Trade Allocation Manager

Overview

The Genesis Trade Allocation Manager (TAM) transforms middle and back-office operations by providing a central, multi-asset class hub which automates trade allocations and assigning counterparty fees, exchange fees, FX conversions, tax calculations and other settlement costs. 

By automating the simplest to the most complex allocation process, TAM enables financial institutions to eliminate manual inefficiencies, reduce operational risks and accelerate trade settlement. 

With instant processing and validation that meet T+1 regulatory requirements, firms can confidently allocate trades without delays, reducing exposure to fail penalties and other compliance risks. 

By integrating market fees, clearing and settlement costs, custodian charges, regulatory transaction taxes, and FX conversion fees into a single automated workflow, TAM simplifies the complexities of post-trade operations. This enables middle and back-office teams to perform at a higher standard and handle higher trade volumes while maintaining accuracy and compliance. 

Industry Challenges

Regulatory Pressure & T+1 Settlement: Firms struggle to meet evolving T+1 settlement mandates while ensuring accurate, real-time trade allocations. 

Complex Fee & Cost Structures: Manually handling exchange fees, counterparty costs, regulatory taxes, and FX conversions across global markets is inefficient, error-prone and increases operational risk. 

Operational Inefficiencies & Scalability: Legacy systems and manual processes limit the ability to handle high trade volumes, multi-asset class allocations and global market connectivity efficiently. 

High Costs & Margin Pressure: Rising technology, compliance and operational costs create significant challenges, making it critical to automate processes and optimize resource allocation. 

User Benefits

Greater Efficiency & Automation: Eliminates manual processes, reducing errors and accelerating real-time trade allocations to meet T+1 settlement. 

Cost Optimization & Transparency: Automates fee calculations, tax handling, and FX conversions, ensuring accurate cost management and reducing overhead. 

Scalability & Compliance: Seamlessly handles high trade volumes, multi-asset class allocations, and global regulatory requirements with full transparency. 

Features & Capabilities

Real-Time Trade Allocation & Management 

• Instant allocations that comply with T+1 regulatory settlement requirements 

• Rules-based trade validation to ensure accuracy before execution 

• Order consolidation and splitting for optimal allocation distribution 

• Trade enrichment to enhance order data before settlement 

Advanced Fee & Cost Handling 

• Market & Exchange Fees: Automated calculation of exchange fees, liquidity provider fees, and regulatory transaction taxes (SEC fees, FTT, SDRT) 

• Clearing & Settlement Fees: Integration with clearinghouses, custodians, and CSDs (DTCC, LCH, Euroclear, Clearstream) to ensure cost transparency and minimize fail penalties 

• Counterparty & Custody Fees: Automated handling of prime brokerage fees, collateral management, and trade allocation costs 

• FX & Cross-Border Fees: Real-time conversion and multi-currency settlement handling 

Allocation Operations & Compliance 

• Automated fee calculation engine for counterparty and regulatory fees 

• Reconciliation engine to ensure data integrity across platforms 

• Client rules confirmation engine to enforce compliance requirements 

• Automated notifications and alerts to keep stakeholders informed 

Integrations

• Trade capture: integrates with any EMS, OMS or trading platform, including Fidessa, Traiana, Iress, Clearpool, TRAFix, NYFIX 

•  Settlement and custody: integrates with any custodian or other post-trade service provider, including DTCC CTM, Pershing BNP, SS&C, Goldman Sachs, OCC  

• Regulatory & Market Connectivity: Supports FIX, SWIFT, SFTP, XML, and email-based communication to ensure seamless data exchange with regulators, counterparties, and market infrastructures. 

Customization & Extensibility

• Fully configurable allocation models tailored to institutional needs 

• Scalable architecture that adapts to high trading volumes without performance degradation 

• Flexible rule engines to support evolving market structures and compliance requirements 

Performance Metrics & Scalability

• Optimized for high-throughput, low-latency trade processing 

• Built to handle large transaction volumes with concurrent processing 

• Real-time monitoring and analytics for operational transparency 

Component Breakdown

• Trade Management Processes: Incoming trades, applies validation, and enriches data 
• Allocation Management: Executes complex allocation logic, calculates fees, and ensures compliance 
• Dashboards & Reporting: Provides real-time insights into trade allocation processes 

Event Processing Flow

1. Client and Instrument Data is ingested and processed. 
2. Trade Orders from Client OMS enter the system. 
3. Trade Management applies validation, enrichment, and rule-based logic. 
4. Allocation Management processes allocations, calculates fees, and ensures reconciliation. 
5. Finalized allocations are distributed to client confirmations, custodians, regulators, and matching services. 
6. Middle and back-office teams monitor and manage trade activity through an interactive web application.