Overview
Allocations are handled separately from the order/execution process and you can create them before or after you create a block order. However, you cannot send allocations to Fidelity until there is at least one execution on the block order. If
there are multiple blocks for the same Security on the same side of the market (e.g., Buy, Sell), all allocations receive the same Average Execution Price. The goal is to allocate
the Executed share amount of the orders completely by the end of the business day. Allocations are accepted electronically until 8:00 p.m. Eastern time on the trade date.
You can create allocations manually using the Allocation Order Ticket or you can import them from another system to the Imported Section of the Unsent Orders List and attach them to an existing block.
The version of the Allocation Order Ticket that displays is based on the associated block order:
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Block Allocation
NOTE: Used for Equity, Option, and Fixed Income allocations.
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Prime Brokerage Allocation
NOTE:
- Used for Equity and Fixed Income Trade Away allocations.
- The account specified in the Allocation Order Ticket must be approved for Prime Brokerage in order for you to send this Allocation Type to Fidelity.
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Step In Allocation
NOTE: Used for Equity Trade Away allocations for a block order settled by Fidelity.
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Step Out Allocation
NOTE: Used for Equity Trade Away allocations for a block order executed at Fidelity.
A step-out allocation is an allocation for a block order that executed at Fidelity, but a portion of the block is being "stepped out" to another broker/dealer. This Allocation Type has a DTC field that
you use to specify the clearing broker who settles the client's trade.
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Global Equity Block Allocation
NOTE: Used for Global Equity allocations.
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Currency Block Allocation
NOTE: Used for Currency allocations.
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Creating an Allocation
NOTE:
- After you create an allocation, you can repeat this process until the Block is allocated fully.
- A warning message displays if you attempt to over-allocate the block (meaning you try to allocate more shares than are available).
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You can view the positions and balances for the account in context directly from the order ticket. Select the Refresh link to update the values in each section. Select a Positions column heading to sort the entries according to that criterion. The sorting method is indicated by a caret in the selected column heading; the caret points upward for Ascending ordering and points downward for Descending ordering. Selecting the column toggles between Ascending and Descending order.
NOTE: Please see Account Positions and Account Balances for descriptions of the fields in each section.
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Select Trade > Orders - Unsent and then select the Allocation - All entry in the dashboard above the list. OR Select Trade > Orders - Sent and then select the Allocation entry in the dashboard above the list.
OR
Select Trade > Orders - Unsent or Sent. Select the Blocks or Trade Aways entry in the dashboard above the selected list. Highlight an entry, and the select the Block Details button below the list.
NOTE: See the following help topics for detailed information on the Block Details screen for Block Orders,
Prime Brokerage/Step In Orders, and Prior Day Allocations.
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Display the Allocation Ticket and complete the Allocation Type field by doing one of the following:
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If you selected the Allocation - All entry in the Unsent Orders List OR the Allocation entry in the Sent Orders List, select the New Allocation button below the
list to display the New Allocation pop-up screen. Select the Allocation Type by selecting one of the links in the pop-up; options are: Block Allocation, Global Equity Block Allocation, Currency Block Allocation,
Prime Brokerage Allocation, Step-In Allocation, and Step-Out Allocation.
NOTE: The options in the pop-up screen are based on your entitlements.
OR
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If you selected the Blocks or Trade Aways entry in either the Sent or Unsent Orders List and then selected the Block Details button below the list, select the Block Allocations Tab (Blocks) or the Prime Brokerage Allocations Tab (Prime Brokerage, Step In, or Step Out), and then select the New Allocations button.
NOTE: When you open the Allocation Order Ticket using one of the Block Details screens, the Allocation Type field already is populated and you cannot edit it.
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If you have access to more than one Block Account, select the account you wish to use from the list in the drop-down list.
NOTE: If you opened the Allocation Order Ticket using one of the Block Details screens, this field already is populated and you cannot edit it.
- Use the Account Search feature to assist you in specifying the account for which you want to create the allocation.
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Select the order Action from the drop-down list. The options for equities are: Buy, Sell, and Sell Short
NOTE: When using B-Buy, the Action is Buy to Cover for Account Type 3.;
selections for options are: Buy Calls to Open, Buy Calls to Close, Sell Calls to Open, Sell Calls to Close, Buy Puts to Open, Buy Puts to Close,
Sell Puts to Open, and Sell Puts to Close; choices for fixed income are: Buy and Sell.
NOTE: If you opened the Allocation Ticket using one of the Block Details screens, this field already is populated and you cannot edit it.
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Select the Symbol/CUSIP for the allocation.
NOTE: If you are not sure of the information to enter, select the Security Lookup link to display the search pop-up screen. If you opened the Allocation Ticket using one of the Block Details screens, this field already is populated and you cannot edit it.
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Specify the Quantity of the allocation.
NOTE: The designation of this field is Shares for equities, Contracts for options, or Face Amount for fixed income (e.g., Enter 50 bonds as 50,000).
