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Set up pledging

The FA system allows users to pledge and unpledge portfolios and positions to restrict them from being traded or changed. Pledged positions are moved to a pledged portfolio. When positions are pledged or unpledged, the system creates transactions both in the pledged portfolio and the portfolio they originate from. To set up the pledging workflow, you need to have the following configurations in place:

  • Tax type to record profit-affecting taxes when pledging and unpledging. In Standard solution, the tax is set automatically.

  • Transaction types to use for transferring assets to and from the pledged portfolio.

Tax type to record profit-affecting taxes

The tax type to use for recording profit-affecting taxes related to the positions is “Pledging tax transfer PLED”. It is preset in Preference → Portfolios → Portfolios.

Ttansaction types for pledging and unpledging

To set up correct transfer of assets to and from pledging portfolios, select the transaction types and link them to the security types that can be pledged:

  1. Go to Preference → Portfolios → Portfolios and fill in the fields:

    • Removing position from portfolio. Select a transaction type – for example, standard "Remove (Internal), REMI".

    • Adding position to portfolio. Select a transaction type – for example, standard "Add (Internal), ADDI".

  2. Link security types to transaction types.

    1. Go to Preference → Securities → Security types and select the security type.

    2. In Links to transaction types, select the transaction types that you chose in step 1 and move them to the right with the arrow buttons.

    3. Click Save.

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