Yes. We provide free research and market data. Learn more
An order routing report displays the market center your orders were routed to for execution. A market center can be a market maker, which is a company that buys and sells securities from its inventory, or an exchange, such as the New York Stock Exchange. The market center we list is the initial market center we routed an order to. It may not be the actual center that executed the order. For example, we may send an order to a market maker who then sends it to an exchange to be executed.
If any of your window orders were matched with another customer’s orders, they will not be displayed in your order routing report. Those trades are executed internally, between the bid and ask price, which gives you better prices on your buys and sells.
An order routing report does not list execution information, such as the price or time of your execution.
The following information will be displayed for each security:
The Message Center is located on the accounts page and is the primary place to which we deliver account alerts, required notifications, product information and other important data related to your account and your clients’ accounts.
We will automatically send all messages to both your Message Center and your clients’ Message Center, as well as to both you and your clients’ primary email addresses.
You can update your notification settings by selecting Notification Settings in your Message Center. Similarly, your clients can edit notification settings by going to their Message Center (at www.FolioClient.com) and selecting Notification Settings.
In some instances, small “minimal” orders occur when you sync your model. These are orders that are generally too small to have a meaningful impact on overall account performance, but which can have unintended adverse consequences such as:
We have two trade thresholds to eliminate nuisance orders: a Percentage Trade Threshold and a Dollar Trade Threshold.
Model managers tailor the percentage trade threshold for each model, while firms set a universal dollar trade threshold for all their managed accounts.
Orders from model syncs must pass both of the percentage and dollar trade thresholds to generate. Orders that do not meet the percentage trade threshold or the dollar trade threshold will not generate.
Example - A Subscribed Folio with Percentage and Dollar Trade Thresholds: for orders to be generated, they must pass both the Percentage Trade Threshold and the Dollar Trade Threshold.
|Target Weight||Current Weight||Deviation||Percentage Trade Threshold||Order Amount||Dollar Trade Threshold|
In this example,
There are two instances where a minimal trade is placed regardless of its adherence to these thresholds. This occurs in the following situations:
Example - an Exception to a Threshold
|Order Side||Order Amount||Dollar Trade Threshold||Discarded?|
In this example,
In the example above, we would discard the sell order for Security D first, then the sell order for Security E. At this point the total of discarded minimal buy order amounts is exactly offset by the total of two discarded minimal sell orders. Therefore, we will no longer discard remaining sell orders, even if they do not meet the minimal trade thresholds.
The above example uses the dollar trade threshold for simplicity, but the principles apply to both dollar and percentage trade thresholds.
A standing letter of authorization - or “SLOA” - is authorization granted by a client to the client’s registered investment adviser to engage in certain activities with respect to the client’s account without needing to request the client’s written consent for each action. SLOAs are most commonly used by clients and their discretionary investment advisors when a client wants to grant the investment advisor the authority to move money into and out of the client’s account on the client’s behalf.
SLOAs fall into two categories: (1) SLOAs to move money between one or more accounts all owned by the same client; and (2) SLOAs to move money between a client account and a third party (which generally is referred to as a “third party transfer”). The SEC has interpreted both types of SLOAs in the context of the SEC’s Custody Rule. An investment advisor relying on a SLOA to move money between one or more accounts owned by the same client is not deemed to be a custodian of client assets under the Custody Rule. An investment advisor relying on the second type of SLOA, however, is deemed to have custody of client assets, but is not required to obtain an annual surprise examination if certain conditions are met. Folio Institutional does not accept SLOAs for an investment advisor to transfer money between a client account and a third party.
Third party transfers on the Folio Institutional platform are defined as transfers of cash or securities between two accounts with different account names or registrations. See the guidelines for transfers between accounts, which are incorporated in the Internal Account Transfer Form, for more information about transfers that are permitted without a notarized letter of instruction for each transfer.
No. A client must provide a signed, notarized letter of instruction to process a request to transfer money to or from an account with a registration different from that of the client.
Folio Institutional does not accept SLOAs to transfer money between a client account and a third party account. If you would like to process a request to transfer money to or from an account with a registration other than your client’s account, you will need to provide us with a signed, notarized letter of instruction and supporting documentation. For more detailed instructions, contact our customer service team at firstname.lastname@example.org.