Allocation Overview

The Allocation widget is used for assigning unreleased fills to child care orders of combined bulk orders using a selected allocation method. The fills and fill prices from the post-trade allocation method can be previewed in the widget prior to being accepted and released to the customer.

You can open the widget in your workspace by:

  • Clicking Widgets | Order Management | Allocation in the workspace menu bar.
  • Right-clicking a parent bulk order in the Order Book or orders pane of the Orders and Fills widget and selecting Allocations preview.

Allocation Methods

In the Preview pane of the Allocation widget, you can select the following allocation methods:

  • Avg Price (Average Price) — Shows the calculated average price for fills allocated to the customer's care orders. Not all exchanges accept average prices.
  • Fill Price (Average Price with Fills) — Shows the average price based on the actual fill price and quantity of the unreleased child order fills. Note: Unlocked bulk orders are automatically allocated to the original care orders using this allocation method.

Allocation example

The following example shows how the Allocation widget allocates fills and fill prices for your selected bulk orders.

In this example, three Buy-side care orders with quantities of 20, 30, and 50 are combined into a single bulk order with a quantity of 100 and at a price of 43.73. The bulk order is locked and fills have not been released to the customer as shown in the Release column.

The Unreleased Fills pane shows that the bulk order was filled at three different prices: 43.69, 43.70, and 43.71. In the Preview pane, the AvgPrice allocation is selected which shows that the 20, 30, and 50 lot original child care orders were filled and received the same Average price of "43.699".

When Fill Price is selected, the Preview pane shows how the unreleased fills were allocated to the child care orders. For the 20 lot child care order, it shows that the widget allocated 5 fills at 43.69, 13 fills at 43.70, and 2 fills at 43.71 for an average price of "43.699". The widget also allocated the remaining fills to the 30 and 50 lot child care orders to achieve the same average price for both orders.