LUSID enables you to create, configure and monitor a wide range of pre-trade and post-trade compliance rules, including:
Regulatory framework rules such as UCITS and US Mutual Funds
Risk management and performance rules such as VaR and exposure limits
Proprietary portfolio management rules such as investment limits, sanction lists and ESG guidelines
Third party compliance rules.
Important
LUSID provides you with building blocks and exemplar compliance rule templates for you to configure your own compliance rules. You are responsible for ensuring the correctness of your rules.
A compliance rule in LUSID is a sequence of filtering and grouping operations performed on a set of holdings, followed by a final check. You can use and combine these operations to meet a wide range of regulatory and proprietary trading rules.
LUSID provides you with compliance rule templates covering common compliance rules that make it simple for you to configure the rules you need, for example:
Percent contribution check
Absolute value check
Property within specified range or defined list.
You can leverage LUSID’s extensible data model to support compliance rules that use:
LUSID valuation metrics such as
Valuation/PVProperties such as country of origin
Reference lists such as a list of European equities
Third party data points, such as ESG data from a Horizon integration you subscribe to.
For example, you might use a percent check compliance rule template…
No holding of an instrument or group of instruments in list x should contribute more than p% of value v to any given portfolio.
…to configure the following compliance rule:
No holding of an instrument in reference list European Equities should contribute more than 10% of PV to any given portfolio.