Configuring contra order instruments

By default, the Rebalance dashboard offsets the present value (PV) impact of a proposed order by creating an offset cash balance in the instrument’s domestic currency.

LUSID allows you to configure an alternative instrument for the offset using the DerivedValuation/Override/OrderContraInstrumentIdentifier property. You can use this property to configure:

• Which instrument each portfolio uses for the offset

• Which instrument a particular instrument uses for the offset across all portfolios

• Default portfolio-level instruments for the offset, with instrument-level overrides

Note the following:

• The contra instrument currency must match the order currency.

• The contra order should net out with the cash update from the original order. If this isn’t the case, LUSID places any residual cash effect in the cash balance row.

Important

Once LUSID generates a contra order, we recommend you do not update the contra order value. Instead, update the value of the original order.

Setting a portfolio-specific contra instrument

To set a default contra instrument for a particular portfolio:

1. Sign in to the LUSID web app and navigate to Data Management > Properties via the top left menu.

2. Create a new property type within the Portfolio domain, with a Data type of String. For example, Portfolio/Finbourne-Examples/ContraLusidInstrumentId. Read more on creating a property type.
   

3. Locate the DerivedValuation/Override/OrderContraInstrumentIdentifier property and click the Edit icon.
   

4. Update the Formula so it returns the value of the property type you created in step 2, for example properties[Portfolio/Finbourne-Examples/ContraLusidInstrumentId].
    

5. Navigate to Data Management > Portfolios.

6. Locate the portfolio you wish to configure a contra instrument for, and click the Edit icon.

7. Add the property you created in step 2, for example, Portfolio/Finbourne-Examples/ContraLusidInstrumentId. Set the value to the LUSID Instrument ID (LUID) of the instrument you wish to use for contra orders, then click Next and Save. Read more on adding a property to an entity.
   

8. Repeat steps 6-7 for each portfolio you wish to configure with a default contra instrument.

Setting instrument-specific contra overrides

To set a default contra for a particular instrument:

1. Sign in to the LUSID web app and navigate to Data Management > Properties via the top left menu.

2. Create a new property type within the Instrument domain, with a Data type of String. For example, Instrument/Finbourne-Examples/ContraLusidInstrumentId. Read more on creating a property type.
   

3. Locate the DerivedValuation/Override/OrderContraInstrumentIdentifier property and click the Edit icon.
    

4. Update the Formula so it returns the value of the property type you created in step 2, or if unavailable, defaults to the portfolio-specific property. For example, coalesce(properties[Instrument/Finbourne-Examples/ContraLusidInstrumentId], properties[Portfolio/Finbourne-Examples/ContraLusidInstrumentId]).
    

5. Navigate to Data Management > Instruments.

6. Locate the instrument you wish to configure a contra instrument for, and click the Edit icon.

7. Add the property you created in step 2, for example, Instrument/Finbourne-Examples/ContraLusidInstrumentId. Set the value to the LUSID Instrument ID (LUID) of the instrument to use for contra orders, then click Next and Save. Read more on adding a property to an entity.
   

8. Repeat steps 6-7 for each instrument you wish to configure with a default contra instrument.