accounts, 5-34
Cash Contributions, 5-6
Category Targets Button, 5-6, 5-37
Change Account Value By Percentage, 5-2, 5-7, 545
Create Orders, 5-3
Display Account Groups/Templates Window, 5-6
Display Blotter, 5-6
Display Category Targets Window, 5-6
Display Model Portfolios Window, 5-6
Generate Orders Button, 5-6
Generation Tab, 5-2, 5-3, 5-7, 5-20, 5-29, 5-31, 534, 5-37, 5-45
Invest Cash, 5-2, 5-7, 5-8, 5-12, 5-45
Liquidate Accounts, 5-2, 5-7, 5-31, 5-45
Messages Button, 5-6
Models Button, 5-6
Options Tab, 5-33, 5-45
Order Generation Messages Window, 5-6
Override Option, 5-33
Process Flow, 5-2
Raise Cash, 5-2, 5-7, 5-16, 5-45
Rebalancer Generation Tab
Acct Grp, 5-4
Add, 5-4
Asset Currency Categories, 5-39
Basket, 5-4
Buy If Not Held, 5-4, 5-22
Buys, 5-4, 5-22
Category Actual Market Value, 5-5
Category Targeting, 5-4, 5-38
Coupon Rate Categories, 5-39
Currency/Cash Categories, 5-39
Debt Categories, 5-39
Derivative Categories, 5-39
Equity Categories, 5-39
Include Basket Orders, 5-4
Invest, 5-4, 5-7
Invested Value Excluding Cash, 5-5
Investment Class Categories, 5-39
Issue Country Categories, 5-39
U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Index

Issue State Categories, 5-39
Mode, 5-4
Model, 5-4
Model Acct, 5-4
Net Asset Value, 5-5
Other Categories, 5-39
Rebalance Subset Of Portfolio, 5-39
Reprice Acct/Group, 5-4
Security Issuer Categories, 5-39
Security Type Categories, 5-39
Sell If Not In Model, 5-4, 5-22
Sells, 5-4, 5-22
Total Asset Value, 5-5
Total Market Value, 5-5
Unit Trusts, 5-39
Use % Of Current, 5-4
Rebalancer Window, 5-3
Region List, 4-27
Replace Cancel Accounting Trades, 3-11
Replace Icon, 3-11
Report List, 2-11
Reports
IPOs, 2-15
Reports Menu, 2-11, 3-22
Reprice Acct/Group Field, 5-4
Reprice Field, 4-6
Reprice Orders, 1-3
Round Lots, 4-37, 5-33
Run Compliance, 1-2, 2-8, 4-2, 4-30, 4-40
Sec Find Field, 2-5, 4-3
Sec Name Field, 2-5
Sec Type Field, 2-5
Securities
Decrease Holdings Via Target Tab, 4-2
Increase Holdings Via Target Tab, 4-2
Security, 3-14
Security Issuer, 2-5, 4-27, 5-39
Security Type, 4-27, 5-39
Sell, 1-3, 2-4, 4-3, 4-21
Sell If Not In Model Field, 5-4, 5-22
Sell If Required Field, 4-6, 4-21, 4-25, 4-26
Sells Field, 5-4, 5-22
Send Orders To Accounting, 3-2, 3-10
Send To Accounting, 1-2
Send To Trading Icon, 2-10
Sent To Trading, 2-2, 2-16
Sent To Trading, 1-5
Settle Date, 3-14
Settle Date Field, 2-5
Short, 2-4, 4-3, 4-21
Split Icon, 3-19
Split Orders, 1-2, 1-7, 1-9, 3-2, 3-19
Split Orders Window, 3-19
Split Qty Field, 3-20
Spread Total Investment Quantity Of A Security
Across Accounts, 4-6, 4-14, 4-16, 4-17, 4-40
6-5

Index

Status Codes, 1-4
ACCT, 1-5, 2-13, 3-10, 3-11
CNCL, 1-5, 2-9, 2-16, 3-11, 3-12, 3-13
CNCLACCT, 1-5, 3-11
MERGED, 3-16
NEW, 1-5, 2-10, 2-16, 3-3, 3-12, 3-19, 5-7
OPEN, 1-5, 3-3, 3-12, 3-13, 3-14, 3-19
Orders, 1-4
PENDING, 3-8, 3-12, 3-21, 3-22
POSTALERT, 3-22
POSTWARN, 3-22
PREALERT, 1-5, 2-9, 2-10, 2-16
PRELIM, 1-5, 2-4, 2-7, 2-9, 2-10, 2-16, 4-2, 4-31,
4-40, 5-6, 5-45
PREOK, 1-5, 2-9, 2-10, 2-16, 4-2, 4-31, 4-40
PREWARN, 1-5, 2-9, 2-10, 2-16
READY, 1-5, 3-3, 3-8, 3-10, 3-11, 3-12, 3-19, 321, 5-7
WORK, 1-5, 3-3, 3-6, 3-10, 3-12, 3-13, 3-19, 3-21
Status Field, 2-4, 3-12
Stored Queries, 2-10
IPOs, 2-15
User Privileges, 1-8
Styles, 4-3, 4-14, 4-32, 4-40
Target Tab, 4-2
Take To The Limit
Compliance Limit On Target Tab, 4-31
Targ Category Field, 4-6, 4-27
Target % Field, 4-6, 4-7
Target Amt Field, 2-5
Target Investment Objectives, 4-32
Target Percent Of Account Assets In A Security, 4-4,
4-6, 4-7, 4-9, 4-11, 4-13, 4-40
Target Percentage, 4-6
Target Price, 2-5
Target Qty Field, 2-5
Target Securities, 4-40
Target Styles, 4-32
Account Privileges, 4-32
Target Tab, 4-4
% Within Group, 4-6
Allocate Orders, 4-2
Amounts, 4-2, 4-40
Asset Currency Categories, 4-27
Buy If Not Held, 4-24
Buy If Required, 4-24
Buy If Required Field, 4-23
Calculation Types, 4-6, 4-7
Categories, 4-2, 4-27, 4-40
Category Actual Market Value, 4-27
Compliance Limit Keep Within Limits, 4-31
Compliance Limit None, 4-31
Compliance Limit Take To The Limit, 4-31
Compliance Limits, 4-2, 4-6, 4-30, 4-40
Coupon Rate Categories, 4-27
Create Orders, 4-2, 4-3
6-6

