Settling cash to the portfolio currency at a different FX rate

When you book a transaction in a different currency to that of the portfolio you have the option to specify an exchange rate, either directly on the transaction itself or by asking LUSID to look up a rate for the trade date in the Quote Store.

When you load a settlement instruction (SI) for a cash movement generated by that transaction you can choose to override this trade date FX rate. LUSID can then calculate FX gain/loss between the trade and settlement dates.

For example, imagine we have a standard Buy transaction for 100 units of BP @ £5 per share in a USD portfolio with the Transaction/default/TradeToPortfolioRate property set to 1.3, yielding an estimated portfolio cost for the temporary cash commitment holding of -£500 × 1.3 = -$650:

To settle the cash at a different FX rate:

1. Enable LUSID to calculate FX gain/loss between trade and settlement dates. See below.

2. Either:

   1. Specify a FX rate directly on the SI. See how to do this.

   2. Ask LUSID to look up a rate for the settlement date in the Quote Store. See how to do this.

   Note if you do both a) and b) then a) prevails.

Enabling LUSID to calculate FX gain/loss between trade and settlement dates

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",
        "calculateTradeDateToSettlementFxPnL": true
      },
      "deferredCashReceipt": {"method": "Instructed"}
    },
  }
]'

Specifying a FX rate directly on a settlement instruction

curl -X POST "https://<your-domain>.lusid.com/api/api/transactionportfolios/Equities/UK-Growth/settlementinstructions"
  -H "Authorization: Bearer <your-API-access-token>"
  -H "Content-Type: application/json-patch+json"
  -d '[
  {
    "settlementInstructionId": "Settle-Txn01-10-Sep-2025",
    "transactionId": "Txn01",
    "settlementCategory": "CashSettlement",
    "instrumentIdentifiers": {"Instrument/default/LusidInstrumentId": "CCY_GBP"},
    "actualSettlementDate": "2025-09-10T00:00:00.0000000+00:00",
    "units": -500,
    "instructionToPortfolioRate": 1.4
  }
]'

In our example, overriding the trade date GBP/USD rate of 1.3 with a settlement date rate of 1.4 changes the portfolio cost of the now-settled cash balance holding to -£500 × 1.4 = -$700:

You can audit the FX gain/loss between trade and settlement dates by examining output transactions:

Asking LUSID to look up a FX rate for the settlement date

You must first:

1. Configure the original transaction type to use the Txn:TradeToPortfolioRate calculation.

2. Create a recipe with a market data rule for the currency pair, for example GBP/USD.

3. Register this recipe with the portfolio.

4. Load a FX rate valid for the actual settlement date into the Quote Store.

See how to perform these steps.

You must then configure the portfolio to enable look up for cash, deferred cash, or both. See below.

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",
        "calculateTradeDateToSettlementFxPnL": true,
        "calculateInstructionToPortfolioRate": true
      },
      "deferredCashReceipt": {"method": "Instructed"}
    },
  }
]'