How do I perform a pre-trade compliance run and view the results?

Providing you have suitable access control permissions, you can perform pre-trade compliance runs to check your orders are compliant with the relevant regulations using LUSID’s order management system. After creating an order in the Order Blotter dashboard, you must run a compliance check that passes before you can create a placement for the order.

Performing a pre-trade compliance run

There are prerequisites for performing a pre-trade compliance run:

  1. Set a default recipe in the LUSID web app by navigating to System Settings > Default Settings:
     
    The default recipe defines which recipe to use in the holdings valuation during the compliance run.

  2. Create your required compliance rules. Note you must create compliance rules within the scope PMS to include them in pre-trade compliance runs.

If the prerequisites above are met, you can perform a pre-trade compliance check using the LUSID web app:

  1. Sign in to the LUSID web app.

  2. From the top left menu, navigate to Dashboard > Order Blotter:
     

  3. Optionally, select Create order to create one or more orders if you haven’t done so already.

  4. Select Run compliance.
     

Once the compliance run is complete, you can click on the unique Run ID to view the results.

Note that the run completing successfully does not indicate whether your orders passed or failed the check, only that the check completed with no errors. If the compliance run cannot be completed (meaning it was unable to check all orders against your compliance rules) an error message is displayed with further information.

AnchorViewing and interpreting compliance run results

Note: You can set up different access control permissions for different roles and users, for example to grant varying levels of access to Compliance Officers, Traders or Portfolio Managers.

You can monitor compliance run results via the LUSID web app:

  1. Sign in to the LUSID web app.

  2. From the top left menu, navigate to Compliance > Compliance Dashboard:
     

  3. Select Run history and choose the compliance run you want to view the results for:

For each compliance run, LUSID breaks down the results to a pass or fail per compliance rule. If one or more rules have a Status of Failed, the compliance run fails and the order cannot be placed until either:

  • All rules have Passed in a subsequent compliance run.

  • The breach is overridden. More information coming soon.

You can select a rule to see a full breakdown of the series of operations, or steps, applied to the holdings to reach the Passed or Failed result. This is known as its lineage.

The lineage shows you how the holdings were grouped, filtered, valued and checked so you can see exactly where and why the rule was breached.

More information on breach management is coming soon.