Charles Schwab Plan Administrator Services. Electronic Trading

Transcription

1 Charles Schwab Plan Administrator Services Electronic Trading The Charles Schwab Corporation (Schwab) provides services with respect to retirement plan sponsors and participants through its affiliates Schwab Retirement Plan Services, Inc, The Charles Schwab Trust Company, and Charles Schwab & Co., Inc. Schwab also provides equity compensation plan services and other financial and retirement services to corporations and executives through Charles Schwab & Co., Inc. 1

2 Agenda Overview Of Trade Data Interchange (TDI) Review Typical Trading Cycle TDI Setup Steps Same Day Exchanges Common Trading Functions Review Link Specific Functions Review Options for Late Order Placement (not covered in detail) Review Trading Exceptions Review Trade Deadline Exceptions Questions 2

3 Trade Data Interchange Overview of TDI The electronic interchange for the communication of trade files to and from various trading partners Each trade is assigned an Order number that is communicated to trading partners and used to track the order within the system Schwab Trust (CSTC) and Broker/ Dealer (Custody) have customized interfaces Other trading partners use the Generic File format Multiple Generic Links can be defined and used to support multiple trading partners Plans are associated with one or more trading links using TDI Maintenance Trading links are associated with investments and investment overrides using Investment Maintenance 3

4 Typical Trading Cycle Create orders when printing Buy/Sell Worksheets Export orders to a file for each trading partner Upload order files to the trading partner using their software Download order confirmation and price files using the trading partner s software Import order confirmation files into the system Allocate dividends and accruals received on confirmation files Settle orders via TDI Release orders via TDI 4

5 TDI Setup Steps Add TPA Identifiers in RK SQL System Maintenance (C282) Define TDI Link Names using TDI Maintenance (C046) New in Release 2.5 Add TDI Records for each plan in TDI Maintenance (C046) Define Trade Links in Investment Maintenance (C002) May need to define plangroup overrides Select to create exchanges in Plan Maintenance (C001) to control the creation of forfeiture exchanges 5

6 Define TDI Link Names New in Release 2.5 Links 3, 12, 20, 21 and 40 are pre-defined and reserved for Charles Schwab Links Enter the description for how you will reference the Link 6

7 Define TPA Identifier for Each Link Determine which links will be used Add TPA ID as assigned by the trading partner 7

8 Define Links for the Plan in TDI Maintenance Add Records to add a link to a plan Select Link ID Populate Account Field 1 and/or 2 with account identifier used by the trading partner Designate Primary Link ID 8

9 Define Trade Links in Investment Maintenance Select a Link from the drop down list 9

10 Overview of Same Day Exchanges An exchange refers to the sale and purchase of funds involved in a transfer occurring on the same day A variant transfer refers to the sale of a fund on one day and the purchase at a later date Investments that can participate in exchanges need to have a consistent Investment Family ID assigned in Investment Maintenance (usually 1) Investments outside the fund family will trade as transfers 10

11 Exchanges - Assigning the Investment Family ID Designate the fund family ID if the asset will participate in exchanges 11

12 Same Day Exchanges Plan Maintenance Create Exchanges controls how transfers to the forfeiture management account are invested Not valid for Broker/Dealer plans 12

13 Common Trading Functions These processes are used for all trading links Create Orders with Buy/Sell Worksheets Settle Batches by TDI Release Batches by TDI 13

14 Buy / Sell Worksheets - Creates Orders Select Update to create a record in the Order File 14

15 Settle Trades via TDI Select TDI Ability to process all plangroups Typically select all pending files Will process all Links that have been imported 15

16 Batch Release via TDI Select TDI Ability to process all plangroups Typically select all pending files Will process all Links that have been imported 16

17 Link Specific Functions Creating Trade Files Importing Trade Files Importing Price and Price/Position Files 17

18 Creating and Exporting Trade Files Charles Schwab Links CSTC Enhanced Import/Export (C145) Broker/Dealer Export (C135) Generic Links Generic Export (C129) 18

19 Create Trade File - CSTC Enhanced/Auto Price Export Allows a preview Be careful with Re- Export 19

20 Create Trade File - Schwab Custody Export Allows a preview Be careful with Reexport 20

21 Create Trade File - Generic Export Choose Link Allows preview Re-Export Specify file name and location Run for each Generic Link 21