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Choose the Account Type for the allocation using the associated drop-down list; options are: <Blank>, DVP/RVP, Cash, Margin, or Short/Cover.
NOTE: If you send a <Blank> Account Type,
Fidelity determines the correct Account Type for the allocation.
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Optionally, specify the Client Confirm Note for the allocation using the associated drop-down list; options are: None <Blank>, Advisor Directed, Client Requested, or
Cross Trade.
NOTE: This information designates the power of discretion for this action and displays on the trade confirmation.
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For closing transactions (Equity: Sell or Buy to Cover; Option: Buy (or Sell) Calls to Close or Buy (or Sell) Puts to Close), make the optional Transaction Disposal Method selection using the associated drop-down list that displays. This selection is used to choose an alternative cost basis disposal method for this trade only.
NOTE: The method you designate on the ticket is used for this specific order and does not replace the account's established cost basis disposal method. Also, the Transaction-Level Disposal Method Override does not apply to the following cases:
- Opening Transactions
- Retirement Accounts
- Account Type 0 (DVP/RVP)
- Account Positions with an Average Cost Disposal Method
- If you are creating a Step Out Allocation, enter the 4-Digit Depository Trust Company (DTC) numbers in the Clearing Broker and Executing Broker fields.
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When you finish entering information on the Allocation Order Ticket, you can:
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Select the Reset Ticket button to ignore the information you entered and reset the fields of the ticket to their default settings.
OR
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Select the Save Allocation button to save the allocation to the Unsent Allocations Section of the Unsent Orders List so you can send it at a later time.
OR
- Select the Close order ticket without saving changes link to close the allocation without taking any action.
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If you chose to save the allocation, the Allocation Confirmation screen displays. This screen provides a summary of the information you entered on the ticket; a message displays above these details indicating if the order was created successfully
or if it encountered errors in its generation. You can:
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Select the Block Details button to display the associated Block Details screen.
OR
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Select the New Allocation button to display the Allocation Order Ticket so you can create another allocation.
OR
- Select the Close order ticket without saving changes link to close the Allocation Confirmation screen without taking any action.
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Editing an Allocation
- Select (highlight) the allocation you want to edit.
- Select the Edit button. You also can right-click the allocation and choose Edit from the shortcut menu that displays or merely double-click the allocation.
- The Allocation Order Ticket displays. As required, make the necessary changes to the allocation.
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When you complete your edits, you can:
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Select the Revert to Original Order button to ignore the information you entered and reset the fields of the ticket to their settings prior to your making any changes; the Allocation Order Ticket remains open.
OR
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Select the Save Allocation button to save the revised allocation to the Unsent Allocations Section of the Unsent Orders List so you can send it at a later time.
OR
- Select the Close order ticket without saving changes link to close the Allocation Order Ticket without saving any of your edits.
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Deleting an Allocation
- Select (highlight) the allocation(s) you want to delete.
- Select the Delete button. You also can right-click within the highlighted allocation(s) and select Delete from the shortcut menu that displays.
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A Delete... pop-up screen displays.
NOTE: Select the x in the upper right corner of the screen if you wish to close the screen without performing any deletions.
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Select the All Selected Allocations button to delete the multiple highlighted allocations.
OR
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Select the All Allocations I Created button to delete all the allocations you created.
OR
- Select the All Allocations button to delete all allocations.
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A warning screen displays asking you to confirm the deletion since this operation cannot be undone.
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Select the Delete Allocations button to proceed with the deletion.
OR
- Select the Close without Deleting button to abort the deletion process.
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Sending Allocations
When there is at least one execution on a particular block order, you can send the associated allocation(s) to Fidelity.
- Highlight the allocation(s) you wish to send to Fidelity.
- Select the Send button. You also can right-click within the highlighted allocation(s) and select Send from the shortcut menu that displays.
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A Send... pop-up screen displays.
NOTE: Select the x in the upper right corner of the screen if you wish to close the screen without performing any deletions.
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Select the All Selected Allocations button to send the multiple highlighted allocations.
OR
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Select the All Allocations I Created button to send all the allocations you created.
OR
- Select the All Allocations button to send all allocations.
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A confirmation screen displays. The screen has two sections; one section displays information about the allocations being sent and the other contains information about the allocations that are not being sent. The Allocations Being Sent table displays the sums of the allocations and their overall Estimated Value according to Order Type and Action. The Allocations Not Being Sent table lists the reason the allocations
are not being sent along with the number of allocations involved. There also may be notes concerning the allocations that are being sent.
NOTE: Check the Message Center for notification of the allocation status (since this operation occurs asynchronously with respect to the platform).
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Select the Send Allocations button to complete the process and close the screen.
OR
- Select the Close Without Sending button to close the screen and leave the allocation(s) intact in the Unsent Orders List.
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The Unsent Allocations Section of the Unsent Orders List displays.
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If you selected the Cancel without making changes link, the allocation(s) you highlighted remain unchanged.
OR
- If you selected the Send Allocations button, the allocations you sent have a new Status of Submitted.
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NOTE: See the following related topics for additional information on trading:
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