Document Version 1.2

Currency/Cash Categories, 4-27
Debt Categories, 4-27
Default Settings, 4-4
Derivative Categories, 4-27
Equity Categories, 4-27
Gen Button, 4-5
Invested Value Excluding Cash, 4-6
Investment Class Categories, 4-27
Issue Country Categories, 4-27
Issue State Categories, 4-27
Net Asset Value, 4-6
Order Detail Window, 4-36
Order Generation Messages, 4-21
Other Categories, 4-27
Override Negative Cash, 4-37
Override Option, 4-37
Override Order Size, 4-37
Override Round Lots, 4-37
Override Tolerance, 4-37
Percentages, 4-2, 4-40
Quantities, 4-2, 4-40
Region List Categories, 4-27
Security Issuer Categories, 4-27
Security Type Categories, 4-27
Sell If Required, 4-25, 4-26
Styles Message, 4-35
Target Categories, 4-6
Target Percentage, 4-6
Targeting Methods, 4-4, 4-7, 4-14
Total Asset Value, 4-6
Total Market Value, 4-6
Trader Orders, 4-36
Unit Trusts Categories, 4-27
Use Styles, 4-32
Target Tab Fields, 4-6
Target Type
% Of Position, 4-6, 4-7, 4-40
Final, 4-6, 4-7, 4-40
Incremental, 4-6, 4-7, 4-11, 4-40
Targeting, 1-3, 1-9
Create Orders, 4-3
Process Flow, 4-2
Targeting Method
Target Tab, 4-4, 4-6, 4-7, 4-14
Target Tab Fields, 4-6
Targeting Methods, 4-6
Template, 1-8
Tgt Opt Tab, 4-37
Tgt Price Field, 2-5
Ticker Field, 2-5
Tolerance, 4-37, 5-33
Total Asset Value, 4-6, 5-5
Total Market Value, 4-6, 5-5
Trade
Execution, 1-7

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Document Version 1.2

Trade Acknowledgement, 1-5
Trade Cash Leaves Field, 2-5
Trade Curr Field, 2-5
Trade Date Field, 2-4
Trade Tickets, 3-22
Trader Field, 2-5
Trader Orders, 1-3
ACCT Status, 1-5, 2-13, 3-10, 3-11
CNCL Status, 1-5, 3-11, 3-12, 3-13
CNCLACCT Status, 1-5, 3-11
MERGED Status, 3-16
NEW Status, 1-5, 2-10, 2-16, 3-3, 3-12, 3-19, 5-7
OPEN Status, 1-5, 3-3, 3-12, 3-13, 3-14, 3-19
PENDING Status, 3-8, 3-12, 3-21, 3-22
POSTALERT Status, 3-22
POSTWARN Status, 3-22
Process Flow, 3-2, 3-23
READY Status, 1-5, 3-3, 3-8, 3-10, 3-11, 3-12, 319, 3-21, 5-7
WORK Status, 1-5, 3-3, 3-6, 3-10, 3-12, 3-13, 319, 3-21
Trader Override, 5-33
Trader Privileges, 1-8
Trader Tasks, 1-4, 1-7
Trading Setup
Broker Rules, iii
Brokers, iii
Commission Defaults, iii
Forms Menu, iii
Settlement Default Dates, iii

U.S. Equity User’s Guide, Version 7.2
Charles River Development, All Rights Reserved.

Index

Settlement Fee Defaults, iii
Setup Menu, iii
Standing Settlement Instructions, iii
Trader Defaults, iii
Trading Symbol, 2-5
Transaction Type, 3-14
TS_ORDER_BROKER table, 2-15
Type of Security, 2-5
Unfilled Place, 1-7
Unfilled Target, 1-7
Unit Trusts, 4-27
Unplaced Target, 1-7
Use % Of Current Field, 4-6, 4-7, 4-14, 4-27, 5-4, 55, 5-8, 5-12, 5-16, 5-31
Use Invested Denominator With Models
Rebalancer, 5-29
Use Styles Field, 4-6, 4-35
Use Styles Message, 4-35
User Privileges, 1-8
Close Compliance Alerts, 2-9
Display Reports, 2-11
USRCLASS1, 4-32
Value Field, 4-6, 4-27, 5-4
Warnings
Compliance, 1-6, 2-8, 2-9
Weighted Average Price, 1-7
Window Privileges, 1-8
Workflow Monitor Queries
IPOs, 2-15