22 Charles Schwab Links Importing Trade Files CSTC enhanced Import/Export (C145) Broker/Dealer Import (C136) Generic Links Generic Export (C129) 22

23 Import Trade File - CSTC Enhanced/Auto Price Import Select Import file Select Income options on next tab 23

24 Processing Income - CSTC Enhanced/Auto Price Import Select plans to be processed and income options Also select status codes and tax codes on other tabs 24

25 Import Trade File Schwab Broker/Dealer Import Specify file to import Select income options on next tab 25

26 Processing Income Broker/Dealer Import Select plans to be processed Also select status codes and tax codes on other tabs 26

27 Import Trade File - Generic Import Select Link Specify file to import Also select income options on next tab 27

28 Processing Income - Generic Import Select plans to be processed and income options Also select status codes and tax codes on other tabs 28

29 Importing Price and Price/Position Files CSTC Price/Position Custody Price Custody Position Generic Price Generic Price/Position 29

30 CSTC Price and Position Import Specify File Update Option This file also contains and updates redemption fee information 30

31 Broker/Dealer Price Import Specify File Update Option 31

32 Broker/Dealer Position Import Specify File 32

33 Generic Price Import Select Link Specify File Update option for accrual rate Update option for accrual processing Repeat for each link 33

34 Generic Price and Position Import Choose Link Specify File Update Options Repeat for each Link 34

35 Same Day Trading/Late Order Placement Use Same Day Trading to update your trade orders with the current price before exporting them to the trade vendor. The result is an export file that contains no uncertain components; therefore, you can settle and release trades on the same day they are generated. This enables you to display more current participant data through your Online Participant Interface (OPI) platforms (i.e., Schwab RT Voice, Schwab RT Web, and the VRS/OPI Customer Service application). When the trade vendor returns an import file on the following day, the file contains confirmations for the trades already released. The confirmations are used to verify that the trades released yesterday were correct. Plan ID, order ID, investment CUSIP, activity type, price, cash, units, exchange ID, and a comment stating whether the trade is correct are shown on the confirmation. If a trade was incorrect, it is noted in the comment line. 35

36 Late Order Placement Options Charles Schwab CSTC Enhanced Import/Export (C145) using Late Order Placement options Broker/Dealer does not support Generic Generic Price Import/Trade Export (C170) Generic Same Day Settlement (C171) 36

37 Same Day Trading/Late Order Placement Requirements You must set up a separate Generic Link for funds and plans using Same Day Trading Before pricing using Same Day Settlement, you must run Start a New Day and advance your day You must ensure that you have agreements with Trading Vendors to receive a pricing file 37

38 CSTC Late Order Placement Specify import file Trade file can be created at the same time Batches settled by TDI 38

39 Generic Price Import / Trade Export Specify import file Choose Import Price or Export Trades Batches settled by TDI 39

40 Generic Price Import / Trade Export. First you would run the Price Import, checking Update Prices box, otherwise it will run in edit mode 40

41 Generic Price Import / Trade Export. When pricing is completed you are then ready to Export the trade file 41

42 Generic Same Day Settlement Import file created by Generic Price Import/Trade Export process Settle Batches using TDI 42

43 Tracking Trade Exceptions Order Entry Aging Report Order File Maintenance Searching for an order Maintainable and Non-Maintainable fields 43

44 Order Entry Aging Report Select Search Type Will report orders sent but not received backed 44

45 Order File Maintenance Select the search criteria Specific Order # By Plan Id Batch Number Date Range 45

46 Order File Maintenance Some fields can be maintained prior to settlement 46

47 Tracking Trade Cutoff Exceptions The following slides provide documentation for the system s method of tracking exceptions to the normal 4 pm trading cutoff The documentation explains which modules track the exceptions The system can be configured to prompt the user with a dialog box to request an explanation of the exception 47

48 Order Exceptions 48

49 Order Exceptions 49

50 Order Exceptions 50

51 Order Exceptions 51

52 Order Exceptions 52

53 . Questions Presentation Hosted By Frank Seta 53