Create an Account Group for Share Allocation

You can use an Account Group to automatically calculate ratios and allocate shares to a pre-defined group of accounts based on a selected allocation method. When you create an order and choose a group, the order uses the default method to allocate shares among the accounts in the group.

 

To create an Allocation Account Group

  1. From the menu select Advisor Setup.

  2. In the Advisor Setup window select the Groups tab.

  3. Click Create Group.

  4. Enter a descriptive name for the new group. Do not use the name "All" since this is reserved by the system.

  5. Select an allocation method to assign to the group. See allocation methods below.

  6. Add accounts to the group. Use the "+" to add an account.

  7. When all accounts have been added to the Allocation group, click Create.

Allocation Methods

Select a default allocation method to apply to a group. You can select an allocation method for each order.

Example: You transmit an order for 700 shares of stock XYZ. The account group includes three accounts, A, B and C with available equity in the amounts of $25,000, $50,000 and $100,000 respectively. The system calculates a ratio of 1:2:4 and allocates 100 shares to Client A, 200 shares to Client B, and 400 shares to Client C.

Example: You transmit an order for 700 shares of stock XYZ. The account group includes three accounts, A, B and C with Net Liquidation values of $25,000, $50,000 and $100,000 respectively. The system calculates a ratio of 1:2:4 and allocates 100 shares to Client A, 200 shares to Client B, and 400 shares to Client C.

Example: You transmit an order for 400 shares of stock ABC. If your Account Group includes four accounts, each account receives 100 shares. If your Account Group includes six accounts, each account receives 66 shares, and then 1 share is allocated to each account until all are distributed.

Note:  Also, while the available Group methods no longer include the Percent Change method as a selection (only Percent-Based), this method can be used to calculate the order quantity when the Group includes positions in the selected instrument. In this circumstance, the Quantity field will show a "% Change" section where you can choose the percent by which you want to increase or decrease positions. Once calculated, the Quantity field will display the percent with either Ind or POS. See details in the Create an Order for Multiple Clients topic.