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Security Restriction Overrides
Security restrictions allow you to limit trading activity on certain securities at the global, trade file group, or account level. If you generate a custom strategy or quick trade that violates a security restriction, it is possible to override these restrictions to allow trades. However, for the purpose of compliance and accountability, Tamarac Trading offers tools that warn about security restrictions and force a trader to provide documentation for these trades. This can prevent accidental trading of restricted securities and gives your firm more accountability when those one-off or special circumstances do occur.
To enable the required approval process when trading in restricted securities, select Approval required for custom strategies that override restrictions on the Rebalancing System Settings page.
When enabled, Approval required for custom strategies that override restrictions appears in your trading workflow in the following ways:
Alert.A warning message details information about the restriction violation and requires documentation before the trade can be sent to the Trade List.
Review.Review security restriction violations along with trades by adding the Restriction Override column. A banner alerts you to restriction overrides for review and allows you to download a bulk report in one click that shows security restriction details.
Audit.Audit security restriction overrides through the Restriction Overrides bulk report or by adding restriction override columns to other bulk reports.
With Approval required for custom strategies that override restrictions enabled, you'll see the following alerts and information when trades are created for restricted securities:
During a normal rebalance, Tamarac Trading won't recommend trades that would violate security restrictions. However, in special circumstances, you may want to create such trades using a custom strategy or quick trade. After creating the trade, Tamarac Trading will alert you to security restriction overrides and you will be required to document the reason for the trade. Tamarac Trading then captures the reason for the trade, the trader's name, date, time, and other details. Users can then review that information when approving the trade and at any time using a bulk report.
You’ll see a notification of all security restriction overrides when you create a trade in a restricted security in the following circumstances:
Generate Custom Strategy
Quick Trades
Edit Trades
Available Cash shows cash available in the account if this custom strategy or quick trade is applied. It is based on the Cash Above Reserve value. This allows you to evaluate the impact of the trade on cash and determine whether the trade might cause negative cash in the account.
Below the trade details, you'll find the type of restriction and any notes added to that restriction. For example, if a security was restricted at the account level, you may have documented the reason why it's restricted just for that account.
If you'd like to cancel a security restriction override, clear the check box next to that trade before you click Continue.
In Notes, you'll be required to document information about the trade before you can proceed. Without a note, you cannot apply the trade, and the trade cannot be approved or executed. The Restrictions in Violation window may contain the same trade twice if it violates both a security restriction and an account-level restriction. In these cases, you must provide documentation for both trades before it can be sent for approval or execution.
If this trade becomes a logged order, you can access these notes at any time after that using a bulk report. If the trade is canceled or otherwise not executed, the notes you enter won't be kept because they will no longer apply.
If a security restriction override exists on some pages, the yellow alert banner at the top of the page will let you know. Click the link to directly download a bulk report showing restriction information and the notes associated with those restrictions.
Add the Restriction Override column to your view for a quick, read-only summary of relevant restriction overrides. This column displays a View Details link that opens a read-only window of information about the security restriction override, including notes entered and details about the restriction.
For more about notes and how they're used in Tamarac Trading, see Overview of Notes in Tamarac Trading.
You can add the Restriction Override column to these pages:
This column is also available on the Trade Summary grid and is available for all firms, even if you don't have Approval required for custom strategies that override restrictions enabled.
There are two different ways you can see restriction overrides in bulk reports: In a stand-alone Restriction Overrides bulk report or by adding restriction override-focused columns to existing bulk reports.
For compliance or auditing purposes, you may want to see details about many security restriction overrides at once.For this purpose, the Restriction Overrides bulk report is a customizable report that shows security restriction override information. For more information on building and running bulk reports, see Create, Edit, or Delete a Bulk Report.
After a trade becomes an order on the Trade List, the Restriction Overrides bulk report is available to directly download from Trade Actions.
You’ll see the Restriction Override section of columns in other bulk reports. These columns allow you to see specific details about trades in restricted securities, such as the name of the trader, the date and time of the trade, the restriction that was overridden, and more.