Trade at Close Program User Guide

The Trade at Close Program was implemented as a high-performance system specifically designed to process model sync requests for mutual funds in a very short period of time. This allows you to place trades close to the notification deadlines for the three mutual fund families supporting late day trading: ProFunds, Rydex and Direxion. We have established automated trade notification and verification interfaces with these fund companies to enable order placement as late as four minutes before the daily order entry cutoff time for the fund.

We make every effort to handle orders designated for the Trade at Close Program promptly. However, because mutual fund families have different cutoff times and other policies, we cannot guarantee orders will be transmitted to the mutual fund family prior to the order cutoff time, that transmission will be effected in a timely manner, or that orders will be executed by the participating mutual fund family upon receipt even where receipt is timely as defined by the fund family.

Enabling the Trade at Close Program

Firms wishing to use the Trade at Close Program may apply using the Trade at Close Application. Program access is granted to the entire firm and is not restricted to particular user IDs. To the extent that a third party model manager is approved for the Program, each registered investment advisor firm that subscribes to a model participating in the program must also apply using the Trade at Close Program Application.

Eligible Models

To be available for use in the Trade at Close Program, a model must contain only eligible mutual funds and FDIC.CASH.

Note: Individual folios subscribed to a model that does not meet the above eligibility requirement will be dropped out of the Trade at Close Program order process (i.e., no orders will be generated for that folio.)

For example, if an invalid security (e.g., GOOG) was added by an advisor to a folio subscribed to a model in the Trade at Close Program that was previously deemed valid (i.e., contained only eligible funds), no future orders will be generated for that particular folio when it attempts to participate in the Trade at Close Program. All other subscribed folios meeting the eligibility requirements will have orders generated for them.

How Do I Use It? – Generating Orders using Trade at Close

After your firm has been granted access to the Trade at Close Program, the Sync Screen will contain in a new section a Generate Orders for Immediate Processing button that will generate orders immediately when pressed (See image below). The button will only be actionable after 2:00 PM ET on days when the market closes at 4:00 PM ET.

What happens when markets close early?

If the market is scheduled to close earlier than 4:00 PM ET, the Generate Orders for Immediate Processing button will not be enabled. All mutual fund Window orders will be processed in the regular trading Window for the day, which generally occurs around 11:00 AM ET.

Trade at Close Program Order Processing (during eligible timeframe)

When an eligible model is synced, orders will be generated immediately and they cannot be cancelled. Because of this, when the Generate Orders for Immediate Processing button is selected, a confirmation notice (see image below) will be displayed to inform you that generated orders cannot be cancelled. You are prompted at this point to confirm your Trade at Close order submission. If you select the Place Orders button, the model sync will generate orders if the model itself is valid. Selecting the Cancel button will return you to the model manager's Sync Screen. You will receive an email alert when a folio does not participate in order generation because it is ineligible.

The cutoff time for Trade at Close Program orders for a given fund is generally four minutes prior to the mutual fund family's order entry cutoff time. This four minute period is required to evaluate and generate orders for all subscribed folios and to communicate with the participating fund companies to satisfy their notification and verification requirements. The exact cutoff time can change without prior notice based on fund family protocols in effect at the time of order creation.

Trade at Close Confirmation Notice

How Do I Add Cash or Mutual Funds to Folios Subscribed to Trade at Close Program Models?

Adding or removing cash from a model when using a Model Sync Order, including a model that participates in the Trade at Close Program, will not add or remove cash from a client's account.

You can add or remove cash and/or transfer eligible mutual fund securities into a folio created for use in the Trade at Close Program. Once the addition or removal is completed the folio will be able to participate in the next model sync.

Other Important Notes