Prime Brokerage Order Ticket

Overview

Prime Brokerage allows you to execute a block trade for equities and fixed income securities at another broker/dealer (Trade Away), called the Executing Broker (Contra-Broker), while settling this trade through allocations into individual, investor accounts custodied at Fidelity.

You can enter a prime brokerage trade and then enter its allocation information. Allocations must be done on the same day.

Accessing the Prime Brokerage Order Ticket

  1. Select Trade > Order Ticket > Prime Brokerage. The Prime Brokerage Order Ticket screen displays.
  2. From this screen you can create a Prime Brokerage Order.

  3. After creating an order, you can:

    • Ignore the information you entered and reset the fields of the ticket to their default settings.
      OR
    • Send it to market and display it in the Sent Orders List .
      OR
    • Save it to the Unsent Orders List so you can send it at a later time.

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Creating a Prime Brokerage Order

NOTE:

  1. The Order Type drop-down list determines the order ticket type that displays. Choose Prime Brokerage from the available selections.
  2. Using the associated drop-down list, you may change the Block Account specified by default for the order. NOTE: Your firm may or may not have more than one block trading account. See the Prime Brokerage Order Ticket Trade Preferences for additional information on establishing a default Block Account.
  3. Select the order Action from the drop-down list; note that your only options are either Buy or Sell.
  4. Specify the Quantity for the order. For fixed income securities, you must enter the face amount not the number of bonds (e.g., 50,000 rather than 50).
  5. Specify the security to use in the prime brokerage order by entering the Symbol or CUSIP or by looking up this information by selecting the Security Lookup link.
  6. When the Symbol/CUSIP field is populated, a Quote link displays. Select this link to display a pop-up screen containing pricing information related to your selection. NOTE: If you enter the CUSIP for a bond, Symbol not found displays. This message does not indicate that the CUSIP is invalid. It displays because the platform's security master file only contains the Symbols/CUSIPs for equities, indices, and mutual funds.
  7. Enter the Price Per Share of the selected security.
  8. Use the Commission Type drop-down list to establish the type of commission that will be paid; options are: Flat Fee and No Commission.
  9. Enter the Commission amount, which is the cost of the trade by the Executing Broker.
  10. Optionally, specify the Override Interest in the field provided. NOTE: This field is used for fixed income trades only.
  11. Enter the four digit DTC Number of the Clearing Broker into the DTC field.
  12. Enter the Trade Date, which usually is the current day. You either can enter the date in MM/DD/YYYY format either manually or use the drop-down calendar to make your selection
  13. Enter the Settlement Date of the trade. As was the case with the Trade Date, you either can enter the date in MM/DD/YYYY format either manually or use the drop-down calendar to make your selection.

  14. Once all fields are completed, select one of the following buttons:

    • Reset Ticket: Returns all ticket fields to their default settings, including any specified preferences.
    • Send Now: Sends the order to market and places it in the Sent Orders List. A confirmation pop-up screen displays notifying you that the order was sent to the market. NOTE: This button does not display if you do not have the appropriate entitlement.
    • Save Order: Saves the order to the Unsent Orders List. A confirmation screen displays.

  15. If you saved the order, from the confirmation screen, you can:

    • Select the Close link to close the confirmation screen after viewing the order information.
    • Select the View Orders button to close the confirmation screen and display the Unsent Orders List.
    • Select the Place Another Trade button to close the confirmation screen and display the order ticket.
  16. Double-click the order in the list to re-open the order ticket so you can create the allocations associated with it. NOTE: Please see the Prime Brokerage Allocation section of the Allocation Order Ticket topic for information on allocating prime brokerage orders.

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Prime Brokerage Order Ticket Field Definitions

Field Definition
Action Drop-down list used to specify the type of order; selections are: Buy and Sell.
Block Account Drop-down list used to make your selection from the available block accounts for order.
Commission Indicates the commission per share of the security. This value must be greater than or equal to 0. NOTE: This field is enabled when Flat Fee is selected in the Commission Type drop-down list and disabled for the No Commission setting.
Commission Type Indicates the way in which commissions are calculated; selections are: Flat Fee and No Commission.
DTC Indicates the 4-digit Depository Trust Company (DTC) number associated with the Executing Broker.
Interest Amount Indicates the dollar amount of interest applied to the order. This value must be greater than or equal to 0. NOTE: This information is calculated by Fidelity. Does not display an amount for Unsent orders.
Net Amount

Indicates the total cost of the order. This value is equal to (price per share + commission per share) multiplied by the quantity, plus the interest amount.

  • Sell Orders: The SEC Fee is subtracted from the total value calculated above.
  • Bond Orders: The value calculated above is divided by 100.
  • Option Orders: The value calculated above is multiplied by 100.

NOTE: This information is calculated by Fidelity. Does not display an amount for Unsent orders.
Override Interest Overrides the interest calculated by Fidelity. NOTE: This field is used for fixed income trades only.
Price Per Share Indicates the price per share of the selected security, which must be greater than or equal to 0.
Quantity Indicates the quantity of the order. Displays in Shares and must be a whole number greater than 0. NOTE: For fixed income securities, you must enter the face amount not the number of bonds (e.g., 50,000 rather than 50).
SEC Fee Indicates the amount of the SEC Fee applied to this order. This value must be greater than or equal to 0. NOTE: This information is calculated by Fidelity. Does not display an amount for Unsent orders.
Settlement Date Indicates the date the trade settles. Either enter a date or select one using the calendar that displays when you select the Calendar icon.
Symbol/CUSIP Indicates the Symbol, CUSIP, or Fund ID of the security for the order. The available entries are filtered according to the Action of the order you are creating.
Trade Date Indicates the date of the trade. Either enter a date or select one using the calendar that displays when you select the Calendar icon.

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NOTE: See the following related topics for additional information on trading:

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