Configuring LUSID to enable settlement strategies

To override the contractual settlement date for a transaction and settle some or all of its units explicitly, you must pre-configure both:

1. The transaction type to which the transaction belongs, for example Buy, and

2. The parent portfolio in which it resides, for example one with a scope of Equities and code of UK-Growth. More information.

Note that such a change impacts all transactions belonging to the nominated transaction type in the parent portfolio.

Configuring transaction types

By default, the settlement mode is Internal, to obey the contractual settlement date.

You can set the settlement mode to External for the following movement types to override the contractual settlement date for stock holdings, cash holdings, and/or deferred cash holdings (reclaimed tax):

curl -X PUT 'https://<your-domain>.lusid.com/api/api/transactionconfiguration/types/default/Buy?scope=default'
  -H 'Content-Type: application/json-patch+json'
  -H 'Authorization: Bearer <your-API-access-token>'
  -d '{
  "aliases": [
    {
      "type": "Buy",
      "description": "Purchase",
      "transactionClass": "Basic",
      "transactionRoles": "LongLonger",
      "isDefault": false
    }
  ],
  "movements": [
    {
      "movementTypes": "StockMovement",
      "side": "Side1",
      "direction": 1,
      "settlementMode": "External"
    },
    {
      "movementTypes": "CashCommitment",
      "side": "Side2",
      "direction": -1,
      "settlementMode": "External"
    }
  ]
}'

Configuring portfolios

You can enable different settlement methods for stock holdings, cash holdings, and/or deferred cash holdings:

• Choose Automatic to settle units on the contractual settlement date, as per the default LUSID behaviour, but enable the option to cancel settlement or settle by instruction on an ad-hoc basis.

• Choose Instructed to negate the contractual settlement date. You must explicitly load one or more settlement instructions.

curl -X POST "https://<your-domain>.lusid.com/api/api/transactionportfolios/Equities/UK-Growth/details"
  -H "Authorization: Bearer <your-API-access-token>"
  -H "Content-Type: application/json-patch+json"
  -d '[
  {
    "path": "/settlementConfiguration",
    "op": "add",
    "value": {
      "stockSettlement": {"method": "Automatic"},
      "cashSettlement": {"method": "Instructed"},
      "deferredCashReceipt": {"method": "Instructed"}
    },
  }
]'

Overriding the chosen settlement method on an ad-hoc basis

You can nominate a property type with a special data type as an override key for a particular settlement method.

Consider the example where Cash settlement method is set to Automatic in a portfolio. You can specify an override key and then, for a particular transaction such as a dividend, add a property of that type with a value of Instructed to cancel automatic settlement and require an explicit instruction for just that transaction.

To do this:

1. Create a property type in the Transaction domain with the built-in data type system/settlementMethod permitting only the values Automatic and Instructed, for example:
   

2. Specify the property type as an override key for a particular settlement method in the portfolio, for example:
   

3. Add a property of the type to a particular transaction with the opposite value to the settlement method, either explicitly or via a transaction type or a transaction template, for example: